Groundbreaking begins on mixed-use Costco public housing project in South LA

City and state leaders celebrated the groundbreaking of an 800-unit housing complex in South Los Angeles that will be built above a new Costco store, with 184 units of which will be public housing.

Developer Thrive Living said it was the first new housing development in Los Angeles to move forward under state law AB2011, which aims to simplify the permitting process for apartments and mixed-use projects that include public housing.

The 5-acre site near the intersection of Coliseum and La Brea will be the country's first mixed-use building, with Costco as the primary retail tenant.

“The status quo is over. Waiting for projects to start and fail and opportunities to dry up. Los Angeles is moving forward with unprecedented action, driven by urgent collaboration in both the public and private sectors,” said Mayor Karen Bass.

The 5035 Collesium project will include a new Costco on the ground floor and 800 apartments above, 184 of which will be public housing, with the remaining units being offered as unsubsidized, affordable and professional housing.

According to Cielo Castro, chairman of the board of the LA Housing Authority, the affordable housing units will be available to families earning $41,610, with rent including utilities being $1,040.

The project is expected to take two and a half years to complete and will feature amenities such as a fitness center, state-of-the-art shared workspaces for residents, student study spaces, common areas with courtyards and a rooftop pool.

Jordan Brill, a partner in the developer, said residents wanted a Costco to anchor the project. He added, “Costco's principles and mission fit seamlessly with our vision for this project.”