- A $650M SASB loan arranged by JLL and backed by Wells Fargo and Bank of America refinanced the One Congress office tower in Boston, highlighting the resilience of top-tier office assets.
- SASB deals made up 72% of Q1 2025’s $37.5B CMBS issuance, driven by investor demand for quality collateral and transparency.
- Despite past high-profile SASB loan failures, the recent rebound in CMBS issuance suggests increased risk appetite for institutional-grade office properties.
Trophy Property, Trophy Financing
One Congress, a 1M+ SF office tower in downtown Boston developed by Carr Properties and National Real Estate Advisors, has closed a $650M refinancing through a SASB loan. The financing was led by Wells Fargo and Bank of America and arranged by JLL, reports GlobeSt.
The 43-story tower features luxury tenant amenities such as a 15K SF rooftop terrace, fitness center, coffee bar, and dual water views, reinforcing its status as one of Boston’s top-tier office assets.
SASB Surge In 2025
The One Congress deal adds to a surge in SASB issuance this year. In Q1 2025, SASB transactions accounted for over 72% of the $37.55B in total CMBS issuance—up from 68% the same time last year. The 30 SASB deals completed totaled $27.08B, compared to $17.85B across 16 deals in Q1 2024.
Earlier this year, Tishman Speyer and Henry Crown’s $2.85B refinancing of The Spiral in NYC signaled renewed institutional interest in using SASB for refinancing trophy assets.
“SASB lenders typically look for top-quality assets with reputable borrowers, both of which One Congress had,” said Riaz Cassum, executive managing director at JLL.
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Risk Still Lurks
While the rebound is promising, 2024 proved that SASB deals are not immune to distress. Notable failures included the $308M loan on 1740 Broadway, where AAA investors recovered only 74% of their capital. Other troubled assets include 1407 Broadway in Manhattan, River North Point in Chicago, and 555 W. 5th St. in Los Angeles—all of which saw substantial losses in their senior tranches.
High interest rates, maturing debt, and sluggish office demand led to rising delinquencies throughout 2024, according to Moody’s.
What’s Next
Despite recent setbacks, investors appear more willing to take on risk in the office sector—at least when it involves institutional-quality assets in prime locations. As the CMBS market recovers, SASB loans are poised to remain a preferred vehicle for refinancing and recapitalizing the nation’s top office towers.
