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The CRE Finance Council Announces New Chairs for Industry Forums

June 11, 2024

New Chairs and Chair-Elects Introduced at Annual June Conference


NEW YORK, June 11, 2024 –
The CRE Finance Council (CREFC) announced today new Chairs for the 2024-2025 industry Forums. The new Forum leadership was introduced at CREFC’s Annual June Conference in New York City.

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
  • B-Piece Investors
  • GSE/Multifamily Lenders
  • Investment-Grade Bondholders
  • Issuers
  • Portfolio Lenders
  • Servicers

Each of these Forums interacts and addresses issues critical to their business sector and works 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 toward the betterment of the entire commercial real estate finance market.

The Incoming slate of Forum leaders includes:

Alternative Lenders & High Yield Investors. CREFC welcomes Rachel Hunter-Goldman (KKR) as Chair-Elect, Samantha Rotchford (MSD) as Chair, and Samir Tejpaul (Square Mile Capital Investments) as Past Chair.

B-Piece Investors: CREFC welcomes Frank Yin (KKR) as Chair-Elect, Peter Lindner (Rialto) as Chair, and Jason Nick (LNR) as Past Chair. In 2023-2024, Lyndsay Stephenson (Prime Finance Partners) served as Past Chair.

GSE/Multifamily Lenders: CREFC welcomes David Haynes (CBRE) as Chair-Elect, Ahmed Hasan (Capital One) as Chair, and Kate Whalen (BMO) as Past Chair. In 2023-2024, the Past Chair was Emily Schultz (Berkadia Commercial Mortgage). Alonzo White (Fannie Mae) and Jason Griest (Freddie Mac) serve as government-sponsored enterprise representatives.

Investment-Grade Bondholders: CREFC welcomes Adam Smith (DWS) as Chair-Elect, Rajesh Bansal (Quiq Capital) as Chair, and Richard Razza (Webster Bank) as Past Chair. In 2023-2024, Jane Rivers (T. Rowe Price) served as Past Chair.

Issuers: CREFC welcomes Shaishav Agarwal (Deutsche Bank) as Chair-Elect, Brigid Mattingly (Wells Fargo) as Chair, and Jane Lam (Morgan Stanley) as Past Chair. In 2023-2024, David Schell (BMO Capital Markets) served as Past Chair.

Portfolio Lenders – Banks: CREFC welcomes Kristin Khanna (Barclays) as Chair-Elect, Rob Grudzinski (U.S. Bank) as Chair, and Scott Dixon (Truist) as Past Chair. In 2023-2024, Jonathan Salzinger (Bank of America) served as Past Chair.

Portfolio Lenders – Insurance Company: CREFC welcomes Melissa Farrell (PGIM) as Chair-Elect, Kevin Pivnick (Blackstone) as Chair, and Chris Miculis (Nuveen) as Past Chair. In 2023-2024, Stefanie Stewart (Voya Investment Management) served as Past Chair.

Servicers – Servicing Administration: CREFC welcomes Dana Jo Martino (Berkadia) as Chair-Elect, Adam Fox (Fitch Ratings) as Chair, and Leslie Hayton (Wells Fargo) as Past Chair. In 2023-2024, Stacy Ackermann (K&L Gates) served as Past Chair.

Servicers – Special Situations: CREFC welcomes Alex Killick (CWCapital) as Chair-Elect, Pam Dent (Freddie Mac) as Chair, and Tony Yousif (SVN) as Past Chair. In 2023-2024, Andrea Helm (Midland Loan Services) served as Past Chair.


“We want to welcome the new members of our CREFC industry Forums and thank existing and past Forum members for their dedication and excellent work,” said Lisa Pendergast, Executive Director of CREFC.


“For 30 years, CREFC has served as the voice of the now $6 trillion commercial real estate finance industry and CREFC’s industry Forums continue to play a key role in ensuring all industry voices are heard and respected. CREFC’s Forums serve a vital industry function, as they represent key components of the CRE finance markets. A core function of Forum leaders is to work toward consensus among their constituents and then advocate those positions to other market segments and to policy and lawmakers. Forum leaders are also charged with assisting the development of industry best practices and implementing new initiatives critical to their business sectors. I and the entire CREFC community are grateful for our Forum leaders and their contributions and dedication to CRE finance.” 

Contact:

Aleksandrs Rozens

arozens@crefc.org

646-884-7567

Contact 

Aleksandrs Rozens
Senior Director, Communications

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. © 2023 CRE Finance Council. All rights reserved.
The CRE Finance Council Announces New Chairs for Industry Forums
June 11, 2024
The CRE Finance Council (CREFC) announced today new Chairs for the 2024-2025 industry Forums.

