Archibald Gracie, a wealthy merchant, built the house in 1799 as a country estate. He bought the land in December 1798 and January 1799. It stands on the highest point of Carl Schurz Park, overlooking Hell Gate. A mansion built by Jacob Walton in 1770 stood on the same site and was damaged during the Revolutionary War. Sources disagree on whether Gracie destroyed its remains or reused them. Gracie expanded the house in 1804 and reoriented it to face northeast.
The article describes a two-story house in the Federal style, with clapboard facade panels. Aymar Embury II redesigned the porch and interiors in 1936. A reception annex was dedicated on September 27, 1966.
The City of New York owns it, and it has been the official residence of the mayor since 1942. Public tours began in 1980. It is a New York City Landmark.

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