REAL ESTATE NEWS – Update
Downtown Los Angeles — It’s hard enough to get any construction done in L.A.; just trying to figure out and comply with the city’s vast regulations and frustrating inspection process is enough to make builders throw in the towel. Add the financial challenges of a China-backed developer trying to obtain completion financing during a bleak Chinese economy (experiencing the slowest growth in three decades, along with a 25% drop in Shanghai stocks in 2018), and it’s no wonder why construction has ground to a halt. #oceanwide #dtla #condos
Oceanwide Construction Update
The $1 billion modern beast of a mixed-use condominium project construction is around 50% complete, with the new homes pre-sales to begin Fall 2019. Boasting a hotel and luxury shopping center, Oceanwide Plaza is no ordinary development.
General contractor Lendlease recently canceled a scheduled inspection of the project, according to a Department of Building and Safety official. Chinese owner Oceanside Holdings told the Times that interior construction was temporarily suspended while it set to recapitalize the project and that building would restart again in several weeks — which would likely push the project’s completion into 2020.
In the midst of a Trump-led economic battle against China, asian business leaders today receive immense pressure and intense scrutiny on many fronts. Several unrelated Chinese executives have faced recent arrests and investigations by the U.S. government, while one developer has been jailed by the government of China for an international real estate development that has no connection to Oceanwide Plaza.
The shutdown also comes at a time when the FBI is conducting a corruption probe at City Hall, investigating reported kickbacks and other suspected crimes that might involve foreign real estate developers with downtown building projects. There has been no word of any evidence coming from the investigation, and no accusation of wrongdoing by Oceanwide or Lendlease.
Oceanwide has clarified that the construction pause is simply an effort to prioritize construction activity while they restructure capital for the project. They plan to resume construction in mid-February. Prospective new home buyers may get on the interest list to receive special updates and possible early viewing of sparkling condos for sale.
Another China-backed luxury condo and hotel project in Downtown, Metropolis Los Angeles, has made rapid progress with much of the construction completed, and many residents moved in. Metropolis may be experiencing challenges in selling the units at full price, as planned price increases have been mitigated or curtailed, and many units are being leased.
Receive a free list and special updates on new homes for sale in Downtown Los Angeles. Get on the New Homes Interest List. Fill out the online form:
LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]
SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by Building | Neighborhood | Size | Bedrooms | Pets | Parking
Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
