Pilar was the late 18th century residence of Manuel Inácio de Souza Sarmento, a rich politician in the municipal council of Horta and property-owner.

[1] The ornate woods, windows, doors and decorations were all sold (even the marble pool was carted-off to personal residence in São Miguel) and in a few years, all had been lost by his successors.

[1] Dr. Antônio Severino de Avelar bought and recuperated what remained of the property, which was later inherited by his son-in-law, the Viscount of Leite Perry.

[1][3] Sometime in the 20th century, the abandoned structure was engulfed in flames, and the remainder of its floors were destroyed; there are still obvious remnants of the fire that burned down the two-storey building, leaving behind charred walls, flaked plaster and burnt beams.

The Palacete, along with the nearby Hermitage of Pilar were designated as components of a group of architectonic features whose preservation was important to the city of Horta, by the Regional Government of the Azores on 16 April 2010, as part of the Urbanization plan.

[5] Of the various platforms, the principal facade (oriented towards the southeast and the city of Horta) is encircled by side walls ornamented with shell-like sculptures at their corners.