According to sources in the industry, several groups have placed bids on Thursday for the Oceanwide Plaza mixed-use development located in Downtown Los Angeles. The project was forced into bankruptcy earlier this year and an auction is scheduled for mid-September.
Rumors suggest that AEG Worldwide was a potential front runner as they had retained the original architect of the project. However, despite being close to AEG’s LA Live and Crypto.com Arena which face competition from Hollywood Park mega-development, they did not submit any offers on Thursday.
One major obstacle for potential buyers is securing financing not just for acquiring the project but also completing its construction. Colliers has appraised it at $434 million as part of Oceanwide Plaza’s bankruptcy proceedings, but finishing all three towers (residential, retail and hotel) could cost double that amount.
In July, a mystery bidder emerged who offered to be a stalking horse if no better bids were received during the upcoming auction. They proposed taking control of the property for $500 million according to reports; however it is unclear if they are still involved in bidding process.
Construction work on 1100-1198 S Flower St came to halt last year when China Oceanwide ran out of funds leading creditors (including Lendlease) unpaid which ultimately resulted in bankruptcy filing.
In May this year Colliers’ EVP Mark Tarczynski along with Hilco Real Estate’s EVP Jeffrey Azuse were hired with aim towards selling off or potentially completing unfinished Oceanwide Plaza – one among largest stalled developments across US – made headlines after taggers covered much of it with graffiti earlier this year.
Multiple bidders have submitted offers on Thursday for DTLA’S unfinished mixed-use development known as Oceanwide Plaza after facing financial troubles resulting in its February 2021 bankruptcy declaration. An auction date has been set mid-September according Connect CRE sources familiar with sale proceedings reveal.
Despite rumors suggesting AEG Worldwide as the potential front runner, they did not submit any offers on Thursday. The development site is in close proximity to AEG’s LA Live and Crypto.com Arena which have faced tough competition from Hollywood Park mega-development located in Inglewood.
One of the major challenges for potential buyers would be securing financing not just for acquiring the project but also completing its construction. Colliers has appraised it at $434 million during Oceanwide Plaza’s bankruptcy proceedings; however, finishing all three towers (residential, retail and hotel) could cost double that amount.
In July this year, a mystery bidder emerged offering to serve as a stalking horse if no better bids were received during the upcoming auction. They proposed taking control of the property for $500 million according to reports; however it is unclear if they are still involved in bidding process.
Construction work on 1100-1198 S Flower St came to halt last year when China Oceanwide ran out of funds leading creditors (including Lendlease) unpaid which ultimately resulted in bankruptcy filing by them.
In May this year Colliers’ EVP Mark Tarczynski along with Hilco Real Estate’s EVP Jeffrey Azuse were hired with aim towards selling off or potentially completing unfinished Oceanwide Plaza – one among largest stalled developments across US – made headlines after taggers covered much of it with graffiti earlier this year.
