The emperor personally participated in the process of choosing the ideal place for the grand ducal residence, and the famous architect Andrei Ivanovich Shtakenshneider was entrusted with building it.

Stackenschneider preferred eclecticism: the facade in the style of the Italian Renaissance, rust and pilasters on the ground floor, the first floor with wrought-iron balconies and large windows, unusual cornices on each floor.

The dominant feature of the adjoining space was a fountain located in the middle of the open area, where later a garden with trees and flowers appeared. Also, a house church appeared on the territory of the palace, built in the image and likeness of one of the churches in Rostov, which incredibly impressed the emperor with its beauty.

The residence had many different rooms: on the ground floor there were bedrooms for children and governors, and on the second floor there were rooms for the grand duke couple. Spacious banquet and dance halls were designed in the eastern part of the building.

After the death of Prince Nicholas in 1894, the building was transferred to the Women's Institute named after Princess Ksenia Alexandrovna. A dining room was placed in the former princely stable, and bedrooms were placed in the arena. The school worked until 1917.

After the October Revolution, the former princely residence became known as the Palace of Labor, as it was transferred to the management of trade unions. It housed the People's University of Trade Unions, a printing house and a library. During the Great Patriotic War, the building was badly damaged, but later it was restored.

Today, the St. Petersburg Council of Trade Unions is located in the Nikolaevsky Palace. The residence also hosts banquets, presentations, business meetings, tours and concerts.