Oceanwide wants to restart a massive half-built development in Los Angeles – Business Observer
The massive multi-billion dollar Oceanwide Plaza development abruptly ceased to increase in early 2019 just as it became the newest mark on the downtown Los Angeles skyline. With large cranes suspended motionless above the development for years, the project became the subject of lawsuits and a source of unpaid debts.
Now, quoting a interim results report of ocean bottoms, Urbanize reported that the Beijing-based developer is reinvigorating fundraising efforts and now hopes to restart construction in 2023, and could complete work by 2025. This includes the development of 2 million condos, hotels and apartments. square feet occupying a full block adjacent to Crypto.com Arena (formerly Staples Center) and LA live.
But there is the matter of money. The interim report details lenders and construction companies filing claims for non-payment of outstanding amounts since the project halted, and Oceanwide Holdings is expected to raise an additional $2.3 billion to complete construction of Oceanwide Plaza after having already spent $1.2 billion to get where it was in 2019, Urbanize reported. There is also the issue of funding with rising interest rates and building costs.
But the company said in the report that it is in negotiations to complete construction and repay all debts. The project provides for 504 condominiums, a building with 184 rooms Park Hyatt hotel and 150,000 square feet of retail space on the block bounded by Figueroa, Flower, 11th and 12th Streets, by Urbanize. The physical structures and curtain walls of the three main towers are the only elements of the project that remain to be completed.
Gregory Cornfield can be reached at [email protected].