In 1915, the Minister of Finance Gabino Bugallal, in view of the dilapidated state of the Palacio de Godoy, proposed to King Alphonse XIII the construction of a new headquarters for the Ministry of the Navy. Architects Francisco Javier Luque and José Espelius were in charge of the project: an eclectic style building with a rectangular floor plan and two interior courtyards, which was inaugurated on 16th July 1928.

The exterior has a tower located above the cornice line that unifies the façade while combining classical and gothic elements in accordance with the prevailing trends of the first quarter of the 20th century. The façades are divided into three bands decorated with a combination of naval elements, coats of arms of the former kingdoms of Spain and its maritime provinces, besides ships and vegetal ornamental patterns.

Inside, one of the most striking structural elements is the monumental staircase in the Empire style, made of Carrara marble. Above the first flight is a frieze in high relief with a classical scene that originally was in the Godoy Palace.

The building's central opening, as well as its two inner courtyards, currently occupied by two galleries of the Naval Museum, are covered with stained glass windows by the company Maumejean S.A., established in Spain in the late 19th century. These windows are decorated with different marine motifs, including a representation of Neptune with seahorses and a pair of mermaids, and heraldic motifs, such as the coats of arms of the ancient kingdoms of Spain: Aragon, Navarre, Castile and Leon.