$7.2B Outpatient Medical Deal to Close Next Year

October 29, 2025

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The Remedy-Kayne Anderson joint venture will become the nation’s largest owner of such properties.

Exterior shot of Highlands Ranch I & II, a medical office property in Highlands Ranch, Colo. — The Remedy Medical Properties and Kayne Anderson Real Estate joint venture acquired three medical office properties in metro Denver in September. While not part of the Welltower deal, Highlands Ranch I & II (pictured above) are among the types of outpatient facilities included in the $7.2 billion acquisition of 296 assets from Welltower. *Image courtesy of Remedy Medical Properties and Kayne Anderson Real Estate*

A joint venture of Remedy Medical Properties and Kayne Anderson Real Estate is acquiring an 18 million-square-foot, 296-asset outpatient medical portfolio across 34 states for $7.2 billion from Welltower as the REIT shifts its primary focus to senior housing. The blockbuster deal makes the Remedy and Kayne Anderson Real Estate partnership the largest owner of outpatient medical buildings in the U.S.

The transaction is being split into multiple tranches that began with the sale of 123 properties for $2 billion this month. The closings will continue through mid-2026. Once the acquisitions are completed, the partnership will own more than 52.4 million square feet across 1,104 properties in 44 states. The portfolio is 94 percent leased.

As part of the transaction, Remedy will assume all operational responsibilities from Welltower, including property management and leasing. The firm will also add 170 new employees, expanding its team to more than 500 nationwide.

Welltower is expected to receive net aggregate proceeds of approximately $6 billion following the reinvestment of a portion of the gross proceeds into a preferred equity position and profits interest in the portfolio. Welltower stated the structure allows it to maintain upside participation in the long-term performance of the portfolio while unlocking capital for redeployment into higher-growth senior housing opportunities. Following the transaction, Welltower said its retained portion of the outpatient medical portfolio will consist almost entirely of long-term triple-net leases without a property management component.

Welltower announced its shift in strategy—dubbed Welltower 3.0—as part of its third-quarter earnings report released Monday. In addition to disposing much of its outpatient medical assets, the REIT has closed or is under contract to acquire more than 700 senior housing communities valued at about $14 billion across the U.S., U.K. and Canada.

Expanding size and scale

While the parties did not disclose locations of any of the assets in the portfolio sold in the first or upcoming tranches, Remedy officials noted the acquisition expands its holdings in size and scale by nearly 60 percent. The deal expands the partnership’s footprint in several major markets across the country. Tenants were not identified but are reportedly among the best health systems and providers in the industry.

Consistent with broader medical office building trends, outpatient medical real estate continues to demonstrate strong, durable fundamentals that are supported by demographic trends and the shift toward cost-effective community-based care, according to David Selznick, chief investment officer of Kayne Anderson Real Estate. He stated the transaction enhances the quality, diversity and scale of the firm’s medical office portfolio and puts it in a position to capture ongoing sector growth through the partnership with Remedy.

Volumes at outpatient facilities are expected to increase by 26 percent over the next decade, according to a Savills white paper that cited data from Sg2, a Vizient company. Much of the demand, which increasingly occurs in outpatient locations like physician offices, clinics and ambulatory surgery centers, is driven by the country’s aging population.

A growing partnership

The mega-deal marks a milestone in the decade-long partnership. In September, the partnership acquired three medical office buildings in metro Denver in two separate transactions. The deals include the 152,858-square-foot Highlands Ranch I and II in Highlands Ranch, Colo., and the 39,300-square-foot Mineral Medical Plaza in Littleton, Colo.

Earlier this year, the duo acquired Calhoun Health Center, a 23,805-square-foot medical outpatient facility in Brookfield, Wis. In May 2024, the partnership purchased a 37-property, fully occupied medical office portfolio with more than 700,000 square feet across 13 states for $252 million from Broadstone Net Lease.

Advisors, financing for outpatient deal

The acquisition was financed by two separate mortgage loans, but the amounts were not disclosed. One facility was led by Capital One, National Association as sole bookrunner and joint lead arranger, with Ally Bank, J.P. Morgan and Truist Securities also serving as joint lead arrangers with BMO Bank N.A. as participant. The other facility was led by Citigroup Global Markets Inc. as bookrunner and lead arranger, with J.P. Morgan and Goldman Sachs serving as participants.

Citigroup Global Markets Inc., J.P. Morgan and Truist Securities Inc., served as financial advisors to Remedy Medical Properties and Kayne Anderson.