Terms of Big ATL Lease Disclosed

ORANGE COUNTY, CA-Local brokers today announced a huge lease deal that GlobeSt.com readers learned about last week: ATL Products Inc. has signed a $16.4-million agreement that will double the size of its current Irvine headquarters and has already begun looking for new workers to help with all its new business.

ATL makes computer tape-storage equipment, like those used to back-up important electronic files and data. The company says it has leased about 180,000 sf in two buildings next to its current global headquarters in Irvine’s University Research Park and will begin moving into the space later this year.

Though GlobeSt.com broke the news of ATL’s lease agreement last week, the announcement that Grubb & Ellis made today provided some previously undisclosed financial details. Most notably, the lease will run for five years and is valued at $16.4 million, says Scott Read of Grubb & Ellis’ Newport Beach office.

Read represented ATL in the negotiations. The owner, Irvine Co. of Newport Beach, was represented in-house by Mike Hodges. The transaction includes renewing the lease of about 63,000 sf at ATL Products’ existing location, a nearby complex at 101 Innovation Drive.

Both ATL’s revenue and staff have been growing steadily. Revenue this year is expected to jump to $400 million from $300 million in 1999. It currently employs about 500 people in Irvine and 250 more overseas, compared to a workforce half that size just two years ago, a company official says.