New Era for Affordable Housing in South LA: First-Ever Costco Anchored Mixed-use Development
South Los Angeles has taken a transformative step with the groundbreaking of a significant mixed-use development project, led by Thrive Living. This ambitious project, located at 5035 Coliseum Street, will feature 800 apartment units, with 184 reserved for low-income families. These units will be built above a new Costco store, marking the first project of its kind in the US, where Costco serves as the anchor retail tenant. The development is a shift toward integrated urban planning that meets both retail and housing needs.
The project is the first to move forward under California’s AB2011, a law designed to streamline housing projects that include affordable housing components. The law, authored by Assemblymember Buffy Wicks, was created to expedite approvals for developments addressing the housing crisis in urban areas like South LA. Thrive Living’s development is one of the pioneering projects benefiting from this fast-tracking mechanism.
Costco as a National Anchor Tenant in Mixed-Use Developments
A standout feature of this project is Costco’s role as the anchor tenant, the first time the retail giant has participated in a mixed-use development of this scale in the US residents advocated for Costco’s inclusion, recognizing the value it would bring through access to essential goods and services.
The development will be a six-story building, with Costco on the ground floor and residential apartments above. The project is set to become a model for blending retail and residential needs within urban areas. Additionally, the building will be constructed using modular prefabrication techniques, where the units are built offsite and assembled onsite, speeding up the construction process.
Affordable Housing and Community Impact
The 5035 Coliseum project is a critical response to Los Angeles’ ongoing housing crisis, offering 184 units dedicated to low-income families. These units are designed for households earning approximately $41,610 annually, with rent set at $1,040 per month, including utilities.
The remaining units will serve a broader range of needs, including non-subsidized workforce housing. The project also accommodates families and seniors reliant on Section 8 housing vouchers, ensuring inclusivity and support for diverse economic. This development addresses the shortage of affordable housing in South Los Angeles and Baldwin Hills, historically underserved areas.
Collaboration and Economic Benefits
The success of the 5035 Coliseum project was made possible through public-private collaboration. Thrive Living worked closely with Mayor Karen Bass, Governor Gavin Newsom, and local labor unions to push the project forward under AB2011.
Alongside providing affordable housing, the project is set to generate significant economic benefits for the local community. Thousands of construction jobs will be created, with local labor unions participating to ensure that the project brings economic growth to South LA. This initiative showcases the potential of public-private partnerships in solving urban housing challenges while boosting local economies.
Amenities and Construction Timeline
Beyond addressing housing needs, the 5035 Coliseum project will offer a range of amenities for residents. These include a rooftop pool, fitness center, basketball courts, and shared community spaces. The development also includes high-tech workspaces for remote workers and study areas for students.
The construction is expected to take two and a half years. Using modular building techniques will reduce the environmental impact while expediting the process. Once completed, this mixed-use development will serve as a model for similar projects across the US.
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