The design for this building, the House of the Princes' Families, is from 1792, but the owner was unable to undertake the work. In 1803, it was put up for sale and the Princes Carlos Maria Isidro and Francisco de Paula, sons of King Carlos IV, became interested in acquiring it.
Juan de Villanueva is considered to have carried out the renovation and extension work between 1803 and 1808. After the War of Independence, it was abandoned until the end of the 19th century, when it became municipal property.
In 1909, it was acquired by a lawyer, José Peláez Urquina, and came to be known as Casa de Peláez.
In 1984 it was declared an Historical Artistic Monument. Later, it was acquired by the company Euroforum/Escorial in order to restore it and create a educational and residential centre that currently gives the Summer Courses of the Madrid Complutense University and varied training courses.
The restoration work was undertaken by the architect Miguel de Oriol e Ibarra in 1989, respecting its historical value, rebuilding the building, incorporating historical remains that have been kept and providing the whole with a definitive solution and a continued use that up until that time it had never known.