Eugène de Beauharnais, the brother-in-law of the later King Ludwig I of Bavaria and the stepson of Napoleon, commissioned Leo von Klenze to build a "suburban city palace".

[1] He gave the building almost equally prominent façades on three sides, and a sufficiently adaptable interior layout for it to be repurposed in case Beauharnais was forced by Ludwig to leave Munich.

Klenze also visited Paris during the construction phase to study the newly developed fosses inodores et mobiles (an early form of sanitary toilet), which he had installed in the palace and which soon became standard in almost all new buildings in Munich.

Rupprecht, who had relocated here from the Palais Leutstetten with his son, Albrecht von Bayern, when they were challenged by Adolf Hitler as he came to power,[3] lived there until 1939[citation needed] in a small apartment, sometimes using the reception rooms for events.

[2] In 1963–1967, a new building designed by Hans Heid and Franz Simm was built on the site for the Bavarian State Ministry of Finance.

)[4] However, the interior layout has not been reproduced, although the ministry reception rooms and the office of the State Minister of Finance are located on the first floor, the bel étage.