LCN Buys 1 MSF Glassware Factory in Sale-Leaseback Deal

This facility houses three of the 10 glass furnaces now operating in the U.S.

The Anchor Hocking facility in Lancaster, Ohio

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.

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