IRG, PREP Funds and CG Real Estate Capital Acquire 339,449-SF Cleveland Industrial Portfolio in Anchor Manufacturing Sale-Leaseback

Industrial Realty Group, PREP Funds and CG Real Estate Capital have completed a sale-leaseback transaction with Anchor Manufacturing, acquiring a three-property industrial portfolio totaling 339,449 square feet on 18.44 acres in Cleveland, Ohio, the firms announced Sept. 1, 2026.

Under the terms of the deal, Anchor Manufacturing entered into a long-term master lease and will continue operating its headquarters and manufacturing facilities at each of the three properties.

Portfolio Overview: Three Cleveland Manufacturing Facilities

The portfolio comprises three fully occupied, single-tenant industrial and manufacturing buildings along two Cleveland-area corridors. The largest asset, Anchor Metal Processing, serves as Anchor Manufacturing's corporate headquarters and primary stamping plant at 12200 Brookpark Road. The 153,814-square-foot facility sits on 8.17 acres and functions as the mission-critical hub of the company's Cleveland operations.

Adjacent to the headquarters along Brookpark Road, Anchor Tool & Die at 11840 Brookpark Road contributes 159,459 square feet on 8.27 acres and houses the company's stamping and fabrication operations. The two Brookpark Road properties form a consolidated campus-style footprint along a key industrial corridor near Cleveland Hopkins International Airport and Interstate 480.

The third asset, Anchor Die Technologies at 4541 Industrial Parkway, is a 26,176-square-foot metal processing facility on 2.0 acres that supports specialized die and tooling work for the larger plants.

Together, the three buildings are fully occupied by Anchor Manufacturing under the new master lease structure, which creates a single-credit, multi-building arrangement across the portfolio.

About the Transaction Partners

Industrial Realty Group is a nationwide real estate development and investment firm that operates a portfolio of more than 150 properties across 31 states, encompassing over 100 million square feet of rentable space. Peter Goffstein, Executive Vice President of IRG, said the transaction reflects the firm's long-standing focus on helping companies unlock value from owned real estate.

"IRG has long supported companies looking to monetize their real estate assets and redeploy capital in their core business," Goffstein said. "Anchor Manufacturing has built an exceptional business over more than five decades, and we are pleased to provide a long-term real estate solution that supports the company's continued global growth while preserving its operational footprint in Cleveland."

PREP Funds is a commercial real estate fund management and advisory firm founded in 2020 that focuses on acquisition and development strategies across healthcare, industrial and retail sectors. The firm manages a $100 million value-add opportunities fund that targets industrial and retail redevelopment projects. Chris Salata, Partner at PREP Funds, described the deal as representative of the firm's investment thesis.

"Anchor Manufacturing is the type of company we are proud to partner with — a market-leading manufacturer with deep roots in Cleveland, a talented workforce and a global customer base," Salata said. "This transaction illustrates how sale-leasebacks can create a true win-win by unlocking capital for future growth while allowing businesses to remain in the facilities that have been integral to their success."

CG Real Estate Capital is a privately held commercial real estate investment firm specializing in the acquisition and redevelopment of suburban office buildings, industrial distribution centers and manufacturing facilities.

Anchor Manufacturing: Five Decades of Cleveland Manufacturing

Founded in Cleveland in 1970, Anchor Manufacturing is a privately held, family-owned manufacturer that has grown from a regional tool and die company into a global supplier of metal safety assemblies, precision metal stampings, tooling and other consumer products. The company serves customers throughout North America, Europe and Asia from its Cleveland-area manufacturing facilities.

The sale-leaseback structure allows Anchor Manufacturing to convert owned real estate into liquid capital while retaining full operational control of its facilities under the master lease.

Cleveland Industrial Market Context

The transaction comes as Cleveland's industrial market is posting stable fundamentals. Vacancy in the Cleveland industrial market sits at approximately 4.4%, with limited new construction and constrained developable land keeping supply in check. Average net asking rents in the market reached $6.80 per square foot in the second quarter of 2026, up roughly 4.3% year over year.

Older, second-generation industrial and manufacturing product in Cleveland — the category this portfolio falls into — has been trading at approximately $50 to $55 per square foot, with cap rates in the 10% to 10.5% range. At those market benchmarks, a portfolio of this size would imply a transaction value in the range of $18 million to $19 million, though that figure is an estimate derived from market averages and not a reported deal figure. Sales volume in the Cleveland industrial market reached approximately $164 million in the second quarter of 2026.

After five consecutive quarters of negative net absorption through much of 2025, the Cleveland industrial market recorded positive net absorption in each of the first two quarters of 2026, signaling a modest recovery in occupier demand. The acquiring partners described the deal as reflecting "the continued strength of the industrial sale-leaseback market" and their shared strategy of investing in mission-critical industrial facilities.

Sources

Industrial Realty Group — Anchor Manufacturing Cleveland Portfolio Press Release (Sept. 1, 2026)