Construction has begun on a landmark project in South Los Angeles that pairs a Costco Wholesale store with hundreds of new apartments—a first-of-its-kind concept in the U.S.
The $1 billion development, led by Thrive Living, will transform a long-vacant five-acre site at La Brea Avenue and Coliseum Street into 5035 Coliseum, a mixed-use complex anchored by Costco and topped with 800 rental units. Of those, 184 apartments (23%) will be reserved for low-income households, starting at about $1,040 per month for residents earning $41,610 annually. The remaining units will be offered as non-subsidized affordable and workforce housing, all eligible for Section 8 vouchers.
Unlike many affordable housing projects that depend on public subsidies such as Low-Income Housing Tax Credits, Thrive Living is leveraging Costco as an anchor tenant to generate a sustainable revenue stream. This approach reduces reliance on traditional subsidies, which often delay construction. The project is also the first in Los Angeles to move forward under Assembly Bill 2011, a state law that streamlines approvals for mixed-use developments that meet affordability and labor standards.
“This assembly bill is designed to create jobs, to create housing, and to create quality retail,” said Jordan Brill of Thrive Living. “It created an accelerated path to getting this done. I don’t know if we’d be here today without it.”
For Costco, the Baldwin Village site offers access to a dense urban customer base. For local residents, it means more than just bulk goods. The store will include a pharmacy, optical center, delivery services, and fresh food options—resources that city leaders say could have “generational impact” on the community.
L.A. Mayor Karen Bass, speaking at the groundbreaking last year, called the project “a new wave of resources” that combines housing, healthcare, and retail in one place. Thrive and Costco also plan to launch a local hire and job-training program, with Costco estimating 400 new jobs for area residents.
The residential side of the project will feature modern amenities such as a rooftop pool and a fitness center, with units designed to serve families, seniors, and long-term residents of Baldwin Village.
While many view the project as a much-needed revitalization of Baldwin Village—long nicknamed “The Jungle”—some neighbors have voiced concerns.
Residents closest to the site say the demolition has already caused shaking and noise. Others fear worsening traffic at the already congested La Brea and Coliseum intersection. One local commented, “If this is just the demolition, I’m concerned about the year-plus it will take to complete the store and apartments.”
Still, others are embracing the change. “When I was a little girl—and I’m 60 now—that area was amazingly beautiful. It took a serious downturn, but this is another plan. It’s slowly turning back into the jewel it once was,” said a longtime resident.
Some critics argue that Costco should have taken over the vacant Sears or Macy’s at the Baldwin Hills Crenshaw Mall instead, citing built-in parking and space. But community leaders say the focus has been on ensuring affordability and preventing displacement. Construction is expected to take about two and a half years, with completion projected by late 2026 or early 2027. Supporters say the Baldwin Village Costco project could become a blueprint for how public-private partnerships deliver affordable housing while revitalizing underserved communities.