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  • Dedicated exclusively to the nearly $6 trillion commercial real estate finance industry
  • Committed to promoting strong & liquid debt markets across platforms
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  • Comprised of approximately 400 companies and 19,000 individual members
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News

Provision in Tax Bill Would Raise Rates on Foreign Companies and Investments

June 18, 2025

Real estate market participants and other industries with a global investor base are concerned about Section 899, a provision that would impose retaliatory income taxes on foreign investments and companies in the U.S. 

  • CREFC joined other real estate industry groups in raising concerns about the provision in the House-passed One Big Beautiful Bill (OBBB) to Senate leadership. In a letter to lawmakers, the groups suggested changes to exempt non-controlling foreign debt and equity investments from the retaliatory taxes. Click here for the letter. 
  • A CREFC fact sheet on the provision is available here
  • CREFC will hold a webinar briefing on the issue next week. A separate invite will be sent soon. 

Background: The House Version of OBBB contains a provision—Section 899—that would allow Treasury to impose annual income tax increases of 5% on any foreign individual, government, corporation, trust, foundation, and other similar entities in response to unfair tax treatment by a foreign country against the U.S.

  • The provision responds to unfair taxes by increasing the rate of tax generally applicable to certain taxpayers connected to the foreign jurisdiction. The legislation describes a number of per se unfair taxes and also gives the Treasury Secretary authority to designate additional unfair taxes.
  • The increased rates in the House version are capped at 20% and the Senate is at 15%, which is in addition to any existing tax the entity pays. The effective tax rate could increase to 45% or 50% for foreign investors or companies. 
  • The Senate version would delay implementation of the tax until at least 2027.
  • The Senate version includes an explicit 899 exemption for “portfolio interest,” which excludes many debt securities.
  • The Senate version of the bill focuses the major retaliatory increases on countries with Undertaxed Profit Rules (UTPR). Countries with only discriminatory or other unfair taxes, like the digital service tax, would be subject to a super Base Erosion and Anti-Abuse Tax (BEAT).

Impact: The provision could chill investment in U.S. real estate debt and equity through a combination of increased costs and uncertainty as to whether the tax will apply to certain countries. Below are the major concerns CREFC members have identified:

  • U.S. Real Estate: Potential chilling effect on cross-border capital flows into CRE, which includes $213 billion in the last five years and more than 10% in transaction volumes. Some estimates project foreign investors would need a 15% change in price to account for tax changes at the maximum rate.
  • Foreign banks and other lenders: Additional tax on non-U.S. lenders providing financing to U.S. borrowers. 
  • Foreign investors in U.S. funds: Additional tax on non-U.S. investors in funds, including debt funds, providing financing and capital to U.S. borrowers. 
  • Securitized products: Investors in CMBS may be exempt from 899 under the portfolio interest exemption, but further analysis is being done on the scope of the exemption. There could be structures that exclude or include securitization products.
  • U.S. Borrowers: CRE loans frequently include provisions in which the borrower contractually agrees to bear the risk of changes due to international tax law. For existing loans, any additional tax imposed under Section 899 would be the responsibility of the borrower, typically in the form of a gross-up payment to the foreign lender.
What’s next: CREFC will continue to engage with policymakers as the Senate will be considering the OBBB over the next few weeks. 

Contact David McCarthy (dmccarthy@crefc.org) with questions or to get involved on this issue.

Contact 

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Provision in Tax Bill Would Raise Rates on Foreign Companies and Investments
June 18, 2025
The Senate released revised language on Section 899, which would impose additional tax on non-U.S. companies and inbound investments.

News

The CRE Finance Council Names Leland Bunch as Chair of Executive Committee

June 10, 2025


CREFC Welcomes New Members to its Executive Committee and Board of Governors at Annual June Conference

The CRE Finance Council (CREFC) announced today the selection of Leland F. Bunch III, Managing Director at Bank of America, as the Chair of the CREFC Executive Committee and the Board of Governors for 2025-2026 at its Annual Conference in New York City. Mr. Bunch, a 25-year veteran of the commercial real estate finance industry, has been actively involved in CREFC as a member for 20 years. He succeeds outgoing Chair Bob Foley, Partner at TPG Real Estate and Chief Financial Officer of TPG RE Finance Trust, Inc.
  
