Brookfield, Healthpeak Form $2.1B Medical Office Joint Venture

Brookfield Asset Management has expanded its healthcare real estate portfolio by acquiring a 49% interest in a $2.1 billion medical office joint venture with Healthpeak Properties, providing the healthcare REIT with more than $1 billion in long-term capital while allowing it to maintain operational control.

As part of the transaction, Denver-based Healthpeak contributed an 86-building outpatient medical office portfolio that is 95% leased. The company will retain a 51% controlling stake in the venture and continue overseeing leasing and property management.

The portfolio spans 5.6 million square feet across 11 states, including New York, New Jersey, Illinois, Pennsylvania, Indiana, Kentucky, Arkansas, and Minnesota. Under the agreement, Healthpeak will have the option to repurchase Brookfield’s ownership interest after seven years at a 6.5% annual net return.

 “The deal supports the company’s capital allocation strategy while positioning it to benefit from growing demand for outpatient healthcare services,” said Healthpeak CEO Scott Brinker. “The transaction enables Healthpeak to secure long-term funding without giving up ownership or day-to-day management of the assets.”

The investment follows Healthpeak’s strategic shift earlier this year. In March, the REIT completed the spin-off of its senior housing portfolio into a separate company, sharpening its focus on outpatient medical offices and life sciences properties. As of March 31, the company owned 688 outpatient medical and laboratory properties.

Brookfield said the partnership reflects increasing demand from real estate owners for flexible capital solutions.

“The firm aims to structure investments that help partners meet strategic objectives while providing investors access to high-quality real estate assets,” said Alexander Elawadi, Brookfield’s Managing Partner of Real Estate.

The joint venture is part of a broader investment push by Brookfield. The asset manager raised $112 billion in 2025, including $13.3 billion dedicated to real estate. Last month, the company also closed approximately $900 million for its second real estate fund focused on recapitalizations and equity investments.

Separately, Brookfield and the Canada Pension Plan Investment Board announced plans to acquire LXP Industrial Trust in a $5.2 billion deal that will take the industrial REIT private. The acquisition underscores continued investor confidence in the recovering U.S. industrial real estate market.

Source: Bisnow