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Constructed by Douglas Putnam for his wife Eliza, the villa was designed by architect John Slocum and was originally intended to be a dream home reminiscent of Italian villas. Tragically, Eliza died just three years after its completion, leaving her husband in mourning and with a home that would become a symbol of his loss.
After Douglas Putnam later remarried to a woman who disliked the villa, it eventually changed hands multiple times, due in part to its haunting associations. Notable owners included Harry Knox, known for his boatyard, who famously altered the mansion's driveway into the shape of an anchor, giving the estate its current name.