The house was built in 1895 by Alexander MacDonald, a wealthy businessman and one-time president of Standard Oil Company with John D. Rockefeller. Originally from Scotland, MacDonald left his native home to seek his fame and fortune and eventually landed in Cincinnati, Ohio. He became director of numerous companies, including several successful rail-lines, mining companies and the Third National Bank. He was also active in charities and philanthropy. His salaries and investments from a number of these posts allowed him to amass a considerable personal fortune.

He married Laura Palmer in 1862. They had one son, who died in infancy, leaving their only daughter, who they also named Laura. Daughter Laura married Edmund Stallo, a young Cincinnati lawyer and son of the U.S. Ambassador to Rome. Laura and Edmund had two daughters, Helena and a third Laura. Unfortunately, Laura Stallo died at a young age in 1895, leaving the two girls in the care of Mr. & Mrs. MacDonald. With Alexander's wealth, the grand-daughters were given the best possible education and were able to travel with the MacDonalds all over the world.