In 1900,Kosterin and his business partner S. A. Chernikov leased, and started operating, a state-owned three-storey steam mill on Sofronovskaya Pier [ru].

From June 1919, following the capture of Ufa by the Red Army, the building housed the political department of the 25th Rifle Division, under the command of Vasily Chapayev.

[1][2] Due to its angular location, with front façades overlooking both Pushkina and Karl Marx Streets, the building is U-shaped, with two entrances.

[3] The festive external appearance of the building is due to its Art Nouveau mouldings, intertwining decorations, elliptical attic and elegant bas-reliefs.

Particularly expressive are the various forms and finishes of the attic, the platbands and the locks of window openings, plaster macaroons, niches with stucco decorations and other elements.

The halls feature moulded stucco ceilings, heavy oak doors 3 m (9.8 ft) high, and cast-iron patterned staircases with chiseled notch boards.