The KPC Development Group, led by Kali P. Chaudhuri, and Lendlease formed a joint venture to buy and complete the long-stalled Oceanwide Plaza development. They plan to pay $470 million for the unfinished 3-tower complex near the Crypto.com Arena.
"We are eager to work in partnership with the City of Los Angeles and the Downtown community to move quickly on what is truly a keystone project for Downtown revitalization and that will deliver economic benefits across the region," said Chauduri.
They still need final approval from the bankruptcy court for the sale to move forward. An initial purchase agreement was filed in court Monday. If no higher offer is received by April 9th, the court could approve the sale.
"What I feel really excited about is that bankruptcy proceedings have allowed for a new owner. It's encouraging," said Nella McOsker, the president of Central City Association of Los Angeles.
McOsker said that after nearly a decade of being abandoned and languishing in bankruptcy, she's elated that the towers have a potential buyer that could turn them into something beautiful.
Mayor Karen Bass said in a statement that the "Oceanwide Plaza has been an eyesore for too long."
"With the resurgence of our Downtown and as we prepare to host Olympic and Paralympic events right across the street, I'm encouraged to see the next step in the sale process moving forward through the bankruptcy court," she added.
Multiple parties placed bids on the property to become the proposed owners of the project that had been in bankruptcy proceedings for nearly two years.
In 2015, a Chinese developer broke ground on the mixed-use development that was intended to house luxury apartments, hotel rooms and retail space. But construction stalled after they ran out of money for the project.
The site was left vacant and then taken over by taggers, who defaced every floor of the buildings with graffiti. It has been an eyesore in the community ever since.
Graffiti towers could soon see cleanup after bankruptcy agreement approved by judge
City leaders say the proposed sale is a major step forward.
"This milestone is a clear sign that Downtown LA is on the rise," said Councilmember Ysabel Jurado. "I look forward to working with them as the sale moves forward to ensure this space serves the community, restores public resources, and delivers real benefits to the people who live, work, and invest in Downtown LA."
Jurado and other leaders hope the sale of the property signals a renewed confidence in downtown L.A. They say it's an opportunity to show the city's economic recovery.
They also hope once the sale is approved, the clean-up of the property will start almost immediately.
The proposed buyer plans to complete the project as intended - with luxury housing, a hotel, restaurants and retail spaces.