When Karen and Shane Steffen were about to give up on their search for a new home, they happened to stumble on a house in the clouds up a steep driveway on Awbrey Butte.

“We saw the open house sign and decided to drive up. We loved it instantly,” said Karen, who works as a cell and gene therapy biotechnology consultant.

The large two-story home with mid-century mountain vibes and a cement tile roof came with a name—the Panorama Lodge. The Steffens could envision hosting their annual Kentucky Derby party and other large gatherings in the open layout living area leading to a sprawling terrace with a panoramic view of snowcapped mountains. But with 1980s details and signs of wear from years as a rental, the home demanded an update.

The Steffens hired House of Milo founder Sarah Westhusing to renovate much of the ground floor. They also brought on long-time Bend interior designer Michele Schnake. Together, the team overhauled the main living area. They merged their distinct but complementary aesthetics to create a light and airy great room. This sits alongside a well-appointed kitchen. In the new layout, each space flows thoughtfully into the next.

Preserving Original Craftsmanship in an Awbrey Butte Home Renovation

Many of the home’s original features were worth preserving, such as the bright fir ceilings in a light stain, the lodgelike rounded columns—each made from a single fir tree—and the oversized lava rock fireplace that anchors one end of the great room. “It was definitely built by someone who was a craftsman,” said Westhusing. The designers ripped up the subfloor and inlaid carpeting and added hardwood floors. They created greater openness by removing the built-in banquettes and the rounded cabinets with beveled edges in the kitchen.

To create distinctive spaces in the open floor plan, the designers embraced the purpose of each room, such as creating a cozy place to gather in the sunken living room.

“We knew everyone would huddle around the fire. We wanted to lean into cozy furniture and a fluffy rug with 1970s flair,” said Westhusing. The shaggy Loloi rug in black, cream and taupe adds warmth and texture, while the functional Four Hands Lyla chairs swivel to enjoy both the views and the fire.

Schnake and Westhusing emphasized the dining table with a linear Alora mid-century dining pendant. In the small, outdated kitchen, the designers dropped the countertop, added open shelving and Thermador appliances and created a pullout pantry. The quartz-topped kitchen island is not as large as some, but it is functional with built-in shelving for cookbooks and other items. The windows wrap around like the prow of a ship, providing endless views of mountains and trees.

A Home Built for Entertaining and Gatherings

One of the Steffens’ main requests was a bar with an ice machine and a wine refrigerator. A designated entertaining space was created by removing an old wine rack. They added a built-in bar with hidden bottle storage and a Zellige tile backsplash next to the kitchen with easy access to the dining room for bringing drinks to the table.

“It has a nice open flow,” said Karen. “It’s conductive to hanging out.”

Because the Steffens like to have people over, Schnake and Westhusing chose furniture in durable, wipeable materials such as leather and bar stools in a textured pink terracotta bouclé fabric.

“We wanted the furniture to be young and fun, comfortable and not too serious. Karen and Shane are really fun people,” said Westhusing.

Mixing Midcentury Design with Natural Materials

The home feels open and free, with its high ceilings, large deck with a hot tub, and the way the space layers different styles and eras. Schnake has an eye for mid-century style, while Westhusing favors natural finishes and both wood and stone accents.

“It’s more fun to have someone to run ideas past who has a background in this. I think more houses should be designed collaboratively,” said Westhusing.

On any given day, Shane might be barbecuing outside, Karen prepping food in the kitchen and friends and family lounging in the living area. The design fits their lifestyle: casual, natural and inviting like the homeowners themselves.

Looking for more home inspiration? See more Central Oregon renovations here.