When are Real Estate Transactions Subject to National Security Review?

The Committee on Foreign Investment in the United States (CFIUS) has been in existence since 1975, but it was not until February 2020 that CFIUS adopted regulations specifically targeting the real estate industry. CFIUS now has the express power to review standalone real estate leases, purchases, sales, and other property transactions that are not part of a larger merger or acquisition. Under certain circumstances, CFIUS can delay, alter, or unwind real estate transactions. In this episode, Gordon Peery, chair of Seyfarth’s Derivatives practice group, joins hosts Eric Greenberg and James O’Brien to discuss the types of real estate transactions that will attract CFIUS review and how to spot CFIUS issues, as well as strategies for managing the risks related to a CFIUS review.