Developer defaults on $157 million EB-5 loan for LA mega-project

A Chinese developer has defaulted on a $157.4 million EB-5 loan for the unfinished Oceanwide Plaza in downtown LA. A notice of default states that the sale of Oceanwide Plaza can be scheduled after August 8. The developer claims to have invested $1.2 billion in the project and estimates another $1 billion is needed for completion. The notice of default cites failure to adhere to the loan agreement, failure to secure a senior construction loan, a lack of required risk insurance, and allowing mechanic's liens to be filed against the project. Project plans included 504 residential units, a 184-room Park Hyatt Hotel, and 153,000 square feet of retail and restaurant space.

See The Real Deal article (subscription required)