The integration of tradition and innovation, which is so common for E. Gerasimov's studio, has been reflected in conversion of the building of merchant S.N. Khudyakov built as far back as in 1828. The project is based on the idea of building a new office and public services center with taking into consideration the expanding «Nevsky Palace» hotel infrastructure and the building's architectural & historic value. That demanded the architect not only renovate but introduce some new content, which was obtained by contrasting the old and the new, as well as by the scale contrast. On one hand, overall rehabilitation has affected floorings, walls with ordinary windows, KGIOP (Committee on state supervision, use and conservation of historical and cultural monuments) premises that retained the comprehensive art finishing, marble, wooden and cast-iron staircases. The quiet front of the yard-facing facades was enriched with large architectural elements: bay window, ground floors «loaded with rustication», center arch, overhanging eave and light-duty attic floor. On the other hand, the courtyard is arched over by translucent structures making up the atrium space. Also, provisions are made for a glazed gallery conjoining the side wings. The front facade is topped with a light-duty mansard with a passage terrace along the street. The compositional concept of the new facade is filled with recognizable elements of St. Petersburg architecture.