DuPont Co. has signed a letter of intent to sell Chestnut Run buildings and land to Delle Donne Associates, a locally-based real estate development firm.
A portion of the campus will be redeveloped into a mixed use project with retail, office and residential space.
Chestnut Run is near DuPont’s former Barley Mill site, which is being redeveloped into a mixed use center that will include a new Wegmans supermarket.
The announcement came in a letter to employees from Daryl Roberts, DuPont chief operations & engineering officer
Roberts wrote that DuPont expects to “close on the agreement by the third quarter of 2020. DuPont will continue to own what is referred to as Chestnut Run Offices (Buildings 720, 721, 722, 723, 730, 735, the Pavilion and parking deck) after this sale, and will continue to occupy Buildings 702 and 708 through a lease agreement with Delle Donne.
Roberts said Delle Donne “will work with us as a strategic partner to redevelop the space and transform it into an extremely attractive area that will include R&D labs and offices, retail, residential and public common space.”
Delle Donne has been expanding rapidly with the purchase of the former AstraZeneca campus in north Wilmington, now known as Avenue North; the acquisition of the Christiana Executive Campus south of Newark; and the development of a portion of the University of Delaware STAR Campus (the former Chrysler plant).
“DuPont has been part of the fabric of the Wilmington community for almost 218 years and we look forward to many more years to come,” Roberts wrote.
According to Roberts, DuPont conducted a “rigorous analysis” as a way to balance office and lab space with the current headcount.
The work has already led to “additional capital investments in the Experimental Station, colocation of our business commercial and technology teams at the site, and the planned modernization of Building 702,” Roberts wrote.
The study showed excess office capacity at Chestnut Run and led to a plan to reduce the company’s footprint.
“Most importantly, we’re invested in creating a long-term presence where our employees use their time, talent and resources to improve our communities, enhance and protect the natural environment, and promote economic development in the places we call home,” Roberts wrote.
“Wilmington and surrounding New Castle County is and will continue to be home to DuPont. We have an exciting and vibrant campus in Chestnut Run that offers our employees the opportunity to grow. I’m looking forward to updating you on our progress,” Roberts concluded.