The building which houses Casa del Abuelo is a Baños landmark. It was built in 1940 by a German named Ivan Baumann, and sold in 1943 to Juan Darquea of Ambato. It was the summer home for his growing family, since it is only a block from Baños' famous thermal springs. In the 1950s he added another floor with 6 rooms, one for each of his children. Later, it operated as "Cafe Cultura" and became well-known world-wide for it's bakery and Danish pastries.

It is called "Casa del Abuelo" by the grandchildren, who still own the property, in honor of their grandfather, the original purchaser.