Even as their San Francisco Oceanwide Center project is dealing with millions of dollars in unpaid construction work claims, developer Oceanwide Holdings is fighting the same battle in Los Angeles at the Oceanwide Plaza project. The unpaid amounts on the L.A. project total nearly a quarter of the project’s $1 billion value.
The general contractor, Lendlease Construction, hired to work on the 2 million-square-foot mixed-use Oceanwide Plaza under construction in downtown Los Angeles has filed $211.7M in mechanics liens against Oceanwide Holdings.
Oceanwide Plaza’s three towers include a Park Hyatt hotel, 504 condo units, and a 166,000-square-foot shopping mall. According to The Real Deal, one tower spans 49-stories, while the remaining two towers are both 40-stories.
Including the general contractor, at least five contractors are owed nearly $240 million as of July 2020 for constructing the long-delayed residential and retail development.
In San Francisco, unpaid work claims have reached close to $50 million as of early July 2020 for work taking place at the Oceanwide Center mixed-use project. A mechanics lien is placed on properties by contractors that seek payment for their work, encumbering the property’s sale or financing until the claim has been removed.
Five Contractors Owed $239.61M in Unpaid Work from Oceanwide Plaza Project in L.A.
The five different contractors are allegedly owed $239,617,880 for work taking place at Oceanwide Plaza, which is located at 1101 Flower St, Los Angeles, CA. Each lien claim was processed by the Los Angeles County clerk’s office.
General contractor Lendlease Construction’s lien, valued at $211,717,677, is the largest known lien filed to date against the Oceanwide Plaza project. The GC’s lien was processed on July 6, 2020.
Lendlease Construction is now facing at least three mechanics lien claims from unpaid subcontractors on the same project, totaling $26,400,203.30.
The largest lien filed against Lendlease Construction was from SASCO on January 29, 2020, claiming they are still owed $20,788,982.25 for the installation of electrical systems, according to the lien affidavit.
Nearly two months later on February 24th, Sharpe Interior Systems, Inc. filed a lien valued at $4,645,520 against Lendlease for the installation of metal studs and drywalling.
The third known lien filed against Lendlease was valued at $965,701.10 from Climatec, LLC on July 30, 2020.
Oceanwide Plaza: A Project Plagued with Delays and Liens
Construction of the Oceanwide Plaza in Los Angeles began back in 2015, and since then, it has been an uphill battle for owner Oceanwide Holdings to complete the project.
As of January 2020, the Oceanwide Plaza project had been stalled for about a year. During these delays, liens have continued to be placed on the project. Back in July of 2019, at least three contractors placed liens on the troubled project, totaling $33,365,592.4 in mechanics lien claims.
When construction restarted in March of 2019 after another stoppage, mechanics lien filings had reportedly reached $98.59M against the Oceanwide Plaza property.
Millions in Lien Claims Placed on Oceanwide Holdings’ San Francisco Project
In San Francisco, contractors are also struggling to get paid on a troubled Oceanwide Holdings project, owned by the same developer. As of July 2, 2020, at least four lien claims totaling $48M in unpaid construction work were placed on the Oceanwide Center, a mixed-use project in downtown San Francisco.
The 54-story residency and hotel tower on Mission Street has also experienced work stoppages since October of 2019, according to the San Francisco Business Times. Oceanwide Center consists of two towers – one facing Mission Street and one facing First Street. The First Street tower is expected to be the second-tallest building in San Francisco once completed.
Back in October of 2019, Oceanwide Holdings shed light on its plans to sell off the property in an interview with the San Francisco Business Times.
“In light of local market changes and economic uncertainties, Oceanwide has determined that a realignment of the work scope on the Oceanwide Center Project is necessary to keep the project sustainable,” stated a spokesperson from Oceanwide Holdings.
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