This building, which was formerly home to Zagreb Hotel, was built in 1898 according to designs by Karl Paržik. Built a year after Valtera Perića Street was laid out, it was originally intended to serve as rental/commercial property.

It was built in the spirit of the revival architectural style and adhered to the Construction Regulation of 1893, which permitted only the construction of two-story buildings, as well as some three-story structures, but only when a wider street was in question.

The building changed hands a few times, and the Railway Loan and Cooperative Credit Society of Sarajevo bought it from two brothers, Abram and Salamon Altarac, in 1932.

The society had another floor added in 1933, and the building took on an administrative function as the Home of the Association. At that time, the decorative revival elements were removed from the facade, so as to give a more modern appearance.

Right up to the time of the Second World War, the Ministry of Trade and Industry for the Kingdom of Yugoslavia used the building to store reserve supplies of goods.

A fourth floor was added in 1945-1946, and the School of Railway Transport was housed here until 1950. After that, the building was adapted to become Zagreb Hotel.

The building was nationalized in 1972, and since 1983 it has been managed by Balkan Sarajevo, a hospitality workers organization.

Zagreb Hotel was shelled and burned at the beginning of the Siege of Sarajevo in 1992.

The building has been in private ownership since 2008. It was renovated in 2015 and is now home to Modib Electronic d.o.o. and ERONET.

Zagreb Hotel was made a National Monument of BiH in 2011.