Grandfather Grigory Mikhailovich Rukavishnikov, the founder of the Rukavishnikov family, started as a serf but, thanks to his resourcefulness and hard work, managed to accumulate capital, rising from a shopkeeper to the owner of a steel mill. His son, Mikhail Grigoryevich Rukavishnikov, continued the business.

Sergey Mikhailovich Rukavishnikov, who inherited 2 million from his grandfather in 1877, built a palace on the Upper Volga embankment. The architect was I. S. Boytsov, and the sculptural decoration was created by M. O. Mikeshin. During the construction, Sergey lived off the interest from his inheritance, showing no interest in business, and engaged in horse breeding.

After the palace was completed, Sergey Mikhailovich began reconstructing the estate in Podvyazye. In 1913 and 1916, at his initiative, a trade and industrial complex with banking offices, known as the 'Rukavishnikov Bank,' was built in Nizhny Novgorod. The architect was F. O. Shekhtel, and the sculptor was S. T. Konyonkov. This building became one of the best examples of the Art Nouveau style in the city.