Wells Fargo (NYSE:WFC) is completing a deal to sell a downtown San Francisco office property at a fraction of what it paid two decades ago.
CoStar News, sourcing its coverage from unnamed “people with direct knowledge of the deal,” reported the 355,000-square-foot property at 550 California St. was acquired by the lender in 2005 for $110 million but is expected sell the building for between $42.6 million to $46 million.
The buyer in the transaction was not disclosed. Wells Fargo listed the 13-story property last year but pulled it after several months when it considered the bids to be unsatisfactory – the San Francisco Standard reported the listing price was $160 million. The lender’s employees at the building are expected to be relocated to offices elsewhere in the city.
“As part of our multiyear effort to build a stronger, more efficient Wells Fargo, we continually assess our real estate portfolio to ensure we are best meeting the needs of employees and customers, responding to consumer and economic trends and managing our costs responsibly,” said a Wells Fargo spokesperson. “We will continue to have a major employee presence in San Francisco, but we have more real estate than we need to support these employees.”
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