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It was built in the last quarter of the 19^th century as palace of José Manuel de Cerragería y Gallo de Alcántara, count of Cerragería. However, the building is best known as being the residence, from 1902, of Isabella of Asturias, daughter of Queen Isabella II, popularly known as “Chata” (a term of endearment that literally translates as “pug-nose”).

Located at the Argüelles neighborhood, this mansion has a rectangular floor plan divided between a central square patio, another smaller one and four stories: basement, ground and main floors and attic with four turrets on the corners. Three of its fours sides are surrounded by gardens. The building still preserves the original monumental stairway with the first marble curved steps, bronze balustrade, ceiling painted by Mariano Benlliure and the Roman-style gallery enclosing the stairwell on the upper floor. The main hall has an impressive fresco titled Las Horas (The Hours), painted by Emilio Sala.

In 1941, following the death of Alfonso XIII, the royal family sold the palace to the Spanish Air Force, which restored it and installed the offices of the General Headquarters of Central Air Command and of the Headquarters of the First Air Region of the Air Force, a role that it continues to play.