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A buyer group has stepped forward for the long-stalled Oceanwide Plaza mixed-use complex in downtown Los Angeles, with a proposed purchase that could reposition one of the city’s most high-profile distressed projects. According to reporting by the Los Angeles Times, Corona-based KPC Development Co. and partner Lendlease have submitted an initial purchase agreement in federal bankruptcy court that establishes a baseline purchase price of $470 million. The transaction is subject to court approval, which could come as soon as April 9.
KPC founder and chairman Kali P. Chaudhuri told the Times that he is eager to take control of the property and pursue a repositioning strategy. He indicated that his intention is to turn the complex into what he described as a standout asset for downtown Los Angeles, while also confirming plans to rename the development once the deal closes.
Oceanwide Plaza occupies a prominent site across from what is now Crypto.com Arena in the South Park neighborhood of downtown Los Angeles. Chinese developer Oceanwide Holdings acquired the former parking lot in 2014 and began construction on a three-tower mixed-use project designed to include luxury condominiums, apartments and a five-star hotel, supported by high-end retail and restaurant space. The original plans also called for a large electronic sign intended to bring a Times Square-style visual presence to Figueroa Street in the heart of DTLA.
Work on the project halted in 2019 after Oceanwide encountered financial challenges, coinciding with Chinese government restrictions on outbound investment. As a creditor to the project and its original contractor, Lendlease later pursued legal remedies, filing a petition in 2024 to place Oceanwide Plaza into involuntary bankruptcy. Those proceedings set the stage for the current purchase proposal by the KPC and Lendlease partnership.
In its unfinished state, the complex has become widely known as the “Graffiti Towers” after taggers covered the exposed structures with large-scale graffiti. An April 2024 appraisal by Colliers placed the as-is market value of the partially completed property at nearly $434 million. The same appraisal estimated that it would cost approximately $865 million to complete the buildings, which are reported to be about 60% finished, while some industry estimates cited in the Times suggested the remaining cost could reach $1 billion.
Chaudhuri told the Times that, assuming due diligence is finalized and the necessary city approvals are obtained, his first priority would be to remove the graffiti from the towers. He also indicated that the partnership’s objective is to see the project through substantially as originally envisioned, preserving the mixed-use program of residential, hospitality and retail space that formed the basis of the Oceanwide Plaza design.
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