The building was designed in 1924 by architect Yehuda Magidovitch for a wealthy customer, Zvi Yaacov Levin and his family, and is inspired by the late 19th century Italian vacation homes, a distinctive pointy-roofed tower.

The event was used by the Soviet Union as an excuse for suspending diplomatic relations with Israel, claiming that the operation was backed by the Israeli government.

Diplomatic relations were renewed after Stalin's death in 1953, only to be suspended again in 1967 due to the Six-Day War, and restored in 1991 as a result of Mikhail Gorbachev's Perestroika reform.

After years of neglect, the building went through rehabilitation by architects Amnon Bar Or and Moti Bodek, along with engineer Shmaya Ben Avraham.

The conservation was done alongside the construction on the adjacent Alrov Tower (built 1995–99), designed by architects Avraham Yaski and Yosi Sivan.