December 2021 CDAR Market Report
Brad Schmett|January 1, 2022
Construction on the $25 million, 300,000 square-foot arena in Palm Desert has begun! After 2 years of rumors, officials finally broke ground on June 2nd, 2021. This is big news for the Coachella Valley. Not only will there be a significant impact on the economy, but the real estate market as well.
The arena, which is being called Coachella Valley Arena until a sponsor is secured, is slated to be completed by October 2022. Oak View Group, a Los Angeles-based sports, and entertainment company has partnered with Live Nation to construct the arena adjacent to the Classic Club golf course off the Interstate 10 Cook Street exit on land owned by the H.N. and Frances C. Berger Foundation.
The venue will seat 9,918 for hockey, 10,815 for basketball and other sporting events, 11,679 for concerts and will host more than 150 events a year. One special attendee at the groundbreaking, Joe Walsh, confirmed that The Eagles will play on the opening night of the arena. Sign us up!
This project almost didn’t happen. After Oak View Group’s partnership with the Agua Caliente tribe to build an arena in downtown Palm Springs dissolved, the pandemic setback the project further. That’s when Tim Leiweke, the chief executive of OVG, connected with The Berger Foundation. The foundation owns the 43-acre land and the golf course, designed by Arnold Palmer, built in 2006.
The foundation has had dozens of offers for development over the years, but they’ve been waiting for the right project. Already zoned and planned, the land will finally be leased to OVG. Although the arena will provide passive income to the non-profit foundation, they are not partners in the arena. The Berger Foundation does hope to lease additional land near the arena to hotels and businesses.
What will this look like for the economy? The venue will have a total annual economic impact of around $141 million, with $108 million in visitor spending each year to help support close to 1,600 part-time and full-time jobs, according to an independent economic impact study released by the Greater Palm Springs Convention & Visitors Bureau. Not to mention the $11 million in state and local tax revenue!
The Coachella Valley’s economy has long been supported by the tourism seen from December to April. Tourists and snowbirds flock to the valley during the winter to enjoy the sunshine and warmth the desert provides. With 25% of the valley’s jobs in leisure and hospitality, followed by retail trade, many residents here are part-time. The venue will provide year-round job opportunities for residents.
We think a project like this has been long overdue in The Coachella Valley and we cannot wait to see what happens in 2022! If you’re interested in properties near the arena, head to https://bradschmett.com/palm-
photo credit: CelebrityAccess