Until 1905, the plot at the corner of Officer Street (now Decembrists) and English Avenue belonged to the widow of Colonel Maria Ivanovna Maslova. On this site stood a four-story house built in the mid-19th century. In 1905, the plot was acquired by gold industrialist and city council member Pyotr Ivanovich Koltsov from Maslova's daughter.

By the end of 1907, the old buildings were demolished, and a new house was erected in their place according to the design of architect Alexander Alexandrovich Bernardazzi. Bernardazzi, known for his works in the style of northern modernism and national style, created a building with an unusual combination of romantic elements. The house quickly earned the nickname "Fairy Tale House" due to its whimsical shapes of windows, balconies, and corner tower, as well as its natural stone cladding and bright majolica panels.

In 1909, the publication "Zodchiy" reported that in 1908, Koltsov commissioned contractor Vsevolod Doroshevsky to build a tenement house on this site. Inspired by the Peztsov House in Moscow, Bernardazzi created a project that became a notable phenomenon in Russian architecture. In March 1909, Koltsov submitted an application for construction, and by December, the main work was completed. Bernardazzi personally oversaw the construction and ordered the majolica for the house's cladding.

It is believed that elements of the building were created based on sketches by Mikhail Vrubel, which gave the house a theatrical appearance. Sculptor Konstantin Raush von Traubenberg adorned the facade with a sculpture of the Phoenix bird supporting the corner bay window.

The "Fairy Tale House" quickly became popular among the city's creative elite. Its proximity to the Mariinsky Theatre attracted theatrical workers and actors. Among its famous residents was ballerina Anna Pavlova, which led to the house being referred to as "Anna Pavlova's House." From 1910 to 1916, the architect Bernardazzi himself lived here, and in the 1930s, sculptor Matvey Manizer.

In the winter of 1942, a fire occurred in the house. Residents and firefighters fought the flames, but only the courtyard part of the building could be saved. After the war, the house was dismantled, leaving only the courtyard wings. Residents who returned in 1944 found only a charred shell of the building with remnants of mosaics and balconies.