In Los Angeles, Costco is putting apartments on top of a planned store, which is known for its cavernous stores filled with stacked goods.
Can You Guess Which Non-Real Estate Related Fortune 500 Company Started This Smart & Lucrative Business
If you have guessed Mcdonald’s, you are absolutely correct. Everyone believes that McDonald’s is in the hamburger-making franchise business. Well…., that is accurate to some degree. One of the most important factors of McDonald’s successful business model is its investment in Real Estate. That is right folks. McDonald’s is in the Real Estate Business. They have started this trend decades ago and finally, after the Amazon & Whole Foods Merger, they also adapted to the profitable business model.
Mixed-Use Areas
Mixed-use developments and even smaller-format stores are nothing new to Costco. Costco with a fitness center is situated in Greenway Plaza, a dense Houston neighborhood. Costco operates a warehouse at 5225 Commercial Blvd. in Juneau, Alaska, which is roughly 72,000 square feet.
While a Costco with apartment units on top of its stores appears to be unusual, Costcos are often built near residential space, and a Costco at 1200 S. Fern St. in Arlington, Virginia, is surrounded by high-rise apartments.
Costco is a highly desirable tenant because of its popularity, which in turn increases property values and drives traffic and demand to other nearby real estate.
The superstore chain operates 847 warehouses globally with an average size of 146,000 square feet, according to its website. Costco will be the company’s first in south Los Angeles. The superstore, which offers bulk items, groceries, a pharmacy, and more, plans to create 400 new jobs at its future Baldwin Hills location.
Meanwhile, Thrive Living aims for roughly 23% of the units, or about 184 apartments, to be set aside for low-income households at the future Costco mixed-use development.
What’s The Plan For Our City of Angeles
Los Angeles Mayor Karen Bass “has declared a housing emergency in Los Angeles, and we’re answering the call,” Jordan Brill, partner of Magnum Real Estate Group, said in the statement. “Our company is focused on addressing the severe housing affordability crisis in Los Angeles, while also attracting retailers willing to make long-term commitments and deliver community-serving products and services that enrich the living experience for our residents and neighbors.”
A roughly 55,000-square-foot office now sits on the 5035 Coliseum St. site, according to CoStar data. The property was sold in September 2019 to an entity related to Los Angeles-based housing developer Universal Standard Housing for $18.2 million. Universal Standard Housing is no longer part of the project, a Thrive Living spokesperson told CoStar News in an email. The entity that owns the property now lists its address as the same address as Magnum Real Estate Group in New York, according to the state of California records.
The Inglewood/South L.A. retail market, which includes the redevelopment site, has an average rent of $26.83 per square foot, below the greater L.A. average of $35.31 per square foot, according to CoStar data. The market’s average vacancy is 3.6%, below the Los Angeles average of 5%.
