If Costco’s proposal for a mixed-use retail and housing development in California is successful, you won’t have to go far to pick up a rotisserie chicken or a package of 30 rolls of toilet paper.

The company, in partnership with developer Thrive Living, announced plans in June to open a new South Los Angeles store with an 800-unit apartment complex attached. In a press release, Costco also announced that the combo retail-housing project will include 184 affordable units.

A Thrive Living representative told the New York Post that the project is still awaiting permits, and it is unknown when construction will begin.

In addition to being able to shop for super-sized bottles of spirits or vats of heavy whipping cream at the bulk retailer, Thrive Living plans the following for the apartment complex:

• Five courtyards and a landscaped walking path.
• A rooftop pool, a full basketball court, and various climbing and play structures.
• Indoor/outdoor fitness area.
• Outdoor area for community movie nights.
• Community gardens where residents can grow their own food.
• Classrooms for community gatherings, tutoring, and mentorship.

The site would feature a “state-of-the-art store, featuring fresh produce [and] healthy food options for residents,” Thrive Living told the Los Angeles Times. The store would also include an optical service counter for eyeglasses, a pharmacy, and a delivery service. 

The mixed-use complex would replace a vacant five-acre lot that a hospital once occupied.

Why would Costco get into the apartment building business?

Costco didn’t return messages on why the retail company would venture into a business so different from selling bulk goods, but Southern California housing activist Joe Cohen has a theory.

“The problem is, new massive big-box stores are hard to get approved in LA.,” Cohen wrote on X, formerly Twitter. “So Costco did what any good Scooby-Doo villain would do. They put on a mask that says ‘I’m an apartment building, not a big-box store.’ “

Gabe Kadosh, a vice president of Colliers in Los Angeles, told real estate publication CoStar that Costco may test the concept in California before developing other mixed-used developments across the state and the nation.

“It’s certainly fascinating and something that people are going to be watching,” Kadosh told CoStar. “Developers are going to be paying attention.”

What to know about Costco

In 1976, Costco opened in San Diego under the Price Club name. In 1983, the company opened a Seattle location. In 1993, Price Club officially changed its name to Costco. With 206 locations generating $16 billion in annual sales, the superstore chain currently operates 847 warehouses globally, with an average size of 146,000 square feet, according to its website. 

Today, Costco employs 300,000 people worldwide, has 129.5 million members, and has $248 billion in annual sales.