Kirkland Advises Brookfield on $2.1 Billion Strategic Joint Venture with Healthpeak
Kirkland & Ellis advised Brookfield Asset Management (NYSE: BAM, TSX: BAM) on the formation of a long-term strategic capital partnership with Healthpeak Properties, Inc. (NYSE: DOC) through a joint venture, involving a portfolio of outpatient medical buildings across the United States. The portfolio contributed by Healthpeak is comprised of 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, and is 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. Healthpeak received gross proceeds of approximately $1.025 billion from the sale of the 49% interest, implying a trailing cash capitalization rate of approximately 5.9% and a valuation of approximately $380 per square foot.
Read the transaction press release
The Kirkland team included real estate lawyers Michelle Kelban, Ari Stavsky, Kimberly Lucas, Emily Lewis and Natalia Ortiz; corporate lawyers Adam Larson, Hunter Richey and Ines Tzolov; debt finance lawyers Mary Kogut, Steve Keithley, William Keller and Rob Evans; tax lawyers David Wheat, David Levy, Bill Dong, Jon Nelsen and Grant Solomon; and investment funds regulatory lawyers Nabil Sabki and Matt Davis.
