Buyer Emerges for Downtown LA's Infamous Graffiti Towers in $470 Million Deal

February 24, 2026 – A long-stalled luxury development in downtown Los Angeles, known for its graffiti-covered skyscrapers, is poised for revival after a Riverside County developer submitted a $470 million bid to acquire the unfinished Oceanwide Plaza project.

The KPC Group, led by Dr. Kali P. Chaudhuri, along with partner Lendlease-the original contractor-filed the purchase agreement in federal bankruptcy court on February 23, 2026. If no higher qualified bids are received, the sale could gain court approval by April 9, 2026, potentially ending seven years of stagnation for the site at 1101 S. Flower Street.

Originally envisioned as a $1.2 billion mixed-use complex featuring three high-rise towers with condominiums, a hotel, retail spaces, and restaurants, construction halted in 2019 when Chinese developer Oceanwide Holdings defaulted on debts amid financial troubles and tightened capital controls from Beijing.

The unfinished structures, located across from Crypto.com Arena, have since become a symbol of urban decay, attracting graffiti artists who tagged over 25 floors in 2024, drawing viral attention on social media and concerns from local officials.

Chaudhuri, whose KPC Development Co. is also building a $300 million hotel near SoFi Stadium, plans to complete the 1.5-million-square-foot project as initially designed, with an additional investment estimated at $865 million to $1 billion.

Priorities include removing the graffiti and installing a large LED screen along Figueroa Street between 11th and 12th Streets. The goal is to finish the development ahead of the 2028 Los Angeles Olympics, transforming the site into a "jewel of downtown LA" and boosting regional economic benefits.

City leaders have expressed optimism about the deal. "The City of Los Angeles is eager to see an expeditious close on the Oceanwide Plaza site to new ownership following the April 9, 2026 hearing," a statement from officials noted.

Bankruptcy proceedings, overseen by U.S. Bankruptcy Court Judge Deborah J. Saltzman, include $70 million allocated to resolve outstanding debts, such as back taxes.

Community reactions have been mixed, with some residents welcoming the potential cleanup and revitalization, while others raise concerns about security and the timeline for completion. The property's proximity to key venues like the Convention Center and LA Live positions it as a keystone for downtown renewal, according to Chaudhuri. Hilco Global, the court-approved real estate broker, described the transaction as the "best possible outcome" for the challenging property. If approved, the sale would mark a significant step toward resolving one of LA's most visible real estate sagas.