The construction of the palace began in 1719. It was the seat of Jerzy Potocki, the head of Grabowiec district. In 1747 the palace was given to Eustachy, the youngest son of Jerzy. In 1789 the son of Eustachy, Jan Nepomucen, handed the palace over to the State Treasury. The palace became a leather warehouse. In 1790 the building was taken over by the city authorities and became the barracks of national cavalry. The palace served as a prison in the years 1792-1826, that’s why it became called “the old slammer ".
After 1918 it was the headquarters of the Main Police Station in Lublin. In 1981 the building was passed to the Special Basic Vocational School. Unfortunately, the building has not been properly conserved over the years. The new owner - from 1994 it’s been Catholic University of Lublin - slowly brings the building back to its original condition.