Costco has jumped into the nation’s affordable housing crisis. The warehouse retailer, which operates more than 500 stores across the U.S., broke ground on a different type of superstore in September—one that will include some 800 residential units on its upper floors.
“This is the first mixed-use development in the nation to have Costco as the anchor retail tenant,” said Thrive Living in a press release, the national real estate firm developing the project. “Consistent with Thrive Living’s approach, the 5035 Coliseum project breathes life into a dormant former office property that stopped delivering economic and community benefits years ago.”
Located in the Baldwin Village community in South Los Angeles, California, the project is part of Thrive’s mission to acquire underutilized properties in communities where new, quality housing is in short supply and transform those properties into new housing and retail. The project is privately financed and will be completed without the use of government subsidies.
“California’s game-changing laws to streamline the building of new affordable homes are creating real results,” said California Gov. Gavin Newsom at the groundbreaking event.
“Today, Thrive Living and Costco are breaking ground in more ways than one with an incredible collaboration that uses our new state laws to transform an underutilized space into a prosperous housing project and retail center.”
A total of 800 apartments will be constructed above the new Costco, 184 of them, or 23 percent, will be dedicated to low-income households. The balance of the units will be non-subsidized affordable and workforce housing.
The site is designed to support families, seniors and other residents to move laterally from within the community according to Thrive.
The building will feature a full-service fitness center, high-tech shared workspaces for residents, study space for students, community rooms connected to landscaped courtyards and a rooftop pool.
Costco plans to operate a state-of-the-art store featuring fresh produce and healthy food options along with a wide array of products at its trademark low warehouse prices.
Costco also plans to provide optical services, a pharmacy, and delivery services to support the needs of local businesses.
