Healthpeak Properties (NYSE: DOC) and Brookfield Asset Management (NYSE: BAM, TSX: BAM) have formed a joint venture involving a portfolio of 86 outpatient medical buildings across the United States, valued at approximately $2.1 billion, according to a press release.

The portfolio totals approximately 5.6 million square feet spread across 11 states, including Kentucky, Indiana, Pennsylvania, Illinois, and New York. The properties are 95% leased with a weighted average remaining lease term of six years.

Brookfield holds a non-controlling 49% interest in the venture, while Healthpeak retained a 51% controlling interest and serves as managing member. Healthpeak received gross proceeds of approximately $1.025 billion from the sale of the 49% stake, implying a trailing cash capitalization rate of approximately 5.9% and a valuation of approximately $380 per square foot.

Healthpeak retains a call right, exercisable for a finite period beginning after year seven, to repurchase Brookfield's interest at a price sufficient to provide Brookfield with a 6.5% net annual rate of return, excluding initial transaction expenses.

The venture is expected to be consolidated on Healthpeak's financial statements, with Brookfield's investment recognized as a non-controlling equity interest. Healthpeak will continue to provide asset management, leasing, and property management services for the portfolio.

"This transaction advances our capital allocation priorities," said Scott Brinker, President and Chief Executive Officer of Healthpeak.

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