Inova Health System closed a $97.5 million deal for the Willow Oaks Medical Campus in Merrifield, taking full ownership of two medical office buildings next to its flagship Fairfax hospital.

The acquisition, announced Sept. 23 by commercial real estate firm Newmark, covers 382,850 square feet across two eight-story buildings at 8260 and 8280 Willow Oaks Corporate Drive. The campus sits between Fairfax City and Oakton, immediately adjacent to Inova Fairfax Hospital and Inova's corporate headquarters.

Inova was already the anchor tenant. The health system told FFXnow that owning the buildings will let it keep existing clinics and physician offices in place and expand them, including a planned expansion of pediatric specialty care.

The seller, Los Angeles-based Stockdale Capital Partners, had purchased the property in September 2025 for $70 million. Stockdale sold it for $27.5 million more than it paid a year earlier. When Stockdale announced that purchase in September 2025, the firm said it aimed to convert the buildings into a medical campus serving the Inova Fairfax market, FFXnow reported.

Stockdale had initially planned to sell only one building. Ben Appel, co-head of Newmark's U.S. Medical Office Capital Markets group, said unsolicited bids for both properties emerged during the marketing process.

"Initially we only marketed one of the two twin MOBs, but demand for Willow Oaks resulted in unsolicited bids for both assets," Appel said in Newmark's announcement.

The deal works out to roughly $255 per square foot, according to Hoodline. First-Citizens Bank & Trust Co. issued a $38 million acquisition loan tied to the transaction, Hoodline reported.

Built between 1986 and 1988, the buildings have changed hands several times. The campus sold for more than $125 million in January 2006, according to Fairfax County property records cited by FFXnow. Both buildings have received multimillion-dollar renovations to tenant spaces and common areas in recent years, according to Newmark.

Beyond Inova, current tenants include Fairfax Radiologic Consultants, the Cipriani & Werner law firm, Right at Home, DZYNE Technologies, the Irrigation Association and Metropolitan Healthcare Services, according to Annandale Today. No tenant has commented publicly on the ownership change. Inova has not disclosed whether existing leases will be affected.

The purchase fits into a broader expansion push. Inova is building new hospital campuses in Alexandria and Franconia-Springfield, both expected to open in late 2028. A $161 million emergency department expansion at Inova Fairfax Hospital is also on track for 2028 completion. Across Gallows Road from Willow Oaks, Fairfax County has approved plans for up to 3.8 million square feet of academic, research and clinical space on Inova's Center for Personalized Health campus.

Inova has not announced a timeline for any changes at Willow Oaks.