- D.C. will buy Capital One Arena from Monumental Sports & Entertainment for $88M, with a lease agreement that extends through 2050, including options to renew until 2070.
- Monumental will reinvest sale proceeds into a major $800M renovation project, which aims to enhance the arena’s facilities, expand concessions, and improve fan experiences.
- The redevelopment is projected to create over $1B in economic benefits, 4.9K construction jobs, and $21M in tax revenue during the construction phase.
Washington, D.C., has finalized an agreement to purchase Capital One Arena from Monumental Sports & Entertainment for $88M, solidifying the venue’s future as the home of the Washington Capitals and Wizards.
As reported by Bisnow, Mayor Muriel Bowser announced the plan over the weekend, highlighting it as a key investment in D.C.’s downtown economy and entertainment landscape. The deal ensures that the teams will remain at the venue until at least 2050, with a possible lease extension to 2070.
Deal Details
The $515M agreement outlines how the District’s investment will be allocated.
The city plans to release $87.5M for the arena purchase, with additional funds earmarked for the initial stages of construction. By October 2026, the final installment will complete D.C.’s financial contribution to the project.
Monumental will begin paying rent at $1.5M in 2025, with gradual increases reaching $3.3M by the final renewal period. The arena will also be exempt from property and leasehold taxes.
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The Plan of Action
Monumental Sports plans to reinvest its sale proceeds, committing at least $285M, into a comprehensive renovation of Capital One Arena.
The upgrades, totaling $800M, will include a 200 KSF expansion into the adjacent Gallery Place complex. This area will serve back-of-house operations and accommodate new office, retail, and entertainment spaces. Enhancements to the F Street entrance will improve access, with wider concourses, more elevators, and escalators.
The upgrades aim to improve the fan experience by adding 65% more concession space, 30% more restrooms, and a broader range of food and beverage options.
The planned renovations will also include upgraded facilities for the Capitals and Wizards. Players will benefit from expanded locker rooms, new training areas, and a dedicated lounge space. The Capitals will get a new film room, while the Wizards will have access to an on-site training facility.
Monumental is also aiming for LEED certification, reflecting a commitment to sustainability.
Future Outlook
The redevelopment is expected to generate significant economic benefits, including over $1B in economic impact, 4.9K new construction jobs, and $21M in tax revenue over three years.
Mayor Bowser emphasized the importance of keeping the teams in D.C. and investing in the downtown area as a hub for sports and entertainment.
In addition to the renovations, the agreement includes a non-relocation covenant that prevents Monumental from considering any move before 2045. During the year leading up to that date, the District will have exclusive rights to negotiate the extension of the lease, ensuring the teams remain in D.C.
