Renée A. McFadden, CIC, CPL’s Post

If it all goes to plan, Los Angeles will be testing a new solution to the housing crisis: stacking 800 apartments, including 184 for low-income households, on top of a Costco. Thrive Living’s $425 million project in Baldwin Village, complete with a rooftop pool, plans to rely on Costco’s rent instead of government subsidies to make affordable housing profitable. If successful, this model could help reshape urban housing development, combining housing with big-box retail to maximize land use and streamline costs. According to the article, Costco approached Thrive. https://lnkd.in/evu49CKY

The Wall Street Journal | Rebecca Picciotto A real-estate developer in Los Angeles is testing a new blueprint for affordable housing: stack apartments on top of a Costco. Thrive Living is planning to begin construction in early 2025 on an 800-unit affordable-housing complex with the megaretailer on the ground floor in the Baldwin Village neighborhood of South Los Angeles. The project…would have 184 apartments for low-income households. The rent that Costco Wholesale pays Thrive will help the developer rely less on government subsidies for the affordable housing, according to Thrive’s founder, Benjamin Shaoul. Big-box retailers are known primarily for their suburban locations, where the stores are the size of a couple of football fields and surrounded by hundreds of parking spaces. In recent years they have been pushing more into cities with smaller stores and new designs. Target and Whole Foods have anchored apartment buildings to gain access to urban populations. Costco has been exploring different urban strategies for more than two decades and today owns dozens of downtown stores. Baldwin Village, where the new Costco apartment development is planned, has a poverty rate that is more than double the national average. The U.S. Treasury Department has classified the area’s economy as deeply distressed. Los Angeles Mayor Karen Bass used to live minutes from the site of the Costco project and joined other elected officials in supporting the development in an area she called historically neglected. Private businesses and elected officials throughout the U.S. have been looking for solutions to the affordable-housing crisis. The number of homeless people has surged to a record while U.S. home prices jumped in 2024. The U.S. is short 3.7 million housing units, Freddie Mac has estimated. The Costco project would be the first in Los Angeles to draw on Assembly Bill 2011, a California law that expedites the land-use approval process for developments that meet affordability and labor standards. The law is an example of new legislation in California seeking to untangle the regulatory obstacles that make housing development time-consuming and expensive in the state. Since the law went into effect in 2023, it has been used to permit affordable-housing projects in San Francisco and two small cities in central California, according to California Assembly member Buffy Wicks the author of the law. #SDGs #WalkableUrbanism #20MinuteNeighbourhoods #TimelessUrbanism

I came across this fascinating article in The Wall Street Journal discussing a unique approach to tackling affordable housing: building residential units on top of retail spaces like Costco. It’s an innovative idea that combines the need for urban housing with existing infrastructure, maximizing land use and addressing housing shortages in high-demand areas. This got me thinking: while creative solutions like this are promising, they highlight an even bigger issue—the political and regulatory environment around building housing in the U.S. In many cities, zoning laws, community pushback, and lengthy approval processes make it incredibly difficult to build, even in areas desperate for affordable options. What would it take to create a political and regulatory context where building affordable housing is not just possible but encouraged? Could more partnerships between private developers, retailers, and local governments streamline the process? And how can we balance the need for housing with the concerns of existing communities? The need for affordable housing is urgent, but achieving it requires systemic change. We must foster a political climate that prioritizes housing as a fundamental need. #AffordableHousing #UrbanDevelopment #HousingCrisis #InnovationInRealEstate

As everyone working in economic development knows intimately, one of the greatest challenges facing cities' sustainable and healthy growth is the lack of affordable housing. A low inventory of housing options impacts both current residents and the ability to attract new talent. High interest rates, nimby-ism (not-in-my-backyard), and a lack of available land have greatly impacted cities' ability to solve the housing challenge. While perhaps not the answer for every city, I thought today's article in The Wall Street Journal titled, "Is Living on Top of a Costco the Answer to the Affordable Housing Crisis?" might serve as a bit of inspiration for city leaders, developers, and economic development professionals. Have a read, as oftentimes creative and extraordinary approaches by others offer inspiration for the challenges found in our own communities. (Note: if the article is not available to you, feel free to message me and I will email you a PDF if that's helpful).

