The popular venue was bought about two years ago by the Armada Hospitality Group operated by Wagga-born Craig Shearer and former investment banker Jason Sheather.

Mr Shearer said the purchase was made with a view to redeveloping the popular central business district night spot.

He said negotiations with the owner of the building - Industry Superannuation Property Trust (ISPT) - were at their tail end.

"A long-term arrangement will be in place to allow us to do the work we planned for a long time ago," Mr Shearer said.

He said Armada had been working with Wagga City Council, police and the Office of Liquor, Gaming and Racing on the proposal.

A development application is expected to be lodged with council within two weeks.

Primarily an attraction now for people aged between 18 and 24, the "Cap" will also cater for the older age group when renovations are finished.

"We are very excited to be in a position to take the site to a new level," Mr Shearer said.

"We feel there is a gap in the market for the 24-50 age group looking for a nice place to eat and socialise.

"We are excited about lifting the bar on what is on offer.

"We're looking forward to bringing it to life."

While the venue will still have night club facilities, it will also promote food, functions and a general bar.

Mr Shearer and Mr Sheather operate three venues in Albury - Soden's Hotel, the New Albury Hotel and Groove Saint - as well as five venues in Melbourne.

The Capital is expected to reopen early next year with a new name.

Mr Shearer is keeping the new name under wraps for the present, but the Amarda Group operates venues called Beer DeLuxe in Melbourne.

Improvements to the Wagga building will include a new Baylis Street facade.

"It will be in tune with the beautification of Baylis Street in recent years," Mr Shearer said.