Oceanwide trims back to lone US project in LA

China-based developer sells land in Hawaii, clears some liens on 2M sf project on Figueroa

Los Angeles /
Mar.March 29, 2022 01:35 PM
Oceanwide Plaza in Los Angeles and the island of Oahu (iStock, RTKL Architects inc.)

Oceanwide has officially trimmed back to one development in the U.S. — its unfinished, 2 million-square-foot Oceanwide Plaza project in Downtown Los Angeles.

Earlier this month, the China-based developer signed a deal to sell a 484-acre site in Hawaii for $92.9 million — a $25 million loss for the company, according to financial filings with the Shenzhen Stock Exchange. Oceanwide is selling the property to Tower Development, a Honolulu-based developer.

The company previously had four U.S. developments: a project in Manhattan’s South Street Seaport, a 2.4-million-square-foot skyscraper development in San Francisco, Oceanwide Plaza in L.A., and the 484 acres on the island of Oahu.

Oceanwide is in default on the $175 million loan backed by the Manhattan development site and has lost control of its San Francisco project to its creditors and has sold the project in Hawaii.

A representative for Oceanwide did not respond to a request for comment.

The company has not made any default on Oceanwide Plaza, and has not made any disclosures regarding a potential sale or refinancing since 2020. An effort to save Oceanwide Plaza is still in the realm of possibility.

In June of last year, Oceanwide said it needs another $1.2 billion to finish up construction of the L.A. project, where the main structure is entirely completed, and nearly 60 percent of all electrical work is finished, according to recent filings.

The sale of the Hawaii project doesn’t get close to funding the rest of the construction in L.A., but it does clear debt with bondholders tied to the island project, giving Oceanwide one less financial hurdle.

Oceanwide has also cleared up a number of mechanic’s liens filed against the L.A. project in recent months, a pile of debt that has at times totaled hundreds of millions of dollars. In January 2020, Martinez Steel, a steelmaker that has worked on SoFi Stadium, filed a lien against the project, claiming Oceanwide owed around $151,500 for rebar installation and materials. Earlier this month, that claim was resolved.

In any case, Oceanwide’s U.S. subsidiary has managed to stave off defaulting altogether.

Last week, the company extended a deadline to pay back $134 million in U.S. dollar-denominated bonds to September, Shenzhen Stock Exchange filings show. Interest payments on the bonds were supposed to be due this week and more interest on $210 million worth of bonds is due in May.





    Related Articles

    arrow_forward_ios
     1933 South Broadway (Loopnet, iStock)
    Ara Tavitian scores $150M refi on The Reef in DTLA
    Ara Tavitian scores $150M refi on The Reef in DTLA
     Spirit Realty's Jackson Hsieh with   5038 West Avenue North (Real Share Net Lease, Loopnet)
    Texas investor seeks premium on sale of Antelope Valley retail
    Texas investor seeks premium on sale of Antelope Valley retail
    GI Partners' Rick Magnuson and One Wilshire (GI Partners, One Wilshire)
    Here’s how much tenants are paying at One Wilshire in DTLA
    Here’s how much tenants are paying at One Wilshire in DTLA
    Coretrust Capital Partners' Thomas Ricci, Randall Scott and John Sischo; 444 S. Flower Street, Los Angeles (444 South Flower, iStock, Coretrust Capital Partners)
    Coretrust leases 44K sf of offices to law firms in DTLA
    Coretrust leases 44K sf of offices to law firms in DTLA
    80 South Street (Wikipedia)
    Oceanwide Plaza in DTLA last U.S. project standing for China-based developer
    Oceanwide Plaza in DTLA last U.S. project standing for China-based developer
    Rexford Industrial Realty co-CEOs Howard Schwimmer and Michael Frankel and 13535 Larwin Circle and 7815 Van Nuys Boulevard in Panorama City (Google Maps, Rexford)
    Rexford spends $153M on six industrial properties
    Rexford spends $153M on six industrial properties
    5350 Wilshire Boulevard and Onni Group Founder Innocenzo De Cotiis (Onni Group, Google Maps)
    Onni Group buys Miracle Mile retail for multifamily development
    Onni Group buys Miracle Mile retail for multifamily development
    From left: Aron and Efram Harkham in front of 2625 Townsgate Road (LinkedIn/Aron Harkham, Luxe Hotels & Harkham Ventures, iStock)
    Harkham family buys Westlake Village creative office
    Harkham family buys Westlake Village creative office
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...