LCN Buys 1 MSF Glassware Factory in Sale-Leaseback Deal

The Anchor Hocking facility in Lancaster, Ohio. Image courtesy of CommercialEdge

LCN Capital Partners has completed a sale-leaseback acquisition of the primary manufacturing and warehouse facility of Anchor Hocking LLC, in Lancaster, Ohio, near Columbus.

Simultaneously, LCN leased the 1 million-square-foot industrial facility back to the glassware company under a 25-year, triple-net lease.

The facility has three 200-ton glass furnaces and accounts for nearly 100 percent of Anchor Hocking’s production and revenue. It operates 24 hours a day and is crucial to the U.S. glass manufacturing sector, as it contains three of the 10 glass furnaces that currently operate in this country.

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In a prepared statement, Jared Ciejek, a partner at LCN Capital Partners, described the property as “a highly specialized facility with a footprint unique to glass manufacturing,” adding that its sale helps Anchor Hocking unlock capital that can be re-invested into its core business.

Established in 1905 and owned over the decades by a succession of parent companies (currently Lenox Corp.), Anchor Hocking is a leading maker of household consumer glassware, as well as products for the foodservice and commercial markets.

Manufacturing comeback

A diverse user base is helping to bolster tenant demand in the Greater Columbus industrial space market, for both distribution and manufacturing space, according to a third-quarter report from JLL. The latter is highlighted by investments in auto and energy manufacturing, data centers, and Intel’s $20 billion, nearly 1,000-acre chip plant in Licking County.

However, enough space has been delivered—more than 6.5 million square feet just in the third quarter and a record 15.6 million year-to-date—that total industrial vacancy has increased by 1.3 percent quarter-over-quarter, to 6.9 percent, JLL reported.

In August, VanTrust Real Estate announced plans to start construction on a 1.2 million-square-foot build-to-suit warehouse facility in New Albany, Ohio, near the Intel campus, for Danish shipping giant DSV.