Costco’s innovative approach to addressing the California housing crisis.
Costco’s Bold New Plan for the California Housing Crisis
Costco, the international bulk grocery chain renowned for its warehouse aesthetics and unbeatable deals, is venturing into uncharted territory: affordable housing. The company’s ambitious project in South Los Angeles — specifically the Baldwin Village/Crenshaw area — promises to combine the familiar “more-is-more” Costco brand with a fresh approach to residential construction.
The Vision
Announced early last year, the upcoming Costco location will not only house the retail giant’s store and ample parking but also a staggering 800 residential units. Of these, 184 apartments are specifically designated for low-income tenants. The project, developed by Thrive Living and designed by architects AO, features renderings of a mixed-use model with multiple floors, open courtyard spaces, and various amenities.
The Challenge
How will everything fit on this relatively compact 5-acre lot, especially when navigating bureaucracy, local input, unique design considerations, and state-level regulations? The answer lies in a clever confluence of factors:
- State-Level Criteria: To qualify for construction incentives, housing must comprise at least two-thirds of the total square footage in the mixed-use development. With a 185,000-square-foot Costco at street level, this translates to a substantial residential space requirement.
2. Prefab Modules: Thrive Living plans to use pre-fabricated apartment modules, efficiently transported from factory to site. These modular units are compact enough to fit under bridges and onto trucks, allowing for a higher density of apartments.
The Impact
The South LA Costco project could set a precedent for future developments statewide. If embraced by locals, developers, big box retailers, and public officials, this novel model may alleviate housing shortages while fostering community integration.
Unique Features
- Underground Parking: Most of the development’s parking will be housed in a multi-floor underground garage, maximizing space efficiency.
- Transit-Friendly: Despite its bulk shopping appeal, the site is transit-friendly, benefiting both residents and customers.
- Product Selection: Costco aims to offer fresh produce and daily necessities beyond the usual bulk items.
Costco’s foray into affordable housing represents a bold step toward addressing California’s housing crisis. As the project takes shape, it will be fascinating to see how this innovative model influences future urban development.
