The redevelopment of San Diego’s 48-acre sports arena site has taken a significant leap forward, thanks to billionaire sports and real estate mogul Stan Kroenke’s involvement. Known for owning the Los Angeles Rams football team and Denver Nuggets basketball team, Kroenke has joined the Midway Rising sports arena group as the lead investor and limited partner, according to a report from the San Diego Union Tribune. This collaboration brings new credibility and financial backing to the ambitious project, which aims to transform the site into a thriving mixed-use development.
Last year, Midway Rising, a consortium consisting of Zephyr, Legends and Chelsea Investment Corp., was chosen by the San Diego City Council to redevelop the property at 3220, 3240, 3250, and 3500 Sports Arena Blvd. in the Midway District. However, concerns were raised by council members regarding the selection process, driven by the state’s requirements for municipal land disposition, and doubts about the project’s viability.
The ambitious plan put forth by Midway Rising includes 4,250 residential units, a new 16,000-seat arena, a 200-room hotel and 20 acres of plaza and park space. Notably, the project includes a commitment to provide 2,000 deed-restricted residential units for low-income families—a requirement mandated by the City. This commitment has now been solidified in the exclusive negotiation agreement between the City and the development team.
Through his real estate firm, The Kroenke Group, Kroenke’s special purpose entity, ESK Midway Rising Investor, LLC, now holds a 90 percent ownership interest in the Midway Rising project. This ownership stake increases to 95 percent once construction begins.
Zephyr and Legends, as general partners, will maintain a five percent ownership stake each and oversee day-to-day operations. During the construction phase, the general partners’ ownership interest and financial obligations will be halved. Chelsea Investment Corp., the affordable housing builder, remains a partner in the project without an ownership stake or share in returns.
Under the new arrangement, the limited partner and general partners will proportionally share 75 percent of project proceeds after recouping capital investments. The remaining 25 percent will be split between Zephyr and Legends as an incentive payment.
Stan Kroenke is a prominent figure in the sports industry, with ownership stakes in five professional sports teams and three venues, including the SoFi Stadium in Los Angeles. His real estate firm, The Kroenke Group, specializes in developing and managing sports and entertainment properties and retail centers across the United States. Notable projects include the Hollywood Park development, featuring SoFi Stadium, and a future Rams headquarters in Woodland Hills.
