Graffiti Towers’ fate unclear as Oceanwide Plaza sale stalls

The long-delayed sale of Oceanwide Plaza, the graffiti-covered trio of unfinished high-rises looming over Crypto.com Arena, remains unresolved more than a year after a bankruptcy auction was first scheduled.

Once envisioned as one of downtown Los Angeles’ premier developments, the so-called “Graffiti Towers” instead have become a symbol of stalled investment, rising construction costs and a sluggish real estate market.

Construction halted in 2019 when Beijing-based Oceanwide Holdings ran out of money after spending $1.2 billion on the project, leaving three towers — one rising 49 stories — unfinished on a full block along Figueroa Street. The complex was to include luxury housing, a Park Hyatt hotel and a shopping center.

The site, now visible for its bold graffiti from the 110 Freeway, has drawn international attention. “The Graffiti Towers have worldwide infamy at this point,” said Cassy Horton, co-founder of the DTLA Residents Assn. “It’s like this beacon that shines and says, ‘Come create mischief down here and you won’t get in trouble. This is the spot to do it.’”

The towers were slated for auction on Sept. 17, 2023, with several interested buyers. But the winning bidder failed to produce the purchase price, forcing renewed negotiations. Real estate broker Mark Tarczynski of Colliers declined to comment on the current status, but told the Real Deal that two developers — one U.S.-based and one international — remain in the bidding. He said he expects a deal to close by year’s end.

Experts say any buyer faces steep hurdles. Completing the project could cost an additional $1 billion, even though construction is roughly 60% finished. Developers are grappling with high interest rates, new tariffs on imported materials, rising labor costs, and recent immigration raids that have disrupted the construction workforce.

The graffiti is likely to remain until a new owner takes on the expensive task of removal. In the meantime, some are suggesting temporary fixes. Architect Douglas Hanson has proposed hanging vinyl advertising banners on the west side facing the freeway and artistic coverings on the east. 

“You can get good money for advertising in that neighborhood,” Hanson said, adding that ad revenue could offset costs. “Just drape them down and leave a little bit of the history of the building behind them.”

Local business leaders worry the towers could tarnish L.A’s image ahead of global events such as the 2026 World Cup and 2028 Summer Olympics. Many downtown stakeholders say they want the eyesore resolved before the spotlight turns to the city.

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