Key facts
- The sale of the $1.2 billion Oceanwide Plaza is poised to proceed.
- A bankruptcy judge intends to approve the liquidation plan.
- The city of Los Angeles withdrew objections after provisions for graffiti removal and blight mitigation were included.
- The buyer, KPC Square LLC, must initiate graffiti removal and blight abatement within 90 days of plan confirmation.
- KPC Square has six months to close the sale, with potential for extensions.
- KPC Square, a partnership including Kali P. Chaudhuri and Lendlease, submitted a $470 million bid for the project.
The sale of the $1.2 billion Oceanwide Plaza is set to move forward after a bankruptcy judge indicated her intention to approve the liquidation plan. This development follows the city of Los Angeles withdrawing its objections, which had previously stalled progress on the incomplete project that has been in limbo for over six years.
The city's decision to withdraw objections came after the inclusion of provisions in the plan aimed at speeding up graffiti removal, mitigating blight at the prominent Downtown location, and ensuring a swift sale. These changes have made it more likely that the project will see "substantial completion."
Under the revised requirements, the proposed buyer, KPC Square LLC, must initiate comprehensive graffiti removal and blight abatement efforts within 90 days of the judge's confirmation of the plan. Additionally, KPC Square has a six-month timeframe to close the sale, though this period can be extended with unanimous agreement from the court, KPC Square, and Oceanwide Plaza.
Last-minute adjustments to the plan's provisions during a mid-hearing break also led other objectors, including a mechanic's-lien holder, to conditionally withdraw their objections, pending a review of the final document. The bankruptcy judge, Deborah Saltzman, stated at the hearing that the plan meets all requirements of Section 1129 of the U.S. Bankruptcy Code.
Earlier this year, the city had questioned KPC Square's ability to complete the project. KPC Square, a partnership involving developer Kali P. Chaudhuri and former general contractor Lendlease, submitted a $470 million bid for the incomplete development.