A cyclist passes beneath the so-called Graffiti Towers, where graffiti writers tagged 40 floors of an unfinished luxury skyscraper development last month, and Crypto.com Arena, on March 20, 2024 in Los Angeles, California.
Mario Tama/Getty Images
The unfinished Oceanwide Plaza complex in downtown Los Angeles is looking at a new buyer who plans to complete the $1.2 billion project.
KPC Development Co., whose founder, Kali Pradip Chaudhuri, is building a $300 million hotel next to SoFi Stadium, on Monday entered into a $470 million deal with Lendlease, the original contractor for the project, according to court documents. The figure represents a bid, which sets a price floor for the plaza, that will be tested at auction. If no higher offers come in, the bankruptcy court can approve the sale.
The stalled project has emerged as a major priority for Los Angeles ahead of the 2028 Olympic Games, which have provided a much-needed sense of urgency and a hard timeline to set up a transaction. The structure — dubbed the Graffiti Towers after taggers covered the trio of skyscrapers from top to bottom once construction was halted in 2019 — has become an eyesore on the city skyline that could embarrass the city’s global brand.
“Our priority remains ensuring the site is refreshed and activated in Olympic-ready condition ahead of the 2028 Olympic and Paralympic Games,” a spokesperson for Mayor Karen Bass said in a statement.
Last month, a settlement among creditors of the residential complex cleared the way for a potential sale. Under the $470 million acquisition by a joint venture between KPC and Lendlease, $70 million is earmarked to resolve outstanding debts, including back taxes, after which the property will be transferred to KPC Development.
In a statement, Oceanwide chief restructuring officer Bradley Sharp said the transaction offers the “best possible outcome given the challenging circumstances around this property.” He added, “It will be the shortest path to completion, and as the city looks forward to the Olympics in 2028, this iconic location across the street from L.A. Live will be a source of pride for Angelenos and a shining example of L.A.’s vibrant culture.”
Oceanwide Plaza, located directly across Crypto.com Arena, is part of a yearslong effort to transform part of downtown L.A. into a Times Square-esque destination. The project encompasses three high-rise towers occupying a city block: two 42-story towers and a 52-story tower that includes plans for a luxury hotel. Each tower will have parking, retail, dining and office space, plus a massive LED screen that will wrap across multiple streets.
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