Derby winery selling historic Paso Robles building for $8.6 million. What’s next?

The landmark Paso Robles building that’s home to Derby Wine Estates is for sale for $8.6 million — and the rest of the winery may be available as well.

Ray Derby, owner of Derby Wine Estates, bought the historic Farmers Alliance building in 2012 and spent two years renovating the 1922 structure into a fully functioning winery.

The 13,523-square-feet space includes a tasting room, offices, restrooms, patios and flexible event areas including outdoor seating for over 120 guests.

Derby Wine Estates opens its new tasting room and winery in the historic Farmer’s Alliance building in Paso Robles.

The iconic building is located on a 1.18-acre lot on Riverside Avenue.

Vineyard Professional Real Estate, the real estate company that is selling the property, said on its website that the building “offers limitless potential, from shops and restaurants to a private club.”

Derby Wine Estates’ new building features plenty of space to store wine barrels.

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While the current listing is only for the building, interested buyers will have an opportunity to purchase the wine business, inventory, equipment and vineyard properties separately, the real estate company said.

When Derby first acquired the winery over a decade ago, it was valued at a little over $1 million. Now, the property is listed for eight times that original price.

The property is currently permitted for wine production totaling up to 20,000 cases annually, according to Jenny Heinzen, broker and owner of Vineyard Professional Real Estate, but the 3,864-square-foot crush pad can be used for other purposes.

Heinzen told the Tribune that Derby Wine Estate is looking to downsize and that selling the building is the first step of their next chapter. Heizen said that in the meantime, before the building sells, the winery will continue to process grapes, produce wine, and conduct “business as usual.”

Derby Wine Estates owns the former Farmers Alliance building that was once home to the Paso Robles Almond Growers Association. The building was constructed in 1922 as a warehouse and processing plant. Ray and Pam Derby purchased it in 2010 and rehabilitated the structure, which is eligible for listing on the National Register of Historic Places.

Farmers Alliance building’s history in Paso Robles

The century-old building has a long history in Paso Robles.

Originally built as the Farmers Alliance building in 1922, the iconic towered structure was designed as an almond processing plant that produced a premier crop, considered to be “the world’s best almond” by judges at the 1906 World’ Fair.

According to a Paso Robles Pioneer Museum display, the Farmers Alliance building was built as an almond warehouse in 1922 and located near the railroad for convenient shipping.

When almond production declined in the 1930s, the building was converted to other uses, like processing grain.

Later, for 25 years it sat empty, serving only as a home for pigeons, according to Vineyard Professional Real Estate.

In 2005 the building was almost lost as the Smart & Final Corp. sought a permit to demolish the building and put in new infrastructure on the site.

However, the people of Paso Robles rallied to save the historic building.

According to a Paso Robles Pioneer Museum display, the Farmers Alliance building was built as an almond warehouse in 1922 and located near the railroad for convenient shipping. It’s seen here before its restoration by Derby Wine Estates in 2014.

Nearly five years later, Derby bought the building with visions of creating a processing plant for the city’s current premier crop — wine grapes.

Now the property is ready for its next adventure.

The processing plant is not the only building for sale from Derby Wine Estates. Derbyshire, a property on the coast in northern SLO County, is also listed with Vineyard Professional Real Estate, according to Heinzen.

Heinzen told The Tribune that offers on the Paso Robles building would be reviewed as they are received.