OAKLAND — A Costco warehouse store could sprout on a big chunk of land at the former Army base in Oakland now that a veteran and experienced developer has been picked to potentially make the retail proposal a reality.
The retailing giant could open a warehouse store at 2008 Wake Ave. in West Oakland, according to Deca Companies, the real estate firm that has the inside track to develop a Costco at the site.
Costco store development site at 2008 Wake Ave. on the former Army Base site in West Oakland, as shown within the outlines. (Deca Cos.)
A Costco store could bring jobs to Oakland and create more retailing opportunities for shoppers in the region. For years, efforts have emerged on an on-and-off basis to develop a Costco store in this part of Oakland.
“We’re thrilled to help bring a major grocery retailer to West Oakland,” said Travis Duncan, a vice president for Deca Companies. “This project sends a clear message. Oakland is open for business.”
The Oakland City Council this week authorized the city administrator to negotiate the terms of an exclusive negotiating agreement with Deca Companies to pursue the potential Costco development on Wake Avenue.
“For too long, our West Oakland community has lacked access to essential services, often forcing residents to leave Oakland to find quality options, including groceries,” Oakland City Councilmember Carroll Fife said. West Oakland residents “have endured generations of disinvestment and neglect,” Fife added.
The exclusive negotiating agreement is deemed to be a crucial early step ahead of the actual development of a West Oakland Costco. The city owns the potential development site.
Deca Companies has extensive experience in wide-ranging revamps of tricky properties.
The real estate firm was picked to modernize the historic Cow Palace site in Daly City. Deca is also attempting to redevelop the Phillips 66 refinery at the Port of Los Angeles into a mixed-use project.
A Costco Wholesale store could be a big success in West Oakland, in the view of Tony Beatty, a JLL commercial real estate broker who helps Costco find store sites in the Bay Area.
The potential development would bring hundreds of jobs with competitive wages to West Oakland while generating substantial annual tax revenue for the East Bay’s largest city.
“Existing Costco locations in the Bay Area perform very well,” Beatty said. “We have been looking at potential expansion opportunities where they can best serve their members.”