The unfinished Oceanwide Plaza complex in downtown Los Angeles is searching for a new buyer who plans to complete the $1.2 billion project.
KPC Development Co., whose founder, Kale Pradeep Chaudhary, is building a $300 million hotel next to SoFi Stadium, on Monday closed a $470 million deal with Lendlease, the original contractor for the project, according to court documents. This number represents a bid that sets the minimum price for the arena, which will be tested at auction. If no higher offers are made, the bankruptcy court can approve the sale.
The stalled project has emerged as a major priority for Los Angeles ahead of the 2028 Olympics, which provided a much-needed sense of urgency and a challenging timeline to close the deal. The structure — dubbed “Graffiti Towers” after graffiti owners covered the trio of skyscrapers from top to bottom once construction stopped in 2019 — has become an eyesore on the city’s skyline that could embarrass the city’s global branding.
“Our priority remains ensuring the site is updated and revitalized to become Olympic-ready ahead of the 2028 Olympic and Paralympic Games,” a spokesperson for Mayor Karen Bass said in a statement.
Last month, a settlement between the apartment complex’s creditors paved the way for a potential sale. Under the $470 million acquisition through a joint venture between KPC and Lendlease, $70 million has been allocated to settle outstanding debts, including back taxes, after which the property will be transferred to KPC Development.
In a statement, Bradley Sharp, Oceanwide’s chief restructuring officer, said the deal offers “the best possible outcome given the challenging circumstances surrounding this property.” “It will be the shortest path to completion, and as the city eyes the Olympic Games in 2028, this iconic location across the street from LA Live will be a source of pride for Angelenos and a shining example of Los Angeles’ vibrant culture.”
Oceanwide Plaza, located directly across from Crypto.com Arena, is part of a years-long effort to transform part of downtown Los Angeles into a Times Square-style destination. The project includes three high-rise towers occupying a residential block in the city: two 42-storey towers and a 52-storey tower that includes plans for a luxury hotel. Each tower will contain parking, shops, stores, dining areas and office space, as well as a huge LED screen that will wrap across multiple streets.
