Costco to break ground on 164,000-square-foot store in Franklin

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Issaquah, Washington-based Costco bought a 20-acre parcel of land in Franklin and will start construction on a 164,000-square-foot store this week, according to the city. It’s expected to open in November.

In early May, Costco bought 20.5 acres from Milwaukee-based Northwestern Mutual Life Insurance Co. for $4.62 million, records from the Wisconsin Department of Revenue showed.

A groundbreaking will take place at 2710 W. Drexel Ave., city of Franklin officials said in a news release.

“This has been a long and exciting planning process, and I know many people in Franklin are happy to hear this news,” said Franklin Mayor John Nelson in a statement. “I want to thank the Costco team for choosing our community to build its first store in Milwaukee County. I also want to thank the Franklin Common Council, Director of Economic Development, John Regetz and the Wisconsin Department of Transportation. Everyone is aware of what this great retail development will bring to our community, and we all worked together seamlessly to get it done.”

Northwestern Mutual is revamping the interior of its North Office in Milwaukee with project partners Gilbane and CG Schmidt. The $500 million project will relocate around 2,000 workers from the company’s Franklin campus, which is next to the planned Costco site. The redevelopment project is expected to be completed in 2027.

The new store will be at the corner of West Drexel Avenue and South 27^th Street, city officials said. There will be a 12-pump gas station at the south end of the store and 868 parking spaces.

“We look forward to the spark Costco will bring to Franklin and the other large tenants this may attract to the Northwestern Mutual site,” Nelson said.

In April, Northwestern Mutual sold more than 119 acres in Oak Creek to a development partnership with Milwaukee-based Wangard Partners and Waukesha-based Siepmann Realty Corp. The developers plan to build hundreds of residential units made of single-family homes, multifamily buildings and commercial space on the northeast corner of South 27th Street and Drexel Avenue.

Costco is growing its footprint in Oconomowoc as well. In October 2025, the company bought 23 acres in the Pabst Farms development.