Graffiti decorates many floors of the towers. This is Oceanwide Plaza I. It is an unfinished residential and retail complex in downtown Los Angeles. The plaza sits across from Crypto.com Arena and the Los Angeles Convention Center.
Oceanwide Plaza’s development has been troubled. Construction began in 2015. It stopped in 2019 when Oceanwide Holdings ran out of funds. The opening date is unknown. Geopolitical tensions between the US and China complicated financing.
In early 2024, the building gained attention. Graffiti artists tagged at least 27 floors of multiple towers. The incident sparked political urgency in Los Angeles. The Los Angeles Police Department allocated resources to protect property. The Los Angeles City Council announced a cleanup campaign. The council voted to bill Oceanwide approximately $4 million. This covers graffiti removal and barrier reinforcement. As of now, the graffiti has not been removed.
CallisonRTKL designed Oceanwide Plaza. Tower one was designed to feature a five-star Park Hyatt hotel. It was also to have Park Hyatt serviced condo residences. The tower was designed to reach 675 feet with 49 floors. Towers two and three were designed for residential condominiums. They were planned to reach 530 feet with 40 floors. The first three floors above ground were designed for retail. The retail mall was planned to offer 153000 sq ft of space. A two-acre private park was planned for the 9th floor.
The site was once a vacant parking lot. Crypto.com Arena patrons used it. The site sits northwest of Los Angeles Metro Rail’s Pico station. Oceanwide renderings featured large ribbon-style video LED screens. These screens faced Staples Center.
Apartment tower construction began in April 2018. Interior construction was put on hold by January 2019. The developer cited capital restructuring. They indicated plaza work would resume shortly. Contractor Lendlease suspended work. Construction resumed in late March 2019. Subcontractors had filed nine active liens. These liens totaled US$98.6 million. The opening date was delayed due to the three-month work pause. Work stopped again in late 2019. Media reported the towers were stuck in limbo. This was due to unpaid work and pending lawsuits.
The towers became an example of Chinese capital reductions. It showed reduced investment in US real estate. This was due to China’s crackdown on capital flight. China’s real estate financial crisis was worsened by a US trade war. Completion of work was uncertain. All work was put on hold in late 2019.
China-Oceanwide failed to pay its debts. The project was foreclosed on by June 2023. It was then listed for sale. China-Oceanwide owed $157 million to EB-5 lenders. They planned to repay them from the sale proceeds. Lendlease filed a court claim. It claimed it should be first in line for payment in the foreclosure sale. Lendlease also filed with the California Court of Appeals. It sought to invalidate the EB-5 loans. They claimed fraud and misrepresentation. China-Oceanwide filings with the Hong Kong Stock Exchange stated that more than $1.2 billion was needed to finish the project. They had already spent $1.1 billion. They removed the building from the sale.
China-Oceanwide re-listed the towers for sale in May 2024. They reportedly need $400 million to pay off lenders. They also want to recoup their money. The asking price was not disclosed.
Oceanwide Plaza was designed to be a significant mixed-use development. It promised a new level of sophistication. It was meant to enhance L.A.’s sports and entertainment district. The project was expected to create 9000 jobs. Its future remains uncertain. The unfinished towers stand as a monument to ambition. They are a reminder of financial challenges and geopolitical complexities.