A mystery buyer has apparently agreed to buy $725 million in debt on two of San Francisco’s largest hotels, reported the San Francisco Business Times. The 1,921-key Hilton San Francisco Union Square and 1,024-key Parc 55 San Francisco have been under court-appointed receivership since the fall of 2023, after owner Park Hotels & Resorts handed back the keys.

Eastdil Secured began marketing the debt on the two connected properties this past July. At that time, the two properties were appraised at roughly $554 million by Kroll Bond Rating Agency, a drop of more than $1 billion from their appraised value when the debt was originated.

The Business Times reported that the terms of the sale were still under discussion and the deal has not been finalized. The receiver is under a March 31 deadline to complete the deal or the debt will go back to lender JPMorgan for foreclosure.

Wells Fargo will reportedly sell its San Francisco headquarters and move its central operations in the city to another building as it shifts its power base to New York City.

Wells Fargo’s headquarters at 420 Montgomery St. in San Francisco.

The banking giant could put the 409K SF office at 420 Montgomery St. on the market this month, sources told The Wall Street Journal, which reported Wells Fargo has already begun informal discussions with possible buyers. 

Wells Fargo hired the real estate investment bank Eastdil Secured as an adviser on the sale. A spokesperson told the WSJ the bank routinely evaluates its 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.”

The bank is set to move its headquarters to 333 Market St., where it recently renewed its lease.

The sale would further a steady shift away from San Francisco to the East Coast over the past several years.

Wells Fargo has grown its footprint in New York City since it hired CEO Charlie Scharf in 2019. Scharf is based in the city and has built out the bank there, announcing plans to expand its Hudson Yards footprint in late 2023.

The bank also has a substantial presence in Charlotte, which has featured its biggest employee base since it bought Wachovia in 2008.

Israeli tech firm WalkMe Inc. is moving its U.S. headquarters to Kilroy Realty’s 350 Mission St. as it prepares to be acquired by software giant SAP, reported the San Francisco Business Journal. The digital adoption software provider, whose tools help guide users and employees through apps, signed on to sublease close to 18,000 square feet on the 26th floor of 350 Mission St. from Salesforce, sources told the Business Journal. WalkMe previously leased roughly 40,000 square feet at 71 Stevenson St.

The company’s lease at 71 Stevenson was set to expire in July. Although WalkMe is expected to take occupancy at 350 Mission this fall, it already lists 350 Mission as its headquarters on its website. It’s the latest to sublease Salesforce space at the 455,350-square-foot office property, which Salesforce once occupied in its entirety.

Cushman & Wakefield’s Sam Wasserstein, JD Lumpkin and Danny Pickard are listing Salesforce’s space at 350 Mission. JLL’s Mike Sample represented WalkMe in the deal.

London-based law firm Freshfields Bruckhaus Deringer LLP has leased approximately 18,000 square feet at One Bush St. for its first San Francisco office, reported the San Francisco Business Times. The lease occupies the entire 17th floor of the Tishman Speyer-owned One Bush.

The lease expands the Bay Area presence of Freshfields, perhaps best known for its M&A and antitrust work. It opened a 40,000-square-foot Silicon Valley office at 855 Main St. in Redwood City in 2021.

A source told the Business Times that Freshfields may have been drawn to San Francisco by the city’s growing reputation as the artificial intelligence capital of the world. Observers have said the AI sector’s growth could prompt a tangential boom in industries remaking themselves to serve AI, including the legal sector, the Business Times reported.

It’s not known whether Freshfields used brokers in leasing the space. Leasing at the 297,000-square-foot One Bush is handled by Tishman Speyer’s Allen Palmer and Patrick Devinger.