Overview
San Diego’s Midway Rising project is a 50 acre redevelopment effort focused on the Midway District, featuring a new sports arena, affordable housing, entertainment venues, green spaces, and commercial facilities. The project expects to reshape the neighborhood and create a transit-oriented community. Key components include:
- Updated Sports Arena: Pechanga Arena is expecting a massive transformation to its stadium and surrounding area for hosting sport/entertainment events.
- 4,200 Residential Units: 2,000 set aside for affordable housing for low-middle income families and at-risk San Diegans.
- Central Urban Park: A multi-acre green space for recreation.
- Retail and Dining Venues: Spaces for retail, dining, and community engagement.
Economic Benefits and Investment Opportunity
Midway Rising is expected to bring projections of $7 billion in economic activity. Set to bring over 8,500 jobs across retail, hospitality, and sports sectors, also guarantees union-built construction and training opportunities, which means stable, well-paying jobs for local workers.
Midway Rising offers unique investment potential. As the area transforms, property values in and around the Midway District are anticipated to rise significantly, driven by the influx of new businesses, enhanced public infrastructure, and the attraction of sports and entertainment venues. This makes it an ideal time to explore investments in the area, as appreciation rates could mirror trends seen in similar urban redevelopments.
The project’s emphasis on affordable housing aligns with San Diego’s broader housing goals, leading to favorable incentives for developers that attribute to the city’s housing needs.
Revitalization
Projects like LA Live in Los Angeles and The Battery in Atlanta have shown that integrating entertainment hubs with mixed-use capabilities can significantly increase local property values, incomes, and business activity. For example, as Construction finished in 2017, taxable property values at The Battery Atlanta have risen from $5 million in 2014 to $736 million in 2022. If Midway follows similar trends, the MHI in the district could see meaningful growth, narrowing the disparity with broader San Diego averages while enhancing the overall quality of life in various community aspects.
The Impact of Professional Sports Teams
Adding a new sports team brings additional consumer traffic, spurring demand in the retail and hospitality sectors. For investors, this could mean a steady increase in short-term rentals, hospitality investments, and retail leasing demand, enhancing returns in multiple asset classes.
While the development has sparked speculation about the possibility of attracting professional basketball or hockey teams, no specific sports teams have been confirmed for the Midway Rising redevelopment project.
Project Developers and Investors
Midway Rising’s development team includes prominent players:
- Zephyr Partners: with its extensive experience in stadiums, entertainment venues, and mixed-use developments, highlights the project's ambitious scale and vision.
- Safdie Rabines Architects: tasked with crafting the project's architectural layout, prioritizing sustainability, community integration, and visually striking design principles.
- Chelsea Investment Corporation: leading the affordable housing efforts, with a strong track record in building low-income and senior housing.
- Legends: overseeing the management side of the new sports arena, Legends brings extensive experience from overseeing large-scale entertainment venues such as SoFi Stadium, Caesars Superdome, and State Farm Arena.
Stan Kroenke: Owner of the Los Angeles Rams NFL football team and the Denver Nuggets NBA basketball team, has made significant investments into the Midway Rising Project. With Kroenke's track record of executing large-scale, multi-use developments, this involvement significantly boosts confidence in the project's feasibility and timeline. There's speculation that due to his involvement, a major sports team, like an NBA or NHL team, could be attracted to the project. Could this project see the level of success that SoFi Stadium has seen over the past few years?
What's Next for Midway Rising
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Today: The project is in its full entitlement phase, designing out the nuances, refining proposals, and engaging in community outreach to ensure the development aligns with city and community needs.
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Groundbreaking: The City of San Diego has targeted 2025 as the expected start of construction.
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Timeline: While schedules are still being finalized, the entire redevelopment will likely take 8-10 years to complete.
Midway Rising is more than a redevelopment; it’s a reimagining of a vital area in San Diego. The project offers a compelling opportunity to be part of a high-impact project that emphasizes long-term value and economic growth. With the combination of affordable housing, job creation, retail expansion, and the potential of a new professional sports team, the Midway District is primed to become a premier destination and an investment hotspot. The Midway Rising redevelopment is poised to elevate the area into a dynamic center of activity. This momentum is likely to extend to neighboring areas like Old Town, Ocean Beach, Point Loma, Mission Hills, etc. increasing their appeal for housing and business activity.
