Costco Affordable Housing Complex Breaks Ground in South Los Angeles

Costco Affordable Housing - The Home Atlas

The Costco affordable housing complex in South Los Angeles marks a groundbreaking shift in urban development. Thrive Living and Costco initiated this mixed-use project at 5035 Coliseum Street, transforming an unused five-acre site in Baldwin Village into an 800-unit residential complex. This project not only brings the neighborhood’s first Costco but also addresses the pressing need for affordable and workforce housing in the region.

Groundbreaking for Costco, apartment development in South Los Angeles

Costco Affordable Housing: A New Approach to Housing and Retail

The Costco affordable housing complex aims to merge essential retail services with much-needed housing options for low-income and workforce residents. Thrive Living, the real estate firm leading the development, shared plans for a state-of-the-art Costco store that will provide healthy food options, fresh produce, optical services, and pharmacy access. Additionally, it will offer home delivery services to the community. With 184 of the total apartments set aside for low-income housing, and the rest for non-subsidized affordable and workforce housing, the project aligns with California’s efforts to alleviate the housing crisis.

Governor Gavin Newsom praised the development, stating, “Today, Thrive Living and Costco are breaking ground in more ways than one.” This Costco affordable housing complex is part of a broader initiative under AB-2011, a law designed to streamline approval for housing projects that focus on affordable living.

Community-Centered Amenities

Not only will the Costco affordable housing complex provide homes, but it will also feature various amenities designed to support the local community. Residents will have access to a fitness center, high-tech shared workspaces, study spaces for students, community rooms connected to courtyards, and even a rooftop pool. Thrive Living founder Ben Shaoul emphasized the project’s significance, stating, “We couldn’t be happier to redevelop this underutilized property into a community asset that creates jobs, generates tax revenues, and addresses the shortage of affordable and workforce housing.”

In addition to the housing, the Costco store will generate employment for hundreds of people. Thrive estimates that up to 400 jobs will be created at the new location, with construction supporting thousands more.

A Landmark Project for South Los Angeles

The Costco affordable housing complex represents a new direction for urban development in Los Angeles. It’s the first mixed-use project in the U.S. with Costco as the anchor tenant. Mayor Karen Bass highlighted this as an example of the “unprecedented action driven by urgent collaboration in both the public and private sectors.” The combination of affordable housing and essential retail services promises to meet the growing needs of South LA’s residents, particularly those utilizing Section 8 housing vouchers.

As the development progresses over the next two and a half years, it will stand as a model for future projects that seek to merge housing with retail, offering a blueprint for addressing housing shortages while supporting local economies.

The Costco affordable housing complex in South Los Angeles is an exciting and innovative approach to addressing California’s housing crisis. By combining affordable living with essential retail services, this project serves as a model for future developments across the state and beyond. As the project evolves, it will create jobs, provide housing for low-income residents, and foster a sense of community—showcasing how public-private partnerships can reshape urban landscapes for the better.