At long last, the Oceanwide Plaza saga looks to be headed toward a conclusion.

A federal bankruptcy judge has officially cleared a joint venture led by KPC Development Co. and Lendlease to acquire the stalled project at 1101 S. Flower Street. Bloomberg reports reports that the joint venture will pay $517 million in credit and cash to acquire the site and spend an additional $800 million to complete construction. The unfinished high-rise complex, commonly known as the 'Graffiti Towers," is set to include 504 condominiums, a 184-room hotel, a 150,000-square-foot retail podium, and a block-long LED sign when completed.

Oceanwide Holdings, the Chinese-based real estate firm which had started work on the project, broke ground on Oceanwide Plaza at the crest of a real estate boom which saw more than two dozen high-rise towers built in the Downtown neighborhood. However, following restrictions imposed by the Chinese government on capital outflow, rumors of financial troubles began swirling around the project starting in 2018, culminating in a stop to construction in 2019. 

KPC Development Co.'s proposal to acquire the property itself ran into headwinds after it was initially announced earlier this year, when officials with the City and County of Los Angeles objected due to concerns due to concerns about the viability of the overall plan and unpaid taxes. However, both the City and County have withdrawn their formal opposition, though a response filed with the federal court indicates that some concerns remain about the overall course of KPC's plan.

Oceanwide Plaza prior to the stop of constructionHunter Kerhart Architectural Photography

Nonetheless, the City's first priority in any deal is the immediate cleanup of the property, which is to begin immediately and be completed within three months, according to a news release from Mayor Bass.

“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,” said Bass in a news release. “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.”

A clean up of the Oceanwide site comes two years in advance of the 2028 Olympics, as well as an expansion of the neighboring Convention Center complex, both of which are expected to bring thousands of visitors to the neighborhood.

KPC Development Co., one part of the acquisition team, is currently developing a $300-million hotel complex near SoFi Stadium in Inglewood. 

Lendlease, which also served as Oceanwide Plaza's general contractor prior to the stop of work, is currently partnering on a large mixed-use complex taking shape next to Metro's La Cienega/Jefferson Station. The company had previously announced its intent to exit the U.S. market.

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