Healthpeak, Brookfield Launch $2.1B Outpatient CRE Venture

Strategic Partnership Shapes Healthcare CRE Landscape

Healthpeak Properties and Brookfield Asset Management have forged a $2.1B joint venture, centered on a diversified portfolio of outpatient medical office properties. The deal involves 86 buildings totaling roughly 5.6M SF in 11 states, with Healthpeak retaining operational control and Brookfield acquiring a 49% non-controlling stake.

The venture highlights a growing trend among healthcare REITs to tap institutional partners for capital while maintaining hands-on management to drive asset performance and value creation.

This partnership arrives as healthcare real estate continues to draw investor attention, driven by secular demand for outpatient services.

According to CBRE’s 2025 Healthcare Real Estate Outlook, medical office occupancy rates have remained resilient, and investor competition for stabilized portfolios has intensified. The transaction also spotlights Brookfield’s strategy to expand exposure to differentiated, income-producing real assets.

The Details

Healthpeak contributed a 5.6M SF portfolio valued at about $2.1B. The portfolio spans Kentucky, Indiana, Pennsylvania, Arkansas, Illinois, Minnesota, New Jersey, and New York.

The buildings are 95% leased and have a weighted average lease term of six years. Brookfield and its affiliates paid $1.025B for a 49% stake. The deal implies a cash cap rate of about 5.9% and a price of $380 PSF.

Healthpeak retained a 51% interest and remains the managing member. It will continue overseeing asset management, leasing, and operations.

The agreement also gives Healthpeak a call option after seven years. It can repurchase Brookfield’s stake at a price guaranteeing a 6.5% annual net return, excluding transaction costs.

Newmark advised Healthpeak on the transaction. Kirkland & Ellis LLP served as Brookfield’s legal counsel.

Healthcare Real Estate Investors Embrace JVs

The joint venture reflects a growing industry trend. Large REITs increasingly use programmatic partnerships to unlock capital.

Several major healthcare landlords now use joint ventures to fund growth. At the same time, they keep ownership of their strongest assets.

JLL’s 2025 Healthcare Real Estate Trends report found medical office JV activity reached a record in 2025. Institutional investors sought stable assets as office and retail fundamentals stayed volatile.

Healthpeak’s structure stands out because it kept management control and secured a long-term call option. Other healthcare REITs could adopt similar capital-raising strategies.

Medical office properties continue posting low vacancy and steady rent growth. As a result, these deals protect REIT assets while delivering dependable income to capital partners.

Why It Matters

Healthpeak and Brookfield completed one of this year’s largest medical office transactions. The deal reflects stronger confidence in outpatient healthcare assets.

CBRE reported US medical office buildings averaged 92% occupancy during Q2 2026. That rate exceeded other office property types.

High occupancy, long-term leases, and healthcare demand supported the 5.9% cap rate. Those factors also justified the $380 PSF valuation.

Brookfield’s investment highlights growing interest from global alternative asset managers. They continue targeting essential real estate with predictable cash flows.

In fact, the company recently generated more than $1B through medical office asset sales, showing a broader strategy to recycle capital while expanding healthcare investments. Healthpeak also unlocked more than $1B without giving up operating control or future upside. That flexibility matters as REITs balance growth with disciplined capital allocation.

The seven-year call option strengthens that strategy. It lets Healthpeak regain full ownership under predetermined financial terms.

More broadly, the transaction reinforces healthcare real estate’s appeal as a defensive investment. Aging demographics and outpatient care continue supporting long-term demand.

What’s Next

Healthpeak plans to use similar joint venture structures across additional assets. The company aims to support growth and diversify its healthcare portfolio.

Institutional investors will likely pursue more healthcare acquisitions. Strong occupancy and reliable returns should increase competition for stabilized portfolios.

Public REITs and alternative managers will also expand long-term partnerships. These structures share risk, align investment horizons, and unlock capital.

Healthcare real estate should remain attractive while capital markets stay selective toward traditional office and retail assets. Outpatient and specialty medical buildings will likely remain the sector’s primary focus.