Iconic Distillery District building sold for $10M. What’s next for restaurants, bars?
Big changes are coming to Lexington’s Pepper Campus in the Distillery District.
The historic whiskey rickhouse, the one with the controversial giant mural, at 1170 Manchester St. has been sold. Also sold: Eight acres that includes all of parking on both sides of the building.
U-Haul Moving & Storage purchased the nearly 200,000-square-foot former whiskey barrel storage building for $10 million in October and plans to turn the upper floors into 1,400 climate-controlled self-storage units targeting the University of Kentucky and downtown market.
Christopher Minnich, president of U-Haul Company of Louisville, said that they are working with the ground floor tenants and hope they will stay. But at least one business, Battle Axes, is planning to relocate.
The building had been for sale for several years as developer Barry McNees sought ways to turn the former barrel warehouse into condominiums.
Meanwhile, the rest of the Pepper Campus, which is separately owned, has become a popular Lexington entertainment and dining area. There are two distilleries — including the revived James E. Pepper Distillery and Barrel House Distilling, Lexington’s oldest craft distillery — as well as Elkhorn Tavern, Goodfellas Pizzeria, Crank & Boom Ice Cream, Ethereal Brewing and Break Room bar on the campus.
Minnich said Tuesday that U-Haul has been in touch with the other businesses on the Pepper Campus and plans to continue allowing their customers to use the parking lots.
“We don’t want to interfere with anything they’re doing,” Minnich said. “And we’re hoping we will generate more foot traffic for them.”
The rickhouse, built around 1933, is concrete and will require some renovations, including possibly the addition of exterior elevators.
What that means for Lexington’s largest mural on the east side of the building is uncertain. “Our goal is to keep the artwork but they’re still working on the plans. I can’t say 100 percent if some of it will be modified,” Minnich said.
Painted in 2014 by French muralist MTO as part of the annual PRHBTN street art festival, the work depicts the artist behind bars with red police tape running across it saying, “Caution: Do Not Feed.”
U-Haul hopes to open the new storage units in 2022, he said, and will work with the tenants to make sure construction doesn’t interfere with them.
The ground floor tenants include Wise Bird Cider, Fusion Brewing, Rickhouse Pub, Old Tarr Distillery and Brevede Coffee Co.
One business, Battle Axes, has announced plans to relocate. Owner Shawn Courtney said that he had initially hoped to lease the second floor for an indoor entertainment center that would build on the popularity of his ax-throwing venue.
Instead, Battle Axes will move out Leestown Road in Turner Commons, a new 34-acre mixed-use development that owner Daren Turner is hoping to establish as a rival entertainment district.
Courtney said that he hopes to open the new Battle Axes in the spring with additional amenities including a high-speed go-kart track, indoor zip-lining, an arcade, bowling and a play area for kids.
Courtney, who with his wife Mary also owns Rickhouse Pub, said the pub isn’t moving for now.
This story was originally published December 1, 2021 at 6:00 AM.
