Graffiti removal has been launched at a downtown Los Angeles apartment tower where construction has been stalled for years, following a U.S. Bankruptcy Court’s approval of the new owners’ plan to move the project forward.
Cleanup began Thursday at Oceanwide Plaza under the $517 million sale agreement approved by U.S. Bankruptcy Judge Deborah Saltzman. On Monday, both the city of Los Angeles and Los Angeles County withdrew their objections to the sale.
Saltzman filed her confirmation order Tuesday morning, according to a statement from Hilco Global, the court-approved broker for the bankruptcy sale of Oceanwide Plaza.
City officials noted remediation work is expected to be completed within three months at the site, located at 1101 S Flower St.
“Oceanwide Plaza sits at the center of one of downtown Los Angeles’ most important economic corridors, linking the Convention Center, Crypto.com Arena, LA Live and the broader South Park district,” Mayor Karen Bass said in a statement issued Monday.
“Completing this project is about far more than finishing a building — it’s about restoring confidence, reconnecting a vital commercial corridor, and unlocking the economic potential of one of the city’s most strategic destinations ahead of a transformative decade for Los Angeles,” Bass added. “I look forward to an expedited closing and the proposed buyer delivering on their commitments.”
City officials noted the sales agreement outlined an expedited path to remediate the site, restart construction and make meaningful progress ahead of the 2028 Olympic and Paralympic Games.
Councilwoman Ysabel Jurado, who represents downtown communities, said in a statement that she and her constituents look forward to the cleanup.
“Downtown residents deserve to see this property transformed into a source of housing, jobs, investment and economic opportunity that reflects the energy and promise of downtown Los Angeles,” Jurado said. “My office will continue working collaboratively with city departments, the new ownership team, and community stakeholders to support steady progress, clear communication, and the successful completion of this long-awaited project.”
Nella McOsker, president and CEO of Central City Association, described the remediation as an important next step in turning one of downtown’s most visible symbols of blight into “one of its greatest comeback stories.”
“We expect new ownership to be a good neighbor and immediately remediate blight conditions, and we need the city to continue its work to cut red tape so that Oceanwide can restart construction and deliver a project that Angelenos deserve,” McOsker said in a statement.
On Feb. 23, Hilco Global had announced an agreement by KPC Square LLC, owned by a new joint venture by affiliates of Oceanwide senior creditors The KPC Group and Lendlease, to purchase the property from Oceanwide Plaza LLC for $470 million.
“This confirmation is the culmination of a long and complex process, and it delivers exactly what we set out to achieve: a credible path to finally bring this project back to life,” Bradley Sharp, Oceanwide’s chief restructuring officer, said in a statement. “We are grateful to the court, the creditors, and the city and county for working with us toward a resolution that serves everyone’s interests, including the people of Los Angeles.”
The city’s withdrawal of its objection came after months of negotiations between the city and KPC Square, facilitated by Sharp on behalf of the debtor. Counsel for Los Angeles County also confirmed the county’s withdrawal on the record during the hearing.
As part of the amended plan confirmed by the court, the debtor will begin the removal of all visible graffiti on the site within 30 days, with the support of KPC Square.
The KPC Group bills itself as a “global enterprise” advancing real estate and healthcare. Lendlease was the original contractor for the project.
The development has drawn much attention on social media for its massive tagging and daredevil base jumpers.
Oceanwide Plaza, a planned $1 billion multi-use complex, began construction years ago, but stalled in 2019 when Beijing-based developer Oceanwide Holdings could no longer finance it. The complex would have included housing, hotel space and retail stores, building up the area near LA Live.