News

Erin Stafford Awarded CREFC’s Woman of Distinction Award and Brian Olasov Receives Founders Award

June 11, 2024

Award Winners Announced at CREFC’s Annual June Conference

NEW YORK, June 11, 2024 – The CRE Finance Council (CREFC) announced today that Erin Stafford is this year’s recipient of its Woman of Distinction Award and Brian Olasov is the recipient of its 2024 Founders Award. CREFC made the announcements at its Annual Conference in New York City.



CREFC’s Woman of Distinction Award: The Woman of Distinction Award recognizes women professionals in commercial real estate (CRE) finance who, through their engagement in CREFC and the CRE finance industry broadly, demonstrate outstanding leadership skills, and advocate for a more inclusive industry. Ms. Stafford is a Managing Director and head of North American commercial mortgage-backed securities (CMBS) ratings activity at Morningstar DBRS.

A CREFC member since 2000, Ms. Stafford has over 20 years of experience in the CRE finance industry. Prior to joining Morningstar DBRS where she co-founded its CMBS team and helped build its market presence, Ms. Stafford focused on monitoring ratings of existing CMBS transactions at Fitch Ratings. She is an Advisory Board Member of the Women’s Network and is active in the Mentorship Program. Ms. Stafford has also served as Chair of the Servicers Forum and as a co-Chair of the Post Securitization committee, where she supported enhancements to CREFC’s Investor Reporting Package™.

“I am honored to have received this award and feel very privileged to be considered in the ranks of talented women professionals recognized by CREFC in previous years. It has truly been a gift for me to participate in CREFC’s Women’s Network as it has so much to offer in terms of mentoring, networking, and professional development for women in our industry,” said Ms. Stafford.

“Erin has demonstrated a deep and long-term commitment to CREFC’s membership and the greater CRE finance industry,” said Lisa Pendergast, Executive Director, CREFC. “For over two decades, she has supported CREFC and its members, sharing her knowledge and valued perspective at numerous CREFC events while mentoring the next generation of CRE finance professionals. We are thankful for her work on our Investor Reporting Package™ and salute her for her efforts to lift the next generation of women leaders.”

To read about previous winners click here.



CREFC’s Founders Award: CREFC’s Founders Award is bestowed on an industry professional who has demonstrated outstanding leadership and offered significant contributions to the betterment of CREFC and the commercial real estate finance industry. Established in 2006, recipients of this award have engaged in innovative and creative business practices and industry activities that have successfully enhanced the CRE market and improved debt liquidity to a key component of the U.S. economy.

As Executive Director - Financial Services Consulting at Carlton Fields, Brian Olasov’s career in commercial real estate finance spans over three decades. He is sought out by the industry for his deep knowledge of commercial real estate finance topics such as valuation issues, commercial mortgage loan servicing, and banking and lending regulations. Mr. Olasov has served as Chair of CREFC’s National Policy Committee, co-Chair of the International Committee, Chair of the Risk Retention Task Force, and was a Member of the Audit Committee and a founding member of CREFC’s European chapter. He has served on the Board of Governors and the Executive Committee for multiple terms and has been a member of CREFC since its inception in 1994.

“CREFC stands out among trade associations in terms of effort-in translating into results-out. The impact of CREFC on the overall commercial real estate finance industry has been profound and beneficial,” said Mr. Olasov. “Remembering the contributions of past Founders Award recipients and then receiving this recognition humbles me. I want to thank my lifelong friends in the industry and the CREFC board for naming me this year’s recipient.”

“We want to thank Brian for his dedication to CREFC and our industry. For some three decades Brian has helped market participants understand some of the most complex aspects of the commercial real estate finance market,” said Ms. Pendergast. “CREFC, and the greater CRE finance community, continue to benefit from Brian’s extensive knowledge of the market and his ongoing education of young commercial real estate professionals.”

Mr. Olasov has lectured at the graduate real estate and business programs of Georgia State University, Emory University School of Law, Columbia University, Georgetown University, Ohio State University, NYU Stern School of Business, and the Wharton School of the University of Pennsylvania. He is an adjunct professor at New York University’s Schack Institute of Real Estate, where he focuses on real estate finance and capital markets. CREFC frequently calls on Mr. Olasov to teach various educational programs. He has edited and co-authored chapters in the CMBS E-Primer published by CREFC, the Westlaw text Mortgage and Asset-Backed Securities Litigation Handbook, and contributed to UCLA Law School’s Real Estate Finance Update for 2024.

