Oceanwide Plaza Auction Scheduled for Mid-September. South Park’s AEG may be the front runner to purchase.
I am always asked what is going on with the Oceanwide Plaza Project. As we all can see, the buildings remain dormant, and the graffiti is still prominent. At this writing, there appear to be positive signs for its future. In an article in Connect CRE on August 16, 2024, Paul Bubny wrote:
“Multiple groups bid Thursday for the unfinished Oceanwide Plaza mixed-use development in Downtown Los Angeles, which was forced into bankruptcy in February of this year, Connect CRE has learned. An auction is scheduled for mid-September.
“Industry sources familiar with the sale process told Connect that AEG Worldwide was rumored to be the front runner and had gone as far as retaining the project’s original architect. The development site is proximate to AEG’s LA Live and Crypto.com Arena, which have faced strong competition from the Hollywood Park mega-development in nearby Inglewood. However, AEG was not among the bidders who submitted offers on Thursday.
“A key hurdle that any buyer would need to surmount is the question of financing: not so much to acquire the project, but rather to finish construction on it. The project has been appraised as-is at $434 million by Colliers as part of the Oceanwide Plaza bankruptcy proceedings. Completing the three-tower residential, retail, and hotel complex could mean spending twice that amount.”
According to The Real Deal on June 18, 2024, “An auction is scheduled to sell Oceanwide Plaza, the 1.4 million-square-foot bankrupt boondoggle sitting unfinished in Downtown Los Angeles. The project developed by China Oceanwide, could be up for grabs on September 17, according to a U.S. Bankruptcy Court Filing. Colliers and Hilco Real Estate will run the auction for 1101 South Flower Street, which will be conducted in person and online. The court still needs to approve the auction date and bidding procedures.
I could not find any updates as to the court's ruling, nor if there is a firm date for the auction. If anyone has an update, please share it in the comments section.
By Marty Goldberg