The $470 million deal for Oceanwide Plaza at 1101 South Flower Street faces bankruptcy court pushback, with Cityview emerging as a backup bidder. Meanwhile, Abbey Road secured a $3 million LA County loan for its 64-unit affordable housing project in the San Fernando Valley. Separately, Onni Group began demolition of the Marina Shores shopping center at 6500 Pacific Coast Highway in Long Beach.
--- SUBJECT LINE: Oceanwide Plaza Faces New Hurdles; Marina Shores Teardown PREVIEW TEXT: A $470M deal for Oceanwide Plaza hits snags as Long Beach's Marina Shores begins its transformation.
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# LA Development Insider ### Friday, April 10, 2026 | LA Development Intelligence
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## PERMITS & MAJOR FILINGS Vancouver-based Onni Group has initiated demolition at the roughly 6-acre Marina Shores shopping center located at 6500 Pacific Coast Highway in Long Beach. This marks a significant step five years after Onni acquired the property for $68 million. The teardown signals the beginning of a major redevelopment project, though specific plans for the site's transformation have not yet been publicly detailed.
The demolition permit, filed with the City of Long Beach, paves the way for a new chapter at this prominent coastal location. While the exact scope of the future development remains under wraps, Onni Group's track record suggests a substantial mixed-use or residential project is likely, impacting the retail and residential landscape of Long Beach's waterfront.
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The saga of Oceanwide Plaza continues to unfold, with the latest $470 million offer facing significant pushback in bankruptcy court. Sean Burton’s Cityview has emerged as a backup bidder for the graffiti-covered downtown Los Angeles eyesore, injecting new complexity into the stalled project at 1101 South Flower Street. This development follows previous reports of an all-cash offer surfacing behind the scenes.
The bankruptcy proceedings are scrutinizing the current offer, with creditors and other interested parties weighing in on the best path forward for the unfinished towers. Cityview's involvement provides a potential alternative, but the legal and financial entanglements surrounding the property, originally envisioned as a major mixed-use complex, continue to delay its resolution and impact downtown LA's skyline.
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A sprawling estate at 77 Beverly Park Lane in Beverly Park has hit the market with a $68 million asking price, drawing attention for its celebrity ties. The property, once rented by the iconic musician Prince, is now seeking a buyer for one of Los Angeles' most exclusive addresses. The listing suggests the property's unique history and prime location are key drivers of its hefty valuation.
While no specific permit filings for new construction have been announced, a sale at this price point could signal future renovations or redevelopment by a new owner. The luxury market in Beverly Park remains robust, with high-net-worth individuals consistently seeking trophy properties, regardless of broader market fluctuations, making this a significant listing in the ultra-high-end residential sector.
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## ENTITLEMENT WATCH Terra Capital is moving forward with plans for another multifamily development on Los Angeles’ Westside. The firm submitted an application last week to the Los Angeles Department of City Planning, seeking entitlements for a new apartment project in the Pico-Robertson neighborhood. The specific address and unit count are pending public release, but the application indicates a focus on increasing housing density in the area.
This filing represents Terra Capital's continued investment in Westside residential development, a strategy that aligns with the city's push for more housing. The entitlement process will involve various reviews, including environmental assessments and community outreach, before a planning commission date is set. The community reaction is anticipated to focus on density, traffic, and neighborhood character.
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Hermeus, the aerospace startup developing hypersonic drones, is relocating its headquarters from Atlanta to El Segundo, following a successful $350 million Series C funding round that valued the company at $1 billion. While not a direct entitlement filing for a new build, this move signifies a major corporate relocation that will impact El Segundo's commercial real estate market, particularly within the aerospace and defense sector.
The company will occupy a significant footprint in El Segundo, though the exact address and square footage of their new facility have not been disclosed. This high-tech influx is expected to bring skilled jobs and further solidify El Segundo's reputation as a hub for advanced technology and aerospace, potentially spurring demand for office and R&D space in the surrounding area.
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Despite California’s proposed wealth tax prompting some billionaires to exit the state, international buyers are increasingly targeting the Los Angeles luxury home market. Data following the January 1st implementation of the state's new tax policies indicates a noticeable uptick in foreign investment in high-end residential properties. While not an entitlement filing, this trend directly impacts the demand and pricing for luxury land and homes.
This influx of foreign capital suggests that LA's appeal as a global luxury destination outweighs potential tax implications for many international investors. The specific impact on entitlement applications for new luxury builds or major renovations will likely follow, as these buyers often seek to customize their acquisitions. The trend highlights a bifurcated market, where local ultra-wealthy residents may be leaving, but global capital is stepping in to fill the void.
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## LAND DEALS & ACQUISITIONS The Los Angeles County Board of Supervisors has approved a $3 million loan for Abbey Road, supporting the development of The Main Apartments. This 64-unit affordable housing project is slated for the San Fernando Valley, though the specific address has not been publicly released. The financing is a crucial step for Abbey Road to advance the much-needed affordable housing initiative.
The loan underscores the county's commitment to addressing the housing crisis, providing essential capital for projects that might otherwise struggle to secure full funding. This deal highlights the ongoing public-private partnerships driving affordable housing development, with the $3 million injection directly impacting the project's viability and timeline in a competitive market.
