Photo of Ethan Lamb

Ethan Lamb

Subscribe to Ethan Lamb's Posts

Ethan Lamb is an associate in the Corporate Practice Group in the firm's Washington, D.C. office. He is also a member of the firm's CFIUS Team.

Contact:Read more about Ethan Lamb

As the Committee on Foreign Investment in the United States (CFIUS) continues to expand its jurisdictional reach, investors, property owners, and landlords should be aware of a growing focus on real estate transactions. Bridging a perceived gap between CFIUS’ mandate to safeguard U.S. national security and foreign investment in the U.S. real estate market, the U.S. Department of Treasury recently issued a Notice of Proposed Rulemaking (NPRM) that would strengthen CFIUS’ jurisdiction over real estate transactions. Specifically, the NPRM would greatly expand the list of military installations that could raise national security concerns, empowering CFIUS to review transactions involving the surrounding real estate; and expand the term “military installation” to encompass a larger number of sensitive facilities. These proposed changes are in response to a recent comprehensive assessment conducted by the Department of Defense regarding its military installations, and reflect the perception that real estate transactions in close proximity to sensitive USG facilities may convey strategic advantages to U.S. adversaries.Continue Reading Soil and Security: The Broadening Scope of CFIUS in Real Estate Transactions

While many venture capitalists and private equity sponsors are aware the Committee on Foreign Investment in the United States (“CFIUS”) has authority to review inbound investments in certain sensitive U.S. industries, many transaction parties may be unaware of CFIUS’s jurisdiction to also review the national security risks presented by real estate transactions involving foreign persons. Because real estate transactions do not trigger CFIUS’s mandatory filing requirements, it is uncommon for transaction parties to proactively seek CFIUS review of these deals.Continue Reading Know Thy Neighbor as Thyself: CFIUS Considerations in Commercial Real Estate Transactions

Key Takeaways: The Treasury Department is seeking to equip CFIUS with greater enforcement and oversight authority. These new powers include the ability to request more information from transaction parties and also to assess more significant penalties—in some cases, potentially greater than the transaction value—against companies who fail to comply with mandatory filing requirements or violate mitigation agreements.Continue Reading Treasury Department Proposes to Sharpen the Teeth of CFIUS Enforcement