Healthpeak, Brookfield Launch $2.1B Outpatient Medical JV

Healthpeak Properties, Inc. and Brookfield Asset Management on Monday announced the formation of a joint venture involving a portfolio of outpatient medical buildings across the U.S. The portfolio contributed by Healthpeak includes 86 properties totaling approximately 5.6 million square feet, valued at approximately $2.1 billion.

The portfolio is diversified across 11 states, including Kentucky, Indiana, Pennsylvania, Arkansas, Illinois, Minnesota, New Jersey and New York. It’s 95% leased with a weighted average remaining lease term of six years.

Brookfield and its affiliates own a non-controlling 49% interest in the venture. Healthpeak retained a 51% controlling interest and serves as managing member, providing asset management, leasing and property management services. The transaction provides Healthpeak with long-term capital while preserving ownership, operational control and continued participation in the portfolio’s future value creation.

“This joint venture underscores the differentiated platform Healthpeak has built and highlights our investment management capabilities,” said Adam Mabry, CIO of Denver-based Healthpeak. “It also provides us with a framework to replicate as we pursue broader investment opportunities and deploy capital across our segments.”

Newmark acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Brookfield.