The partially EB-5-funded Oceanwide Plaza project in Los Angeles, which entered bankruptcy after construction halted in 2019, is set to be acquired for $470 million by a partnership involving The KPC Group and Lendlease.
This development brings renewed hope for approximately 200 EB-5 investors who hold a senior position in the capital stack, entitling them to repayment before other project creditors in the event of foreclosure.
Oceanwide Plaza LLC, the current owner and debtor, has agreed to sell the property through a Purchase and Sale Agreement (PSA) signed on February 16, 2026. The buyer, KPC Square, LLC, is a newly formed partnership between The KPC Group and Lendlease, represented by the law firm Perkins Coie LLP.
The proposed acquisition also secures the senior debt claim held by more than 200 EB-5 investors who collectively invested approximately $140–$150 million through Los Angeles Downtown Investment LP (LADI), the project’s original EB-5 lending entity.
In February, KPC acquired LADI’s repayment claim, effectively assuming control of the debt tied to the EB-5 investment. The group continues to represent the interests of these visa petitioners.
The $470 million bid is scheduled for approval at a hearing on Apr. 9, 2026, assuming no higher-qualified offers emerge during the auction process. If approved, KPC would serve as the project developer, with Lendlease acting as an equity partner.
Why Did Oceanwide Go Bankrupt, and What Happened to Its EB-5 Investors?
Oceanwide Holdings, a Beijing-based developer, halted construction on the $1 billion-plus downtown Los Angeles project in 2019 due to financial difficulties and tightened capital controls in China. The stalled development ultimately entered involuntary Chapter 11 bankruptcy proceedings in early 2024, with creditors seeking nearly $400 million in repayment.
Unpaid contractors attempted to assert priority over LADI’s repayment claim prior to the project’s collapse. However, in 2025, the U.S. Bankruptcy Court for the Central District of California ruled that the EB-5 lenders held a senior position in the debt stack, confirming their priority over contractor claims in a foreclosure scenario.
Attorneys from Greenberg Traurig secured this significant court ruling. Nevertheless, full repayment is not guaranteed. Because the EB-5 investors’ capital was pooled into LADI as the New Commercial Enterprise (NCE), actual repayment depends on the negotiated terms between KPC and the fund, including how principal will be repaid over time as the project is completed, sold, or refinanced.
Media reports indicate that many Oceanwide EB-5 petitions were denied by U.S. Citizenship and Immigration Services (USCIS) beginning in 2020 after construction ceased. When development stops, the required job creation, 10 full-time jobs per investor, is typically not met, which is a primary basis for I-526 petition denials.
DISCLAIMER: The views expressed in this article are solely the views of the author and do not necessarily represent the views of the publisher, its employees. or its affiliates. The information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.
