Graffiti towers agreement clears a path for clean…
Downtown Los Angeles’ notorious eyesore is one step nearer to being cleaned out.
The skyscraper identified as the Graffiti Towers — formally the Oceanwide Plaza development — has reached a chapter exit agreement that paves the way in which for a potential sale, court data show.
A federal chapter choose on Tuesday signed an order approving the agreement, which was filed on Jan. 28 and resolves numerous disputes between collectors.
Lawyers for Oceanwide argued in the Jan. 28 court submitting that the agreement would put an end to “value-destructive litigation” and enable Oceanwide to focus on promoting the project and confirming a plan.
“A prompt sale and eventual completion of the Project is a major priority for the City and the public at large, particularly with the upcoming 2028 Olympic Games in Los Angeles,” Oceanwide’s attorneys wrote.
The settlement is a “critical step” toward promoting the property, which is able to enable for the “permanent removal” of graffiti and “permanent elimination of safety concerns at the Property,” they continued.
The real estate broker managing the sale, Mark Tarczynski of Colliers, declined to remark.
A possible investor is in talks to purchase the property, but the deal relies upon on the chapter being resolved, as reported by Bloomberg, citing unnamed sources.
The settlement agreement resolves numerous legal battles between collectors over the order that they get repaid in, units the quantities of the claims and supplies a “framework for a consensual chapter 11 plan and sale, and a distribution waterfall for the proceeds from a sale.”
Under the agreement, L.A. Downtown Investment LP will obtain a $230-million declare, while the “mechanics” liens — that are usually related with unpaid construction work and are held by Lendlease (US) Construction Inc. and DTLA Funding LLC — complete $168 million.
The agreement also consists of a $20-million fee from Lendlease (US) Construction Inc. to Chicago Title Insurance Co. to resolve disputes between the 2 firms.
Oceanwide Plaza, situated across Figueroa Street from Crypto.com Arena and on the location of a former event parking zone, was once envisioned as a crown jewel of downtown Los Angeles.
The Chinese-backed, mixed-use development project would have included more than 500 condos and 180 lodge rooms across three towers. It would have also included almost 170,000 sq. ft of retailers and eating places.
“The draw power of this location is tremendous. We’re in the heart of the entertainment and sports district,” Thomas Feng, then-chief government of Oceanwide’s American subsidiary, told The Times in 2016.
The $1-billion development began in 2015 and was initially slated to be accomplished in 2019. But construction stalled in January 2019 as the proprietor — the publicly traded, Beijing-based conglomerate Oceanwide Holdings — ran out of money to pay contractors.
As the luxurious building sat vacant, taggers armed with spray paint flocked there, hoping to depart a colourful mark on town skyline. Some even filmed themselves strolling on ledges of the unfinished skyscrapers.
In 2024, the Los Angeles City Council allotted $3.8 million to clean up and secure the building. About $2.7 million was allotted for security companies, fire security upgrades and graffiti abatement. Another $1.1 million was set apart to construct fences and secure the ground flooring of the building.
Oceanwide Holdings also deliberate to construct two skyscrapers in San Francisco’s Financial District, but construction halted in 2020 after the company ran out of money, the San Francisco Chronicle has reported.
China Oceanwide Holdings was delisted from the Hong Kong Stock Exchange last yr.
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