- Redco is in contract to buy the 409K SF Wells Fargo headquarters at 420 Montgomery Street in San Francisco’s Financial District.
- The deal follows a failed purchase attempt by Forge Development, which had planned to convert the property into housing.
- Wells Fargo continues downsizing its San Francisco real estate holdings, having reduced its footprint from 1.5M SF pre-pandemic to just 150K SF.
A New Chapter For A SF Landmark
Redco, a San Francisco-based real estate investor, is nearing a deal to purchase 420 Montgomery Street, reports The Real Deal. The 13-story, 409K SF office building has long served as Wells Fargo’s headquarters. The acquisition marks another step in Redco’s push to expand its office holdings in the city.
The sale price was not disclosed but is reportedly higher than the $54M Forge Development Partners had previously offered before its deal fell through.
From Office-To-Resi… To Office Again
Forge Development had planned to convert the Financial District building into housing, but Redco appears to have a different vision. Sources say the firm will maintain the property as office space—aligning with its recent purchases at 400 Montgomery and 208 Utah Street.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Wells Fargo’s Real Estate Retreat
Wells Fargo is vacating 420 Montgomery as part of its years-long effort to scale down its San Francisco office portfolio. Once the bank exits the building, its local HQ will consolidate at 333 Market Street, where it renewed its lease in 2022.
The bank’s footprint in the city has shrunk from 1.5M SF before the pandemic to roughly 150K SF today. Other properties shed in recent years include 550 California Street (sold), and offices at 45 Fremont and 343 Sansome.
Why It Matters
Redco’s move underscores the continued interest in repositioning older office assets, even as San Francisco’s commercial real estate market faces challenges. While Forge’s residential pivot stalled, Redco is doubling down on office space. The move suggests confidence in a long-term demand recovery for workplace space in prime locations.
What’s Next
Redco’s latest acquisition adds to over 300K SF it has picked up in the city in just over a year. With Wells Fargo officially exiting the premises, expect repositioning and re-tenanting efforts to follow as downtown San Francisco continues its post-pandemic evolution.
