The Layout Plan of the city of Pest was developed in 1872. Its centre of gravity was in the northeastern part of Pest, the area around Terézváros and Erzsébetváros. In the months leading up to the unification of the city to create Budapest, the construction of Sugár út, now named after Count Gyula Andrássy Sr, began, which provided a metropolitan environment for traffic heading towards Városliget. Sugár út was built in 1876 and 1877, and most of the building plots were also sold between 1876 and 1880. Most of the buildings along the route were completed in the 1880s.

The plot, together with other properties in the area, had been owned by the Order of Grace of Pest since the beginning of the 1840s. It gained its present form when Sugár út was in the planning process. In 1877, it became the property of Ignácz Karpeles and his wife, Jozefa Inselt, who built a house there. The construction work began in August 1878 based on Vilmos Freud’s plans. The stonemason works were carried out by Béla Seenger; the carpentry works, by Gregersen Guildbrand; the locksmith works, by Ferenc Svadló; the gas and plumbing works, by Mátyás Zellerin; and the glassworks, by Ede Kratzmann.

A special feature of the building is the unusually demanding space system in the entrance and staircase lobby area. The painting and sculptural decoration of this space system is above the average of the age as well as of Andrássy út. The interesting thing about its solution is that the Renaissance-style space is decorated with classicist works – without breaking the overall style. This space ensemble is joined by a richly decorated staircase. A somewhat unusual solution or, if you will, one which was not yet cleaned up at the time, is the masonry-loggia nature of the circular corridor surrounding the courtyard. Perhaps the building owner and/or designer was not satisfied with the hanging corridors supported by conventional brackets and wanted something more spectacular or impressive.

The completion of the building dates back to 1880.