Inova Health System Acquires Willow Oaks Medical Campus for $97.5 Million in Fairfax, Virginia
Inova Health System has acquired the Willow Oaks Medical Campus, a two-building medical office portfolio in Fairfax, Virginia, from Stockdale Capital Partners for $97.5 million, Newmark announced Sept. 23. The transaction encompasses 382,850 square feet of medical office space at 8260 and 8280 Willow Oaks Corporate Drive in the Merrifield submarket of Fairfax County, implying a gross purchase price of approximately $254.67 per square foot.
Transaction Details and Brokerage Team
Newmark represented the seller in the transaction. The brokerage team included Co-Heads of U.S. Medical Office Capital Markets Ben Appel, Jay Miele and Justin Shepherd, Head of Healthcare Debt John Nero, Senior Managing Director Michael Greeley, and Associate Directors Ron Ott. D.C.-area capital markets Executive Managing Directors Jud Ryan and James Cassidy supported the transaction.
"The competitive process demonstrated strong investor demand for Willow Oaks, with multiple third-party bids," Appel said. "Initially we only marketed one of the two twin MOBs, but demand for Willow Oaks resulted in unsolicited bids for both assets. The Properties are located immediately adjacent to Inova's flagship 923-bed hospital campus."
Inova Health System carries a Moody's Aa2 credit rating. The health system is both the anchor tenant and the new owner of the campus, which also houses a combination of hospital and third-party tenants that Newmark described as creating a healthcare services ecosystem for the surrounding community.
Property Overview and Recent Capital Investment
The Willow Oaks Medical Campus consists of two buildings, each spanning approximately 188,000 square feet. Both properties have received multi-million-dollar capital investment in tenant spaces, common areas and amenities in recent years. The campus sits immediately adjacent to Inova's headquarters and Inova Fairfax Hospital, a 923-bed facility.
The properties benefit from proximity to the Capital Beltway and the Dunn Loring-Merrifield Metro station, and are near Tysons, Washington, D.C., and the Mosaic District, a mixed-use destination offering retail, dining and entertainment.
The two buildings were previously part of the larger Willow Oaks Corporate Center, which historically included a third building at 8270 Willow Oaks Corporate Drive. Stockdale Capital Partners acquired the two-building portfolio and repositioned the assets under the Willow Oaks Medical Campus identity, a strategy reflecting broader investor interest in converting or upgrading well-located suburban office properties for healthcare use.
Strategic Rationale for Inova's Acquisition
The purchase gives Inova direct control over outpatient and physician-office capacity immediately adjacent to its flagship hospital campus rather than leaving that space under third-party ownership. Health systems have increasingly pursued owner-occupier strategies to consolidate outpatient networks and specialty practices surrounding major facilities, and Inova's acquisition follows that pattern.
The competitive bidding process — which expanded from one building to two after unsolicited offers emerged for both assets — underscores continued investor appetite for hospital-adjacent medical office properties. Such assets are viewed as more insulated from the broader pressures weighing on traditional suburban office, where elevated vacancy, tenant downsizing and refinancing challenges have persisted. Medical office properties, particularly those adjacent to major hospital campuses, benefit from healthcare demand that is generally more needs-based than conventional office demand, and the supply of new medical office development remains constrained by high construction and financing costs.
The implied price of approximately $254.67 per square foot is above the roughly $175 per square foot Stockdale paid when it acquired the portfolio, based on a reported $70 million purchase price and approximately 401,000 square feet in that earlier transaction. The difference in reported square footage between the two transactions means the per-square-foot comparison should be treated with caution, as it likely reflects differing rentable-area definitions or changes in portfolio scope. The $97.5 million figure in the Newmark announcement is the controlling source for the current transaction's stated price and size.
About the Parties
Inova Health System is a Northern Virginia-based nonprofit health system. Stockdale Capital Partners is a real estate investment firm. Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate advisory and services firm that reported revenues of more than $3.6 billion for the twelve months ended June 30, 2026, and operates from more than 195 offices with more than 10,000 professionals across four continents.