Medical outpatient buildings have become an important area for CRE investment according to a recent JLL report and a new joint venture between Healthcare Realty Trust and KKR announced this week is an example.

The two companies will jointly own and invest in the property type. Under the terms of the agreement, Healthcare Realty will contribute 12 of its existing properties to seed the JV at a value of $382.5 million, representing a cap rate of approximately 6.6%. KKR will make an equity contribution to the JV equal to 80% of the value of the properties. Healthcare Realty will retain a 20% interest and will manage the JV, as well as continue to oversee day-to-day operations and leasing of the properties. KKR has also committed up to $600 million to the JV to pursue additional acquisitions or contributions of assets.

Healthcare Realty expects roughly $300 million for the dozen seed properties. The two companies will continue looking for and investing in additional buildings.