The Philadelphia 76ers have announced plans to build a new arena in Center City.

Per an official release from the club, managing partners Josh Harris and David Blitzer are launching a new development company, 76 Devcorp, that will be responsible for developing the privately funded $1.3 billion sports and entertainment arena known as 76 Place.

Harris said in the release the project is part of the organization's commitment to "building a world-class home in the heart of the city and creating a privately funded arena that strengthens ties within the local community through investments that prioritize equity, inclusivity and accessibility."

The arena will be located on a portion of the current site of the Fashion District Philadelphia shopping mall along Market Street.

Development on the arena is expected to be completed in time for the start of the 2031-32 NBA season.

Per ESPN's Tim Bontemps, the Sixers' lease with the Wells Fargo Center expires after the 2030-31 season.

It's unclear when development on the new building is expected to begin. 76 Devcorp will work in close partnership with Macerich, which operates Fashion District Philadelphia, "to realize the full potential of the site."

The development company will also work with Mosaic Development Partners, a Philadelphia-based real estate development company that has experience in affordable housing and inclusive communities, as part of the Sixers' community-driven revitalization efforts.

The Sixers previously tried to get a new arena project off the ground at Penn's Landing, but the plan fell through in 2020 when the Delaware River Waterfront Corporation accepted another investment bid for residential, hotel and retail developments.

"Honestly, when Penn's Landing happened, yeah, I think one of the shortcomings was they realized that there was no Philadelphia person running the process," David Adelman, chairman of the new development company, told Bontemps. "And no disrespect to New York or anywhere else, but like, you need local, right?"

The 76ers and Philadelphia Flyers have shared a home dating back to 1967 when the Spectrum opened. Both teams moved into the Wells Fargo Center after it opened in 1996.