Costco Announces It's Building a Convenient 800-Unit Apartment Complex Right Above Its Newest Warehouse

Costco is set to transform South Los Angeles with an ambitious mixed-use complex, combining a new store with 800 residential units.

costco wholesale sign
Updated July 18, 2024
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With housing costs at an all-time high throughout the U.S., is Costco, America’s favorite big-box wholesaler, the solution? In an innovative move to combat the affordable housing crisis in Los Angeles, Costco is stepping beyond its retail roots.

The club store has partnered with Thrive Living and AO, an architecture firm, to develop a mixed-use complex in Baldwin Village in South Los Angeles. 

This project will introduce a new Costco store to the area and provide 800 residential units, of which 184 will be designated as affordable housing. In addition to the much-needed affordable living spaces, there will be plenty of amenities.

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A new era for Costco

Thrive Living costco apartent building

Costco’s new store in South Los Angeles will be accompanied by an 800-unit apartment complex. 

Of these, 184 units are set aside for affordable housing to alleviate the area's housing shortage. The project was announced in a press release last year and will be built on a five-acre vacant lot that previously housed a hospital.

Living the good life

IanDewarPhotography/Adobe closed Entrance to Costco Wholesale store

The development plan includes a variety of residential amenities typical of similar developments — think a gym, multi-purpose spaces, landscaped gardens, a rooftop pool, and a large parking lot. 

The building’s design features small residential units along long hallways, complemented by a substantial recreation center.

Building smarter, not harder

Atstock Productions/Adobe architect team discussing project

Costco and Thrive Living plan to use pre-manufactured apartment modules to speed up construction and control costs. 

These modules can be transported to the site and assembled quickly, making the building process more efficient. It also helps to keep the housing units affordable and speed up the project’s completion.

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Navigating red tape

SeanPavonePhoto/Adobe downtown los angeles california cityscape

The project is currently in the permitting stages, facing the complexities of California’s planning and land use system.

 However, Costco can bypass some of the costly and time-consuming discretionary reviews by already meeting state-level criteria for mixed-use developments. 

This strategy involves allocating at least two-thirds of the building’s square footage to residential space.

Bottom line

K KStock/Adobe Tide Laundry detergent pallets at costco

Costco’s mixed-use complex in South Los Angeles represents a bold step toward addressing the city’s affordable housing crisis. 

Despite regulatory challenges, using pre-manufactured modules and strategic planning promises to make this ambitious development a reality, benefiting the local economy and residents. Would you want to live right on top of one of America's biggest bargain wholesale purveyors?

We could definitely see the benefits... 

Author Details

Laura Ratliff

Laura Ratliff is a writer and editor based in New York. Her writing expertise spans numerous topics, including insurance, travel, food and drink, and reported pieces covering political and human rights issues. She has previously worked at Architectural Digest, Bloomberg News, and Condé Nast Traveler.