Abstract
On January 22, 2013, the USA TODAY reported that a Seattle-based group (Chris Hansen and David Ballmer) had reached a purchase agreement with the majority owner of the Sacramento Kings, the Maloof family, to buy the franchise and move it to Seattle. A relocation and transfer committee established by the NBA was expected to review the deal, and then the NBA Board of Governors will decide whether to approve the deal or not in April 2013. In order to retain the Kings, the city council of Sacramento approved a term sheet between the City and an investor group (Ron Burkle, Mark Mastrov and Vivek Ranadive) to develop a new Entertainment and Sports Center (ESC) in downtown Sacramento. According to the term sheet, the current 84-acre Sleep Train Arena, owned and operated by the Maloofs, will be subject to a non-compete agreement. In other words, the old arena will not hold major entertainment events upon the completion of ESC sometime after September 2016. Built 25 years ago, Sleep Train Arena is the least costly venue in the league. Although it is subject to flooding, the ease of access to Interstate 5 and 80 provide the site a desirable living area for commuters. Given these reasons, as well as the slow but irreversible recovery of the U.S. economy, the site represents an opportunity for developers in 3-4 years. Assuming the role of a developer, I am proposing a multifamily redevelopment plan for the site after September 2016. After collecting background information, anticipating market trends, transforming an idea into redevelopment concept that meets the expected future demand, and eventually tested the concept’s physical and financial feasibility given facts and my own assumptions, I conclude my redevelopment proposal is a viable opportunity if the economic conditions are favorable.