New Rams L.A. Stadium Part of $3B Mixed-Use Development
- Jan 20, 2016
The NFL’s St. Louis Rams will be moving back to Los Angeles for the 2016 season, causing mixed reactions among fans and industry experts. But it will take about three years for their new multi-billion dollar stadium in Inglewood, Calif., to be ready for them.
The stadium, which will be the largest in the NFL, will be part of a $3 billion mixed-use complex already under construction.
The development, named the City of Champions Revitalization Project is a 298-acre site owned by Hollywood Park Land Co. (HPLC), a joint venture between Stockbridge Capital Group and The Kroenke Group (TKG). Rams owner Stan Kroenke’s company bought 60 acres adjacent to Stockbridge’s site in 2014. Stockbridge, a real estate investment management firm, purchased the 238-acre former Hollywood Park Racetrack in 2005. Racing ended at the site in 2013 as plans for the original 4 million-square-foot redevelopment began to take shape and after years of community engagement and the approval of entitlements by the Inglewood City Council in 2009. That plan consisted of 890,000 square feet of retail space, 780,000 square feet of office, a 300-room hotel, 6,000-seat performing arts center and 2,500 residential units. After TKG bought the adjacent parcel, the two sides teamed up, adding a sports and entertainment district with the stadium as the centerpiece.
“We are committed to working with TKG to build a project that will put Inglewood back on the map as the home of truly great sports and entertainment venues,” said Terry Fancher, founder of Stockbridge.
The stadium, designed by HKS Inc., will have a clear roof and 70,240 seats, with the ability to add space for 30,000 standing-room-only areas for large events. Stadium and regional tourism officials hope the design and size will make it easier to lobby for major events like a Super Bowl or NCAA Final Four.
“The tourism implications of the NFL and Rams franchise (and possibly another franchise) returning to Los Angeles are tremendously significant,” said Ernest Wooden, president of the Los Angeles Tourism & Convention Board. “Not only will this provide visitors from around the globe one more enticing reason to choose Los Angeles for their next getaway, but the Inglewood stadium plans provide the city an incredible asset that will have economic impact long after an NFL season ends.”
The facility, which will be the most expensive stadium built in the United States, is being privately financed. The Los Angeles Times and SportsBusiness Daily are reporting that Kroenke plans to borrow $1 billion from JP Morgan Chase & Co. to help fund the project. The construction will also be financed through the sale of naming rights, personal seat licenses, and one or more $200 million loans from the NFL, according to the Los Angeles Times.
If the San Diego Chargers, which are considering moving to Los Angeles as well, take advantage of a one-year option to join the Rams at the Inglewood site, that team could also apply for a NFL loan. If the Chargers pass on sharing the Inglewood stadium, the Oakland Raiders would have a one-year option to consider it.
Construction of the complex is expected to create 40,000 construction and ongoing jobs and generate tens of millions of dollars in annual revenue for the city of Inglewood, according to HPLC.
In addition to the Rams, Stan Kroenke also owns Kroenke Sports & Entertainment and KSE UK, whose holdings include the Colorado Avalanche, Denver Nuggets and the Arsenal Football Club in the U.K.