Oakland Finalizes Coliseum, Arena Sale for $125 Million

Oakland is finally moving to unload its long-troubled Coliseum complex, approving a nine-figure sale that shifts the financial burden of the vacant sports campus to private developers.

On Monday, the Oakland City Council voted to sell its stake in the Oakland Coliseum and adjacent Oakland Arena to Oakland Acquisition Company, a partnership led by Chicago-based Loop Capital and the African American Sports and Entertainment Group, for $125 million, the San Francisco Chronicle reported. A buyer chosen by Oakland Acquisition Company, Oak View Group, will acquire the arena parcel.

The move follows years of stalled redevelopment efforts and the departures of the Raiders, formerly Oakland Athletics and Golden State Warriors, leaving the city with aging venues that cost roughly $16,400 per day to maintain. The City of Oakland will receive $50 million when the arena sale closes, expected as early as September, while most of the payment for the Coliseum site will be deferred over the next seven years. The buyers will also pay $60 million for the stadium parcel in installments, after crediting a $5 million deposit already made, plus an additional $15 million once development reaches the building permit stage. The city will also receive 6 percent of ticket revenue from both venues.

Alameda County, which owns the remaining 50 percent of the property, negotiated a parallel agreement to sell its share for $115 million under similar deferred-payment terms. Part of the deal calls for the City of Oakland and Alameda County to sell the arena property to Oak View Group for $100 million, which the city and county would split evenly.

The buyers envision transforming the 112-acre east Oakland site into a mixed-use district with entertainment, retail, commercial and residential development. Oak View believes the arena can thrive without a major league sports tenant by hosting concerts and other events.

“This is not a rescue operation; it’s an opportunity,” Oak View co-founder Irving Azoff said of the arena. “There’s other ways to bring sports into this building other than having teams.”

Local developers like ArtHaus CEO Riaz Taplin suggested industrial and entertainment uses may ultimately prove more viable than market-rate housing given the site’s location near the city’s airport and freeway network.

“Would you walk outside your door onto Hegenberger Road and say, ‘I’m happy to be here’? The answer is no,” Taplin said.

Highly subsidized affordable housing, however, could be an attractive housing option for renters who wouldn’t mind the proximity to city activity.

— Chris Malone Méndez