Inova Health System is making the jump from tenant to property owner at a pair of medical office buildings near its main Fairfax hospital campus.
The nonprofit health care provider has acquired the Willow Oaks Medical Campus at 8260 and 8280 Willow Oaks Corporate Drive in Merrifield for $97.5 million, the commercial real estate advisor Newmark announced yesterday (Wednesday).
Newmark helped arrange the deal as a representative of the seller, Stockdale Capital Partners, a Los Angeles-based commercial real estate firm that had bought the property just a year ago on Sept. 22, 2025 for $70 million.
Constructed in the 1980s, the two eight-story buildings have changed hands a number of times over the past two decades, with the sales price peaking at over $125 million in January 2006, according to Fairfax County property records.
When announcing its acquisition of the Willow Oaks buildings last year, Stockdale Capital Partners indicated that it planned to continue leasing office space to medical providers with a goal of “ultimately converting the two buildings to a medical campus, serving the Inova Fairfax medical market.”
Inova is already an anchor tenant at the campus, where it provides general surgery, developmental pediatric care and other health services.
Stockdale had initially planned to sell just one of the buildings, but interest was so strong that it ended up receiving unsolicited bids for both of them, according to Ben Appel, one of Newmark’s co-heads of U.S. medical office capital markets.
“The competitive process demonstrated strong investor demand for Willow Oaks, with multiple third-party bids,” Appel said in a press release. “Initially we only marketed one of the two twin [medical office buildings], but demand for Willow Oaks resulted in unsolicited bids for both assets.”
He noted that the site is located just north of the 923-bed Inova Fairfax Hospital campus. Inova’s Center for Personalized Health is also just to the east across Gallows Road.
“Inova ultimately emerged as the buyer, underscoring its strategic importance within the health system’s broader footprint,” Appel said.
According to Newmark, each of the Willow Oaks buildings spans approximately 188,000 square feet and has undergone recent “multi-million-dollar” renovations updating their tenant spaces, common areas and amenities in recent years.
An Inova spokesperson didn’t respond by press time to an inquiry about the plans for the newly acquired properties, but the health care provider has been busy expanding its services throughout Northern Virginia.
In addition to building new hospitals expected to open in Alexandria and Franconia in 2028, Inova has been adding to the emergency department at its flagship Fairfax campus. After a first phase of improvements, including a new mental health unit, opened in November 2024, the full $161 million project is on track for completion in 2028.
