The Committee on Foreign Investment in the United States
("CFIUS") has long scrutinized foreign investments in
U.S. real estate businesses with properties located in close
proximity to sensitive U.S. government installations. Other
investments in businesses of any stripe located in close proximity
to national security assets also got a close look – the most
notorious being a Chinese-controlled investment in wind farms
located near a sensitive Navy facility. That deal was vetoed
by President Obama.
Now comes the Foreign Investment Risk Review Modernization Act
("FIRRMA"), enacted in August of 2018, which greatly
expands the ability of CFIUS to look at real estate
investments. No longer is CFIUS confined to foreign
investments in U.S. businesses and their related real estate.
Now, CFIUS has the authority to look at any purchase of real
estate. Moreover, for the first time, the investment need not
involve the purchase of anything – a lease may trigger
review.
