The name Recoletos comes from an Augustinian Recollect monastery that was located on the right of the street until the mid-19th century. After the monastery was demolished, the land was snapped up by the Marquis of Salamanca, a larger than life character who built himself a sumptuous residence on the site.

The palace holds temporary art exhibitions in the covered courtyard on the first floor. If the building is open, it is worth going in just to have a look at the interior, particularly the grand staircase to the right of the entrance.

Almost hidden on the left of the Paseo is the rebuilt Iglesia de San Pascual, a vestige of the convent that stood there until the nineteenth century. To the right of the altar there is a figure of Santa Clara.