June 3, 2019Books

USA Regional Real Estate, Delaware Chapter

Chambers Global Practice Guide

1. General

1.1 Main Substantive Skills

As the laws and regulations impacting commercial real estate and the players involved grow more complex every year, the main substantive skills required of real estate lawyers are multiple and varied. The drafting of intricate legal documentation that takes into account such laws and regulations, and the needs and requirements of lenders, outside investors, local government agencies and developers (as well as the necessity to take a practical approach) is essential. In land use matters, the ability to negotiate necessary approvals while remaining sensitive to the many constituencies that influence them is needed. For many transactions, strong working relationships with the government agencies, lenders, and investors involved is key. Real estate law in 2019 requires a team approach, with members of the team being fluent in tax and environmental law, as well as corporate, alternative entity and bankruptcy matters. Recent trends that have impacted most on these skills are the new challenges and opportunities from changes in federal tax law, as well as changing regulations applicable to lenders and common interest community developers.

1.2 Most Significant Trends

The most significant trends in the Delaware commercial real estate market over the last twelve months have included continued robust sale of new single family residential construction in western Sussex County due to an influx of retiree purchasers from other states; very active construction in the hotel and hospitality industry; and large mixed-use residential, retail and office developments in the City of Wilmington and New Castle County. The most significant deals have included the redevelopment of the historic DuPont Building on Rodney Square, including the creation of office and hotel condominium units handled by our firm; the construction of a new arena in Wilmington to be used by the local semi-professional basketball affiliate of the Philadelphia 76ers and for after-school athletic programs and activities, the financing of which was handled by our firm; refinancing of the Midtown Apartments, a multi-use complex in Wilmington, also handled by our firm; and the construction of multiple Wilmington riverfront hotels, with which our firm was involved in several aspects.