Home to Yamet Arts, Inc. the 1879 Peekskill Hat Factory has an interesting history. Originally the Sherwood Farm, the 365 acre property was bought in 1871 to establish a Catholic reform school for boys. After a Yonkers hat factory was destroyed by fire in the early 1890’s the Peekskill Board of Trade subsidized the companies’ relocation to the Peekskill site.

The Peekskill Hat Factory was incorporated in 1895 selling "Men’s, Boys, Ladies, Children; soft fur hats in various grades.” The factory received a U.S. Government contract for military hats during World War I. The factory employed several hundred, mostly eastern European immigrant men and women who worked in difficult conditions at minimal wages. In 1912 there were 479 workers, making it one of the largest employers in the city and responsible for settling the northern portion on town. In 1905 the Trolley lines were extended to the Hat Factory easing workers' commute.

A workers strike for improved working conditions and higher pay began in 1921; after two years of labor disagreements the hat factory relocated its business to Danbury, Connecticut in 1923. Abandoned, the Hat Factory fell into disrepair.  A well known engineer of the Borden Milk company, Edwin J. Lockwood eventually bought, rebuilt and modernized the factory into an up to date industrial establishment.

In 1979 the Green family purchased the property which is home to a diverse group of tenants from artists to light industrial businesses. The Hat Factory has established a reputation for hosting art exhibitions including The Peekskill Project 2008, Collaborative Concepts at the Hat Factory, the Art Lot and For the Love of Art. Hat Factory website