Allen Matkins Advises on Landmark $4.2 Billion Midway Rising Redevelopment, Set to Deliver California’s Largest Affordable Housing Development

LOS ANGELES, CALIFORNIA – November 13, 2026 – Allen Matkins, a leading California-based law firm, represented Midway Rising, LLC, a partnership comprising The Kroenke Group, Zephyr, Legends Global, and Chelsea Investment Corporation, in connection with the landmark $4.2 billion Midway Rising redevelopment project, which received unanimous approval from the San Diego City Council on November 9, 2026.

The approval marks a significant milestone for one of California's most ambitious urban redevelopment initiatives. The project will deliver 2,000 affordable housing units—the largest single affordable housing development in California history — as part of a comprehensive transformation of approximately 48.5 acres surrounding San Diego's existing sports arena in the Midway District.

The Midway Rising partnership brings together complementary expertise across real estate development, investment, entertainment, and affordable housing. Zephyr is leading the development, with equity investment from The Kroenke Group, entertainment-venue expertise from Legends Global, and affordable-housing development led by Chelsea Investment Corporation.

The redevelopment will feature:

• 4,254 residential units, including 2,000 affordable homes, representing a significant contribution to San Diego's housing supply.
• A new, approximately 16,000-seat entertainment arena, replacing the existing Pechanga Arena and creating a major destination for sports, concerts, and live entertainment.
• Approximately 130,000 square feet of commercial and retail space, supporting economic activity and neighborhood revitalization.
• More than 14 acres of parks, plazas, and public spaces, providing new community amenities and gathering places.

The City Council's approval encompasses a complex disposition and development agreement, a framework for long-term ground leases, and significant land-use entitlements necessary to advance the redevelopment. Together, these approvals establish the foundation for a multiphase project that will transform San Diego's Midway District.

Allen Matkins advised Midway Rising, LLC throughout the entitlement process and in connection with the related ground lease transaction with the City of San Diego, helping navigate the complex legal, regulatory, and transactional considerations associated with one of California's most significant mixed-use redevelopment initiatives.

The project represents a substantial investment in San Diego's long-term economic and community development, demonstrating the potential of large-scale public-private partnerships to address critical housing needs, create new economic opportunities, and revitalize underutilized urban properties.

The Allen Matkins team included Jeffrey Chine, Elizabeth Wilgenburg, Heather Riley, Tim Hutter, Bo Peterson, Benjamin Brown, Tom Cavanaugh, and Otto Clark-Martinek. 

ABOUT ALLEN MATKINS

Allen Matkins, a law firm with over 300 attorneys, was founded with deep roots in real estate and has leveraged that foundation to grow and build prominent litigation, corporate, tax, labor and employment, land use, and environmental practices, allowing us to partner with clients across myriad industries and markets. For nearly 50 years, Allen Matkins has worked with clients drawn to us by our reputation for market-leading solutions, pragmatism, exemplary quality, approachability, and our unparalleled network of contacts and connections in business and government.