Mixed-Use Revival Set for Graffitied LA Towers

Mixed-use revival set as KPC Development and Lendlease bid to acquire and finish Los Angeles’ stalled Oceanwide Plaza towers.

February 26, 2026

Nina Dale

KPC Development and Lendlease are set to acquire the unfinished Oceanwide Plaza mixed-use towers in downtown Los Angeles for $470M.
Construction originally stalled in 2019, leaving the $1B+ project 60% complete and covered in graffiti.
The bankruptcy sale plan includes a $400M credit bid and $70M in cash, with no recovery for existing equity holders or most unsecured creditors.
The buyers plan to finish the three-tower development, which includes condos, apartments, hotel rooms, and retail space.

Key Takeaways

Stalled Mixed-Use Project May See New Life

According to CoStar, KPC Development and Lendlease have emerged as lead bidders for Oceanwide Plaza in downtown Los Angeles. The mixed-use project has sat unfinished since 2019. The developers agreed to pay about $470M through a court-supervised bankruptcy sale. They aim to revive the three-tower complex near Crypto.com Arena.

Oceanwide Plaza stalled after its China-based developer ran out of funding. Since then, the project has symbolized downtown real estate distress. The unfinished high-rises stood exposed for years. Graffiti now covers much of the structures’ exteriorIf the acquisition closes, KPC and Lendlease intend to resume and complete construction using much of the existing plan.

Bankruptcy Sale Structure and Recovery

The $470M transaction consists of a $400M credit bid from secured lenders and up to $70M in new cash. Under the Chapter 11 liquidation plan, secured tax claims and debtor-in-possession loans will be paid first. Most unsecured creditors, largely contractors and subcontractors, are not expected to receive distributions. Equity holders will see their stakes eliminated if the deal is confirmed during the scheduled April hearing.

Development Details and Next Steps

Originally designed as a mixed-use hub with 184 hotel rooms, 164 condos, 504 apartments, and 161,000 SF of retail, Oceanwide Plaza intended to anchor a Times Square-style district in the heart of downtown. Roughly 60% complete, the buildings require an estimated $865M in additional investment. KPC Development, already active in Los Angeles with the Kali Hotel project, and original contractor Lendlease would reposition Oceanwide Plaza for completion and long-term operation.

The sale, if completed, will signal how investors price distressed downtown assets. It may also shape future urban redevelopment strategies. A recent foreclosure at a major downtown office complex further underscored mounting pressure in the city’s core market. The acquisition gives the development team control over one of Los Angeles’ most visible mixed-use properties.