The luxurious house in the modern style, known as the "Derzhinskaya Mansion," is located deep within the courtyard behind an elegant metal fence. Its facade features restrained elegance due to the combination of light green glazed ceramic tiles, white horizontal stripes, and stucco in the form of floral compositions and garlands. Almost the entire protruding part of the facade is occupied by a huge arched window, and on the roof above it are two small round towers. The terrace of the main entrance is adorned with a female mask with long flowing hair.

In 1901, Alexandra Ivanovna Derzhinskaya, the daughter of the famous cloth manufacturer Ivan Butikov, purchased land on Shatny Lane (as it was called until 1921). Being the heiress of a large merchant fortune, she decided to build a mansion for herself and her second husband. The famous architect F.O. Shekhtel was invited, with whom she was likely acquainted during her first marriage to the industrialist P.P. Ryabushinsky, when Shekhtel worked on his commissions.

The house was designed and built with the participation of Shekhtel's assistant A.A. Galetsky between 1901 and 1903. It featured modern engineering solutions: steam heating, exhaust ventilation, sewage, plumbing, electricity, and telephone communication. Shekhtel not only developed the building's design but also conceived the interiors: furniture, fabrics, lighting, doors, and bronze fittings were ordered according to his sketches. Geometric ornaments were repeated in the details throughout the house.

The interior decoration of the mansion is of particular interest. The first floor, intended for social life, includes a central hall, a living room, a library, a bedroom, an office, and a dining room. All the reception rooms are arranged around the central hall, where Shekhtel embodied the idea of a large dominating space: the enormous sizes of the room, doors, windows, fireplace, and light fixtures. The masterpiece of the hall is a marble fireplace with a bas-relief depicting two figures supporting an oak frame. The living room stands out with a ceiling design featuring built-in light bulbs, while the library is decorated in the theme of "forest" with carved grilles. The office contains a second outstanding white marble fireplace with a relief of ancient horsemen.

After the revolution, various Soviet institutions were housed in the mansion, and since 1959, the Australian embassy. In 2009, restoration of the building began, during which the embassy temporarily vacated it. Foundations were reinforced, ceilings were replaced, plaster layers and interiors were recreated according to Shekhtel's designs. Drawings by Borisov-Musatov were transferred to wallpaper using digital technologies. The mansion began to look as the architect intended.

The building is managed by the Ministry of Foreign Affairs of Russia. After restoration, it once again became the residence of the Australian diplomatic mission. In 2013, the mansion received awards at the "Moscow Restoration" competition for the best restoration project and organization of works.