Healthpeak enters into $236M JV with Breakthrough Properties

Healthpeak Properties announced that it has formed a new strategic joint venture with Breakthrough Properties through a sale of a 65% interest in Healthpeak’s fully leased Callan Ridge lab campus in the Torrey Pines submarket of San Diego. The formation of the 65% Breakthrough / 35% Healthpeak joint venture values Callan Ridge at $236 million, or $1,275 per square foot, and represents a stabilized cash capitalization rate of 5.3% based on the initial annual rental rate of approximately $67 per square foot. “This strategic recapitalization was a unique opportunity to partner with Breakthrough, crystallize significant development value creation, and accretively recycle capital back into our business,” said Scott Brinker, President and Chief Executive Officer of Healthpeak. “The strong pricing highlights the underlying demand for our lab assets and allows us to recapture our initial invested capital, while still retaining a 35% interest in the trophy campus. We are excited about the partnership with Breakthrough and look forward to growing the relationship over time.”