In a bold and innovative move, big-box wholesaler Costco is stepping into the affordable housing arena with a mixed-use complex in South Los Angeles, aimed at tackling the city’s severe housing crisis.
Teaming up with developers Thrive Living and renowned architects AO, Costco plans to open a new store in Baldwin Village, complemented by an 800-unit apartment complex. Impressively, 184 of these units will be designated for affordable housing, demonstrating a commitment to community welfare that extends beyond retail.
Costco first unveiled this groundbreaking project in a press release early last year. However, as of now, the development is still in the pipeline, awaiting permits with no confirmed start date for construction.
“The planning and land use system in California and in LA is a Rube Goldberg machine,” remarked housing activist Joe Cohen in an interview with SFGATE. “This project is seeing that machine laid bare.”
Costco has yet to respond to media inquiries about the project, but the details that have emerged paint an ambitious picture. The complex will rise on a five-acre vacant lot that formerly housed a hospital. Plans include amenities such as a gym, multi-purpose spaces, gardens, a rooftop pool, landscaping, and extensive parking facilities, making it a self-contained community hub.
While Cohen has criticized the design, likening it to an “old school prison” due to its long hallways and compact units, the project’s pragmatic approach cannot be ignored. The design leverages pre-manufactured apartment modules, which can be swiftly assembled on-site, reducing both construction time and costs. This method highlights Costco’s efficiency and innovative thinking in addressing housing needs.
An insightful post by Cohen on X (formerly Twitter), which garnered nearly 3 million views, speculated that Costco’s housing initiative might be a strategic move to navigate Los Angeles’ stringent and expensive site review processes. According to state law, at least two-thirds of the 185,000-square-foot development must be allocated to housing for Costco to benefit from a streamlined approval process.
Beyond the residential aspect, the Costco store itself promises to be a major draw. Located near mass transit options, it will feature a multi-floor underground garage, a pharmacy, an optical site, and more, ensuring it serves as a comprehensive shopping destination.
“Mayor Bass has declared a housing emergency in Los Angeles, and we’re answering the call,” said Jordan Brill of Thrive Living in a press release statement. “Our company is focused on addressing the severe housing affordability crisis in Los Angeles, while also attracting retailers willing to make long-term commitments.”
This initiative by Costco and Thrive Living stands out not only for its potential impact on the local housing market but also as a model for how large corporations can engage in social responsibility. In a city plagued by housing shortages and affordability issues, such projects are crucial. They represent a step towards practical solutions, showcasing how private enterprise can contribute to public good.
By addressing a critical need while simultaneously expanding its retail footprint, Costco is setting a precedent. This project could serve as a template for similar endeavors nationwide, illustrating that businesses can play a pivotal role in solving societal challenges. As Los Angeles grapples with its housing emergency, Costco’s innovative approach may well mark the beginning of a new era in corporate-community partnerships.
