Newport Beach-based Alere Property Group LLC is reported to be the buyer, adding to the firm’s recent local investment swing.
The tenant plans to stay on for two more years at the 46,644-square-foot race car facility, which Terrible Herbst acquired in 2015 for nearly $3 million, a price negotiated five years prior to its sale as a lease option.
The company’s plans after the lease ends haven’t been disclosed.
Terrible Herbst
Terrible Herbst was founded in 1959 in Las Vegas by the late Jerry Herbst, a former race car driver and son to Terrible Herbst Oil Co. owner Edward Herbst.
The company owns and operates convenience stores, car washes and lube locations, predominately in Southern Nevada. It’s a notable promoter of off-road racing organization SCORE International and its SCORE World Desert Championship.
Herbst died in 2018; he’s survived by his three sons, Ed, Tim and Troy, who are all said to be involved in the business.
Jerry Herbst’s best-known area real estate holding was a residential one. In 2008, he paid a then-record $35 million for actor Nicholas Cage’s home in Newport Harbor. It was sold again in 2012 at a lower price.
Surf City Shop
Terrible Herbst opened its Huntington Beach race shop in 2007.
The industrial building is on a 2-acre site at 14422 Astronautics Drive next to the San Diego (405) Freeway, and includes about 14,000 square feet of office space and 2,500 square feet of storage.
Terrible Herbst is expected to vacate the property after the short-term lease expires, according to brokerage materials, giving the new owner flexibility in new tenant options or redevelopment possibilities.
The deal for the Astronautics building works out to just over $270 per square foot.
Clyde Stauff, Michael Kendall, Gian Bruno and Jace Gan of Colliers brokered the deal on behalf of Terrible Herbst.
Buying Spree
This is the third notable local buy for Alere since the start of last year.
The company kicked off 2020 with its purchase of an Irvine industrial building at 17353 Derian Ave. for $16.6 million.
At the end of the year, Alere made a portfolio buy totaling $32 million for a 76,000-square-foot and 34,650-square-foot building at 1922-1924 Barranca Parkway, also in Irvine.