Contact  

Aleksandrs Rozens
Senior Director, Communications
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. © 2024 CRE Finance Council. All rights reserved.
Erin Stafford Awarded CREFC’s Woman of Distinction Award and Brian Olasov Receives Founders Award
June 11, 2024
The CRE Finance Council (CREFC) announced today that Erin Stafford is this year’s recipient of its Woman of Distinction Award and Brian Olasov is the recipient of its 2024 Founders Award. CREFC made the announcements at its Annual Conference in New Y

News

The CRE Finance Council Announces New Chairs for Industry Forums

June 11, 2024

New Chairs and Chair-Elects Introduced at Annual June Conference

The CRE Finance Council (CREFC) announced today new Chairs for the 2024-2025 industry Forums. The new Forum leadership was introduced at CREFC’s Annual June Conference in New York City.

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
  • B-Piece Investors
  • GSE/Multifamily Lenders
  • Investment-Grade Bondholders
  • Issuers
  • Portfolio Lenders
  • Servicers


Each of these Forums interacts and addresses issues critical to their business sector and works 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 toward the betterment of the entire commercial real estate finance market.

The Incoming slate of Forum leaders includes:

Alternative Lenders & High Yield Investors: CREFC welcomes Rachel Hunter-Goldman (KKR) as Chair-Elect, Samantha Rotchford (MSD) as Chair, and Samir Tejpaul (Square Mile Capital Investments) as Past Chair.

B-Piece Investors: CREFC welcomes Frank Yin (KKR) as Chair-Elect, Peter Lindner (Rialto) as Chair, and Jason Nick (LNR) as Past Chair. In 2023-2024, Lyndsay Stephenson (Prime Finance Partners) served as Past Chair.

GSE/Multifamily Lenders: CREFC welcomes David Haynes (CBRE) as Chair-Elect, Ahmed Hasan (Capital One) as Chair, and Kate Whalen (BMO) as Past Chair. In 2023-2024, the Past Chair was Emily Schultz (Berkadia Commercial Mortgage). Alonzo White (Fannie Mae) and Jason Griest (Freddie Mac) serve as government-sponsored enterprise representatives.

Investment-Grade Bondholders: CREFC welcomes Adam Smith (DWS) as Chair-Elect, Rajesh Bansal (Quiq Capital) as Chair, and Richard Razza (Webster Bank) as Past Chair. In 2023-2024, Jane Rivers (T. Rowe Price) served as Past Chair.

Issuers: CREFC welcomes Shaishav Agarwal (Deutsche Bank) as Chair-Elect, Brigid Mattingly (Wells Fargo) as Chair, and Jane Lam (Morgan Stanley) as Past Chair. In 2023-2024, David Schell (BMO Capital Markets) served as Past Chair.

Portfolio Lenders – Banks: CREFC welcomes Kristin Khanna (Barclays) as Chair-Elect, Rob Grudzinski (U.S. Bank) as Chair, and Scott Dixon (Truist) as Past Chair. In 2023-2024, Jonathan Salzinger (Bank of America) served as Past Chair.

Portfolio Lenders – Insurance Company: CREFC welcomes Melissa Farrell (PGIM) as Chair-Elect, Kevin Pivnick (Blackstone) as Chair, and Chris Miculis (Nuveen) as Past Chair. In 2023-2024, Stefanie Stewart (Voya Investment Management) served as Past Chair.

Servicers – Servicing Administration: CREFC welcomes Dana Jo Martino (Berkadia) as Chair-Elect, Adam Fox (Fitch Ratings) as Chair, and Leslie Hayton (Wells Fargo) as Past Chair. In 2023-2024, Stacy Ackermann (K&L Gates) served as Past Chair.

Servicers – Special Situations: CREFC welcomes Alex Killick (CWCapital) as Chair-Elect, Pam Dent (Freddie Mac) as Chair, and Tony Yousif (SVN) as Past Chair. In 2023-2024, Andrea Helm (Midland Loan Services) served as Past Chair.


“We want to welcome the new members of our CREFC industry Forums and thank existing and past Forum members for their dedication and excellent work,” said Lisa Pendergast, Executive Director of CREFC.

“For 30 years, CREFC has served as the voice of the now $6 trillion commercial real estate finance industry and CREFC’s industry Forums continue to play a key role in ensuring all industry voices are heard and respected. CREFC’s Forums serve a vital industry function, as they represent key components of the CRE finance markets. A core function of Forum leaders is to work toward consensus among their constituents and then advocate those positions to other market segments and to policy and lawmakers. Forum leaders are also charged with assisting the development of industry best practices and implementing new initiatives critical to their business sectors. I and the entire CREFC community are grateful for our Forum leaders and their contributions and dedication to CRE finance.”

