While Jo had imagined this massive hearth would rise straight to the ceiling, Chip insisted on tagging in as a "design assistant extraordinaire"—and adding "hips" for a bit of additional character.

By design, this mixed-use space is perfectly suited for entertaining and family gatherings. "Instead of everybody crowding in the kitchen," says Nancy, "we can all be together in one great room."

The statement piece in the dining area is the large-scale chandelier in rustic copper finish.

Grasscloth in a neutral shade replaces the old, ornate wallpaper and blends thematically with the linen slipcovers and wood dining table in natural finish.