Agreement reached on sale of graffiti-covered downtown LA building
LOS ANGELES (KESQ) - A U.S. Bankruptcy Court judge today cleared the path for sale of the abandoned graffiti-covered Oceanwide Plaza.development in downtown Los Angeles.
The ruling from the Judge Deborah J. Saltzman followed the withdrawal of objections by both the city of Los Angeles and Los Angeles County during Monday's hearing. Saltzman's confirmation order is expected to be filed Tuesday morning, according to a statement from Hilco Global, the court-approved broker
for the bankruptcy sale of Oceanwide Plaza.
Hilco Global had announced on Feb. 23 an agreement by KPC Square, LLC, owned by a new joint venture by affiliates of Oceanwide senior creditors, The KPC Group and Lendlease, to purchase the property from Oceanwide Plaza LLC for $470 million.
"This confirmation is the culmination of a long and complex process, and it delivers exactly what we set out to achieve: a credible path to finally bring this project back to life," Bradley Sharp, Oceanwide's chief restructuring officer, said in a statement.
"We are grateful to the court, the creditors, and the city and county for working with us toward a resolution that serves everyone's interests, including the people of Los Angeles."
The city's withdrawal of its objection, filed Monday morning, came after months of negotiations between the city and KPC Square, facilitated by Sharp on behalf of the debtor. Counsel for Los Angeles County also confirmed the county's withdrawal on the record during the hearing, the statement said.
As part of the amended plan confirmed by the court, the debtor will begin the removal of all visible graffiti on the site within 30 days, with the support of KPC Square, the statement said.
The KPC Group bills itself as "global enterprise'' advancing real estate and healthcare. Lendlease was the original contractor for the project.
The development has drawn attention for massive tagging and daredevil base jumpers.
Oceanwide Plaza, a planned $1 billion multi-use complex, began construction years ago, but stalled in 2019 when Beijing-based developer Oceanwide Holdings could no longer finance it. The complex would have included housing, hotel space and retail stores, building up the area near Crypto.com Arena.
In 2024, the unfinished towers became a major downtown eyesore after graffiti vandals covered at least 25 floors, followed by dangerous stunts including base jumping that were captured on video and widely shared on social media.
That same year, Lendlease filed an involuntary Chapter 11 bankruptcy petition against Oceanwide Holdings to force a sale and repay creditors, according to the Los Angeles Times.
Oceanwide also owes back taxes to Los Angeles County and the city, the newspaper reported.
City officials previously approved about $1.1 million to install fencing along 12th Street between Figueroa and Flower streets and secure ground-floor areas, along with allocating funds for temporary Los Angeles Police Department security at the property.