 

Contact 

Aleksandrs Rozens
Senior Director, Communications

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. © 2023 CRE Finance Council. All rights reserved.
The CRE Finance Council Announces New Chairs for Industry Forums
June 11, 2024
The CRE Finance Council (CREFC) announced today new Chairs for the 2024-2025 industry Forums. The new Forum leadership was introduced at CREFC’s Annual June Conference in New York City.

News

The CRE Finance Council Unveils its 2024 Class of 20 Under 40

June 5, 2024

CREFC salutes its new class of industry talent from lenders, investors, borrowers, rating agencies, legal and accounting firms

NEW YORK — June 5, 2024 — The CRE Finance Council (CREFC), the trade association that exclusively represents the nearly $6 trillion commercial and multifamily real estate finance industry, today unveiled its 2024 class of accomplished 20 Under 40 professionals. The 2024 class will be introduced at CREFC’s Annual Conference in New York City.

This year’s 20 Under 40 recipients include market participants from rating agencies, lenders, investors, borrowers, legal and accounting firms, among others. These professionals structure transactions that finance affordable housing, advise dispositions, work with different aspects of structured finance, fund developments, and mentor younger colleagues. Their new ideas, energy, and varied approaches to our work help ensure the commercial real estate (CRE) finance industry evolves and thrives in the decades to come.

“We want to congratulate and welcome members of the 2024 class of 20 Under 40 who represent the bright future of CRE finance. They have persevered through a challenging high-rate environment, not to mention the lingering impact of the COVID pandemic,” said Lisa Pendergast, Executive Director, at CREFC. “We celebrate this class of talented professionals, many of whom actively support CREFC committees and help shape the development of novel and engaging CREFC programming.”

The annual 20 Under 40 awards are part of CREFC’s ongoing efforts to recognize the next generation of leaders in the CRE finance industry. CREFC’s Young Professionals Network offers career development, networking, and educational opportunities for this group of CRE finance professionals.

The following are members of CREFC’s 2024 class of 20 Under 40:

JAY ABEYWARDENA                                           
Managing Director, 
Mortgage Banking

Berkadia

SAM ALAVI
Partner
Paul Hastings

SCOTT DURCO
Managing Director, 
Head of Central Region 
Originations 

ACORE Capital
 
AMANDA EHRLICKMAN 
Vice President
H.I.G. Realty Credit Partners
 
CHRISTINE BRADY HOAG 
Shareholder, Vice Chair 
Real Estate Finance
Polsinelli
 
SEAN KIM
Director, Debt Strategies
Bridge Investment Group
 
FRANCES KIM-CHRISCOE 
Partner
Nelson Mullins Riley & 
Scarborough LLP

DAVID KING 

Managing Director
Greystone
 
ARIEL LEVIN
Vice President
CWCapital Asset 
Management
 
LIVINGSTON LONG 
Director, Special Situations
Prime Finance 

STEVEN LONG
Senior Vice President - 
Agency Structured Transactions 

Berkadia Commercial Mortgage
 
CAITLIN PARRELLA
Director
KBRA

HERSCHEL PATEL 

Director, Securitization
Zions Capital Markets
 
EMILY RASMUSSEN 
President, Chief Operating Officer
Resilience Insurance Analytics
 
MATTHEW TOMPKIN
Senior Manager
Ernst & Young
 
AMIT TYAGI 
Principal 
Gantry
 
PARKER UMSTED 
Senior Director, 
Head of Securitization

SitusAMC
 
ALEXANDER WAGMAN 
Executive Director, 
Real Estate Securitization & 
Capital Markets

Wells Fargo Securities, LLC
 
ANDREA WEITZMAN 
Senior Associate
Cadwalader, Wickersham & 
Taft LLP
  
FRANK YIN
Director
KKR
 

To learn more about this year’s class of 20 Under 40 recipients click here.

About CREFC

The CRE Finance Council (CREFC) is the trade association for the nearly $6 trillion commercial real estate finance industry with a membership that includes more than 400 companies and 19,000 individuals. Member firms include balance sheet and securitized lenders, loan and bond investors, private equity firms, servicers, rating agencies, and borrowers. For 30 years, CREFC has promoted liquidity, transparency, and efficiency in the commercial real estate finance markets, and acted as a legislative and regulatory advocate for the industry, playing a vital role in setting market standards and best practices, and providing education for market participants.