This story was interesting and shocking to me. Now, I have not heard of this ("Poor Door") happening in Chicago, but Chicago is gearing up to convert office buildings to mixed-use residential developments (rightfully so) and there needs to be a review to ensure residents occupying affordable units are not treated differently. Another possibility to ensure some of these office conversions are equitable is to set aside projects for BIPOC affordable housing developers, nonprofits, or combination partnerships. Imagine if we were able to leverage a downtown asset to do more development in communities - that was a plug for all our neighborhood developers. My second is the lesson of not building in affordable neighborhoods. We cannot only think about the four corners of the affordable apartment walls but also the other occupancy aspects, such as food/grocery, clothes, dining, parking, etc... With the negative impacts of inflation and price gouging, we need to continue to ensure our neighborhoods are affordable as well. https://lnkd.in/grgSR263

Small-scale neighborhood retail is staging a post-Covid revival in many cities, thanks to a mix of zoning reforms, shopping trends and local incentives.   Much of this can be attributed to several metros that have struck down land-use laws mandating single-family homes, encouraging builders to add low-rise missing middle housing types like duplexes and townhomes to residential neighborhoods.   And a great quote from Brent Toderian to tie it all together:   “When you are having the conversation about missing-middle housing and the population is potentially increasing in these neighborhoods such that they have enough body heat to support local walkable retailers, it’s a no-brainer to have the conversation about providing more things for people to walk to. The two things are connected.”   https://lnkd.in/gmpMDerm   #missingmiddle #missingmiddlehousing #adaptivereuse   

Latest on Showhome: Mark White, MD of Bargate Homes Ltd responds to King's speech Mark White, Managing Director of Hampshire-headquartered Bargate Homes, said: “Having stalled the submission of some planning applications over the past 18 months, we have made up for lost time in recent weeks, attempting to lodge our plans ahead of the stampede. Bargate Homes currently has 10 major planning applications that are being processed, or are just about to be submitted, which could deliver over 800 mixed-tenure homes in sought-after neighbourhoods. “With mandatory housebuilding targets back in play, we are having productive conversations with planning officers and feel confident that our applications are being assessed with an open mindset. This is encouraging us to examine a handful of new potential development opportunities, especially as some prime sites are now coming to market. Read more here: https://lnkd.in/dbE4ncdN #Housing #Property #NewBuild #NewHomes #Construction

This is ground breaking not just for L.A. but potentially across the country as new avenues to help fight the housing shortages across the country's metropolitan and suburban areas. #Housing #Housingshortage #RealEstate #Realestateinvestments #Californiarealestate https://lnkd.in/grviH4ya

▶️ "Investment in our high streets is investment in our communities" ◀️ Check out Holly Lewis (We Made That)'s article for The Guardian on how transforming vacant buildings can turn high streets into hubs for health, education and sustainability — and where government might best focus its efforts and spending. How to start making this happen where you are? As Holly puts it, "This will require convening partners who may not usually work together – health services with market traders or universities with shop landlords – in a place-based model, where differences between groups who may not be used to joining forces are overcome for the sake of a shared location." 🪄 Long-term change and vibrancy will only happen if partners like councils, asset owners and community leaders collaborate, to unlock buildings for amazing ideas that meet local needs (what we call #LocalPropertyPartnerships) 🏘️ https://lnkd.in/ehvjwbhW Mark Robinson Ion Fletcher Naomi Rubbra Frances Northrop Rebecca Trevalyan Amanprit Arnold

Another exciting opportunity in Dagenham(Barking & Dagenham council) Yesterday evening, I received a call from a landlord eager to rent out his 3-bedroom terraced house immediately. By 7:30 PM on a Saturday, he had reached out, and by Sunday 2pm, I was at the property for a viewing and discussion about next steps. At viewings, I always strive to be honest, straightforward, and detailed about what I can offer. By the end of our meeting, the landlord expressed his gratitude for my quick responses and willingness to meet at short notice. He shared that, because of this, he has decided to pause viewings with other parties and work directly with me. I explained that I work with trusted social housing providers and outlined the key compliance expectations for such partnerships, including fire doors, window restrictors, interlinked alarms, and white goods. I also explained that these providers typically don’t pay deposits due to the volume of properties they manage. The landlord, who is experienced in property, has already begun some compliance work and is happy to complete anything outstanding. He’s looking to rent the property out by the end of this week or early next, and he’s trusting me to find a suitable tenant or company. I’m confident I can deliver! If all goes to plan, this will mark the fifth property I’ve sourced this month for the social housing companies I’m partnered with. Property Details: • 3-bedroom terraced house (2 doubles, 1 box room) • Asking rent: £2,250/month • No deposit required • Unfurnished (landlord is open to negotiating furniture if necessary) • Compliance work can be completed within 7 days, with the landlord covering costs or welcoming the provider’s builders to handle it. • Available immediately I’m always on the lookout to build long-term partnerships with reliable social housing providers. If you’re interested in securing this property, let’s connect—it won’t stay available for long! 2025 is going to be a year of continued growth, and I’m excited to partner with even more housing providers to make a difference. Stay tuned for updates on this property! #socialhousing #propertymanagement #supportedliving #property #landlords