The Philadelphia 76ers announced a new development company 76 Devcorp has been formed with the goal of having a $1.3 billion Center City arena in the early 2030s.
Sixers owners Josh Harris and David Blitzer announced that Philadelphia business leader David Adelman, in partnership with Harris Blitzer Sports Entertainment and the development corporation will pursue a privately-funded sports and entertainment arena known as 76 Place. The arena would be located on a portion of the current site of Fashion District Philadelphia.
The Sixers have been building a more visible presence in the region, with their NBA G-League team, the Delaware Bluecoats, based at an arena bearing the team’s logo. The $25 million Chase Fieldhouse in the Wilmington Riverfront area was developed by Wilmington-based Buccini-Pollin Group. The 76ers also built a training complex in Camden, NJ.
“The Philadelphia 76ers are a storied Philadelphia institution with a proven track record of investing in their community. That’s why we’re committed to building a world-class home in the heart of the City and creating a privately-funded arena that strengthens ties within the local community through investments that prioritize equity, inclusivity and accessibility,” said Harris, 76ers managing partner. “David Adelman shares our vision for ensuring that the new arena is an anchoring force in the local community, creating well-paying jobs and economic opportunities for those who need them most.”
Adelman, the CEO of Campus Apartments and other companies was appointed Chairman of the new development company “with a mandate to locate, design and develop a destination that serves as a world-class arena facility, but also a lever for the City of Philadelphia’s economic growth by promoting transformative community development, local job creation and equitable wealth-building opportunities.”
“The Philadelphia 76ers’ extensive evaluation of potential sites for an arena over the past two years culminates today with plans to pursue the Fashion District Philadelphia site as the proposed new home of the team,” said Adelman. “The chosen location is a key step in the process of developing a destination that provides Center City and surrounding communities with an economic engine generating activity through 76ers and youth games, concerts, events and more.”
76 Devcorp carefully evaluated numerous potential sites before determining Fashion District Philadelphia as its preferred location. The site was selected primarily due to it being the most transit-rich location in all of Philadelphia, the ability to redevelop an existing commercial space, and the opportunity to play a role in the continued revitalization of Center City, the release stated.
The Development Corporation will partner closely with Macerich, the managing partner of the owning entities and operator of Fashion District Philadelphia, to realize the full potential of the site. “At Macerich, we are constantly enhancing our properties to bring greater value to our shareholders, retailers and communities,” said Tom O’Hern, CEO of Macerich. “The decision to repurpose part of Fashion District Philadelphia to include the new 76ers arena is a natural evolution of the site and a unique and once in a lifetime opportunity for our company. We are committed to working collaboratively with 76 Devcorp to bring to life the vision of this iconic development that will ensure Philadelphia’s vibrancy for generations to come.”
A robust community engagement process is planned to ensure community interests help drive the plans for the proposed development and that it fits within the context of surrounding communities, while also being responsive to the needs of adjacent neighborhoods. In the spirit of this project being mutually beneficial for the Sixers and the broader Philadelphia community, 76 Devcorp anticipates partnering with surrounding community development groups to create a Community Benefits Agreement that ensures the forthcoming arena has a positive impact from the start of construction to opening and beyond.
“Our pledge is to advance equitable, community-driven revitalization through this project and to ensure the arena is a win for fans, Philadelphia and the surrounding communities,” said David Gould, 76ers Chief Diversity and Impact Officer. “We look forward to listening to and working with the local community, including local organizations, businesses and residents, especially in Chinatown and Washington Square West, to develop a Community Benefits Agreement that results in long-term positive impact.”
” HBSE’ has made a $20 million commitment to address disparities created by systemic racism, with the Development Corporation, committed to investing in under-resourced communities to advance equitable, community-driven revitalization. A major tenet of the project will be equitable development, bringing community members to the table via new jobs and co-development roles,” the release stated. 76 Devcorp will collaborate with Mosaic Development Partners, a Black-owned, Philadelphia-based real estate development company with experience in affordable housing and inclusive communities. In January, Josh Harris invested $10 million into Mosaic Development Partners to support their work to expand development across Philadelphia communities.
The new, privately-funded arena is anticipated to cost approximately $1.3 billion. The arena will provide $1.9 billion in overall economic output during construction and $400 million annually.
The NBA team has been looking for a new home in recent years. The Wells Fargo Center is one of the busiest arenas in the nation. Cities the size of Philadelphia typically have a couple of venues with 10,000 or more seats.
Development in Center City is difficult, with many groups critical of arenas that are often subsidized by taxes. One example is the sports complex in South Philadelphia that has made Philadelphia Eagles owner Jeff Lurie a multi-billionaire as the value of NFL teams has skyrocketed.
The development is slated to be completed in time for the 2031-2032 NBA season. Ground-breaking for the proposed project is not expected for several years. The general public and fans can stay up to date on the progress of the development project by visiting 76Place.com.
