A first-of-its-kind mixed-use development is coming to Baldwin Hills in South Los Angeles, bringing the nation’s first Costco with residential apartments built directly above it. Real estate developer Thrive Living is preparing to begin construction in early 2025 on the $425 million project.
The mixed-use development will combine a 185,000-square-foot Costco warehouse with an 800-unit apartment complex. The Costco will be larger than the average U.S. location and will include two levels of underground parking.
Housing With Built-In Amenities
The residential portion of the development will include 800 apartments, with 184 units designated for low-income households. The remaining residences will be offered as a mix of affordable, workforce, and market-rate housing. Planned amenities include a rooftop pool and fitness center for residents.
Addressing Housing and Economic Needs
The project is located in Baldwin Hills, a neighborhood with a poverty rate approximately 25% higher than the national average. According to Thrive Living founder Ben Shaoul, rental income from Costco will help reduce reliance on government subsidies while supporting the development’s affordable housing component.
“We greatly appreciate the leadership of Mayor Bass in driving an ambitious pro-housing agenda in Los Angeles,” said Ben Shaoul, founder of Thrive Living. “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.”
This redevelopment plan, like all of Thrive’s other projects, is privately financed, without the use of government subsidies such as Low-Income Housing Tax Credits.
Plus, construction of the complex is expected to create thousands of jobs, while the Costco itself could generate up to 400 permanent positions once it opens. The project is slated for completion in 2027.
The First Under California’s AB 2011
The development is the first to receive approval under California Assembly Bill 2011, also known as the Affordable Housing and High Road Jobs Act. The law, which went into effect statewide on July 1, 2023, streamlines approvals for projects that meet affordability and labor requirements.
You can read more about the entire Costco development project here.