Costco to Build Los Angeles Warehouse Within Affordable Housing Development
The ‘Barron’s Roundtable’ panel discusses how big-box retailers are outperforming competitors through value, innovation, and unique revenue models.
Costco is set to embark on an innovative expansion by opening a new warehouse in Los Angeles situated beneath an affordable housing complex. This unique approach marks a significant shift in the retail giant’s strategy.
Located in the Baldwin Village area of South Los Angeles, the new warehouse is anticipated to open its doors in 2027. During the company’s first-quarter fiscal year 2026 earnings call, Costco CEO Ron Vachris shared insights about the project. “We’ve got a project in Los Angeles where we’re working with some developers [where] there’s some affordable housing going above a Costco just north of LAX,” he stated. “That project will open up in 2027.”
This unconventional strategy allows Costco to penetrate markets where traditional big-box development would be nearly impossible. Vachris emphasized, “That would be a market we would never be able to go into and find 25 acres to build a Costco. It just wouldn’t happen.”
Moreover, this initiative helps Costco get closer to its customers while alleviating congestion at some of its busiest locations. “We’re finding creative ways to get closer to our members and relieve some pressure from some of our highest volume locations,” Vachris noted. “We continue to see some opportunities in markets that we would have questioned in the past.”
COSTCO SHATTERS RECORDS WITH MASSIVE PIZZA AND PIE SALES DURING HOLIDAY SEASON
Costco is planning to open a new Los Angeles warehouse beneath an affordable-housing complex. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
The project, developed by Thrive Living, will feature approximately 800 apartments built above the warehouse, including a rooftop pool and fitness center, as reported by the Wall Street Journal. Roughly 184 of these apartments are expected to be designated for low-income households.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORP. | 924.88 | +9.57 | +1.05% |
Thrive Living founder Ben Shaoul estimated the total development cost at around $425 million, according to the WSJ.
NEW ‘CASH LAW’ COULD FORCE WALMART AND COSTCO TO TAKE YOUR MONEY THE OLD-FASHIONED WAY
The project, located in South Los Angeles, is expected to open in 2027. (Lindsey Nicholson/UCG/Universal Images Group / Getty Images)
During the retail giant’s Q1 2026 earnings call, CFO Gary Millerchip highlighted record-breaking sales in pizza, pie, and e-commerce during the holiday season.
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As of now, Costco and Thrive Living have not responded to FOX Business’ request for comment.
The ‘Barron’s Roundtable’ panel discusses how big-box retailers are outperforming competitors through value, innovation, and unique revenue models.
Costco is set to embark on an innovative expansion by opening a new warehouse in Los Angeles situated beneath an affordable housing complex. This unique approach marks a significant shift in the retail giant’s strategy.
Located in the Baldwin Village area of South Los Angeles, the new warehouse is anticipated to open its doors in 2027. During the company’s first-quarter fiscal year 2026 earnings call, Costco CEO Ron Vachris shared insights about the project. “We’ve got a project in Los Angeles where we’re working with some developers [where] there’s some affordable housing going above a Costco just north of LAX,” he stated. “That project will open up in 2027.”
This unconventional strategy allows Costco to penetrate markets where traditional big-box development would be nearly impossible. Vachris emphasized, “That would be a market we would never be able to go into and find 25 acres to build a Costco. It just wouldn’t happen.”
Moreover, this initiative helps Costco get closer to its customers while alleviating congestion at some of its busiest locations. “We’re finding creative ways to get closer to our members and relieve some pressure from some of our highest volume locations,” Vachris noted. “We continue to see some opportunities in markets that we would have questioned in the past.”
COSTCO SHATTERS RECORDS WITH MASSIVE PIZZA AND PIE SALES DURING HOLIDAY SEASON
Costco is planning to open a new Los Angeles warehouse beneath an affordable-housing complex. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
The project, developed by Thrive Living, will feature approximately 800 apartments built above the warehouse, including a rooftop pool and fitness center, as reported by the Wall Street Journal. Roughly 184 of these apartments are expected to be designated for low-income households.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORP. | 924.88 | +9.57 | +1.05% |
Thrive Living founder Ben Shaoul estimated the total development cost at around $425 million, according to the WSJ.
NEW ‘CASH LAW’ COULD FORCE WALMART AND COSTCO TO TAKE YOUR MONEY THE OLD-FASHIONED WAY
The project, located in South Los Angeles, is expected to open in 2027. (Lindsey Nicholson/UCG/Universal Images Group / Getty Images)
During the retail giant’s Q1 2026 earnings call, CFO Gary Millerchip highlighted record-breaking sales in pizza, pie, and e-commerce during the holiday season.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
As of now, Costco and Thrive Living have not responded to FOX Business’ request for comment.
