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

In the 5800 Skylab lease, Colliers EVP Clyde Stauff reports that the property is located within Huntington Beach Industrial Park and situated near Boeing’s operations. The industrial building includes 16,000 square feet of high-finish, executive office space.

Modular Wind Energy, which is relocating its Long Beach operations to the site, will occupy the building for the manufacturing and distributing of propellers that are mounted on wind-driven turbines, a technology that allows for more efficient generation of wind power, Stauff reports. He notes that the previous tenant, Dynamic Cooking Systems, made a number of improvements to the property including extensive power and air distribution, a large, private fenced yard, and lunch and restroom facilities for factory employees. This allows MWE to immediately move in and begin operations with no modifications, he adds.

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

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

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

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