Oceanwide Defaults On $157M EB-5 Loan On Unfinished DTLA Project

Bisnow/Bianca Barragán
Oceanwide Anticipates Their Downtown Project Could Cost $900M To Complete.

The developer of an unfinished trio of towers that has stood for years across from what's now called the Crypto.com Arena has defaulted on an EB-5 loan tied to the project.

Oceanwide owed $157.4M to EB-5 lenders as of January, according to a notice of default filed with L.A. County and reported by The Real Deal. The notice also says that the sale of Oceanwide Plaza can be scheduled after Aug. 8.

The developer has said that it has invested $1.2B in the project so far, and estimates that it will take about $1B more to finish Oceanwide Plaza.

Oceanwide “failed to complete construction of the project in accordance with the loan agreement,” to obtain a senior construction loan and to keep all risk insurance on the development, the notice said. Oceanwide also allowed mechanic’s liens to be filed against the project, a violation of the loan agreement, TRD reported.

Earlier this year, an LA Superior Court judge ruled that the EB-5 lenders had a more senior position in the debt stack than unpaid contractors, and would be paid first in the event of a default, Courthouse News reported at the time.

The project, when complete, was planned to hold 504 residential units, a 184-room Park Hyatt Hotel and 153K SF of retail and restaurants.

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