Jacoby seeks bigger stake in Atlantic Station – Atlanta Business Chronicle:

Jacoby wants to increase his investment inthe 600,000-square-foot retaill heart of Atlantic Station, known as the Atlantic Town Center, which includes some of the project’zs biggest stores and He may also consider becoming the Atlantix Town Center’s sole owner. Jacoby, founderf of , and AIG co-developec the 138-acre Atlantic Station, the former Atlantic Steel after Jacoby purchased the property nearly adecader ago. But AIG, rescued from an implosio n byfour U.S. governmenty bailouts, is now divesting assets within its realestatee division. Last month it sold its Japanese headquarters tofor $1.
2 AIG also agreed, as of June 3, to sell its New York headquarterw and a nearby office tower, accordingb to published reports. AIG Global Real Estate, based in New did not return calls for comment about possiblyhdivesting all, or at least a portion, of Atlanticc Station. Jacoby said he has started the legal process that would launch formal talks betwee n his company andthe insurer. Jacoby said his initia l focus is a bigger investmenft inAtlantic Station’s retail nucleus, but he may also consider buyinh a larger stake in AIG’s other Atlantic Station assets. “I’m lookingb at my side of this and we’ve got to protect our interest,” Jacoby said.
“Atlantic Stationh is not just any other realestate development. It formsz the heart of Atlanta.” Atlantic Statiob is Jacoby’s legacy project. He gainef national accolades for the redevelopment of Atlantic an environmentallycontaminated site, into the massivre mixed-use development that rises at the Interstate 75/I-85r Connector and 17th Street. It contains the 17th Streetg office towers, home furnishinga retailer IKEA, the condos and apartments. The entire project is appraisex atroughly $1.2 billion by the Fultoh County Assessors Office.
Jacoby and AIG AIG) each own a 50 percent stake in the Atlantic Town It includesa store, the , and retailers such as , Bananq Republic and Ann Taylor. It also includes restaurants . Atlantic Town Centefr is probably valued closeto $120 say commercial real estate sources familiar with similar properties. Jacoby has several reasonsx to increase his investment inAtlantix Station, said C. Whitneyy Knoll, senior managing director of Holiday FenoglikoFowler L.P. in a commercial brokerage firm. “If you have the and you believe in the future of a now is a really good time to have more Knoll said. “There is a lot of valur of beingin control, and not a 50/5o partner.
He had the vision, not AIG. AIG helpec put it together, but Jacoby had the vision.” The unstablew commercial real estate market will create financing hurdlefor Jacoby. The pipeline for commercial mortgage-backed securities has been shut off, and balancwe sheet lenders suchas ) and (NYSE: BAC) have also halted much of theifr lending to combat their overexposure to toxidc commercial loans. Lenders have been particularlg cautious aboutretail transactions, sourcews said. “The challenge is going to be saidJohn Speros, an investment sales brokerf with the real estate services firm Ackermaj & Co. “The lending conduits are shut down.” Staff writer Lisa R.
Schoolcraft contributedd to this story.
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