Oceanwide Plaza Bankruptcy Court Confirms Plan of Liquidation, Clearing Way for $470 Million Sale to KPC Square
The ruling follows withdrawn objections from Los Angeles officials and lets the long-idle project move toward closing and graffiti removal within 30 days.
- On Monday, U.S. Bankruptcy Judge Deborah J. Saltzman cleared the $470 million sale of abandoned Oceanwide Plaza after Los Angeles and Los Angeles County withdrew objections, enabling a more than $1.2 billion overhaul before the 2028 Summer Olympics.
- Construction stalled in 2019 when Beijing-based developer Oceanwide Holdings exhausted financing; Lendlease later forced Chapter 11 bankruptcy to recover creditor funds, while graffiti vandals covered at least 25 floors by 2024, forcing the city to spend about $1.1 million on security and fencing.
- The 1.5 million-square-foot development comprises three towers including a 52-story structure with an 11-story luxury Park Hyatt hotel, positioned directly across from Crypto.com Arena; KPC executive John Petty told The Wall Street Journal the buildings are 'structurally sound and substantially complete.'
- KPC Square will invest $800 million to complete the development, bringing total investment to more than $1.2 billion, with graffiti removal beginning within 30 days and closing expected in coming months.
- Completing the project before 2028 would transform the downtown embarrassment into 'a source of pride for Angelenos,' said Bradley Sharp, Oceanwide's Chief Restructuring Officer, while downtown resident David Garcia told The Wall Street Journal finished towers would have made downtown 'a completely different area.
22 Articles
22 Articles
Los Angeles Times
goSkagitGraffiti towers set to be cleared for cleanup and sale
Work cleaning the Oceanwide Plaza skyscrapers — known informally as Graffiti Towers — will begin immediately, according to the $517-million sale agreement tentatively approved by a federal judge.
‘Graffiti towers' in downtown LA to be cleaned up in 90 days
The graffiti covered Oceanside Plaza tower in Los Angeles, California, US, on Friday, May 17, 2024. Even as many cities have returned to post-pandemic normalcy and employers have enacted stricter in-person work policies, office-rent growth in the central business districts of cities such as LA have lagged behind outlier areas, according to brokerage Savills. Photographer: Kyle Grillot/Bloomberg via Getty Images
Bankruptcy Court Judge Reaches Agreement on Sale of DTLA Graffiti-Covered Building
A U.S. Bankruptcy Court judge is expected to file her order Tuesday clearing the path for the sale of the abandoned graffiti-covered Oceanwide Plaza.development in downtown Los Angeles. The ruling from Judge Deborah J. Saltzman Monday followed the withdrawal of objections by both the city of Los Angeles and Los Angeles County during Monday’s hearing. Saltzman’s confirmation order is expected to be filed Tuesday morning, according to a statement …
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