The foundation for the construction of the church was a High Order from February 13, 1912, according to which the building committee was allocated a plot of land from the state-owned Khlyudov estates (previously owned by first guild merchant Vasily Khlyudov) for the erection of a church, shelter, and school. The St. Nicholas Church on the Khlyudov side was an independent parish within the Second Deanery of the Sukhum Diocese.

The church had two chapels: the lower and the upper. However, the upper chapel could not be completed due to the outbreak of World War I in 1914 and the subsequent revolution. Therefore, the church was popularly referred to as the "church without a dome." During the Soviet period, the building was converted into a brewery, and during World War II, this brewery produced bottles for incendiary mixtures. During the perestroika period, the brewery was closed, and later almost all its buildings, including the remnants of the church, were demolished (finally in 2013). A residential complex called "Riviera" now stands on this site. It is planned that a memorial chapel will be built at the historical site of the church.

From 1912 until its complete closure in the early 1930s, the parish owned a plot of land of one tenth, which included the church located in the former cellars of a winery (with an area of at least 150 m²), a two-story school building, a three-tiered bell tower, community economic and residential buildings, a chapel-library in the market square, and residential building No. 13 on Vinogradnaya Street. All property was nationalized without compensation in accordance with the decree of January 15, 1918.