Healthpeak Properties has sold a non-controlling 49 percent stake in a national portfolio of 86 outpatient medical buildings to Brookfield Asset Management for roughly $1.025 billion, launching a joint venture the healthcare REIT says it can replicate to fund future growth while keeping operational control.
Healthpeak Properties has clinched a $2.1 billion capital partnership with Brookfield Asset Management, selling a 49 percent interest in a coast-to-coast portfolio of outpatient medical buildings while retaining control of the assets. The deal, announced July 20, hands Denver-based Healthpeak roughly $1.025 billion in gross proceeds and gives one of the world’s largest alternative asset managers a foothold in one of commercial real estate’s most sought-after property types.
The portfolio spans 86 properties totaling approximately 5.6 million square feet across 11 states, including Kentucky, Indiana, Pennsylvania, Arkansas, Illinois, Minnesota, New Jersey and New York. It is 95 percent leased with a weighted average remaining lease term of six years, the kind of stable, income-producing profile that has pulled a wave of institutional capital into medical real estate over the past year.
The pricing underscores how aggressively investors are chasing the sector. The transaction implies a valuation of approximately $380 per square foot and a trailing cash capitalization rate of roughly 5.9 percent. Both figures sit well inside prevailing market averages. The average U.S. medical outpatient building traded at $310 per square foot in the first quarter of 2026, according to CBRE’s Q1 2026 U.S. Medical Outpatient Buildings report, while the average cap rate for the property type fell 13 basis points year-over-year to 6.9 percent, the first time it dropped below 7.0 percent since the third quarter of 2024. Healthpeak’s sub-6 percent cap rate signals the premium buyers are willing to pay for scale and quality in the space.
Under the structure, Brookfield and its affiliates hold the non-controlling 49 percent interest, while Healthpeak retains a 51 percent controlling stake and serves as managing member, continuing to provide asset management, leasing, and property management services. The venture is expected to be consolidated on Healthpeak’s financial statements, with Brookfield’s investment recognized as a non-controlling equity interest. Healthpeak also secured a call right, exercisable for a finite window beginning after year seven, to repurchase Brookfield’s interest at a price sufficient to deliver the asset manager a 6.5 percent net annual return, excluding initial transaction expenses.
For Healthpeak, the appeal is long-term capital without surrendering ownership, control, or a share of future upside. The REIT keeps operational command of the buildings and its full participation in their value creation, while pulling more than $1 billion off the table to redeploy elsewhere. For Brookfield, the venture buys entry into a defensive, demographically supported asset class at institutional scale alongside an experienced operator.
“Brookfield’s reputation, scale, and long-term investment approach complement our deep sector expertise and leading operating platform,” said President and Chief Executive Officer Scott Brinker. “This transaction advances our capital allocation priorities and highlights our unique ability to capture the favorable tailwinds driving demand for outpatient care.”
Adam Mabry, chief investment officer of Healthpeak, framed the deal as a template rather than a one-off. The joint venture underscores the company’s investment management capabilities and provides a framework it can replicate as it pursues broader opportunities and deploys capital across its segments, he said.
The timing tracks a sharp rebound in medical real estate investment. Sector investment volume surged 78 percent year-over-year to $2.9 billion in the first quarter of 2026, according to CBRE, lifting the trailing four-quarter total to $13.9 billion. Demand fundamentals remain tight. Medical outpatient occupancy reached 92.5 percent across the top 50 U.S. markets while new construction fell 10 percent year-over-year and now represents just 2.2 percent of existing inventory, according to a June 2026 Cushman & Wakefield report. The firm attributes the durability of the sector to an aging population, with the number of Americans 65 and older projected to grow by nearly 11 million over the next decade.
Those tailwinds help explain why deep-pocketed managers are moving in. “Healthpeak is a recognized leader in healthcare real estate, and we’re excited to establish a long-term strategic capital partnership centered on a portfolio of premier outpatient medical properties,” said Alexander Elawadi, managing partner, real estate, at Brookfield. He added that as real estate companies increasingly seek innovative capital solutions, Brookfield is positioned to structure investments that advance its partners’ objectives while giving its investors access to high-quality real estate.
Brookfield Asset Management manages more than $1 trillion in assets across infrastructure, energy, private equity, real estate, and credit. Newmark acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Brookfield. With a repeatable structure now in hand, Healthpeak has signaled that this first venture may be only the opening move in a broader push to bring outside capital into its platform.