 

Media Contact:

Aleksandrs Rozens

Senior Director, Communications

ARozens@crefc.org

646-884-7567
 

Contact  

Aleksandrs Rozens
Senior Director, Communications

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. © 2024 CRE Finance Council. All rights reserved.
The CRE Finance Council Unveils its 2024 Class of 20 Under 40
June 05, 2024
This year’s 20 Under 40 recipients include market participants from rating agencies, lenders, investors, borrowers, legal and accounting firms, among others.

News

Congressional Primaries

June 4, 2024

What happened:
Multiple states held their Congressional primaries over the last two weeks, resulting in a mix of outcomes for various wings of the Republican and Democratic parties.

On Tuesday, May 21, Georgia, Idaho, Kentucky, and Oregon held primaries. The following Tuesday, May 28, Texas held its run-off primary elections.

In Oregon, the question was whether progressives would have success at the ballot box. In the 3rd and 5th districts, and statewide, they fell flat.

Oregon’s 3rd District: Susheela Jayapal, the sister of current Congresswoman Pramila Jayapal (D-WA), ran in the deep Blue seat being vacated by Rep. Earl Blumenauer (D-OR).

  • All of the nominees on the Democratic side were extremely progressive, and observers expect the winner of the primary will be elected by the liberal district.
  • Even with the endorsements of Rep. Alexandria Ocasio-Cortez (D-N.Y.), Sen. Bernie Sanders (I-Vt.), and her sister, Jayapal lost to state Rep. Maxine Dexter.

Oregon 5th District: Establishment Democrats coalesced to block progressive candidate Jamie McLeod Skinner, winner of the 2022 nomination, by supporting state Rep. Janelle Bynum.

  • Bynum easily won the nomination by 40 points. She moves on to the general election against incumbent Congresswoman Lori Chavez-DeRemer (R-OR), who she defeated at the state level in races in 2016 and 2018.
  • Democrats had held the seat for a majority of the past 30 years, 14 of which were under former Congressman Kurt Schrader, a moderate. But after district lines changed, Schrader was defeated in the 2022 primary by progressive McLeod-Skinner who then went on to lose the general election to Chavez-DeRemer.
  • The establishment Democrat’s victory has been viewed as positive development in their efforts to retake the seat. This is a toss-up seat, and one that Democrats are eager to take back on their way to reclaiming a majority.

Portland District Attorney Race: In Portland, the progressive District Attorney, Mike Schmidt was unseated by his challenger Nathan Vasquez who styled himself as tough on crime.

  • This win follows Oregon’s governor signing into law legislation that re-criminalizes possession of certain drugs, just three years after it became the first state to decriminalize them.

Texas: Texas held its primary runoffs on Tuesday, May 28, following its March 5 primary.

Texas 23rd: Rep. Tony Gonzales (R) beat Brandon Herrera, a pro-gun activist known on YouTube as “The AK Guy.” Herrera had support from Rep. Matt Gaetz (R-FL) and House Freedom Caucus chair Bob Good (R-VA).

Some details below from Politico give a good overview of the race and Gonzales’ district overall. Click here to read the full article.

  • His district spans from the outskirts of El Paso to San Antonio and includes more than 800 miles of the U.S.-Mexico border.
  • He voted to codify same-sex marriage and joined with Democrats to pass a bipartisan gun control bill following a deadly shooting at an elementary school in his district. These actions likely spurred a primary challenge for Gonzales.
  • Gonzales’ allies warned that Herrera’s nomination could make the seat competitive in the general election. Former President Donald Trump won the district by seven points under the current lines.

Gonzales’ victory did not come easily. Multiple groups including American Israel Public Affairs Committee, GOP leadership aligned American Action Network, the Republican Jewish Coalition and the Hispanic Leadership PAC contributed a total of $4 million to his campaign.

What does it mean: The results in all of these states demonstrate the conflict between the establishment base of each party and their respective right- and left-wing counterparts.

What’s next: Primary season is far from over with sixteen states holding primaries in the month of June alone. Click here for the full list.

Contact James Montfort (Jmonfort@crefc.org) with any questions.

Contact 

James Montford
Manager, Government Relations
202.448.0857
jmontfort@crefc.org
Outlines of Oregon and Texas with an election backdrop
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. © 2023 CRE Finance Council. All rights reserved.
Congressional Primaries
June 04, 2024
What happened: Multiple states held their Congressional primaries over the last two weeks, resulting in a mix of outcomes for various wings of the Republican and Democratic parties.

