Historic real estate specialist plans trio of redevelopment projects for downtown Walla Walla
By Dan Thesman on Friday, October 24th, 2025 in Columbia Basin News More Top Stories
WALLA WALLA – GBX Group LLC; which specialized in acquiring, preserving and operating historic real estate; is working behind the scenes on three projects in downtown Walla Walla.
GBX owns the Dacres Hotel, the A.M. Jensen Company building (formerly Macy’s) and the old YMCA on Spokane Street.
GBX Group President of Real Estate Brian Cappelli explains the company was drawn to Walla Walla because of the city’s historic Main Street, vibrant dining and retail scene, and strong regional appeal. He adds the company’s goal is to support long-term, diversified growth that serves residents while also welcoming visitors.
“The former Dacres Hotel at 201 West Main St., and YMCA at 28 South Spokane St. are planned as a combined branded hospitality project delivering up to 120 upscale hotel rooms,” Cappelli explains. “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.”
Cappelli adds that conceptual planning is also underway for the A.M. Jensen Company building (formerly Macy’s) at 54 E. Main St. to be redeveloped into a retail and hospitality concept. Once completed, Cappelli said the A.M. Jensen Company building “will offer spaces and experiences designed to serve local residents as everyday destinations, while also enhancing downtown as a draw for visitors.”
Regarding historic adaptive reuse, Cappelli says it is complex but preserves character, creates jobs, and boosts downtowns, often using Historic Tax Credits. Projects must resonate with the community. He shares that GBX prioritizes community engagement and local values, as seen in their Walla Walla partnerships, to ensure redevelopment strengthens the local fabric and protects landmarks.
Photo of Dacres Hotel via GBX Group LLC
