A first-of-its-kind Costco with 800 condo units above it is coming to Baldwin Hills, a South Los Angeles neighborhood that Census Reporter gen has a poverty rate 25% higher than the national average.
The complex includes 184 apartments for low-income families, with the rest of the units offered as a mix of unsubsidized, affordable and workforce housing. There will also be a rooftop pool and a fitness center.
The downstairs Costco will have 185,000 square feet of space and two levels of underground parking. According to San Francisco Chroniclethe average size of a Costco in the US is 146,000 square feet, placing this Costco above average.
Real estate developer Thrive Living is preparing to begin construction on the Costco apartment property in early 2025, according to a report published earlier this month by Wall Street Journal. When built, the complex will be the first residential development in the country with a Costco right downstairs.
Photo Credit: Thrive Living
Thrive Living founder Ben Shaoul told the WSJ that Costco will pay the rent for the space, and the proceeds will help Thrive Living rely less on government subsidies for the complex's affordable housing units.
If the model works, Shaoul says he wants to use the same concepts to build “thousands and thousands of apartments every year, not hundreds.”
Related: A popular Costco section may disappear in January
The Costco apartment complex will cost $425 million to build, with work expected to be completed in 2027.
According to a Thrive Living press releaseConstruction of the complex will create thousands of jobs and the opening of Costco will create up to 400 new jobs.
The project is the first to receive approval under the 2011 Assembly Bill or the Affordable Housing and High Streets Employment Act. The California law, which went into effect statewide on July 1, 2023, speeds up the approval process for projects that meet affordability and jobs criteria.
Related: Costco is raising hourly wages for employees, according to an internal memo from the CEO