News

Global Sustainability Requirements 

June 4, 2024

On May 24
, the European Council announced approval by member states of the Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD has faced a long, winding road, with a somewhat scaled back version crossing the finish line.

The CSDDD will require large companies to address their negative impacts on human rights and the environment across their value chains.

As reported by ESGToday, the rule’s final adoption “had come into significant doubt in recent months, when an earlier version failed to gain approval by member states in the Council.” The revised legislation significantly reduced the number of covered companies and extended the implementation timeline.

Why it matters: Although an EU law, it will also impact non-EU companies, with the following implementation schedule:

  • 2027: non-EU companies with a net EU revenue > €1.5 billion;
  • 2028: non-EU companies with a net EU revenue of > €900 million; and
  • 2029: non-EU companies with a net EU revenue of > €450 million.

Additionally, on May 28, the IFRS Foundation announced that more than 20 jurisdictions have decided to use or are taking steps to introduce International Sustainability Standards Board (ISSB) Standards in their legal or regulatory frameworks. Together, these jurisdictions account for:

  • Nearly 55% of global GDP;
  • More than 40% of global market capitalization; and
  • More than half of global greenhouse gas emissions.

Yes, but: The IFRS Foundation noted that the Securities and Exchange Commission (SEC) has “declined at this time to recognize the ISSB Standards for use as an alternative to the SEC’s climate disclosure rules.”

The bottom line: As we have reported in several CREFC Policy and Capital Markets Briefings, the SEC’s climate disclosure requirements face significant opposition and are currently being litigated. However, individual states like California, as well as the EU, China, Canada, and other jurisdictions, are moving ahead with sustainability-related requirements.

CREFC will continue to cover key developments in this space, including panels and discussions at our June 12 Sustainability Summit.

Please contact Sairah Burki (sburki@crefc.org) with questions.

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org
global climate requirements
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. © 2023 CRE Finance Council. All rights reserved.
Global Sustainability Requirements
June 04, 2024
On May 24, the European Council announced approval by member states of the Corporate Sustainability Due Diligence Directive (CSDDD).

News

Capital Markets Update Week of 6/4

June 4, 2024

Private-Label CMBS and CRE CLOs

The parade of CMBS transactions continued last week with the pricing of six transactions, all SASBs, totaling $3.5 billion:

  • BX 2024-VLT4, a $1.4 billion SASB backed by a floating-rate, five-year loan (at full extension) for Blackstone to refinance five properties owned by its data-center arm, QTS Realty Trust. The portfolio was split between three existing data centers and two leased-fee positions being developed separately by long-term tenants
  • BX 2024-PALM, a $585 million SASB backed by a floating-rate, five-year loan (at full extension) for Blackstone on a portfolio of nine multifamily properties across TX, CA, and FL
  • HLTN 2024-DPLO, a $452 million SASB backed by a floating-rate, five-year loan (at full extension) for Credit Suisse Asset Management and Trinity Investments to refinance the Diplomat Beach Resort in Hollywood, FL
  • WFCM 2024-SVEN, A $450 million SASB backed by a fixed-rate, five-year loan for the Durst Organization to refinance the SVEN apartment tower in Long Island City
  • TX 2024-HOU, a $325 million SASB backed by a floating-rate, five-year loan (at full extension) for Rida Development to refinance the Marriott Marquis Houston
  • BAMLL 2024-NASH, a $267.2 million SASB backed by a floating-rate, five-year loan (at full extension) for Ashford Hospitality Trust to refinance the Renaissance Nashville Hotel

According to Commercial Mortgage Alert, another SASB backed by a loan to Blackstone is expected to begin marketing next week. When that $1.3 billion offering is completed, Blackstone will have priced 15 transactions totaling ~$16 billion year-to-date 2024.

Year-to-date, private-label CMBS and CRE CLO issuance totals $38.2 billion, well ahead of the $14.7 billion for same-period 2023.

Spreads Unchanged

  • Conduit AAA and A-S spreads were unchanged at +90 and +125, respectively. YTD, AAA and A-S spreads are tighter by 26 bps and 40 bps, respectively.
  • Conduit AA and A spreads were unchanged at +140 and +220, respectively. YTD, they have tightened by 85 bps and 155 bps, respectively. ­
  • Conduit BBB- spreads held steady at +625. YTD, BBB- spreads have tightened by 275 bps.
  • SASB AAA spreads were unchanged, ranging from +145 to +160, depending on property type. They have narrowed from +160 to +188 at the start of the year.
  • CRE CLO AAA spreads were unchanged at +160 and + 165 (Static / Managed). BBB- spreads were also unchanged at +640 and +645 (Static / Managed).

