Costco to Open Los Angeles Warehouse Under 800 Apartments in First‑of‑Its‑Kind South LA Mixed‑Use Project
Thrive Living and Costco broke ground on a first‑of‑its‑kind Baldwin Village project in South Los Angeles, stacking roughly 800 rental apartments above a new 185,000‑square‑foot Costco warehouse, with the store expected to open in 2027.
Key takeaways
- Stacked model: ~800 apartments built over a ~185,000 sq ft Costco — larger than the average U.S. store, with two levels of underground parking.
- Affordability: About 184 units (~23%) set aside for low‑income households (30%, 50%, 80% AMI); remaining units target workforce levels.
- Private financing: Thrive reports a private‑financed, $425 million project; Costco will lease ground‑floor space and pay rent to support affordability.
- Policy test: First LA project approved under AB 2011, using streamlined ministerial review to accelerate approvals.
Key information
Project site: Baldwin Village/Baldwin Hills (around 5035 Coliseum Street near La Brea Avenue). Reporting and public statements cite Fox Business, Housing Finance and ABC7 for coverage and site details.
Retail footprint: The Costco is planned at about 185,000 square feet, which reporting notes is larger than the typical U.S. Costco footprint (Entrepreneur).
Timeline: Groundbreaking occurred last September; construction is expected to span roughly 2 to 2.5 years, with Costco’s CEO Ron Vachris projecting a 2027 opening (reported in Housing Finance, Multifamily Dive, and Fox Business).
Housing details
Thrive Living plans roughly 800 rental units stacked above the full‑size warehouse. Approximately 184 units (~23%) are set aside for low‑income households at 30%, 50% and 80% AMI. The developer says the remaining units will serve workforce households in the roughly 120%–150% AMI range and that the Costco lease helps the project work financially without relying on low‑income housing tax credits (reporting: Housing Finance, Fox Business, Entrepreneur).
“Thrive has said it will rent most units at affordable or naturally occurring workforce levels, and that the Costco lease helps the project pencil out without public low‑income housing tax credits.”
Policy, approvals and timeline
This Baldwin Village site is the first Los Angeles project approved under California’s AB 2011 (the Affordable Housing and High Road Jobs Act), which creates a streamlined, ministerial approval path for qualifying affordable, high‑road jobs projects in commercial zones. City officials and Thrive attribute faster approvals to AB 2011 (Housing Finance, ABC7, Multifamily Dive, Fox Business).
Costco’s strategy and economic model
Costco CEO Ron Vachris told investors that stacking housing above a warehouse is a creative way to enter dense urban markets where a typical 20–25 acre site is impossible to find. The model can bring the chain closer to members and relieve congestion at high‑volume warehouses (Fox Business).
Thrive Living — led by Ben Shaoul — frames the deal as a “housing‑jobs‑retail mix.” Thrive will develop and privately finance the property, then lease ground‑floor space to Costco; that rent stream contributes to the project’s affordability without relying on tax credits (Housing Finance, Entrepreneur).
Jobs and local hiring
Officials estimate up to 400 permanent jobs at the Costco and thousands of construction‑period positions. City partners include the Housing Authority of the City of Los Angeles; Mayor Karen Bass praised the public‑private approach at the groundbreaking (reporting: Housing Finance, Entrepreneur).
Design, amenities and site logistics
Design stacks ~800 apartments above the ~185,000‑sq‑ft Costco, with two levels of underground parking beneath the store. The warehouse program includes pharmacy, optical and fresh food; residents are slated to have rooftop amenities such as a pool and fitness center. Developers emphasize underground parking and circulation planning to separate customer and resident flows (Entrepreneur, ABC7, Housing Finance).
Neighborhood context and community concerns
Baldwin Hills/Baldwin Village faces economic challenges and a poverty rate above the national average. While some leaders welcome housing and jobs, advocates will monitor affordability guarantees, construction impacts and traffic. Planners see the project as a test case for using municipal policy and private finance to insert housing in constrained commercial corridors (Entrepreneur, Multifamily Dive, Housing Finance).
Policy significance: AB 2011 mixed-use development
As the first LA project approved under AB 2011, the site will be watched for whether streamlined ministerial review reliably unlocks private capital while preserving community input and environmental safeguards. Supporters highlight time savings; critics caution against eroding review and protections (coverage: Housing Finance, ABC7, Multifamily Dive).
Implications for California
Economic: The private‑financed $425 million model uses commercial rent to support affordability and could boost local employment and economic activity in South L.A. (Fox Business, Entrepreneur).
Political & social: The project offers a visible win for streamlining advocates and a model attractive to developers and moderate policymakers, but it raises questions about transparency, labor standards, displacement risk, and whether long‑term affordability is protected (Housing Finance, Multifamily Dive).
Practical considerations
Residents could gain on‑site access to large‑format grocery, pharmacy and other services. If parking, access points, loading docks and transit integration are well executed, the stacked model may reduce driving trips and relieve pressure on crowded warehouses — but execution will determine whether congestion is eased or shifted to nearby streets (ABC7, Entrepreneur).
Replication potential
Developers and planners nationwide will study Baldwin Village as a test case for combining big‑box retail with housing under AB 2011‑style approvals. The approach can unlock parcels in tight markets but raises long‑term questions about affordability, community benefits and public review integrity (Multifamily Dive, Housing Finance).
Reporting notes and sources
This article draws on coverage and public statements from multiple outlets and project materials. Full sources referenced:
Preserved URLs and reporting are included above in source links for verification and further reading.
