The sanatorium was built in 1904 by architect N.N. Karlinksy. Later, it was transferred to the Vladikavkaz Railway and used as a departmental sanatorium for the treatment of employees. After the revolution, the building was nationalized. During the Great Patriotic War, it housed the underground command post of the 18th Army. Today, one of the cottages has miraculously survived, but its condition is critical.