Costco, a leading American wholesale retailer, is set to build a 5-acre mixed-use complex on a commercial site in South LA. The complex will feature a Costco store and an 800-unit apartment building, which is expected to mark a significant development in LA's housing market, currently facing a chronic housing shortage.

According to KTLA and Fox 11 on the 17th, real estate development company Thrive Living will hold a groundbreaking ceremony today (18th) near the commercial site at 5035 Coliseum Street in LA. Attendees include LA Mayor Karen Bass, LA City Councilmember Heather Hutt, Thrive Living founder Ben Shaoul, and Costco regional administrative manager Sean McGinn.

The Costco store, the first of its kind in South LA, attracted attention since its construction plans were first announced last year.

This project is the first new housing development in LA under the 'AB-2011' bill. AB-2011 is a California law aimed at addressing the state’s severe housing crisis by streamlining approvals for affordable housing projects. California is currently facing a critical housing shortage, with 181,000 homeless people and an average monthly rent of $2,800. According to the developer, 23% (184 units) of the six-story, 800-unit apartment building will be allocated for low-income households. The remaining units will be reserved for seniors and Costco employees. The mixed-use complex will also feature amenities such as a fitness center, multi-purpose community space, rooftop pool, and garden.

The Costco store will provide fresh produce, health foods, an optician, a pharmacy, and delivery services for the community. Unlike typical stores, this location will not have a gas station or an auto service center, according to the developer.

The new Costco store is expected to contribute significantly to the local economy by boosting the construction industry and creating jobs. Currently, there are 140 Costco stores in California, and this new store will bring the total to 141.

Fox 11 reported, "This project is expected to create thousands of new construction jobs." A Thrive Living representative added, "By partnering with Costco, we will hire and train local residents, creating approximately 400 jobs within the store alone."

Experts are hopeful that Costco's bold move into mixed-use development could provide a new model for addressing the rapidly escalating housing crisis.

Previously, in her December 2022 inauguration speech, LA Mayor Karen Bass declared a state of emergency to address homelessness, noting that "40,000 people are living on the streets."

Housing activist Joe Cohen expressed strong support for the project, stating, "LA needs much more housing, and we need to be able to find housing anywhere and by any means." Thrive Living spokesperson Jordan Brill added, "We aim to help address LA’s severe housing affordability crisis while also building facilities that offer products and services beneficial to the community."

By Hongyong Park

<Hongyong Park>