Oceanwide Plaza’s long-running bankruptcy saga reached a major milestone in July 2026 when a federal bankruptcy judge approved the sale of the unfinished downtown Los Angeles development to a joint venture led by KPC Development Co. and Lendlease, clearing the way for the project’s revival. Shareholders Howard Steinberg and Eric Rowen represented KPC in both the bankruptcy litigation and in its purchase of the development. The three-tower complex has sat unfinished since construction stopped in 2019 after developer Oceanwide Holdings encountered financial difficulties tied to China’s restrictions on overseas capital outflows. The abandoned towers later became nationally known for extensive graffiti that covered their exterior. Under the approved plan, the KPC-Lendlease venture will pay approximately $517 million to acquire the site and is expected to invest roughly $800 million to complete the mixed-use project, which is slated to include 504 condominiums, a 184-room hotel, significant retail space, and large-scale digital signage. While the City and County of Los Angeles had previously raised concerns regarding financing, feasibility, and unpaid taxes, both ultimately withdrew their objections, allowing the transaction to proceed. Cleanup and remediation of the graffiti-covered towers is expected to begin right away and finish within three months, positioning the site for redevelopment ahead of the 2028 Olympic Games and broader investment planned for the surrounding Convention Center and South Park district.
LINKS
- Read Los Angeles Business Journal’s article, “A. Rising: Graffiti Gambit.”
- Read USA Today’s article, “End of Era for LA’s Infamous ‘Graffiti Towers.’ Where Project Stands.”
- Read The Wall Street Journal's article, “A.’s Notorious Trio of Graffiti-Covered Skyscrapers Finally Finds a Buyer.” (subscription required)
- Read or watch on NBC News Los Angeles, “Infamous ‘Graffiti Towers' in Downtown LA Now Have New Owners.”
- Read The Real Deal’s article, “Proposed Oceanwide Buyer Challenges City’s Concerns on Financing, Development Plan.” (subscription required)
- Read Urbanize LA’s article, “Bankruptcy Court Clears the Way for Oceanwide Plaza Sale.”