LOS ANGELES: The bankrupt US$1.2bil Oceanwide Plaza project in Los Angeles, dubbed the Graffiti Towers after taggers spray-painted the abandoned complex, has been cleared for sale and possible completion more than seven years after the original Chinese developer ran out of money.
A joint venture between KPC Group Inc, a Southern California real estate firm, and Lendlease Americas Inc, a unit of an Australia-based construction and development company, offered cash and credit worth about US$517mil to acquire the project and agreed to complete it at an estimated additional cost of US$800mil.
“I am delighted to make the finding that this is a plan that meets all the requirements” for bankruptcy resolution, Judge Deborah Saltzman said, adding that she would enter an official order.
The massive development – three towers of as many as 55 floors for residences, a hotel and retail space – has become a symbol of post-pandemic blight in downtown Los Angeles.
Efforts to revive the project near the Los Angeles Convention Centre and Crypto.com Arena, home of the Los Angeles Lakers, have taken on greater urgency as the city prepares to host the 2028 Olympics.
Oceanwide Plaza was about 60% complete when construction stopped in 2018 after the Chinese government cut off spending on overseas investments by the developer, Beijing-based China Oceanwide Holdings.
The property was forced into bankruptcy in 2024 after daredevil taggers covered the buildings in graffiti and base jumpers parachuted from its towers, raising concerns that it was a safety hazard.
The bankruptcy exit deal faced objections from government agencies and some creditors.
In a May court filing, the city of Los Angeles argued that the KPC-Lendlease group’s proposal lacked evidence it could finance completion beyond initial steps to light a 700-foot-long electronic billboard and open a parking garage.
The group also had not moved to renew expired permits and entitlements for the project, the filing said.
On Monday, the city and other objectors withdrew their opposition, citing changes agreed to by KPC. — Bloomberg
