Toll Brothers lose Oak View, land group linked to Sacramento Kings

0

A vibrant sports arena proposal for the city-owned land that currently houses the Pechanga Arena in the Midway District has been altered following the departure of a high-profile player.

The Midway Village + team will submit their bid for the San Diego Sports Arena site today with a replacement in place. Los Angeles-based Oak View Group has come out and Newport Beach-based Revitate is now listed as the group’s arena district developer.

This story is for subscribers

We offer subscribers exclusive access to our best journalism.
Thank you for your support.

The former partner, the well-capitalized developer behind Climate Pledge Arena in Seattle, had promised to build a $ 450 million carbon-neutral arena at its own expense. Revitate, which has franchise ties to the Sacramento Kings NBA and Golden 1 Center, is also moving into a new arena, though the exact fundraising plan is yet to be determined.

“For the entire project, it’s the same vision. It is a master plan anchored around housing for all. It revolves around multiple entertainment venues and dynamic sports. It is a central park. This is new office space, ”Kunal Merchant, Co-Founder and COO of Revitate, told Union-Tribune. “As for the vision of what the arena has to offer the people of San Diego, it’s the same, which is a world-class leading venue that will offer sports, music, entertainment and cultural programming. . “

The revised bid – from master luxury housing developers and builder Toll Brothers, affordable housing developer Bridge Housing and now private investor Revitate – will be submitted alongside at least four others for the 48-acre property of San Diego. The city will today close the books of the first chapter of a second attempt to lease the site for redevelopment. Qualified candidates will have 90 days, starting Saturday, to negotiate with the city before presenting their plans to city council next year.

Midway Village + ‘s latest proposal includes apartments for a variety of income levels, with the group now revealing that it will build more than 1,000 units for low and middle income residents, meaning people earn between 30 and 120% of the region’s median income. , as defined by the Ministry of Housing and Urban Development.

In total, the plan provides for “thousands” of housing alongside commercial buildings that line the periphery of the site. A new 15,000-seat arena, which could be expanded, will be at the center of the project and supply a 12-acre public park, hotel and 3,500-seat event center. At the west end, located on a plot not included in the city’s solicitation, the development team would also like to build a 20,000-seat house for the San Diego Loyal soccer team.

A concept rendering of Midway Village + depicts a large project with apartment and commercial buildings lining the periphery of the site, a new sports arena in the center, and a 12-acre public park.

(Courtesy, AVRP Studios)

Revitate is a new division of RAJ Capital, which was founded in 2006. The Sports Division of the Private Investment Group was formed to target team ownership opportunities and consider sports-focused real estate projects. On the Midway Village + project, the company will work alongside development management firm SPD Sports, stadium design firm MANICA Architecture, consultancy firm Biederman Redevelopment Ventures and arena developer Live Nation.

The arena partner swap could be seen by rival bidders as a welcome setback in a competition where top-notch real estate is on the line and little is known about the city’s selection process.

The release of Oak View was an unexpected blow, said David Malmuth, San Diego-based development consultant and director of the Midway Village + project. However, the team regrouped and, within days, sat down for a “taco summit” with their future partner.

“I took my jaw off the ground. … It was a bad day, for sure, ”Malmuth said of receiving the November 4 phone call from Oak View co-founder Tim Leiweke. Leiweke told Malmuth the group would withdraw from the offering due to regulatory concerns over its purchase of venues management company Spectra, the operator of the Aztec stadium under construction in Mission Valley. “But I woke up the next day and got to work.”

On November 9, Malmuth was having lunch with Merchant and Revitate Executive Chairman Alex Bhathal, whose family business is one of the primary co-owners of the Sacramento Kings franchise.

“There aren’t a lot of companies that are in a position to step up and make the commitment that Oak View made,” said Malmuth. “Period. New paragraph. Revitate brings new strength to this. They have a very good experience with the Golden 1 Center in Sacramento.

The 17,500-seat Golden 1 Center in downtown Sacramento, which opened in 2016, is the result of a public-private partnership between the city and the Kings. The city contributed $ 223 million to the project and an additional $ 32 million of land as part of a deal that barred the franchise from leaving the city, and also resulted in the construction of the Sawyer Hotel and the downtown entertainment district. At the time, Merchant was the mayor’s chief of staff and was instrumental in the arena’s early development process. He then came full circle as a frame with the Kings.

“From the first drawings to the first basket at the Golden 1 Center, I was a part of every aspect,” said Merchant. “Alex and the family (Bhathal) were investor-developers. “

The group also has experience in developing areas with private financing. Midway Village + team member SPD Sports oversaw the pre-construction activities for the $ 1 billion Chase Center in San Francisco which was paid for by the NBA Golden State Warriors.

“We look forward to conversations with the city and the community before we fully finalize our plan,” said Merchant. “Having said that, we have no expectation of a government grant like the Golden 1 Center.”

At least five teams are vying to redevelop the San Diego athletic fields, which have been on and off the market since February 2020. In the current process, teams must present a redevelopment plan that includes at least 25% of the proposed housing upgrades. side. for low-income families and commit to renovating or replacing the existing sports arena.

Share.

About Author

Comments are closed.