Downtown LA's infamous 'graffiti towers' have a new buyer
DTLA 'Graffiti Towers' project revival approved
A federal bankruptcy court could approve the sale by April 9 if no higher qualified bids are received, potentially ending years of stagnation for the $1 billion stalled project.
LOS ANGELES - The abandoned Oceanwide Plaza development, a three-tower complex in downtown Los Angeles that became an infamous symbol after being covered in 25 floors of graffiti, is one step closer to a new chapter.
What we know:
The KPC Group and its partner Lendlease—the project’s original contractor—filed a $470 million purchase agreement in federal bankruptcy court. The company's real estate division, KPC Development Co., is expected to oversee remediation and construction if the deal moves forward.
If the court finalizes the offer, it would still take months before construction could begin.
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The developer, led by Dr. Kali P. Chaudhuri, plans to finalize the mixed-use complex which was originally intended to house luxury condos, a hotel, and retail space near Crypto.com Arena.
Big picture view:
KPC is already active in the region, currently developing the 300-room Kali Hotel at Hollywood Park in Inglewood.
The company previously bought 6,000 acres located on the north and south sides of the 5 Freeway in Coachella with proposed plans to build thousands of homes and commercial buildings, according to KPC Group's website.
The company owns and develops commercial properties in California and India.
Man walks on slack line between 2 graffiti towers
28-year-old performance artist Benjamin Schneider filmed himself teetering in between the two towers - with no safety net.
What we don't know:
While the purchase agreement is a significant milestone, it is not yet a done deal.
It remains unclear if other qualified bidders will emerge before the April deadline to drive up the price.
Additionally, the specific timeline for resuming construction is unknown, though experts suggest it will take several months of planning and permitting before crews return to the site.
Timeline:
2019: Construction stalls after Beijing-based Oceanwide Holdings loses funding.
Early 2024: The towers go viral after being covered in massive graffiti tags and used as a platform for illegal base jumping.
February 2024: The City of Los Angeles approves $1.1 million for fencing and security to mitigate the blight.
Monday, Feb 23, 2026: KPC Group and Lendlease file the $470 million purchase agreement.
April 9, 2026: Deadline for the court to approve the sale, pending any higher offers.
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What they're saying:
Mayor Karen Bass expressed optimism about the transition, stating, "With the resurgence of our Downtown and as we prepare to host Olympic and Paralympic events right across the street, I look forward to working with the new ownership to transform this plaza into something that spurs further investment."
Councilwoman Ysabel Jurado emphasized the need for immediate action, noting, "In the middle of a budget crisis, our public dollars must go to sidewalks, streetlights, and the services people rely on, not to a long-neglected private property."
What's next:
The federal bankruptcy court will monitor the bidding process until April 9.
If the KPC Group's offer remains the lead bid, the court will likely formalize the sale shortly afterward.
Once ownership transfers, the developers will be expected to begin the massive task of cleaning the graffiti and securing the perimeter.
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The Source: This report is based on federal bankruptcy court filings and official statements from the Office of Mayor Karen Bass and the Central City Association of Los Angeles. Additional details regarding the bidding process and project history were sourced from reporting by the Los Angeles Times. City News Service contributed.