Costco to Open Full Warehouse Under 800-Apartment Complex in South L.A., Citing New Markets and Less Congestion
Costco will open a full 185,000‑sq.ft. warehouse beneath roughly 800 apartments in Baldwin Village, South Los Angeles; 184 units are reserved for low‑income households, and the privately financed mixed‑use project aims to open in early 2027.
Key takeaways
- Vertical, mixed‑use model: A full‑size, ~185,000 sq. ft. Costco will be built beneath roughly 800 apartments at 5035 Coliseum Street in Baldwin Village.
- Affordable housing set‑aside: About 184 units (~23%) will be reserved for low‑income households; the rest are non‑subsidized affordable/workforce units.
- Privately financed: Thrive Living estimates roughly $425 million total cost; Costco will pay rent as anchor tenant to help cross‑subsidize housing.
- Timeline & jobs: Groundbreaking was in September 2024, with an early‑2027 opening targeted; construction will create many jobs and the store may add up to 400 permanent positions.
Project overview
Location: 5035 Coliseum Street, Baldwin Village/Baldwin Hills, South Los Angeles (near LAX). Reporting and project filings include coverage from Fox Business, Housing Finance, Entrepreneur, and Multifamily Dive.
Format, scale and amenities
The development is a vertically integrated, mixed‑use property anchored by a full Costco warehouse on the ground level with roughly 800 apartments above. The planned Costco footprint is about 185,000 square feet, larger than the company’s U.S. average, and will be supported by two levels of underground parking serving shoppers and residents alike (Entrepreneur; Fox Business).
Thrive Living says the residential component will offer a range of units. About 184 apartments will be set aside for low‑income households, targeted to roughly 30%, 50% and 80% of AMI. The remaining ~616 units are planned as non‑subsidized affordable and workforce housing at market‑near “naturally occurring” levels rather than luxury rates. Resident amenities are expected to include a rooftop pool and fitness center (Housing Finance; Entrepreneur).
Costco’s strategic rationale
Costco CEO Ron Vachris said the Baldwin Village project reflects the company’s push into dense urban markets where traditional surface‑parking big‑box sites are limited. The mixed‑use format is presented as a way to bring Costco closer to members, reduce congestion at busy stores, and access markets the company would otherwise pass over (Fox Business).
Policy, approvals and AB 2011
This Baldwin Village plan is the first project approved in Los Angeles under AB 2011 (the Affordable Housing and High Road Jobs Act), effective July 1, 2023. AB 2011 streamlines permitting for qualifying affordable multifamily projects in many commercial zones, reducing zoning obstacles for denser mixed‑use development and allowing faster timelines for projects that meet the law’s criteria (Housing Finance; Multifamily Dive).
Los Angeles Mayor Karen Bass called the groundbreaking “an example of breaking with the old ways of doing things,” underscoring the need for public‑private collaboration to address the housing shortfall (Housing Finance).
Financing and jobs
Thrive Living describes the project as privately financed, estimated at roughly $425 million. The model relies on Costco paying rent as an anchor retail tenant to create steady revenue that helps keep residential rents affordable without major public subsidies or low‑income housing tax credits (Housing Finance; Multifamily Dive).
Construction (groundbreaking: September 2024) is expected to take about 2–2.5 years, with an opening targeted for early 2027. Construction will create thousands of short‑term jobs, and the operating Costco store could add up to 400 permanent positions, with stated plans to hire locally (Fox Business; Entrepreneur).
Urban planning and community context
Baldwin Village has been considered underutilized for higher‑density development despite strong housing need. Proponents argue the mixed‑use replacement brings housing, jobs and retail in a single footprint; critics raise concerns about traffic, density, and neighborhood character as large developments enter established communities (Multifamily Dive; Entrepreneur).
Design experts and trade reporting describe 5035 Coliseum as a potential prototype for how big‑box retail can help finance affordable housing when paired with enabling rules like AB 2011. Officials and developers say the streamlined approvals were key to hastening the deal and that other cities may study the model (Multifamily Dive).
Implications for Huntington Beach, California
Economic ripple effects: A new Costco in South L.A. can relieve pressure on existing Southern California warehouses, potentially easing crowds and improving the shopping experience for Huntington Beach residents who travel to busier stores (Fox Business).
Job market: With up to 400 permanent positions and thousands of construction jobs projected, regional hiring opportunities could expand for logistics, retail, and construction workers in the Huntington Beach area (Entrepreneur).
Policy & taxpayer impact: Because the developer says the project is privately financed and avoids principal subsidy tools like LIHTCs, some local taxpayers and conservative readers may view the approach favorably as leveraging market mechanisms and private rent streams rather than large public spending (Housing Finance).
Traffic & infrastructure: Two levels of underground parking reduce surface parking needs, but regional traffic impacts remain a concern. Huntington Beach officials should watch Los Angeles’ traffic management and transit measures to see whether such dense retail‑residential combos reduce or exacerbate congestion (Entrepreneur; Multifamily Dive).
Sources and reporting
Reporting and project details are drawn from coverage and filings by: Fox Business; Housing Finance; Multifamily Dive; and Entrepreneur. Additional comments from Costco executives were reported during the company’s Q1 FY 2026 earnings call and at the project groundbreaking as covered in the above outlets.
Project facts preserved: site: 5035 Coliseum Street; Costco footprint: ~185,000 sq. ft.; apartments: ~800 (≈184 low‑income set‑aside); financing: ~$425 million; groundbreaking: September 2024; target opening: early 2027.
