#United States #Sterling #Reclamation Partners #Fox Capital #Dulles North

Reclamation Partners Expands Portfolio with New Acquisition in Washington, D.C.

In a significant development for the real estate investment scene, Reclamation Partners, in collaboration with Fox Capital Partners (FCP), has announced its latest acquisition—a sizable 42,000-square-foot light-industrial building located at 21955 Cascades Parkway in Sterling, Virginia, which is part of the Washington, D.C. metro area. This purchase not only marks an important milestone for Reclamation but also highlights the increasing demand for logistics properties in this rapidly growing region.

A Prime Location in a Competitive Market

The new facility sits on 5.7 acres of land and boasts multiple access points—11 dock doors and 8 drive-in doors—which enhance its functionality for various logistics operations. The property's strategic position within the Dulles North industrial submarket, known for its congested market conditions, is critical for operations. Currently, the building is fully leased through April 2027, ensuring a steady cash flow for Reclamation before any redevelopment efforts commence.

Matthew McCarthy, Managing Partner at Reclamation, expressed his enthusiasm regarding the acquisition, stating that the location offers a rare balance of limited supply and growing demand. The rising prevalence of data centers has escalated land values beyond traditional industrial development thresholds, essentially curtailing new warehouse constructions while intensifying the need for logistics space. “This acquisition allows us to leverage the data center and artificial intelligence infrastructure growth without the significant capital commitment typically associated with direct investments,” McCarthy explained.

Future Plans for the Property

Once the existing lease term concludes, Reclamation plans to initiate a targeted capital improvement program aimed at modernizing the facility to meet contemporary logistics standards. This repositioning strategy is set to unlock a substantial mark-to-market rent potential, supported by current market fundamentals, including a mere 2.5% vacancy rate in the submarket and a lack of competing supply in the shallow bay segment.

Daniel Connaughton, Managing Partner at Reclamation, remarked, “With its size, adaptability, and prime location, this asset attracts a diverse client base, from businesses catering to the densely populated Northern Virginia area to vendors supporting the booming data center ecosystem. We look forward to enhancing this industrial asset and providing a state-of-the-art logistics facility by 2027.”

Backing from Respected Partners

Reclamation Partners is recognized for its focused approach toward acquiring, repositioning, and managing logistics properties across major markets in the Northeastern United States. The strategy is distinctly informed by the teams’ extensive market know-how and their leadership experiences in investment and development for some of the industry’s foremost institutional real estate investors.

Meanwhile, Fox Capital Partners is a dedicated real estate private equity firm that concentrates solely on the industrial sector, managing funds for value-add acquisitions and collaborating with reliable developers to realize institutional-grade industrial projects.

This partnership marks yet another step for both Reclamation and FCP in solidifying their presence in the dynamic industrial real estate market. As the logistics sector continues to adapt to burgeoning demands in the e-commerce era, such strategic acquisitions will position both firms favorably amidst a competitive landscape.

For more information about Reclamation Partners, visit www.reclamationpartners.com, and for details on Fox Capital Partners, navigate to www.foxcapitalpartners.com.