Agency CMBS

  • Agency issuance totaled $403 million last week, consisting of $358.9 million in Fannie DUS and $44.1 million in Ginnie transactions.
  • Agency issuance for the year is $38.4 billion, 18% lower than the $46.8 billion for the same period last year.

The Economy, the Fed, and Rates…

Economic Data

  • The economy expanded slower than initially estimated in Q1 2024, with the revised GDP growth rate at 1.3% annualized, down from the preliminary estimate of 1.6% and significantly lower than the 3.4% rate in Q4 2023.
  • Consumer spending grew at a 2% annual rate in Q1 2024, down from 3.3% in Q4 2023 and the preliminary estimate of 2.5%. April data showed a 0.1% decline in inflation-adjusted consumer spending.
  • The core Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, increased by 0.2% in April, marking the smallest gain this year. Core PCE remained steady at 2.8% year-over-year, which aligned with forecasts.

Fed Policy

  • Economists noted that while the April data provides some relief concerning inflation, it's not sufficient for the Fed to commence an easing cycle immediately. The consensus is that more sustained evidence of disinflation is needed before the Fed can confidently adjust its policy stance.
  • "It's not easy to have a high conviction view on the Fed policy because the Fed itself doesn't really know what it is going to do,” said Dean Maki, Chief Economist at Point72. “It really depends on these month-on-month core inflation prints, which have been quite volatile in recent months."
  • The Federal Reserve is expected to maintain its current interest rate target range of 5.25% to 5.5% at its upcoming meeting on June 12th. Investors anticipate a rate cut before the presidential elections in November, with a ~50% chance of the first cut occurring in September.

Treasury Yields

  • Following the PCE data on Friday, the policy-sensitive two-year Treasury yield fell 5 bps, ending the day at 4.87% (down 7 bps overall on the week). The benchmark 10-year yield also dropped 5 bps on Friday, ending the day at 4.50% (up 3 bps overall on the week).
  • Both had surged earlier in the week, with the two-year reaching 4.98% and the 10-year reaching 4.61%.

You can download CREFC’s one-page MarketWatch with statistics covering the economy and the CRE debt capital markets here.

Contact Raj Aidasani (raidasani@crefc.org) with any questions.

Contact

Raj Aidasani
Managing Director, Research
646.884.7566

N/A
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. © 2023 CRE Finance Council. All rights reserved.
Capital Markets Update Week of 6/4
June 04, 2024
The parade of CMBS transactions continued last week with the pricing of six transactions, all SASBs, totaling $3.5 billion.

News

Tax Outlook Series: Election Scenarios

June 4, 2024

Lawmakers are gearing up to take on major tax issues, as several key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire after 2025.

  • In the coming weeks, CREFC will cover political and policy dynamics shaping the conversation, starting with how the election’s outcome will shape the tax debate.
  • CREFC Forums will be considering key tax policies impacting commercial real estate. An email will go out to all forum members after the annual June conference to solicit interest in a tax-focused working group. Click here to ensure you’re registered with a Forum.

Why it matters: Overall, races for the Presidency, Senate, and House could break for either party. Major issues like top corporate and individual tax rates may turn more sharply on the mix of party control, but more targeted tax policy could be nuanced regardless of party dynamics.

Scenarios: The chart below maps out all possible scenarios with a “likelihood” rating from National Journal. Note that while some scenarios may be more likely, the narrow margins in each chamber make any mix of control plausible.

2024 Election Outcome Scenarios

Republicans are currently favored to win the Senate. Democrats are thought to have a slight edge in the House, though many swing district retirements have been Dems, not the GOP. The presidency is essentially a toss-up.

 

One-Party Control Scenarios: Even with complete party control, a President can have difficulty getting priorities passed.

A tax bill can be passed more easily through the “reconciliation process,” which lowers the Senate threshold to a simple majority rather than the 60 votes needed to overcome a filibuster. The GOP used reconciliation to pass the TCJA and Democrats used it to pass the Inflation Reduction Act (IRA).

