Clarendon Terrace was built in 1857 by Robert Huckson, to the design of Osgood Pritchard for Charles Lister, wine and spirit merchant and brewer. Additions were made in 1874 by James Billings for Henry Marks.

Late in 1973 the then owners applied to develop the site. The East Melbourne Group with the National Trust quickly nominated the site for inclusion in the register of the newly created Historic Buildings Preservation Council. The nomination was successful, with the giant order Corinthian portico being singled out as particularly important on account of its rarity.

The building seemed to be safe. However in 1977 the owners applied to the HBPC for permission to demolish the building, and after a public hearing this was granted. The HBPC gave as its reason the structural instability of the façade and the unwarranted financial burden on the owner to restore it.

The East Melbourne Group and the National Trust appealed to the Minister of Planning, the owner and the Melbourne City Council. The media gave the matter wide publicity and the EMG organized a public meeting on the site. The Minister for Planning, the Hon. Geoffrey Hayes, M.P. was committed to a good outcome and brokered a deal.

The government granted the National Trust money with which it was to buy the property, restore it, and then sell it; any surplus was to become part of a revolving fund. In 1980, while plans were still being drawn up, the Trust was approached by the Sir Robert Menzies Foundation with a proposal whereby the Foundation would lease the building for a peppercorn rent in return for the cost of restoration. This was accepted and remains the situation today. Heritage Victoria's updated Statement of Significance now includes the line that Clarendon Terrace is "socially and historically important for its association with the preservation movement."