The last Burgrave, Freiherr von und zu der Hees built this city palace around 1700 on the foundation walls of the “Rodensteiner Hof”. Above the portal, the large combined coat of arms of the two families Hees/Holdinghausen can be seen.

In 1824, the city acquired the building and established a hospital as well as a school therein. Today, it is a so-called European Elementary School.