HUNTINGTON BEACH, CA-Wind turbine manufacturer Modular WindEnergy Inc. has leased a 167,778-square-foot industrial buildinghere in the largest such deal completed this year in West OrangeCounty, according to Colliers International. The five-year, $4.9million lease at 5800 Skylab Rd. is among a number of significantindustrial transactions to close lately throughout the county,including the $5.1 million sale of a 52,000-square-foot industrialbuilding at 4240 E. La Palma in Anaheim in a transaction brokeredby Lee & Associates.

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In the 5800 Skylab lease, Colliers EVP Clyde Stauff reports thatthe property is located within Huntington Beach Industrial Park andsituated near Boeing’s operations. The industrial building includes16,000 square feet of high-finish, executive office space.

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Modular Wind Energy, which is relocating its Long Beachoperations to the site, will occupy the building for themanufacturing and distributing of propellers that are mounted onwind-driven turbines, a technology that allows for more efficientgeneration of wind power, Stauff reports. He notes that theprevious tenant, Dynamic Cooking Systems, made a number ofimprovements to the property including extensive power and airdistribution, a large, private fenced yard, and lunch and restroomfacilities for factory employees. This allows MWE to immediatelymove in and begin operations with no modifications, he adds.

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Stauff, who is based in the Irvine office of Colliers,represented the landlord, DCS Holdings Inc. The tenant wasrepresented by Jeff Shepard and Dillon Dummit of CresaPartners.

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In the Anaheim transaction, Rezai & Son, LLC bought the 4240E. La Palma building from Anaheim Manufacturing, with Scott Seal ofLee & Associates-Orange representing the buyer and CB RichardEllis' Ben Seybold and Sean Ward representing the seller. Theproperty will be used as a corporate headquarters for InfoSendInc., a data processing, print, mail and eBill/ePay serviceprovider. A major renovation of the property is planned, andInfoSend Inc. is expected to be in operation at the property by thebeginning of first quarter of 2011.

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Seal notes that the buyer waived all due diligence contingenciesin a 30-day period. He describes the transaction as "a greatexample of a local established owner/user who positioned himselffor the right opportunity to take advantage of a depressed market.”Seal adds that the buyer "remained patient, as there were othermore attractive offers on the table for the seller in terms ofpaying all cash and closing quickly. Once the deal reappeared, hewas fully prepared with his lender to move forward and commit tothe deal. That is quite encouraging knowing the buyer waspurchasing with an SBA loan.”

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According to Seal, in East Anaheim alone, approximately 1.2million square feet has been leased or sold in the past 12 months.Industrial absorption rates are up locally, with a decrease in theratio between listed buildings and leased/sold buildings, he says.“In general, we’ve seen an increase in activity for well positionedindustrial real estate,” Seal said Seal. “The industrial marketvacancy is hovering around 6% as other types of commercial realestate are still lagging behind. Lenders are very selective but forthose that do qualify, the deals are moving forward.”

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