The stalled Oceanwide Plaza project in Downtown Los Angeles has taken a major step toward resolution following U.S. Bankruptcy Court approval of a liquidation plan that paves the way for a sale to new investors. Los Angeles Mayor Karen Bass said Tuesday that graffiti removal and broader blight abatement efforts will now proceed after a confirmation hearing earlier in the day for the sale of the long-idle property.
The confirmation hearing followed Monday’s announcement by the U.S. Bankruptcy Court for the Central District of California that it would approve the plan of liquidation for Oceanwide Plaza LLC. That decision clears a path for a sale valued at more than $470 million to a joint venture between KPC Development and Lendlease, subject to completion of the court-supervised process.
Bradley Sharp, Oceanwide’s chief restructuring officer, described the court’s confirmation as the culmination of an extended and complex restructuring effort. He said the approved plan provides what he called a credible path to bring the long-stalled development back to life, signaling a potential transition from bankruptcy proceedings to new ownership and a fresh development strategy for the site.
Oceanwide Plaza is located at 1101 S. Flower St. in Downtown Los Angeles, directly across Figueroa Street from Crypto.com Arena. The project totals approximately 1.5 million square feet and has remained unfinished and largely vacant since construction work was halted in 2019. Its condition and highly visible location have made it a focal point in discussions about urban blight and stalled development in the downtown district.
Mayor Bass linked the court’s confirmation to the start of on-the-ground efforts to address graffiti and visual deterioration at the site, framing these steps as part of a broader effort to reduce blight in the urban core. While specific redevelopment timelines and plans under the incoming ownership group have not been detailed, the court’s decision establishes a framework for transferring control to the KPC Development and Lendlease joint venture.
Hilco Global served as the court-approved broker on the transaction. Jeffrey Azuse, executive director and head of brokerage operations for Hilco Global, said the outcome represents a strong result for both creditors associated with Oceanwide Plaza and the City of Los Angeles. His comments underscored that the approved sale not only advances the interests of claimholders in the bankruptcy process, but also addresses a prominent unfinished project in Downtown Los Angeles that has remained in limbo for several years.
