Inova Health System has bought the two office buildings that make up Willow Oaks Medical Campus in Fairfax for $97.5 million, turning the health system from a longtime tenant into the outright owner of nearly 383,000 square feet of space next to its flagship hospital. The seller, Stockdale Capital Partners, had owned the property for barely a year, having paid $70 million for it in September 2025.
That one-year turnaround netted Stockdale a $27.5 million gain, according to FFXnow. Stockdale had originally acquired the twin buildings from Bridge Investment Group, and per reporting from CommercialSearch, the deal broke down to roughly $254.67 per square foot across the 382,850-square-foot campus. Newmark brokered the sale, with Ben Appel, Jay Miele, Justin Shepherd, John Nero, Michael Greeley and Ron Ott representing Stockdale, alongside Newmark's Jud Ryan and James Cassidy, who worked the deal as well, per CommercialSearch. First-Citizens Bank & Trust Co. issued a $38 million acquisition loan tied to the transaction, the outlet reports.
A Deal That Grew Beyond Its Original Scope
Stockdale had initially planned to market only one of the two Willow Oaks buildings, but the plan changed once unsolicited bids started rolling in for both properties, FFXnow reports, citing intense institutional demand for space sitting right next to Inova's flagship campus. Appel noted that multiple competing third-party bids emerged during the marketing process, according to the same report.
Willow Oaks I and II were built between 1986 and 1988, rising eight stories each, with Willow Oaks I measuring 182,469 square feet and Willow Oaks II measuring 205,002 square feet, per CommercialSearch. The buildings sit at 8260 and 8280 Willow Oaks Corporate Drive in Fairfax, near U.S. Route 50, Interstate 495 and U.S. Route 29. The campus previously sold for more than $125 million back in January 2006 before cycling through subsequent resales over the following two decades, FFXnow notes.
From Tenant to Owner Next to the Region's Busiest Hospital
Inova was already the anchor tenant at Willow Oaks before the sale, leasing space there for general surgery, developmental pediatric care and other specialty outpatient services, according to FFXnow's reporting. Other tenants at the campus include DZYNE Technologies, ATSG Corp., the Irrigation Association and Fairfax Radiology Centers, per CommercialSearch.
The campus sits directly adjacent to the 923-bed Inova Fairfax Hospital, Northern Virginia's largest hospital and home to the region's only adult Level 1 Trauma Center and a Level IV Neonatal Intensive Care Unit, according to Inova Health System. Inova operates as Northern Virginia's largest non-profit healthcare network overall, running five hospital campuses with more than 1,800 licensed beds and employing over 18,000 healthcare workers, per Inova.
Just east of Willow Oaks across Gallows Road sits Inova's 117-acre Center for Personalized Health campus, where Fairfax County has approved plans for up to 3.8 million square feet of academic, research and clinical space, according to Annandale Today. That campus includes a research partnership with the University of Virginia, per the same report — placing the newly acquired Willow Oaks buildings inside an increasingly dense cluster of Inova-controlled medical and research real estate in Merrifield.
Buying Instead of Building Skips a Lengthy State Review
Under Virginia's Certificate of Public Need law, acquiring existing medical office real estate lets health systems expand outpatient services and administrative space without going through the state's formal six-to-seven-month COPN batch review process, which covers a range of identified medical-care projects and services, including general acute-care, perinatal, diagnostic imaging and cardiac services, according to the Virginia Department of Health. That distinction helps explain why buying an existing office campus next to a hospital can move faster than adding new licensed capacity.
The purchase also lands amid a broader run-up in medical office pricing across the region. Average sales prices for medical office properties in the Washington, D.C., and Suburban Maryland submarket hit $242.92 per square foot during the first eight months of 2026, a 30.3 percent jump from $186.44 per square foot over the same stretch in 2025, according to Commercial Property Executive. Nine medical office assets changed hands across the metro area through August 2026, the outlet reports. In a separate deal within that same window, Thomas Park Investments acquired a four-property, 165,637-square-foot medical office portfolio for $70 million from Stewart Investment Properties, with properties located in Washington, D.C., McLean, Virginia and Easton, Maryland, per CommercialSearch.
Part Of A Multibillion-Dollar Building Spree
Inova is also undertaking regional hospital construction projects, including new hospital campuses in Alexandria and Franconia-Springfield slated to open in late 2028, according to FFXnow. Inova's CEO has pointed to healthcare construction as a major driver of Northern Virginia's regional economy, the outlet notes.
The campus includes nonmedical tenants such as DZYNE Technologies and ATSG Corp., alongside Inova's existing leases for general surgery, developmental pediatric care and other specialty outpatient services.
