Costco, COST, plans to build apartments above its stores starting early this year

A new development in South Los Angeles is set to feature a first-of-its-kind Costco combined with residential apartments.

On September 18, the city broke ground on this innovative project in Baldwin Village, which will house a Costco warehouse along with 800 rental units. Of these apartments, 184 (23%) will be designated for low-income households, according to developer Thrive Living.

The Costco will provide more than just its signature bulk shopping experience, offering optical services, a pharmacy, and delivery options.

“This is truly a game changer for us and a huge investment in the community. We are excited to have quality groceries close to home, in addition to all of the other services Costco provides,” said Brenda Ashby, an executive committee member of the Crenshaw Manor Community Association, in an interview with NBC Los Angeles.

The development, located at 5035 Coliseum Street on the site of the former View Park Community Hospital, is the first housing project in Los Angeles to advance under California’s AB 2011 law. Approved in 2022, this law streamlines the approval process for mixed-use developments that include affordable housing.

The new Costco, the first in South Los Angeles, is expected to create 400 jobs, offering significant employment opportunities for local residents.

Thrive Living plans to utilize a modular design approach to construct the project, described as “cost-effective and innovative,” to deliver high-quality housing at below-market rates.

The development will include amenities such as secure parking, interior courtyards, a gym, community gardens, a rooftop pool, a full basketball court, two half courts, climbing structures, and play areas.

Renderings of the complex depict a modern housing community with sleek black and brown exteriors and a Costco warehouse at street level, along with vibrant shared spaces like courtyards.

Construction timelines for the project have not yet been announced.