Buyer Found for Oceanwide Plaza’s Notorious Graffitied Towers
In downtown Los Angeles, a buyer has stepped forward for the infamous graffiti-covered Oceanwide Plaza towers. The development is backed by a Riverside County developer, KPC Development Co., and its partnership led by Kali P. Chaudhuri. This project, which has been stalled, is valued at $1.2 billion.
Details of the Acquisition
KPC Development Co. aims to finalize an initial purchase agreement in federal bankruptcy court, setting a baseline price of $470 million for the complex. If no higher, qualified bids are received by April 9, the sale could be approved.
Chaudhuri’s Vision
“I’m very excited,” said Chaudhuri. “I’ll try my very best to turn it around and make it the jewel of downtown L.A.” Upon obtaining ownership, KPC will focus on the removal of graffiti as the first step in revitalizing the area.
Project Plans and Timeline
KPC intends to complete Oceanwide Plaza as originally envisioned, featuring housing, a hotel, retail shops, and restaurants. The first phase includes installing a massive LED screen around the base of the complex, with work expected to start after city construction approvals.
Current Condition and Historical Context
- Oceanwide Plaza has been a prominent yet blighted feature of the L.A. skyline since construction stalled in 2019.
- Taggers transformed its unfinished towers into vibrant canvases while the site gained notoriety through various extreme acts, such as base jumping.
- The project was initially intended to consist of luxury condos, a five-star hotel, and high-end retail.
Financial Background
Beijing-based Oceanwide Holdings acquired the site in 2014 but faced financial difficulties, halting construction in 2019. As of February 2024, Lendlease, the original contractor, filed for Chapter 11 bankruptcy to facilitate the sale and settle nearly $400 million in creditor claims.
Market Evaluation
A recent appraisal by Colliers assessed the current market value of Oceanwide Plaza at nearly $434 million, estimating a completion cost of about $865 million to finish the 60% completed project. Other industry estimates approach $1 billion.
Community Impact
Mayor Karen Bass expressed the need for transformation of the complex. “The blighted Oceanwide Plaza has been an eyesore for too long due to failed ownership,” she stated. Local leaders emphasize the importance of quickly addressing the issues at this central location in downtown L.A.
About KPC Development Co.
KPC Development Co. is known for various projects in California and India. Among its notable developments are hospitals and commercial properties. Its experience in large-scale projects may prove beneficial in reviving Oceanwide Plaza and restoring it to its intended glory.
