New Contractor Removes Graffiti from Oceanwide Towers, LA's "Graffiti Towers"

LOS ANGELES - Graffiti removal is underway at Oceanwide Plaza, the long-abandoned three-tower complex in downtown Los Angeles long known as the "Graffiti Towers," following a bankruptcy court-approved sale to a joint venture of Southern California developer KPC Group and Lendlease.

The site, located at 1101 South Flower Street across from Crypto.com Arena, LA Live, and the Los Angeles Convention Center, has stood unfinished and increasingly covered in spray paint since construction halted more than seven years ago. Crews began remediation work in late July 2026 after a federal bankruptcy judge confirmed a liquidation plan clearing the way for new ownership.

Origins and Collapse

Beijing-based China Oceanwide Holdings acquired the full city-block site in 2013 for approximately $174 million. Construction on the roughly $1.2 billion mixed-use project began in 2015. Plans called for three high-rise towers-including structures rising as high as 52 to 55 stories-containing about 504 condominium units, a Park Hyatt hotel with roughly 180–184 rooms, and significant retail and dining space atop a podium featuring a large LED screen.

Work progressed until early 2019, when the towers were about 60% complete. Funding from the Chinese parent company dried up amid broader financial pressures on Oceanwide Holdings and Chinese government restrictions on outbound investment. Contractors, including original general contractor Lendlease, went unpaid, liens accumulated, and the project sat vacant.

Bankruptcy and the Rise of the "Graffiti Towers"

In February 2024, Lendlease and other creditors filed an involuntary Chapter 11 bankruptcy petition against Oceanwide Plaza LLC in the U.S. Bankruptcy Court for the Central District of California (case 2:24-bk-11057), overseen by Judge Deborah J. Saltzman. The filing aimed to force a court-supervised sale so creditors could recover amounts owed.

Around the same period, the unfinished skyscrapers became a highly visible canvas for graffiti artists who scaled multiple floors. The complex earned its "Graffiti Towers" nickname, drew base jumpers and other trespassers, and raised safety and blight concerns for the city. Los Angeles had previously allocated funds for security and cleanup efforts, but the property remained a prominent symbol of stalled downtown development.

Path to Sale

After extended litigation and a January 2026 settlement among major creditors-including EB-5 visa investor groups and Lendlease-a purchase agreement emerged in February 2026. KPC Square LLC, a joint venture of affiliates of The KPC Group (led by founder Kali P. Chaudhuri) and Lendlease, agreed to acquire the property. The consideration was reported at about $470 million initially (later figures around $517 million), structured largely as a credit bid of secured claims plus cash to cover back taxes, security costs, and administrative expenses.

The deal faced delays and objections from the City of Los Angeles and Los Angeles County over concerns about the buyer's ability to fund completion and address blight. Negotiations continued into the summer. On July 20–21, 2026, after the city and county withdrew objections following commitments for immediate remediation, Judge Saltzman confirmed the revised plan of liquidation. The buyer received a six-month window (with possible extensions) to close the sale.

Cleanup and Next Steps

As part of the confirmed plan, the new ownership committed to begin comprehensive graffiti removal and blight abatement promptly, with work targeted for completion within about 90 days. Crews were observed starting the process within days of the court ruling in late July 2026. John Petty, an executive with KPC involved in real estate and construction, stated the company intended to meet or exceed the timeline while enhancing site security.

KPC and Lendlease have indicated they plan to complete the project largely as originally designed, at an estimated additional cost of roughly $800–850 million or more. The immediate priority is exterior cleanup so the towers present a finished appearance from the outside in time for the 2028 Olympic and Paralympic Games. Full construction restart is expected after the sale formally closes.

Mayor Karen Bass described the developments as a major milestone for downtown revitalization, noting Oceanwide Plaza's strategic location linking key entertainment, convention, and commercial corridors. Officials and local business groups have expressed hope that successful completion will help restore confidence in the area and deliver housing, hospitality, retail, and economic activity.

As of late August 2026, graffiti removal continues at the site. The long-stalled towers, once a stark reminder of incomplete development and urban challenges, are beginning the process of transformation under new ownership.