At the intersection of Krasnaya and Bursakovskaya streets, a beautiful two-story house was built in 1910 according to the design of architect A.A. Kozlov. The corner of the building is adorned with an elegant turret with two slopes, at the top of which is an observation platform with a dome and a sharp spire. From this platform, a view of the surroundings of the city opened up. A high stone parapet with patterns, supported by a wide stepped cornice, harmoniously combined with symmetrical longitudinal projections and triangular bay windows. The second floor of the building featured tall narrow windows, while the first floor had large display windows.

In January 1911, a stationery store opened on the first floor, later housing the Trading House of the Chumalov Brothers, a warehouse for dishes and lamps of the K. Laikov and H. Bashirov Partnership, as well as other enterprises. In 1913, the 4th Women's Progymnasium of O.K. Khrustaleva began operating on the second floor of the building.

Doctor Stepan Georgievich Mikhalev was a respected physician in the city, earning an impeccable reputation. In his youth, he participated in student riots and was expelled from Kharkov University in 1887 for inappropriate behavior. In 1892, he transferred to Dorpat University, where he successfully defended his diploma. Upon returning to his hometown, he began working as an intern in the therapeutic department of the Ekaterinodar Hospital.

Mikhalev and his wife Evgenia Illarionovna (née Khlebnikova) did many good deeds. They long believed that autocracy hindered progress, but over time their political views changed. On March 26, 1915, Stepan Georgievich suddenly passed away from a heart attack at a patient's bedside, and on October 1, 1916, his father-in-law died. Evgenia Illarionovna inherited the property and became one of the wealthiest landowners in the city.

However, hard times soon came. In 1922, all real estate was confiscated, and she was left without means, forced to live with others. A similar fate befell Evgenia's two brothers, who actively supported the revolution.

The new authorities deprived them of their property, leaving them in poverty. The sons of Stepan Georgievich and Evgenia Illarionovna became an actor and a cellist.

The Mikhalev house still delights the eyes of passersby. It now houses the Children's Art School named after V.A. Filippov and other organizations.