A downtown office complex that served as the headquarters of Wells Fargo for more than half a century, and was known to the public for housing a historic stagecoach, has been sold to a local buyer at a major discount.
Real estate firm Redco Development is purchasing the building at 420 Montgomery St. for $55 million, according to sources.
The 409,000-square-foot property, which comprises the former Wells Fargo History Museum on Montgomery Street and a 12-story office building on California Street, is mostly vacant after the bank relocated most operations to 333 Market St. last year.
The sale price, around $150 per square foot for the portions excluding the museum, is more than 85% below the building’s pre-pandemic value of $370 million, or $1,000 per square foot. Wells Fargo invested more than $90 million in renovations to the property, built in 1959, over the last decade.
Redco and Wells Fargo declined to comment.
The 12-story office tower has a penthouse with a kitchen, dining hall, garden, and rooftop deck that can be used for events.
Redco will rebrand the property as “450 California,” according to documents seen by The Standard, and hopes to lease the upper four floors, including the penthouse, to a single tenant. Each floor has about 27,000 square feet of office space that can be divided to accommodate multiple tenants.
Downstairs, the developer intends to convert the historic bank vault into a speakeasy bar, fitness center, bowling alley, and other amenities. The former museum will become a dedicated entrance for a large tenant.
The purchase would give Redco control of nearly two blocks on one of San Francisco’s most prestigious office corridors at California Street. Last year, the firm purchased neighboring 400 Montgomery St. for $25 million and 300 California St. for $28.5 million.
San Francisco-based Redco, founded in 1956 as a masonry firm, was relaunched by brothers Chris and Jason Friese, who have spent a decade buying and flipping Bay Area commercial properties, including office buildings in downtown San Jose, the former Oakland Raiders training complex in Alameda, and One Montgomery St. in San Francisco.
In May, Redco purchased a 78,000-square-foot office building in San Francisco’s Showplace Square at 208 Utah St. for $15 million. The property, previously owned by Shorenstein, was left vacant this year when anchor tenant Strava decamped to downtown.
Housing developer Forge Development Partners was close to purchasing 420 Montgomery St. this year for a similar price, with an eye toward converting it into apartments, but could not complete the deal.