Redco Development has stepped in as the new buyer of Wells Fargo’s San Francisco headquarters at 420 Montgomery St. after a previous deal with Forge Development Partners fell through.

The deal hasn't yet closed, according to the San Francisco Business Times. The San Francisco-based Redco is in the process of acquiring the 409K SF building for office use.

Forge Development Partners failed to close a $54M deal to purchase the property, which it planned to convert to residential. Redco’s purchase price hasn't been announced. The building, which Wells Fargo planned to deliver completely vacant, would require substantial investment to compete with the trophy towers tenants currently prefer.

The acquisition would add to Redco’s already robust portfolio of purchases in the city over the last year. The company already owns the property next door, an 86K SF office building purchased in 2024. In May, it took control of a 78K SF building in Showplace Square. In June, it acquired 208 Utah St. for $15M in a deed-in-lieu-of-foreclosure transaction. In July, Redco took over the Raiders' headquarters in Oakland for $24M.

The Forge deal falling through is a blow to the city’s push to streamline permitting for office-to-residential conversions. Mayor Daniel Lurie signed legislation in June to incentivize such projects, as his administration is working to revive the city’s struggling downtown core and address a critical housing shortage.

Wells Fargo, which has been headquartered in San Francisco since 1852, has reduced its San Francisco footprint by half over the last few years and plans to move its headquarters into an existing office at 333 Market St. There had been speculation that the company would leave the city altogether as major companies including Chevron and X shutter their San Francisco headquarters and decamp.