Brea-based Concord Disc Manufacturing has leased the 123,624-square-foot former Seagate Technology Inc. facility in Anaheim. The five-year lease is valued at $4 million.
Concord, a replicator, packager and producer of compact and digital video discs, plans to use the Anaheim facility to expand its operations.
“Concord spoke to us about a year ago in regard to a new facility,” said Don Paul, a partner at Ashwill & Associates who represented Concord in the transaction. “Since Seagate and Concord are in similar industries, the Anaheim building was correctly outfitted for Concord’s needs and was the best choice.”
According to Paul, the Anaheim facility had about 50% of the outlets and appliances that Concord needed already in place, which saved the company about $250,000 in improvements. Concord and Ashwill looked at a dozen buildings in Orange County, including Fujitsu Ltd.’s facility in Anaheim.
Seagate, a maker of computer disk drives, produced substrate components at the Anaheim plant. In May, the company announced it was closing the Anaheim plant and one in Mexico and consolidating production in Ireland.
“Because the disks have a greater capacity for information than a few years ago, we were producing fewer drives,” said Woody Monroy, a spokesman for Seagate, in explaining the plant closure.
A Concord spokesman declined to comment on the company’s move.
Discussions between Seagate and Concord began in May and were finalized in November, Paul said. Concord will sublease the space from Seagate for a year, and then lease the facility directly from landlord Ismos Investments for the remaining four years. The facility is being fitted for Concord’s needs, and Concord is expected to occupy the building by February, sources said.
Jeff Chiate and Rich Ellison, partners at Cushman & Wakefield represented both Seagate and Ismos in the transaction. n
