Living On Top Of Costco?
Daniel Abram
Of Counsel at Elkins Kalt, Real Estate Attorney Safeguarding Investors | Seed Investor at Reaf, a Private Network for Rising Leaders in Real Estate Acquisitions | 500K Impressions on My Real Estate Content
Imagine living just an elevator ride away from bulk groceries. This is becoming a reality in Baldwin Hills, South Los Angeles, where the 5035 Coliseum project recently broke ground.? Thrive Living (an affiliate of New York-based Magnum Real Estate Group) is the developer leading this ambitious project, which is the first mixed-use development in the country to have Costco Wholesale as its anchor retail tenant.? The unique project features a 185,000-square-foot Costco with 800 residential units on top, including 184 for low-income households. This development marks a significant shift for Costco, moving beyond standalone stores to embrace urban development and address the housing crisis in Los Angeles.
How Does It Compare?
This Costco is much larger than the average U.S. Costco, which typically spans around 145,000 square feet. It's also notably bigger than the closest Costco in Marina del Rey, which is about 145,000 square feet. The extra space in Baldwin Hills allows for the inclusion of essential services such as a pharmacy, optical services, and even delivery options for local businesses. This expansion not only supports the community's retail needs but also integrates much-needed housing solutions.
Real Estate Lawyer’s View
As a real estate lawyer, I see this as both innovative and legally complex. Integrating residential units with a high-traffic retailer like Costco poses challenges. Noise, truck deliveries, and customer activity must be balanced with creating a livable environment. Legal planning is crucial to protect residents’ rights while maintaining Costco’s operations.
Legal Challenges Ahead
The project is the first new housing community in Los Angeles to move forward using California’s AB 2011 law, which expedites projects that combine commercial spaces with affordable housing. However, any misstep in adhering to zoning laws or environmental regulations could lead to delays or litigation. Compliance with strict standards is essential to keep the project moving forward.
Community Concerns
Community acceptance is vital. Issues like increased traffic and pressure on infrastructure are common worries. Engaging the community early is crucial to minimize resistance and legal disputes. Proactive communication is key to keeping the project on track.
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Construction and Legal Risks
Using pre-manufactured apartment modules speeds up construction, but brings legal risks. Compliance with building codes and warranties is critical. Clear lease agreements and management contracts are needed to define responsibilities and avoid conflicts between the residential and commercial components.
A Model for the Future
If successful, this project could set a precedent for blending retail and residential spaces, reshaping how big-box retailers operate in cities. Its success will depend on meticulous legal planning and community engagement, demonstrating how retail giants can address urban challenges and meet community needs.
This innovative approach not only sets a new benchmark for Costco but also reflects a broader trend of integrating commercial and residential spaces to address urban housing shortages effectively.
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Dedicated Administrative Professional who provides superior administrative support, works hard, and creates an environment where people feel valued and respected.
5 个月If it's affordable, yes. Game-changing and innovation is admirable, but please make it affordable.
Service Assistant - AT&T
5 个月You'll also have the 20-something year olds strolling into Costco, straight from their apartment, in a bathrobe and house slippers to do their weekend shopping
Undergraduate student pursuing Investment Banking career || Current: family office intern || Previous: private equity, corporate development, family offices, portfolio management, wealth management, fintech, real estate
5 个月Unfathomable convenience ??
Community Director at Reaf, a Private Network for Rising Leaders in Real Estate Acquisitions.
5 个月While I think the Costco is a plus for the area, I'm torn on whether or not I think it would be a good place to live because of the noise pollution from trucks, deliveries, and high traffic hours.
Owner of Harry Abram & Co.- I'm a Certified Public Accountant (CPA) helping individuals and businesses with business/tax consulting and bookkeeping services in Nevada and California.
5 个月I love Costco, so the more the merrier!