Business & Tech
Inova Acquires Willow Oaks Medical Campus In $97.5M Deal
Inova Health System acquired the two-building Willow Oaks Medical Campus near Inova Fairfax Hospital for $97.5 million.
FAIRFAX CITY, VA — Inova Health System has acquired the Willow Oaks Medical Campus near its flagship hospital in Fairfax for $97.5 million, according to commercial real estate firm Newmark.
The sale includes two medical office buildings totaling 382,850 square feet at 8260 and 8280 Willow Oaks Corporate Drive. Inova purchased the portfolio from Stockdale Capital Partners, Newmark announced Sept. 23.
The properties are in the Merrifield area, between Fairfax City and Oakton, immediately adjacent to Inova Fairfax Hospital and Inova's headquarters. The location also provides access to the Capital Beltway and Dunn Loring-Merrifield Metro station and is near the Mosaic District and Tysons.
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Inova Already Anchors Medical Campus
Inova already serves as an anchor tenant at Willow Oaks, which includes a mix of hospital-affiliated and third-party medical tenants, according to Newmark. Each building contains approximately 188,000 square feet and has received millions of dollars in improvements to tenant spaces, common areas and amenities in recent years.
Newmark said investor interest in the property expanded the transaction from what initially was planned as the sale of only one of the two buildings.
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"The competitive process demonstrated strong investor demand for Willow Oaks, with multiple third-party bids," Ben Appel, co-head of U.S. Medical Office Capital Markets for Newmark, said in the release.
"Initially we only marketed one of the two twin MOBs, but demand for Willow Oaks resulted in unsolicited bids for both assets," Appel said. "The Properties are located immediately adjacent to Inova's flagship 923-bed hospital campus."
Newmark's U.S. Medical Office Capital Markets and Washington-area capital markets teams represented the seller in the transaction.
The $97.5 million acquisition gives Inova ownership of the medical office portfolio next to its Fairfax hospital campus. The Newmark release did not disclose additional plans by Inova for the properties.
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