Its initial occupation was given in 1743 by the then Governor Gomes Freire de Andrade, the Count of Bobadela. His intention was to build a new House of Governors to host the Government of the captaincies of Rio de Janeiro and São Paulo and asked the engineer José Fernandes Alpoim to build a new House. But Alpoim took advantage of the existing buildings that served the Casa da Moeda and Armazém Del Rey, adding two more new floors and this reform resulted in a sober and beautiful construction in whitewashed masonry. The windows received a stonework frame and several internal courtyards interconnected the buildings and circulation.
He also served as a residence for D. João VI in Brazil. There were important events and ceremonies for the country, such as the coronations of Dom Pedro I and Dom Pedro II, as well as the signing of the Lei Áurea by Princess Isabel.
With the arrival in Rio of the Portuguese royal family, in 1808, the building was promoted to Paço Real.Being in the heart of the city, in the commercial center of the city of Rio de Janeiro, the then housing estate became a strategic point for the arrival of boats and political visits.
The main entrance was given a beautiful marble slab that gave access to the upper floor. Its imposing aspect made it stand out from the other neighboring buildings, which in a short time made the building a center of local and regional politics. Until 1808, the Casa da Moeda and the Real Armazém continued to operate on the ground floor.