Los Angeles' "Graffiti Towers" Sale Approved, Paving Way for $1.2 Billion Redevelopment

Los Angeles' infamous "Graffiti Towers" are finally getting a second chance.

A federal bankruptcy judge on Monday cleared the way for the sale of the long-abandoned Oceanwide Plaza development, setting the stage for a more than $1.2 billion overhaul that developers hope will transform one of downtown L.A.'s biggest eyesores before the 2028 Summer Olympics.

The three unfinished skyscrapers, which became internationally notorious after vandals covered dozens of floors with graffiti and thrill-seekers filmed dangerous rooftop stunts, have sat abandoned since construction stalled in 2019.

U.S. Bankruptcy Judge Deborah J. Saltzman approved the restructuring plan after Los Angeles city and county officials withdrew their objections following months of negotiations.

The property is being acquired for $470 million by KPC Square LLC, a joint venture between affiliates of senior creditors The KPC Group and Lendlease. The new owners plan to invest another $800 million to finish the project, bringing the total investment to more than $1.2 billion.

The sprawling development, directly across from Crypto.com Arena, was originally envisioned as a luxury complex featuring a five-star Park Hyatt hotel, high-end residences, shops and restaurants.

But after Beijing-based developer Oceanwide Holdings ran out of money despite investing about $1 billion, the towers became a symbol of downtown Los Angeles' stalled ambitions.

In early 2024, the vacant buildings drew worldwide attention when graffiti crews covered at least 25 floors with colorful tags. The towers later became a magnet for base jumpers and social media influencers, forcing the city to spend about $1.1 million on fencing, security and other measures to keep people out.

As part of the court-approved plan, all visible graffiti must begin to be removed within 30 days with support from KPC Square.

"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," said Bradley Sharp, Oceanwide's chief restructuring officer.

Lendlease said KPC will lead the redevelopment while Lendlease remains an equity partner. KPC executive John Petty told The Wall Street Journal the buildings are "structurally sound and substantially complete," allowing work to move quickly.

Sharp said completing the project before the 2028 Olympics would turn the site from a downtown embarrassment into "a source of pride for Angelenos."

Many nearby residents welcomed the decision.

"It's a little bit of a nuisance," downtown resident David Garcia told The Wall Street Journal. "If Oceanwide Plaza had been finished, it would have been a completely different downtown area."

The project stalled in 2019 after Oceanwide Holdings could no longer finance construction. Lendlease later forced the company into Chapter 11 bankruptcy in an effort to recover money owed to creditors. According to the Los Angeles Times, Oceanwide also owes back taxes to the city and county.