Reclamation Partners & Fox Capital JV Buy Washington, D.C. Industrial Property in Dulles Submarket

Boston-based real estate investment firm Reclamation Partners (Reclamation) and Pittsburgh-based real estate investment firm Fox Capital Partners recently announced the off-market acquisition of a light-industrial building located in the Dulles North industrial submarket.

The property, located at 21955 Cascades Parkway in Sterling, Va., incorporates more than 42,000 square feet of Washington, D.C. industrial space and is situated on a nearly six-acre lot.

“At 42,000 square feet, this asset sits squarely in the deepest segment of tenant demand in northern Virginia,” said Daniel Connaughton, managing partner at Reclamation. “The property’s size, functionality, and location appeal to a wide range of users — from businesses serving the dense consumer base in northern Virginia and the District to vendors supporting the expanding data center ecosystem. We are excited to add this infill industrial asset to our portfolio and deliver a modernized logistics facility to the market in 2027.”

Representing a value-add acquisition in one of the nation’s tightest industrial markets, the single-tenant property is 100% leased through April of next year. This existing lease provides stable in-place cash flow prior to repositioning. The new owners have also announced plans for a targeted capital improvement program that will deliver a clean, modernized, and highly functional logistics property in order to capture a sizeable mark-to-market rent opportunity.

“The Dulles submarket offers a rare combination of supply insulation and structural demand growth,” said Matthew McCarthy, managing partner at Reclamation. “Data center development has driven land values well beyond what traditional industrial developers can justify, effectively eliminating new warehouse supply while simultaneously increasing demand for supporting logistics space. This acquisition allows us to benefit from the data center and AI infrastructure buildout without the high capital commitment or single-use risk of direct participation.”

In 2025, there were nearly 31 million square feet of data center starts, according to data analyzed for our national industrial report. Washington, D.C. — which incorporates the largest data center corridor in the country — had 6.1 million square feet under construction as the leading market in data center development at the start of February.