Wells Fargo Poised to Sell Headquarters to Redco

Wells Fargo’s San Francisco headquarters is poised to come under new ownership.

San Francisco-based Redco is in contract to acquire the 420 Montgomery Street building in the Financial District, the San Francisco Business Times reported.

The agreement comes after Forge Development Partners put forward an offer for the building earlier this year that ultimately fell through. The San Francisco-based firm planned to acquire the structure for about $135 per square foot, or $54 million, and convert the 13-story building into housing.

Details of Redco’s deal for the 409,000-square-foot tower, including price, were not disclosed, though it was reportedly more than what Forge would have paid.

Redco has been working to grow its San Francisco office portfolio over the past 14 months, adding about 300,000 square feet to its collection. Other buildings the company has snatched up include 400 Montgomery Street, an 86,500-square-foot office building next door to 420 Montgomery, in November for $26 million, and the 78,740-square-foot 208 Utah Street office building in June for $15.1 million.

Redco is reportedly planning to keep 420 Montgomery for office use as Wells Fargo prepares to evacuate the premises. In addition to the 420 Montgomery building, the banking giant’s headquarters are spread across a T-shaped group of structures with entrances on California, Leidesdorff and Sacramento streets. A Wells Fargo branch is also located in the complex at 464 California Street, designated as the bank’s main branch.

Wells Fargo has been trimming its San Francisco office portfolio in recent years from a peak of about 1.5 million square feet before the pandemic, according to the Business Times. Once the latest sale is complete, the portfolio could span around 150,000 square feet.

That old footprint consisted primarily of the 409,000-square-foot 420 Montgomery Building and a 350,000-square-foot tower at 550 California Street, as well as leases for 620,000 square feet at 333 Market Street and 106,000 square feet next door at 45 Fremont Street. It also holds 15,000 square feet of office space at 343 Sansome Street as well as 46,000 square feet at 555 California Street for its Wells Fargo Advisors investing and brokerage division.

Over the past three years, Wells Fargo left 45 Fremont and sold 550 California. Once it vacates 420 Montgomery, it will relocate its headquarters to its 333 Market Street offices, where it renewed its lease in 2022. — Chris Malone Méndez