The construction of a palace at this site was commissioned by family of the Tedeschi Bonadies, Barons of Villermosa, in the 18th-century during the urban renewal occurring after the 1693 earthquake.
The architect Giovanni Battista Vaccarini, who designed many of the Baroque structures in the city, was engaged, but his work only achieved a first floor.
With new ownership, continued construction and refurbishment was performed by Luigi Poletti and finally Enrico Alvino in 1870.
It was promulgated by the son of Antonino, Giovanbattista Paternò, who had married an aristocrat of the Caracciolo family of Naples.
Giovanbattista also served as city mayor, and commissioned the interior decoration from Alessandro Abate and Giuseppe Scionti in the first decade of the twentieth century.