Downtown buildings aren’t empty. They’re full of opportunities.
By Mallory Nash, Executive Director, Downtown Walla Walla Foundation
Change in a community doesn’t happen overnight, but it does happen. The Walawála Plaza is proof of that.
In the mornings, the plaza is packed with people. If you’re a regular, you know what time Chris will roll up on his Harley, ready to share his love of the flute with anyone who will listen. Across the plaza, the bronze dog statue has become a must-have photo stop for locals and visitors alike. What’s now a gathering place was once only a parking lot. It took time to get here, but today it’s one of the most loved places in our downtown — and a reminder that other spaces waiting for their next chapter hold that same potential.
After a year in this role, one thing has become clear: people care deeply about what happens downtown. To help share more about the work happening behind the scenes, I connected with GBX Group, one of our downtown property owners and a key partner in reactivating historic properties. GBX owns three buildings in the downtown district; the Dacres Hotel, the A.M. Jensen Company building (former Macy’s), and the old YMCA on Spokane Street.
With experience from more than 200 redevelopment projects across the country, GBX brings valuable perspective to this work here in Walla Walla. Brian Cappelli, President of Real Estate at GBX Group, shared more about their work and what goes into projects like these.
Insights from GBX Group: Brian Cappelli, President of Real Estate
Brian Cappelli, President of Real Estate, GBX Group
Why Walla Walla is Worth Investing In
“GBX was ultimately drawn to Walla Walla for its highly walkable, historic Main Street, vibrant dining and retail scene, and strong regional appeal. We recognize the city’s many strengths and aim to build on this foundation by highlighting its broader assets. Our goal is to support long-term, diversified growth that serves local residents while also welcoming visitors.”
Plans Taking Shape for Key Properties
“Historic redevelopment is a lengthy and often complex process, but GBX has been actively working to ensure these projects will complement Walla Walla’s growth while preserving the character of downtown. The former Dacres Hotel at 201 W Main Street, and YMCA at 28 S Spokane Street are planned as a combined branded hospitality project delivering up to 120 upscale hotel rooms. The project will introduce new amenities—including restaurants, bars, retail, event spaces, a fitness center, spa, and rooftop lounge—that are thoughtfully designed to be enjoyed by both locals and visitors.”
“Conceptual planning is also underway for the former Macy’s building at 54 E Main St. to be redeveloped into a retail and hospitality concept. The project will offer spaces and experiences designed to serve local residents as everyday destinations, while also enhancing downtown as a draw for visitors.”
The Realities Behind Redevelopment
“Adaptive reuse of historic buildings preserves architectural character and creates flexible space, new jobs, and increased activity downtown. But this approach is more complex and capital-intensive than new construction—especially in smaller markets. GBX also understands the importance of ensuring projects resonate with the community, blending local culture with broader visitor appeal. While challenges are inherent in historic redevelopment, they are met with creative solutions, supported by tools such as Historic Tax Credits (HTCs) that make preservation feasible.”
Community Focused
“Community engagement is a top priority for GBX, because we believe our projects protect and strengthen the fabric of the communities where we work. While GBX brings experience from historic projects nationwide, we know each city is unique and requires an approach rooted in local values. In Walla Walla, our partnerships with the Downtown Walla Walla Foundation, the Washington Trust for Historic Preservation, and other stakeholders ensure our plans reflect community priorities and preserve the landmarks that define the city.”
A Vision for Downtown’s Future
“Walla Walla is unlike any community GBX has invested in, with unique opportunities to preserve history while promoting a vibrant, inclusive downtown. Our goal is to enhance Walla Walla’s status as an inviting, walkable destination—broadening experiences, increasing foot traffic and overnight stays, and adding new venues for dining, retail, and cultural events. These spaces are being thoughtfully designed to become regular gathering places for residents, while also welcoming visitors.”
Working Together for What’s Next
“Working closely with the Downtown Walla Walla Foundation, GBX is ensuring that the restoration of historic assets is approached with care and designed to benefit locals first and foremost. We value the Foundation’s tireless efforts to align projects with community priorities, and we share the goal of strengthening downtown while creating spaces that provide both residents and visitors with memorable, authentic experiences.”
Why is Matters
Redeveloping historic buildings takes time. Between codes, financing, and permits, the process is rarely simple — but it is worth it. That is why some spaces sit unused longer than we would like, but it does not mean nothing is happening. A large part of our role at the Downtown Walla Walla Foundation is helping people who want to invest in downtown, whether that means opening a business, improving a building, or making the right connections. Every new project adds energy to downtown. It may take time, but progress is happening, and these buildings hold real opportunity for what comes next in Walla Walla’s story.
Learn More: If you would like to see how GBX has brought other historic properties back to life across the country, take a look at a few of their projects:
You can find more examples and learn about their work at GBX Group: https://www.gbxgroup.com/
Get Involved: Have a downtown opportunity you want to explore? Connect with us to learn how the Downtown Walla Walla Foundation can help.
