Former Pet Mart Site Approved for Development linked to Skechers Co-Founder (UPDATED)

New Commercial Building Proposed for Former Pet Store Site on Aviation Boulevard

The Hermosa Beach Planning Commission approved a new multi-tenant commercial project at 1054 Aviation Boulevard at its meeting tonight (16th December).

The project would demolish the existing 4,765-square-foot structure - built in 1945 and most recently home to a pet store - and replace it with a 6,487-square-foot building featuring four retail spaces. The property is owned by Michael Greenberg, President and co-founder of Skechers USA, the Manhattan Beach-based footwear company. It was sold to him directly by the family of former owner Abu Siddiq. Mr Siddiq died in April 2024, and the property was sold for $3,525,000 by his family trust to Mr. Greenberg in October 2024. The planning application is in the name of Hodgy's Toy Chest LLC, a company registered to Mr. Greenberg.

The Greenberg family's stake in Skechers was valued at roughly $1.1 billion when Brazilian private equity firm 3G Capital completed its $9.4 billion acquisition of the company in September - the largest shoe buyout in history. The family controlled about 60 percent of the company's voting rights through two trusts, with Robert, Michael, and five other Greenberg siblings as beneficiaries. Rather than take the $63-per-share all cash buyout, the Greenbergs opted for a mixed consideration that includes around $1 billion in cash plus around $100 million of equity in the new privately-held parent company. The company stays headquartered in Manhattan Beach, where it has operated for more than 30 years. Recent property developments have included major new Skechers office space on PCH in both Manhattan Beach and Hermosa Beach.

Office or Retail ?

The corner lot at Aviation and Owosso Avenue sits in the city's General Commercial zone and spans roughly 16,700 square feet. The proposed building would include retail spaces ranging from about 650 to 1,565 square feet, plus a mezzanine level for storage. A 25-space parking lot would be located behind the building, with vehicles entering from Aviation Boulevard and exiting onto Owosso Avenue.

Representative Stacy Strauss explained that Michael Greenberg plans to use a portion of the building for his own operations: "This is Michael Greenberg's office that he's developing. It's not Skechers. Michael Greenberg does have his own business management that he needs to do, his own personal business, and he does philanthropic work as well. Those are the types of activities we expect from him."

Strauss explained that the project is designed as "core and shell," meaning the building structure would be completed without knowing all the specific tenant uses: "Right now, this is designed as what we call a core and shell application, where the applicant is designing a building. He doesn't anticipate necessarily always needing that full use of the building and that the city likely has business activities that they would like in there as well that generate revenue such as retail or service."

She confirmed that office use is a permitted use in the C-3 General Commercial zone, just as retail is, and provided context: "The current use, though, for a portion of the building is going to be a business office and maintaining a personal business office."

When pressed on the retail spaces, Strauss acknowledged the uncertainty: "At this time, no. It's not our concern. We're leaving it for potential uses. I mean, the reality is this is a pretty extensive building. This is over 6,000 square feet, and we hope to attract businesses that the city will benefit from."

She added: "So right now we know one [use]. There could be up to four."

Strauss concluded her presentation by noting Greenberg's connection to Hermosa Beach: "Mr. Greenberg has a longstanding relationship with Hermosa Beach, with his affiliation with Skechers, and we are so happy he has selected this city to call his professional home for his next chapter."

Notably, 1054 Aviation was not included in the city's Housing Element Sites Inventory overlay - the list of commercially-zoned properties where the city is counting on residential development to help meet state-mandated housing targets, even though neighboring properties along Aviation Boulevard were included. The overlay, certified by the state in August 2024, allows but does not require residential development on designated commercial sites. With the property now proposed for a new commercial-only building, it will remain outside the city's affordable housing strategy for the foreseeable future.

The future of this piece of the Aviation Blvd. corridor seems uncertain right now. It has not established itself as any sort of retail destination, with current commercial properties being mostly a mixture of restaurant and office together with a number of auto repair businesses. The former Rock 'n' Roll car Wash site at Aviation and PCH remains boarded up following its sudden closure several months ago.

The Vote

The commission unanimously approved the project 5-0 with the addition of a right-turn-only condition when exiting onto Owosso Ave, given traffic concerns.

Strauss confirmed the applicant's agreement: "We're in agreement with all proposed conditions of approval."

The project will now advance to the building permit stage. Because the site is not located in the coastal zone, it does not require Coastal Commission approval.