In the Middle Ages, the Church of the Holy Spirit was located on the Lai 37 plot. It was meant for the poor people in the neighbourhood, and was subordinate to the city. After the Great Northern War, the church became a stockhouse (magasi in Estonian) and the nearby street was named after it (Magasini).At the end of 1880, the property was purchased by the Tartu Health Care Establishment Society, which built a gym on the site. During World War II, the building was damaged and rebuilt with a different roof. After the renovation (until 2010), the building belonged to the University of Tartu as a gym. Since 2011, the building has been home to Tartu New Theatre. In addition to the theatre programme, there is also a small café.