Costco building apartment complex to try to ease housing crisis

Millions of Costco members (and people who they let tag along) love the wholesale retailer for deals on everything from bottled water to washing machines. Now, Costco is entering a new arena – housing.

According to multiple reports, an area of Los Angeles, Calif., once known as “The Jungle” is soon expected to be the site of a new type of Costco project. SFGATE said this week that the approved project at 5035 Coliseum in Baldwin Village/Crenshaw is a “novel new approach” to residential construction that could become a test drive for future projects.

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

Thrive Living , the real estate developer behind the project, said it will revamp an “underutilized five-acre site in the Baldwin Village community of Los Angeles,” within walking distance of public transportation. It will also include hundreds of housing units, including affordable housing units , courtyards, a rooftop pool, activity and fitness areas, community gardens, and indoor parking.

“Partnering with neighborhood leaders, we’re working to activate the site with high-quality housing, enriching programming, and a quality community-oriented national retailer on the ground floor,” said Thrive, which is working with the AO architecture firm.

“Our company is focused on addressing the severe housing affordability crisis in Los Angeles while also attracting retailers willing to make long-term commitments and deliver community-serving products and services that enrich the living experience of our residents and neighbors,” said Thrive Living’s Jordan Brill in a press release for the project cited by Spectrum News .

He noted that Los Angeles Mayor Karen Bass has addressed a housing crisis in the city . Just this week, Audacy reported that home prices nationwide have hit an all-time high.

SFGATE said that there will be 800 apartments in the development – where there was previously a hospital – including 184 low-income units.

“The planning and land use system in California and in LA is a Rube Goldberg machine,” housing activist Joe Cohen told the outlet, “and this project is seeing that machine laid bare.”

Cohen posted about the project on X earlier this month , and the post has nearly 3 million views. In it, he explained that big box store approvals are hard to get in Los Angeles and that they require multiple approvals. However, mixed use developments such as the one on Coliseum are exempt from discretionary reviews.

“So Costco did what any good Scooby-Doo villain would do. They put on a mask that says "I'm an apartment building, not a big-box store,” Cohen said. He also went on to explain requirements for housing included in that plan, and the benefits of using the pre-fab models that are expected to be used for the development.

Even though he used the phrase “Scooby-Doo villain” to describe the approach, Cohen told SFGATE that he supports the project, as Los Angeles is in need for more affordable housing.

“If done right and embraced by locals, developers, big box retailers and public officials, the project could be a novel model for future build-outs statewide,” said SFGATE.

Gabe Kadosh, a vice president of Colliers in Los Angeles, said it’s not typical for the superstore to be a ground-floor retail tenant and “that he and other real estate professionals have been talking about it in recent days,” according to Co-Star .

“It’s certainly fascinating and something that people are going to be watching,” Kadosh said. "Developers are going to be paying attention.”

When it eventually opens, the Costco is expected to have ample subterranean parking – the development calls for around as much underground space as above-ground space. However, it is not yet known if it will include the fan-favorite food court where residents might be able to grab reasonably priced pizza and hot dogs before heading home.