Redco Development has finalized the purchase of 420 Montgomery Street, a downtown San Francisco office building that previously served as Wells Fargo’s headquarters. The transaction was reported by the San Francisco Standard.
The acquisition price was $55 million, which equates to about $150 per square foot for the portion of the property excluding the museum. This represents a decline of more than 85 percent from its pre-pandemic valuation of $370 million, or roughly $1,000 per square foot.
The property consists of 409,000 square feet and includes both the former Wells Fargo History Museum on Montgomery Street and a 12-story office tower on California Street. Most of the office space is currently vacant following Wells Fargo’s move last year to a larger lease at 333 Market Street.
Prior to Redco’s purchase, Forge Development Partners had been in talks to buy 420 Montgomery Street with plans to convert it into housing, but that deal did not proceed.
Over the past decade, Wells Fargo invested more than $90 million in renovations at the site. The building features a penthouse equipped with amenities such as a kitchen, dining hall, garden, and rooftop deck suitable for events.
Redco plans to rebrand the building as “450 California” and intends to transform the lobby into a public space featuring food and beverage options including a coffee shop, bar, and restaurant. The company also aims to lease out the upper four floors—each about 27,000 square feet—to either one tenant or several smaller tenants. Additionally, Redco will convert Wells Fargo’s historic bank vault beneath the building into amenities like a speakeasy bar, fitness center, bowling alley, and other facilities. The former museum space on the ground floor will serve as an entrance for a large tenant.
This acquisition expands Redco’s holdings along California Street; last year it purchased neighboring properties at 400 Montgomery Street for $25 million and 300 California Street for $28.5 million. In May, Redco also acquired an office building at 208 Utah Street in Showplace Square for $15 million after anchor tenant Strava vacated earlier this year.
