PHILADELPHIA (AP)The Philadelphia 76ers on Thursday announced plans to take the first steps toward building a privately-funded sports and entertainment arena.

The team’s managing partners, Josh Harris and David Blitzer, unveiled the creation of a new development company led by business leader David Adelman to create its future home in the city’s Fashion District. They said 76 Place is anticipated to cost approximately $1.3 billion.

”The Philadelphia 76ers are a storied Philadelphia institution with a proven track record of investing in their community. That’s why we’re committed 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,” Harris said in a news release.

The site was selected primarily due to its access to transit, the release said. The team also cited the ”ability to redevelop an existing commercial space.”

Groundbreaking is not expected for several years and the project is expected to be finished in time for the 2031-2032 NBA season.

The Sixers currently play at Wells Fargo Center.

”We’re dedicated to making sure this development is a win for our fans and Philadelphia at large,” said Adelman.