The Philadelphia 76ers will team with Campus Apartments CEO David Adelman, as well as shopping center giant Macerich, to develop a new arena clocking in at $1.3B.

The team formed a new entity, 76 Devcorp, to develop the arena on a portion of Fashion District Philadelphia, a shopping center that includes a 1M SF enclosed mall in the Center City area.

Adelman, who is also co-founder of FS investments and founder of Darco Capital, will lead the development effort as chairman of 76 Devcorp.

Philadelphia-based Campus Apartments has properties at more than 50 colleges and universities nationwide, representing about $1.5B in assets under management.

Macerich, the operator of Fashion District Philadelphia, will also collaborate on the arena's development. California-based Macerich is one of the largest owners of shopping centers in the U.S.

The site offers proximity to transit that connects it with the rest of Philadelphia, as well as the ability to redevelop existing commercial space, according to Macerich.

The arena is anticipated to cost $1.3B and provide $1.9BB in overall economic output during construction, then generate $400M annually upon opening, according to the 76ers.

Development will not begin for a number of years, however, and occupancy isn't expected until the 2031-32 season, when the 76er's lease expires at its current home, the Wells Fargo Center.