Development · Downtown Las Vegas
Nevada Distilling puts land it bought from the city near the Arts District up for sale at $8.2 million
The maker of Smoke Wagon bourbon is selling a 3.65-acre site at Industrial Road and Wyoming Avenue that it bought from the city of Las Vegas in 2021. The owners say a national distribution deal means they need more space.
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What happened
Nevada H&C Distilling Co. has listed a 3.65-acre property near the Arts District for $8.2 million, the Las Vegas Review-Journal reported. The listing is with the brokerage firm Colliers. The land sits at the northwest corner of Industrial Road and Wyoming Avenue.
The company bought the site from the city and won approval to build there. Its owners told the Review-Journal they have already outgrown those plans. Co-owner Jonathan Hensleigh said a national distribution deal means the company now needs a bigger facility than it first planned.
How the city sold the land
A sale at appraised value
In February 2021, the Las Vegas City Council approved steps to sell the city-owned corner to Nevada Distilling at its appraised value of $4,135,000, according to records cited by the Review-Journal. The stated goal was to support economic development and job creation. Records show the company bought the site in 2021 for more than $4 million.
Before the distiller learned about the property, the city had put it up in an online auction at the appraised value. The auction drew no bids, according to city documents.
Plans that won approval
According to a city staff report, Nevada Distilling's plans called for tearing down part of the site, rehabilitating the remaining structures and building a new warehouse. The facility would handle manufacturing, storage and distribution of liquor, plus public tours and sales. The Las Vegas Planning Commission approved the proposal in November 2023. City records show it was for an 11,615-square-foot facility.
Cheryl Felske, a project manager with Westar Architects, wrote in a letter to city officials that the project would give the company the expanded space it needed. She also said it could become a tourist destination.
Why the distiller is selling
A national distribution deal
Co-owner Aaron Chepenik said the company reached a deal in mid-2025 with alcohol distributor Southern Glazer's Wine & Spirits. He said Southern Glazer's distributes its four core bourbons, its three main ryes and its limited releases. Hensleigh called the arrangement a national distribution deal.
"They didn't want to build a new facility that was already going to be too small," Colliers broker Mike Mixer told the Review-Journal. The owners now want to lease a nearly 30,000-square-foot complex in Las Vegas. Hensleigh and Chepenik opened The Griffin bar downtown almost 20 years ago. Hensleigh said they love the Industrial Road site, but it is "just not right for us now anymore."
Where the company works today
Nevada Distilling is based in a small space on Mesquite Avenue, an industrial side street near the Spaghetti Bowl. Chepenik estimated the building at 3,900 square feet and said it is far too small. The company's brands include Smoke Wagon bourbon and rye and Silver Dollar American Vodka.
The company uses a contract distiller in Indiana along the Ohio River, in a former Seagram's distillery. Hensleigh said bourbon needs to age somewhere wet and humid. In dry Southern Nevada, he said, "you end up with syrup in those barrels."
What the site looks like now
The Review-Journal described the property as narrow, shaped something like a butcher's knife. Railroad tracks run along one side, and a flyover ramp sits just past its northern edge. The land is largely vacant except for a few graffiti-covered buildings.
A Colliers brochure pitches it as an infill site that could be redeveloped, including for hospitality or mixed-use concepts. Mixer pointed to the "improved grittiness" of the Arts District, which now has bars, restaurants, shops, foot traffic and higher rents. He said another alcohol maker or a restaurant and bar could make use of the site. For more on how land is changing hands around the valley, see our real estate coverage and development news.
What to watch next
- Whether a buyer emerges for the 3.65-acre Industrial Road site, listed with Colliers at $8.2 million.
- Nevada Distilling's search to lease a nearly 30,000-square-foot complex in Las Vegas.
- Whether a new owner pursues the hospitality, mixed-use or bar and restaurant uses that Colliers has described for the land.
