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Randy embraced the project with one strategy in mind: Set some ground rules. "I needed to create a space that would offer as much privacy as possible while all five of us are here," Randy says, "and, at the same time, to make it feel like a luxurious hotel suite when Sean and I are here alone."

The condo now boasts a terrifically economical setup, with separate hangout areas connected by an upbeat color scheme. Throughout the apartment, Randy's mix of elegant antiques and flea-market finds—combined with an innovative use of fabrics (bought in one hour at a discount store)—conjures up a beachy, retro-modern vibe. "I wanted it to look like a page out of Architectural Digest from the 1960s," he says.

The nondescript living room was recast as a youthful, yet elegant lounge that doubles as the children's dorm and entertainment zone; they sleep on two Moda Furniture sofa beds. Randy bought the blue-framed mirror at a Ferndale, New York, antiques store. "My son thought it was awesome right away," he adds. "The girls assumed it was a hotel room. It took a while before they realized that it's ours."