The building replaced the G. Rollie White Coliseum, and is named for Dr. & Mrs. Chester J. Reed, a 1947 A&M graduate whose donations made the new arena possible.

However, due to initial over-estimating of revenue and budget shortfalls during construction, this endowment was unable to make the arena become self-sufficient.

As a necessary function, the Arena has developed pipelines of support from a multitude of different stakeholders and events that operate both within the local community and internationally.

In February 2006, the 12th Man Foundation, a fund raising organization associated with Texas A&M Athletics, announced plans for an effort to build the Cox-McFerrin Center, a 40,000-square-foot (3,700 m2) addition to Reed Arena, providing new men's and women's basketball locker rooms, practice gyms, and player lounges.

On February 2, 2007, the A&M System Board of Regents approved a revised plan, increasing the size of the facility to 69,400 square feet (6,450 m2) and a total cost of $21.5 million.