It was built in 1906 as the home of banker Jako Modiano, designed by architect Eli Modiano, son of the owner. It was bought in 1915 by the Municipality of Thessaloniki and offered to King Constantine as a palace. During the 1916-1917 period it was the seat of the Triumvirate. It was then used as a Governorate, the home of the General Commander of Northern Greece and then the Minister of Northern Greece. For the last forty years it has housed the Folklore Museum of Macedonia-Thrace.