The Cigar Factory was constructed in 1881 as a cotton manufacturing facility with the latest technological advances of the day, such as electricity, steam heat and a fire safety system. As a cotton mill, the factory was ranked sixth of the 20 or so cotton mills in South Carolina. The factory's mild success came to an abrupt end with the Earthquake of 1886. In the aftermath of the quake much of the skilled staff left the region and the building changed hands.

In 1903 the Cigar Factory was leased to the American Cigar Company, producer of famous RoiTan and Certified Creamo cigars. Great success came with cigar production and as many as 1,400 workers were employed at the factory in the 1930's. During the darkest days of the Great Depression the Cigar Factory was one of the few civilian workplaces that provided secure employment for a full day's wages. Cigars were produced in the building for 70 years and at its high point, 1.5 million cigars rolled out of the factory each day. In the late sixties, the U.S. government started requiring warning labels on tobacco products and placed restrictions on their advertising. This pushed the American Cigar Company to focus on oversees markets and they eventually closed the doors on cigar manufacturing in Charleston.

After the cigar manufacturing ended, the building was used for office and warehouse space over the next decade, as the owners struggled to find the right use for the building. In 1980 the Cigar Factory was listed on the National Register of Historic Places and shortly thereafter, they welcomed Johnson and Wales, the famed culinary school, which became the largest tenant. Consolidations at Johnson and Wales resulted in the Charleston campus being relocated to Charlotte in 2006.

The Simpson Organization purchased the Cigar Factory in 2007 with plans to resurrect the building to its original beauty, grace and vibrant life, in the form of loft condominiums, office and retail space.