April 22 (Bloomberg) -- The Golden State Warriors basketball team agreed to buy undeveloped land in San Francisco from Salesforce.com Inc. and will build an 18,000-seat arena at the site, said a person with knowledge of the transaction.
The deal means that the National Basketball Association team will abandon its previously announced proposal to build a $1 billion arena at Piers 30-32 in the South of Market area, said the person, who asked not to be identified because the agreement is private. The Salesforce site in Mission Bay has about 12 acres (4.9 hectares) and is part of land the company bought in 2010, the person said.
“I couldn’t be more thrilled to welcome the Golden State Warriors back home to San Francisco with a brand new, privately financed arena in Mission Bay,” Mayor Edwin M. Lee said in a statement yesterday. “The new Mission Bay arena will generate new jobs and millions of dollars in new tax revenue for our city.”
Andrew Schmitt, a spokesman for San Francisco-based Salesforce, declined to comment. Ray Ridder, a Warriors spokesman, didn’t return telephone calls and an e-mail seeking comment yesterday.
Salesforce, the biggest maker of customer-management software, purchased land in Mission Bay for $278 million with the intention of building a new headquarters before opting to lease space in downtown office towers instead. The shift resulted in plans to sell the parcels, a person familiar with the company’s decision said last month.
The Warriors have played in Oakland since 1971 and are owned by an investor group led by Joe Lacob, a partner at Kleiner Perkins Caufield & Byers, and Peter Guber, chairman of Mandalay Entertainment Group. The team said two years ago it would move to San Francisco and build a waterfront arena near the Bay Bridge, a plan that has been opposed by neighbors and environmental groups.
The Warriors won two championships playing in Philadelphia between 1946 and 1962, with Wilt Chamberlain setting an NBA record by scoring 100 points in a game against the New York Knicks. The franchise relocated in 1962 to San Francisco and nine years later to Oakland, where the 1975 team won a championship with Hall of Famers Rick Barry and Jamaal Wilkes.
The San Francisco Chronicle reported the land sale yesterday.
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