Downtown San Francisco office tower finally finds a buyer

Wells Fargo put a 13-story San Francisco office tower at 550 California Street on the market for $160M.

Another San Francisco office building has reportedly sold for far less than its original asking price.

First placed on the market last year for $160 million, the 13-story tower in the financial district will fetch between $42.6 million and $46 million, according to sources that shared knowledge of the deal with the San Francisco Business Times. That's less than half of what owner Wells Fargo paid for the building in 2005.

The identity of the buyer has yet to be revealed.

Wells Fargo has been steadily reducing its real estate footprint in the city amid a shift to a hybrid work model, previously ending a lease at 45 Fremont Street. "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," a Wells Fargo spokesperson told SFGATE at the time.

The banking giant declined to comment on the transaction to SFGATE.

The commercial real estate market in San Francisco continues to struggle, facing unprecedented vacancy rates and no signs of turning any time soon. Last month, nearby 350 California sold for roughly 75% less than its previously estimated value. The mostly vacant 22-story building was first listed for sale in 2020 and finally sold to SKS Real Estate Partners for somewhere between $60 million and $67.5 million.

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