The building was built by an Azerbaijani Oil Baron Murtuza Mukhtarov for his wife Liza-Khanum Tuganova.

The designer was the Polish architect Józef Płoszko who had also built several other historic buildings in Baku in the early 20th century.

[1] Mukhtarov often took his wife Lisa Tuganova, who was of Ossetian origin and the daughter of the Russian General Tuganov, on expensive trips to Europe.

[1] In 1922, Soviet authorities allowed the building to be used by the newly founded women's organization, the Ali Bayramov Club, which offered a variety of vocational skills and training to women, in additional to cultural and leisure activities.

On 2 August 2001, by a resolution issued by the Cabinet of Ministers of Azerbaijan, the building was listed as real estate of historic and state importance and was to be protected as a monument of Azerbaijani culture.