Los Angeles is facing significant financial challenges due to the incomplete construction of the Oceanwide Plaza, a massive development project in Downtown LA. Beijing-based China Oceanwide Holdings, the project’s developer, has been struggling to complete the development, leading to a series of financial and legal complications.
The project, which includes three buildings, was supposed to feature a mix of condominiums, a Park Hyatt hotel, and retail spaces. However, construction has been stagnant since 2019 due to financial difficulties faced by Oceanwide Holdings. The developer has defaulted on a $157 million loan tied to the project, as detailed in a notice of default filed with L.A. County. This has led to a scheduled sale of Oceanwide Plaza after August 8, according to the notice.
Further complicating matters, a Bermuda court has ordered the liquidation of China Oceanwide Holdings due to an unpaid $175 million loan, significantly impacting the future of the Oceanwide Plaza project. This liquidation comes after the company failed to meet the financial obligations of the development, including repaying lenders and contractors.