The Palacio Udetxea, located in the historic town centre near the Casa de Juntas and the Tree of Gernika, was built in 1890 by the Allende Salazar family.
It was the summer residence of Manuel de Allendesalazar y Muñoz de Salazar, an important figure in the political history of Spain, the Basque Country and Gernika.
A visitor to the house during his brief stays in Gernika-Lumo was Miguel de Unamuno y Jugo who, married to Concepción Lizarraga Ecenarro of Gernika, would not miss the chance to visit Manuel Allendesalazar.
The building became the property of the Basque government in 1992. Today it houses the offices of the public health department.