#United States #Chantilly #Fox Capital Partners #Reclamation Partners #Dulles Corridor

Reclamation Partners Expands with Major Facility Acquisition in Washington, D.C.

In an exciting development within the real estate sector, Reclamation Partners has announced the acquisition of a substantial light-industrial facility located in Chantilly, Virginia, nestled within the competitive Dulles submarket of Washington, D.C. The acquisition, achieved in partnership with Fox Capital Partners, involves a remarkable 101,587 square feet of operational space that promises to significantly enhance the investment portfolio of Reclamation Partners.

Details of the Acquisition

The new property spans an impressive 8.7 acres, featuring essential infrastructure, including 12 dock doors and a 22-foot clear height. This facility is viewed as a fully stabilized asset, boasting a weighted average lease term of 4.1 years, which secures solid cash flow for Reclamation Partners.

Notably, the building is fully leased, split between two esteemed tenants: MFG One and Penske Automotive Group. MFG One occupies 76,587 square feet of the facility under a five-year sale-leaseback agreement, demonstrating a focused commitment to their specialized manufacturing processes. Meanwhile, Penske Automotive Group, occupying 25,000 square feet, has recently made significant investments into developing fleet maintenance capabilities on-site, reinforcing their long-term dedication to this location.

A Strategic Move in a Competitive Market

The acquisition marks the second such investment Reclamation has made in the Dulles corridor in just two months, reflecting the firm’s deep confidence in the area’s market potential. Matthew McCarthy, the Managing Partner at Reclamation Partners, has stated, "This acquisition allows us to secure a cash-flowing asset at a meaningful discount to replacement cost, which is particularly advantageous in a tightening supply market."

Both MFG One and Penske have demonstrated a commitment to embedding their operations within the facility, ensuring a consistent and reliable income stream for Reclamation. Daniel Connaughton, another Managing Partner at Reclamation, emphasizes this point: "The strength of this deal starts with the tenancy. Both tenants have made substantial investments, creating a robust operational presence that enhances the asset's value."

Opportunities Ahead

Reclamation Partners is known for its strategic approach to real estate investment. The firm focuses on acquiring, repositioning, and managing logistics assets in high-demand markets predominantly in the Northeast U.S. Their strategy hinges on profound market insights and extensive experience in leading investment and development teams for some of the largest institutional real estate investors globally.

In a marketplace characterized by high population density, fragmented ownership, and aging inventory that requires modernization, this acquisition cements Reclamation's commitment to enhancing its Northern Virginia portfolio and positioning itself strategically for future growth.

The collaboration with Fox Capital Partners, a private equity firm exclusively focused on the industrial sector, ensures that Reclamation can tap into significant industry knowledge and resources, further strengthening their capital for future developments.

For anyone interested in Reclamation Partners, you can learn more about their unique investment strategy and acquisitions by visiting www.reclamationpartners.com. Similarly, for insights on Fox Capital Partners, details can be found at www.foxcapitalpartners.com. As they continue to expand, these firms exemplify the dynamic nature of the industrial real estate market and its capability to meet evolving economic demands.