(Bloomberg) — Wells Fargo & Co. is shifting the headquarters for its wealth-management enterprise to West Palm Seashore, changing into the primary large financial institution to run that operation from the guts of the wealth growth in South Florida.
The San Francisco-based agency signed a lease with Associated Ross to hire 50,000 sq. ft (4,650 sq. meters) on the One Flagler workplace constructing, in keeping with wealth chief Barry Sommers, whose unit generated $16 billion in income final yr, or a couple of fifth of the whole.
South Florida has drawn a mess of billionaires and firms lately, buoyed by tax benefits and a booming finance and tech scene. Actual property mogul Stephen Ross, the founding father of Associated Cos., is making an attempt to make Palm Seashore County the following Silicon Valley, with years of funding in actual property, training and well being care there.
About 100 folks will probably be relocated to Wells Fargo’s new workplace by year-end, largely senior executives within the wealth operation, together with almost half of the unit’s working committee. Sommers, 57, and his spouse moved their important house to Palm Seashore county final month.
“When you consider a few of our largest opponents, I believe it’s distinctive that we moved our wealth enterprise down right here,” Sommers mentioned in an interview. “I couldn’t be extra excited concerning the place we’re in and attracting actually gifted folks to come back to Wells Fargo.”
The brand new workplace, on observe to open in August, will enable the agency’s wealth executives to be nearer to their largest purchasers, Sommers mentioned.
Ross referred to as Wells Fargo’s resolution to maneuver its wealth management a “large step,” and mentioned he expects extra corporations to broaden their presence.
“What we’ve seen is corporations which have already dipped the toe – have been right here for years – have expanded their places of work,” Ross mentioned in an interview. “Individuals are seeing the expansion and the place the nation is headed.”
Ross now oversees the day-to-day operations of Associated Ross because the chief government officer and chairman of the corporate, which was spun off from Associated Cos. in 2024 with the purpose of specializing in South Florida.
Wells Fargo’s neighbors on the identical block embrace JPMorgan Chase & Co. and Residents Monetary Group — companies that not too long ago expanded in South Florida, enticed by the wealth-management alternative. Financial institution of America Corp. has additionally been investing in Palm Seashore County.
However these companies haven’t made the placement as vital as Wells Fargo. The transfer is simply the beginning of an enlargement in that market that may embrace hiring skilled folks, Sommers mentioned. The financial institution would possibly hire extra space over time, and needs to draw monetary advisers, non-public bankers and impartial broker-dealers.
Sommers mentioned he started speaking with Wells Fargo Chief Govt Officer Charlie Scharf concerning the relocation plan over a yr and half in the past. The financial institution’s senior management for the wealth enterprise has been dispersed geographically, spurring curiosity in looking for a brand new hub for the operation.
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Sommers and the wealth boss previous to him, Jon Weiss, had been each primarily based in New York, the place the financial institution’s management is concentrated. Its brokerage is headquartered in St. Louis, due to the legacy of A.G. Edwards, which was acquired by Wachovia Securities a yr earlier than Wells Fargo purchased Wachovia.
The transfer to Florida isn’t about shrinking elsewhere, Sommers mentioned. A few of the senior members of the wealth enterprise will proceed to be primarily based in its current hubs of New York, St. Louis and Charlotte, North Carolina.
“Florida’s an excellent market the place purchasers are relocating, however extra importantly it’s an easy market to journey,” mentioned Sommers, who’s been used to a demanding journey schedule for visiting purchasers and intends to maintain it.
