
The nation’s first mixed-use development to feature 800 apartments above a Costco Wholesale store is in the works in south Los Angeles.
The community will include 184 apartments, or 23% of the total units, dedicated to low-income households. There will be a mix of offerings at 30%, 50%, and 80% of the area median income (AMI) levels, with the exact unit allocation still be to be finalized. Plans call for the remaining 616 units to be non-subsidized affordable and workforce housing, serving households around the 120% to 150% AMI levels.
The project is being developed by Thrive Living, a national real estate firm that acquires underutilized properties in urban markets with significant housing affordability gaps. The Housing Authority of the City of Los Angeles is a partner in the project.
Like Thrive’s other projects, the development is privately financed without the use of government subsidies such as low-income housing tax credits, according to officials.
“This is the first mixed-use project in the nation to have Costco as an anchor tenant, helping the project provide a strong housing-jobs-retail mix for the community,” says Ben Shaoul, founder of Thrive. “Furthermore, thanks to its design, all of the units will be rented at affordable or naturally occurring workforce housing levels.”
A groundbreaking ceremony was held for the 5035 Coliseum development last September. Construction is expected to take up to two-and-a-half years as the team transforms an old commercial site into a new retail and housing community.
"We are breaking with the old ways of doing things and moving Los Angeles forward. Unprecedented action driven by urgent collaboration in both the public and private sector is what is expected and that’s what we are delivering today,” said Los Angeles mayor Karen Bass at the groundbreaking event
Beyond bringing new housing opportunities to the Baldwin Village area, the project will allow the neighborhood to shop locally.
“The community feedback on Costco is extremely positive,” Shaoul says. “Many local residents drive miles outside of the community to find quality, affordable groceries, and produce. Adding a Costco to this neighborhood will be a game-changer for the community.”
He adds that Costco has a strong track record of hiring from the neighborhood when they open new stores. Officials estimate that up to 400 jobs will be created at the location.
The development is the first Los Angeles project to be approved under state AB 2011, the Affordable Housing and High Road Jobs Act, which allows a streamlined ministerial approval process for affordable multifamily projects in certain commercial zones.