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Defense aviation company Hermeus is officially moving its headquarters from Atlanta to El Segundo, following a $350 million Series C funding round. This relocation, first reported by the Los Angeles Times and confirmed by Bisnow, marks a significant acquisition of commercial space in the South Bay. The specific address of their new El Segundo facility has not yet been disclosed, but it is expected to be a substantial lease or purchase.
The move comes after Hermeus closed a funding round valuing the company at $1 billion, signaling robust growth and a strategic shift to a major aerospace hub. This acquisition of space will bolster El Segundo's industrial and R&D market, bringing high-tech jobs and further cementing the city's role in the advanced aviation sector.
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Goodman Group and DataBank Holdings have formed a joint venture to market LAX2, a new data center located in Vernon, just south of downtown Los Angeles. Construction is currently underway for the 140,000-square-foot facility, though the specific address has not been released. This partnership represents a significant investment in digital infrastructure for the LA region.
The joint venture aims to capitalize on the surging demand for data storage and processing capabilities in the metropolitan area. The new data center will provide critical infrastructure for businesses, impacting the industrial real estate market in Vernon and the broader downtown LA area by attracting tech tenants and increasing the value of specialized industrial assets.
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## MARKET INTELLIGENCE Los Angeles' office market saw trophy buildings in Century City and Beverly Hills drive rent growth during the first quarter of 2026, according to Savills Research Director. While the broader LA market faces headwinds, these two desirable neighborhoods emerged as outliers, with asking rents increasing in their Class A and trophy assets. This contrasts with more stagnant or declining rents in other submarkets.
The data indicates a flight to quality and location, where premium spaces in prime areas continue to command higher prices. For developers and investors, this suggests a strategic focus on high-end office product in established luxury submarkets, while secondary markets may require more creative repositioning or conversion strategies to attract tenants.
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A Holmby Hills estate, originally designed by Paul Williams and once owned by actress Ann Rutherford, has topped LA's luxury contracts with a $25.5 million asking price. The property at 111 North Mapleton Drive, neighboring Kylie Jenner, went into contract last week, signaling continued strength at the very top end of the residential market. This deal underscores persistent demand for architecturally significant homes in exclusive enclaves.
This high-value contract provides a strong indicator of buyer confidence in the ultra-luxury segment, despite broader economic uncertainties. The sale price, if it closes near the ask, will set a benchmark for similar properties in Holmby Hills, suggesting that unique historical properties in prime locations maintain their premium value and attract discerning buyers.
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Open-air malls are leading a resurgence in Los Angeles' retail sector, driving significant transactions to start 2026. Bisnow reports that these types of shopping centers, particularly those catering to experiential retail and community gathering, are experiencing renewed interest from both consumers and investors. This trend is part of a nationwide "mall moment," with increased foot traffic and sales.
The data suggests a strategic shift in retail investment, moving away from enclosed, traditional malls towards open-air formats that offer a more dynamic and engaging consumer experience. For developers, this implies a focus on redeveloping or acquiring properties that can be adapted to this open-air, mixed-use model, prioritizing community integration and diverse tenant mixes to capture market share.
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## QUICK HITS * **ONNI:** Vancouver-based Onni Group begins demolition of Long Beach's Marina Shores. * **CVCY:** Sean Burton’s Cityview emerges as backup bidder for Oceanwide Plaza. * **PRINCE:** Beverly Park manse, once rented by Prince, listed for $68M. * **TRAC:** Terra Capital files for new multifamily project in Pico-Robertson. * **HERM:** Hypersonic drone maker Hermeus moves HQ to El Segundo; $1B valuation. * **LAX2:** Goodman, DataBank partner on new 140,000 SF data center in Vernon. * **ABBY:** LA County approves $3M loan for Abbey Road's 64-unit affordable housing project. * **BHCC:** Beverly Hills and Century City lead LA office leasing and rent growth. * **KYLIE:** Holmby Hills manse near Kylie Jenner goes into contract for $25.5M. * **RETL:** Open-air malls drive retail megadeals in Los Angeles.
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## WHY THIS MATTERS Today's news signals a complex, yet active, LA real estate market. On one hand, major redevelopments like Marina Shores and the ongoing Oceanwide Plaza saga highlight significant capital deployment and the challenges of large-scale urban projects. Concurrently, the influx of high-tech firms to El Segundo and foreign capital into luxury residential, alongside a comeback for open-air retail, points to targeted growth areas. Developers should focus on prime locations and specialized asset classes, while investors should be wary of broader market trends and identify submarkets showing resilience and growth, particularly those benefiting from tech and experiential demand.
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*Intelligence sourced from 2 LA real estate feeds. Published daily by ABR Media Group | ladevinsider.com*
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SUMMARY: The $470 million deal for Oceanwide Plaza at 1101 South Flower Street faces bankruptcy court pushback, with Cityview emerging as a backup bidder. Meanwhile, Abbey Road secured a $3 million LA County loan for its 64-unit affordable housing project in the San Fernando Valley. Separately, Onni Group began demolition of the Marina Shores shopping center at 6500 Pacific Coast Highway in Long Beach.
