X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORTLAND-Vulcan Inc. today acquired the Rose Garden Arena, which is home to the NBA’s Portland Trailblazers. Vulcan Inc. is the real estate arm of billionaire Paul Allen, which owns the Trailblazers. Allen gave up ownership of the arena during bankruptcy proceedings in 2004. The acquisition price was not disclosed and was not otherwise immediately available.

Technically, Vulcan acquired Portland Arena Management, which in turn owns the 20,000-seat Rose Garden arena, the adjacent 12,000- seat Memorial Coliseum, the 6,500-seat Theater of the Clouds, the 40,000-sf Rose Quarter Exhibit Hall and the Rose Quarter Commons.

Allen, co-founder of Microsoft Corp., built the Rose Garden in the mid-1990s without public money at a cost of $262 million and owned it through Oregon Arena Corp. Oregon Arena Corp. declared bankruptcy in 2004. Allen chose to give ownership of the arena back to its lenders rather than continue to pay above-market interest on the construction debt, which originally amounted to $150 million.

As a result, Allen lost revenue from courtside seats and other sources. Last year at this time, Vulcan estimated that the basketball team could lose $100 million over three years because of the “broken financial model.” Vulcan signed a letter of intent to reacquire the Rose Garden from the lenders in early February .

“This puts us on stronger financial footing and helps us address some of the financial issues the franchise faces,” says Tod Leiweke, CEO of Vulcan Sports & Entertainment. “We have begun to execute our transition and improvement plan so we can again assume our rightful position as one of the premier franchises in the NBA.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.