Costco buys 23 acres in Oconomowoc

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National wholesaler Costco has purchased more than 23 acres of land for its new store at the Pabst Farms development.

Issaquah, Washington-based Costco bought 23.27 acres at Pabst Farms Boulevard in Oconomowoc for more than $7.09 million, according to a news release from Milwaukee-based real estate brokerage firm Founders 3. The company bought two parcels from Pabst Farms developers in mid-September, Wisconsin Department of Revenue records showed.

Bob Flood, founding partner of Founders 3, represented Costco in the transaction.

In April, the member-only big box chain submitted a formal application for a store on 23 acres of vacant land at the Pabst Farms development. The site is north of Interstate 94 near the exit to County Trunk Highway P on Pabst Farms Boulevard.

In July, City of Oconomowoc officials approved building plans for the retail center and gas station, which is planned south of Pabst Farms Boulevard, north of Interstate 94 and west of Sawyer Road. In August, the city and chain entered a development agreement to improve Pabst Farms Boulevard, which includes a future water main project.

The Costco site will include a 161,552-square-foot retail store, a tire service center, a bakery, photo center, pharmacy, optical and hearing aid departments, car wash and a detached fueling station, city documents showed. There will be around 925 parking stalls and three lots for future development. The store is expected to open in 2026.

Since the 2000s, the Pabst Farms development has been a hub for commercial, industrial, medical and residential redevelopment for the past several decades, reaching a 1,500-acre community, city of Oconomowoc officials said. Recent investments included a $189 million Aurora Medical Center facility, retailers such as Fleet Farm and Metro Market and hundreds of single-family homes. The development is also the site of a 115,000-square-foot YMCA facility.

Recent developments include an industrial building by HSA Commercial Real Estate and the Hackney House Apartments.

“The Oconomowoc community continues to grow with new residents and consumers, so it is a positive step for the overall Pabst Farms Development with interest from a major retailer like Costco” said Robert Magnus, mayor of Oconomowoc, in a statement. “Oconomowoc is the Heart of Lake Country – the city established a foundation of success in rebuilding downtown as a destination, successful redevelopment projects, and the future retail, entertainment and innovation/incubation opportunities at Pabst Farms that will continue to transform it as a community of choice for continued development activity.”

Costco has nine other locations in Wisconsin, including in Menomonee Falls, Pewaukee, Grand Chute and Pleasant Prairie.