Mr. Bunch is a Managing Director and Head of Capital Markets and Banking for the US RESF group. He joined Bank of America 17 years ago and oversees commercial mortgage-backed securities (CMBS) structuring, securitization, large loan execution, and warehouse finance. Mr. Bunch also has been responsible for more than $30 billion of large loan CMBS 2.0/3.0 originations and is the GSE relationship manager. Before joining the Bank, Mr. Bunch was the Head of European CMBS at UBS, and he started his Wall Street career with JPMorgan in New York while finishing in London.
  
“CREFC is an important voice for a wide range of members it serves – lenders, issuers, loan servicers, investors, rating agencies, and other commercial real estate market participants - in a $6 trillion industry that plays a key role in the nation’s economy,” said Mr. Bunch. “For three decades, CREFC has worked to ensure the commercial real estate market is efficient, liquid, transparent, and continues to grow. I look forward to serving as CREFC Chair in the coming year and continuing to support the work and priorities promoted by Bob Foley and Lisa Pendergast, CREFC’s CEO.”
  
“On behalf of CREFC, I’d like to congratulate Leland Bunch on being selected to lead the Executive Committee and Chair our Board of Governors. As an established CREFC member and seasoned CRE professional, he will help us articulate and address the industry’s needs,” said Lisa Pendergast, President and CEO of CREFC. “I would be remiss if I also didn’t thank Bob Foley for his time, effort, and dedication over the last year as chair. We are grateful for his leadership and commitment and look forward to his continued service as past chair.”
  
In addition to Mr. Foley’s transition, CREFC also announced members of its 2025-2026 Executive Committee: 
 
  • Chair-Elect: Lissette Rivera-Pauley (Regions Financial Corp.)
  • Immediate Past Chair: Bob Foley (TPG Real Estate and TPG RE Finance Trust, Inc.)
  • Vice Chair: Elaine McKay (Ares Management LLC) 
  • Secretary: Kim Diamond (NYU)
  • Treasurer: Adam Behlman (Starwood Property Trust) 
  • Long Range Planning & Investment Committee Chair: Daniel Olsen (KeyBank Real Estate Capital) 
  • Membership Chair: Toby Cobb (3650 Capital)
  • Policy Committee Chair: Rick Jones (Jackstay Ventures)
  • Program Committee Chair: Mary Jane Potthoff (Morningstar DBRS)

The association also welcomes and congratulates new members to its Board of Governors, including:

  • Nitin Bhasin (KBRA)
  • Josh Cromer (Rialto Capital Advisors)
  • Marshall Glick (AllianceBernstein)
  • David Harrison (Midland Loan Services) 
  • Adam Hayden (NY Life Real Estate Investors)
  • Spencer Kagan (Barclays)
  • Sean Ryan (JLL)
  • AJ Sfarra (Wells Fargo)
  • Lindsey Wright (KKR)

“We want to welcome the newest members of the Executive Committee and our Board of Governors. We look forward to collaborating with you on key issues that have the greatest significance and directly impact our industry and its members,” added Pendergast.

Contact 

Aleksandrs Rozens
Senior Director,
Communications
646.884.7567
arozens@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
The CRE Finance Council Names Leland Bunch as Chair of Executive Committee
June 10, 2025
CREFC Welcomes New Members to its Executive Committee and Board of Governors at Annual June Conference.

News

The CRE Finance Council Announces New Chairs for Industry Forums 

June 10, 2025

New Chairs and Chair-Elects Introduced at Annual June Conference

 

The CRE Finance Council (CREFC) announced new Chairs for the 2025-2026 industry Forums. The new Forum leadership was elected at CREFC’s Annual June Conference in New York City on Tuesday.

