I don't remember Walhalla but I do remember driving by in the 70's when it was called Sally Stanford's Valhalla, I think the sign was red. It's near the corner of 2nd st. and Main st. in Sausalito and if you go to Google maps and click on 'street view' you can see the building.
"Walhalla" is the German spelling of Valhalla, so this is what became Sally Stanford's restaurant in Sausalito. Check out this excerpt from a book by the Sausalito Historical Society to that effect. It states, in part, that in the late 1940s she purchased the "boarded up former biergarten, the Walhalla, changed its name to Valhalla, and opened it as a restaurant with all the trappings of a bordello..."
On the Home page of MarinNostalgia I posted a photo of a restaurant-looking building called Walhalla. I asked if anyone knew when and where it was from.