  • GOP Control: House Republicans have indicated they intend to move quickly on extending the TCJA, possibly as early as February. There could be rollbacks on some IRA-related tax provisions, both on the revenue and spending side. Still, a growing number of populist GOP senators could push for reviving the Child Tax Credit.
  • Dem Control: President Biden is running on raising taxes on corporations and the wealthy, and a unified government would give him some runway to tweak capital gains and wealth taxes. The administration also consistently seeks to roll back 1031 like-kind exchanges for real estate. Housing, climate, and sustainability tax incentives could also be priorities. Even then, moderates Dems in the House and Senate could water down or nix some of the more progressive provisions.
  • In either scenario, the margins in both chambers will matter. A narrow Senate majority could elevate a moderate senator as a key dealmaker. However, Sen. Joe Manchin (I-WV) and Kyrsten Sinema (I-AZ) are retiring, which means a Dem majority will likely be more progressive. Recall that Sinema was a deciding vote on preserving the carried interest tax treatment.

Divided Government: Any scenario with a divided government will both slow down and moderate tax policy.

  • However, the expiration of key TCJA provisions incentivizes action on both sides of the aisle (the Bush Tax Cuts were extended in 2012 with a divided government). Note, the State and Local Tax (SALT) deduction limitation will expire without action. Expect Blue state moderates to leverage their positions to allow its expiration.
  • Beyond the expiring provisions, there is hope for bipartisan action on key priorities. The Smith-Wyden tax bill passed the House this year; it is languishing in the Senate partly due to the GOP senators being cut out of deal-making and partly due to election dynamics.
  • But the strong support in the House, in a sharply partisan Congress, demonstrates there is political appetite for advancing key priorities, even if they are limited in scope.

Expiring Provisions: The mix of expiring TCJA provisions is heavy on the individual side while the business provisions would mainly be the 20% pass-through tax deduction.

  • Individual: The expiring provisions include the elimination of personal exemptions for taxpayers and dependents and increases in both the standard deduction and the size of the child tax credit. Changes to various itemized deductions and the alternative minimum tax will also expire.
  • Business: The expiring provisions affect the expensing of business investment and the 20% deduction for certain business income. Several other provisions related to cross-border business activity are also scheduled to change over the next several years. An employer credit for paid medical and family leave will also expire.
  • Estate Tax: The federal estate tax exemption is $13,610,000 for 2024 but will revert to an inflation-adjusted $5.6 million.

What’s next: Over the summer we’ll cover in more detail the expiring provisions; Biden’s and Democratic tax proposals; Trump’s and Republican tax proposals; and key tax policies for CRE.

Contact David McCarthy (dmccarthy@crefc.org) with questions).

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
Illustration for column about carbon taxes
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. © 2023 CRE Finance Council. All rights reserved.
Tax Outlook Series: Election Scenarios
June 04, 2024
Lawmakers are gearing up to take on major tax issues, as several key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire after 2025.

News

CFIUS Orders First Divestment of Foreign-Owned Real Estate

June 4, 2024

As we’ve previously noted, a number of states have taken action to limit investment in certain U.S. real estate by foreign adversaries. But the federal government is also flexing its authority over foreign ownership, with the first-ever divestment of real estate ordered by the Committee on Foreign Investment in the United States (CFIUS).

Why it matters: The CFIUS process historically empowered the government to order divestment of foreign ownership of U.S. companies when there was a threat to national security.

On May 13, President Biden issued an order that directed the divestment of a cryptocurrency mining facility in Cheyenne, WY, located within one mile of Warren Air Force Base, a strategic missile base and home to Minuteman III intercontinental ballistic missiles.

  • The mining facility ownership structure is majority controlled by Chinese nationals. The purchase of real estate was not submitted to CFIUS for review.
  • CFIUS found that the proximity to the base and the presence of specialized, foreign-sourced electronic equipment presented surveillance and espionage risks to national security. Thus, CFIUS prohibited the transaction.
  • The President ordered that the owners divest their interests, remove certain equipment, and not access the property.

This is the first time the federal government has used FIRRMA to order real estate divestment. As we have previously covered, a number of states have also implemented similar laws to limit foreign adversary investment in sensitive real estate, though the state laws are of questionable constitutionality.

What they’re saying: Members of Congress have also been seeking to expand oversight on foreign ownership of sensitive real estate. A bipartisan bill introduced by Rep. Elissa Slotkin (D-MI) and Rep. Blake Moore (R-UT) would expand CFIUS powers related to real estate investments connected to Russia, China, Iran, and North Korea.

Contact David McCarthy (dmccarthy@crefc.org) with questions).

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
China spying on a a U.S. nuclear missile base in Wyoming
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. © 2023 CRE Finance Council. All rights reserved.
CFIUS Orders First Divestment of Foreign-Owned Real Estate
June 04, 2024
As we’ve previously noted, a number of states have taken action to limit investment in certain U.S. real estate by foreign adversaries.

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