In 2016, Oceanwide Plaza was slated to become the crown jewel in downtown Los Angeles—a $1-billion mixed-use marvel that would bring luxury living, upscale shopping, and a Park Hyatt hotel right across from the CryptoArena. With 504 condos, 184 hotel rooms, and over 150,000 square feet of commercial space, the vision was bold, grand, and seemingly unstoppable.
Fast forward to 2019, when construction came to a grinding halt due to a combination of financial difficulties and mounting legal troubles faced by its Chinese developer, Oceanwide Holdings.
Half finished, over the years, the project became an eyesore, a far cry from the luxurious, vibrant community it was meant to be.
Then, to much dismay, the half-built towers became a canvas for graffiti artists, with their brightly colored, stylized letters covering floor after floor. Shortly after, base divers were seen leaping from above, both adding so much popularity that Google Maps marked the location as an official tourist attraction in 2024.
With the developer having made commitments related to public infrastructure and amenities as part of the project; the city was left on the hook, vowing to spend millions on security and maintenance to be recouped once the buildings sold.
Now the tax payer had to address the graffiti and the issues caused by the incomplete development.
To mitigate these challenges and recover some of the lost momentum, the city began working closely with lenders, creditors, and potential buyers to find a resolution. This included facilitating the auction process, where the city has a vested interest in ensuring that a capable new owner takes over the project, completes the construction, and fulfills the original vision for the site.
The upcoming auction just may be the last chance to find a new owner who can salvage the situation. But who will the new owners be??? And how much will they be willing to pay? These questions have DTLA on the edge of our seats.
Mystery Shoppers Only?
A mystery-buying, stalking-horse bidder threw in an offer of $500 million in mid-August, then backed out.
Although some speculated former Mayoral candidate and developer Rick Caruso was behind the mystery, the town hopeful continues to be AEG. Haven’t they earned it?
What may have seemed like just some developing buildings in the distance for unknowing tourists and DTLA residents, sources say has been a towering hot mess for AEG, who had originally planned to collaborate on the site but ended up pulling out after Covid devastation and financial troubles arose.
At that time. AEG spokesman Michael Roth told local media that the company is still “enthusiastic” about the project.
With recent rumors circulating, the AEG was going to jump in and take the prize; there’s been no bid from the entertainment rulers just yet, although rules of the auction state there is still time for bidders to be invited.
Come on AEG—!
Your company has a proven track record of transforming urban spaces. From sports events to concerts, just look how well you’ve done with L.A. LIVE.
AEG isn’t just about fun and games; their resume consists of renovation and leasing of existing buildings, sale of developed land and/or parcels, land acquisitions and entitlement, design and construction of sports and entertainment districts, hotels, arenas, stadiums, and theaters, etc.
“We build it; they come.” By AEG’s own admission… and you wouldn’t even have to travel far… Oceanwide is right outside your door.
Bid day on September 17th promises to be a high-stakes showdown, drawing attention from real estate moguls, investors, and curious onlookers worldwide.
Made possible by the City of LA and Colliers and Hilco Real Estate, who will run the auction at 1101 South Flower Street, in person and online, making it accessible to a global audience eager to see who will emerge as the new owner of this prime downtown Los Angeles real estate.
One thing is certain: the competition is fierce, with each bidder hoping to capitalize on the opportunity to reshape a key part of Los Angeles’ skyline.
