The property on which AISJ is located belongs to the oldest serving Protestant society in Israel - CMJ (known in Israel as ITAC - Israel Trust of the Anglican Church).

Joseph Barclay, the head of CMJ in Israel purchased this property in 1863, at which time there were few buildings outside the walls of the Old City. It was known then as the Sanitorium.

Only one building was located here then, known as the Sanitorium - the architect of which was one of Jerusalem greatest personalities of the modern period - Conrad Schick. Schick worked for CMJ for 51 years.

For many years children from CMJ's schools inside the Old City used the property as a camping ground. Other prominent people, such as Charles Warren of the Palestine Exploration Fund PEF, also camped out here.

During the 1890's CMJ embarked upon several large building projects here, one being a boarding school for Jewish girls, in 1863. Again Schick was the architect of this massive building, afterwards affectionately known to Israelis as Bet HaDegel -House of the Flag.

The other building was the English Mission Hospital (now AISJ), completed in 1897. This was the vision of Dr Percy Wheeler. CMJ had previously built the first modern hospital, inside the Old City, in 1844. This Hospital was the most up-to-date Hospital in the City and region. It's opening however caused serious riots from opposing Jewish zealots.

Nevertheless it survive that period, and over the following decades it offering assistance to many thousands of Jewish people.

During the First World War it changed hands several times, until finally, in December 1917, it was the headquarters of the 60th British Infantry Division. It seems very probable that General Allenby left from here en-route to Jaffa Gate for the official ceremony on 11 December 1917, and that he returned here afterwards for a luncheon with various officials, including the French High Commissioner designate, Françoise Picot, and T E Lawrence - of Arabian fame.

During the mandate period the Hospital again offered valuable services to the Jewish community, especially after the 1929 massacres. It also offered assistance to the other communities of Jerusalem. On most mornings of the week crowds of people would line up outside to wait for assistance.