In 1579, Sultan Murad III's regional governor (Lala Mustafa Paşa) built an imposing palace on the southern foreslopes of Kars Castle crag. The structure was ravaged in the 1828 conflict with Russia and left in ruins, which remained little noticed until 2017. Since then, partial reconstruction of the central palace building has been proceeding (very slowly), with possible plans to one day make it a boutique hotel.
The site is to the right of the main access path to Kars Castle, where that route bends.