CREFC’s Forums represent specific market constituencies that drive the U.S. commercial real estate finance industry. Forums include:

  • Alternative Lenders and High-Yield Investors
  • CMBS B-Piece Investors 
  • CMBS Investment-Grade Bondholders 
  • CMBS Issuers 
  • CMBS Servicers 
    • Master Servicers
    • Special Servicers
  • GSE/Multifamily Lenders 
  • Portfolio Lenders
    • Bank Lenders 
    • Insurance Company Lenders 

Each Forum interacts and addresses issues critical to their business sector, while working to achieve solutions that serve a common purpose. CREFC’s Forums manage disparate and converging market views, advocate a consensus of positions to policymakers and lawmakers, educate members, develop market best practices and standards, and work to improve the entire commercial real estate finance market.
  
The incoming slate of Forum leaders includes:

B-Piece Investors. CREFC welcomes Josh Brand (Argentic) as Chair-Elect, Frank Yin (KKR) as Chair, and Peter Lindner (Rialto Capital Advisors) as Past-Chair. In 2024-2025, Jason Nick (Starwood Property Trust) was Past-Chair.
  
GSE/Multifamily Lenders. CREFC welcomes Lee Green (Wells Fargo) as Chair-Elect, David Haynes (CBRE Multifamily Capital, Inc.) as Chair, Ahmed Hasan (Capital One) as Past-Chair. John Jang (Fannie Mae) and Jason Griest (Freddie Mac) serve as GSE representatives. In 2024-2025, the Past-Chair was Kate Whalen (BMO).
  
Investment-Grade Bondholders. CREFC welcomes Wendy Pei (Ellington Management) as Chair-Elect, Adam Smith (DWS) as Chair, and Rajesh Bansal (Quiq Capital) as Past-Chair. In 2024-2025, Richard Razza (Webster Bank) served as Past-Chair. 
  
Issuers. CREFC welcomes Scott Epperson (Goldman Sachs) as Chair-Elect, Shaishav Agarwal (Deutsche Bank) as Chair, and Brigid M. Mattingly (Wells Fargo) as Past-Chair. In 2024-2025, Jane Lam (Morgan Stanley) served as Past-Chair.
  
Portfolio Lenders – Bank Lender Subforum. CREFC welcomes Bridget Scanlon (Morgan Stanley) as Chair-Elect, Kristin Khanna (Barclays) as Chair, and Robert Grudzinski (U.S. Bank) as Past-Chair. In 2024-2025, Scott Dixon (Truist) was Past-Chair.
  
Portfolio Lenders – Insurance Company Lenders Subforum. CREFC welcomes Kevin Catlett (Principal Real Estate Investors) as Chair-Elect, Melissa Farrell (PGIM) as Chair, and Kevin Pivnick (Blackstone) as Past-Chair. In 2024-2025, Chris Miculis (Nuveen) served as Past-Chair. 
  
Servicers. CREFC welcomes Amanda Dugat (SitusAMC) and Brett Mann (LNR Partners) as Chairs-Elect, Dana Jo Martino (Berkadia Commercial Mortgage LLC) and Alex Killick (CWCapital) as Co-Chairs, and Adam Fox (Fitch Ratings) and Pamela Dent as Past-Chairs. In 2024-2025, 
Leslie Hayton (Trimont) and Tony Yousif (SVN) served as Past-Chairs. 
  
The following slate of Forum leaders remains unchanged this year:
  
Alternative Lenders & High-Yield Investors. Rachel Hunter-Goldman (KKR) remains as Chair-Elect, Samantha Rotchford (BDT & MSD Partners) serves as Chair, and Samir Tejpaul (Madison Realty Capital) continues as Past-Chair. 
  
“We are excited to welcome the new members to our industry Forums and we want to thank the existing and past Forum members for their dedication and continued support of our work,” said Lisa Pendergast, President and CEO of CREFC.
  
“CREFC’s industry Forums work to ensure there is consensus among their constituents and advocate on behalf of them with other industry participants, policymakers, and lawmakers. By playing a key role in developing industry practices and implementing initiatives to support their members, Forum leaders help to ensure all voices are heard. We are grateful for their dedication to CRE finance and their contributions, which ensure the industry continues to innovate and evolve.”

Contact 

Aleksandrs Rozens
Senior Director,
Communications
646.884.7567
arozens@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
The CRE Finance Council Announces New Chairs for Industry Forums
June 10, 2025
The CRE Finance Council (CREFC) announced new Chairs for the 2025-2026 industry Forums.

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