The lower Paladini palace was built by the galley commander and knight Nikola Paladini in the floral Gothic style at the end of the 15th century. In 1870, the owner, doctor Dominik Gazzari changed the façade and the palace got its present look in the 19th century on the basis of Vičenco Kovačević's design. The ground floor and the disposition of windows on the floors were changed. This palace used to be called "summer palace", because before it was reconstructed there had been more rooms on the north side, which protected them from the summer heat.