The KPC Group recently commenced refurbishment work on the former Oceanwide Plaza in Downtown Los Angeles, a long-stalled megaproject that gained international notoriety under the name "Graffiti Towers". Senior Partner John Petty confirmed that the clean-up operations, which initially proved more complex than anticipated, are now making good progress.
The originally Chinese-funded structure had attracted public attention due to its spray-painted facade. In 2024, graffiti artists used the 250 balconies of the unfinished hotel, residential, and retail complex for their works, sometimes applying primers and clear coats. This has meant that cleaning each individual balcony takes between 45 minutes and three hours. Nevertheless, Petty expects the work to be completed on schedule within three months, as per KPC's agreement.
Challenging Acquisition and Vision
The KPC Group, led by Dr. Kali Chaudhuri, secured the project in an auction where the low number of other bidders underscored the complexity of the undertaking. On 21st July, a federal court judge approved KPC's bid, allowing the company to pay 517 million US dollars in cash and credit for the acquisition of the unfinished project. This is subject to a six-month deadline to finalise building permits and secure additional financing. The planned project includes the completion of the 2 million square foot hotel and residential complex at a cost of 850 million US dollars or more. It will incorporate a massive LED screen, which Petty referred to as the "Times Square of Los Angeles", located next to the Crypto.com Arena and the L.A. Live entertainment complex.
Dr. Chaudhuri considers this project a prestige asset for Downtown Los Angeles as well as for his own portfolio. John Petty describes Chaudhuri's motivation as a desire to leave a legacy: "He is willing to set aside economic considerations for the sake of a project he can be proud to be a part of – essentially a trophy asset in Downtown Los Angeles."
From a Manhattan Dream to Los Angeles
The acquisition of Oceanwide Plaza is also the result of Chaudhuri's long-standing ambition to associate his name with a US skyscraper. The KPC Group was founded in 2010 when Chaudhuri invested his earnings as a surgeon into an expanding global healthcare and hospitality real estate empire. John Petty, who has worked for Chaudhuri for 15 years, reports that Chaudhuri told him years ago of his desire to build a supertall skyscraper in Manhattan. This search for such an opportunity originally led KPC to Oceanwide. Petty noted that Oceanwide had acquired a development site at 80 South Street in Lower Manhattan from the then Howard Hughes Corporation for 390 million US dollars during its shopping spree in 2015–2016, in addition to further air rights that were never utilised.
The site in Manhattan had long been considered an ideal location for a skyscraper, offering an excellent position and unobstructed water views. When Petty learned of this possibility in 2020, he travelled to New York City. By then, the lender DW Partners had already reclaimed the property after Oceanwide defaulted on a loan. KPC entered into a trust agreement for the property, and architects had already produced designs, including Santiago Calatrava in 2003. However, the project failed due to a neighbouring building at 161 Maiden Lane, which was leaning towards 80 South Street. Lawyers warned that further leaning could lead to extensive legal disputes. KPC subsequently withdrew. This initial interest in an Oceanwide property, however, directed KPC to Oceanwide Plaza in Los Angeles, which, although not Chaudhuri's New York City dream, offers "a bit of Manhattan", as Petty remarked, and is also closer to home.
