Justin Shepherd
A closer look at the BAM-DOC deal and what it says about investor sentiment
By John B. Mugford
One of Healthpeak’s largest MOBs, the 18-story, 435,784 square foot 3535 Market St. in Philadelphia, is believed to be part of the portfolio of medical outpatient buildings (MOBs) involved in the firm’s recent $2.1 billion joint venture with Brookfield. (Photo courtesy of Newmark)
Perhaps no one involved in healthcare real estate (HRE) is likely to say that New York-based Brookfield Asset Management’s (NYSE: BAM) recent acquisition of a 49 percent share of a $2.1 billion portfolio of medical outpatient buildings (MOBs) owned by Denver-based Healthpeak Properties Inc. (NYSE: DOC) went under the radar.
However, the deal probably didn’t get the attention it deserved. Along with similar recent transactions, it’s a clear sign of just how favorably some of the world’s largest institutional investors and asset managers have come to view the MOB product type.
The BAM-DOC deal entails the formation of the joint venture (JV) partnership between the entities, with Brookfield acquiring a 49 percent interest from Healthpeak of 86 MOBs in 11 states with a total of about 5.6 million square feet of space and valued at about $2.1 billion, with Healthpeak receiving about $1 billion in proceeds. The transaction, it should be noted, involves only a portion of Healthpeak’s overall MOB portfolio, which tops 500 properties.
One person who was quite intimately involved in the deal says that the transaction
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