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When developer Martin Kehoe first met with Rick Michaelson of Inner City Properties and colleague Dan Volkmer, he had no intention of selling his property at 1507 N.W. 24th Ave.

Kehoe planned to build on the site a seven-unit townhome development that would have required demolition of the 116-year-old . Neighbors rallied in opposition, and in April briefly initiated a temporary . But having begun deconstruction, Kehoe was hesitant to let go of his investment – until Michaelson and Volkmer made a pitch.

“At the end of an hour, Rick Michaelson and Dan Volkmer had convinced me to accept a deal that would result in the sale of the property,” Kehoe said. “They are businessmen and they were very logical and very persuasive, and their passion and love of Northwest Portland was very, very clear … They convinced me that it was the right thing to do.”

The sale is expected to close by the end of the month. Parties involved declined to provide details of the arrangement, but Kehoe purchased the property (including an adjacent lot with a less significant single-family home) in March for approximately $1.5 million. Restore Oregon Friday; Michaelson is one of its board members.

The Goldsmith house was designed by Edgar Lazarus, who also designed the in the Columbia River Gorge. Volkmer, principal broker of the Dan Volkmer Team, said the Goldsmith family originally platted much of the neighborhood in the 1800s. The house isn’t on the National Register of Historic Places, but Restore Oregon Executive Director Peggy Moretti said it could be.

Michaelson said he is one of approximately 20 neighbors who came together to purchase the property. Their plan is to restore the house as a single-family home (it has served as an office for decades), and likely develop the adjacent property as multifamily housing. Those details aren’t set yet.

“We’re incredibly excited and a little nervous,” Michaelson said. “It’s a workload issue. We had enough work going on without taking on this project, but when an opportunity and a need comes along, you just have to take it regardless of what time it is.”

Volkmer said the sale of the Goldsmith house represented a good compromise.

“Both Marty and Rick deserve kudos for sitting down at the table and I think in the long run doing the right thing for everybody,” Volkmer said.

Meanwhile, Kehoe will be able to tackle numerous multifamily projects in the pipeline.

“We have so many – so many – other good development projects that we’re working on – both in Portland and in Seattle,” he said. “So to turn this one back into a beautiful … grand old mansion makes me feel pretty good.”