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

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Jacoby wants to increase his investment inthe 600,000-square-foog retail heart of Atlantic Station, known as the Atlantic Town which includes some of the project’s biggestg stores and restaurants. He may also considee becoming the AtlanticTown Center’w sole owner. Jacoby, founder of , and AIG co-developef the 138-acre Atlantic Station, the former Atlanticd Steel site, after Jacoby purchased the propertyh nearly adecade ago. But AIG, rescuer from an implosion by four U.S. governmentt bailouts, is now divestinh assets within its real estate Last month it sold its Japanese headquarterw tofor $1.2 billion.
AIG also agreed, as of June 3, to sell its New York headquarterd and a nearbyoffice tower, accordingf to published reports. AIG Global Real Estate, baser in New York, did not returh calls for comment about possibldivesting all, or at least a of Atlantic Station. Jacoby said he has started the legal process that wouldc launch formal talks between his company and the Jacoby said his initial focus is a biggerf investment inAtlantic Station’s retail nucleus, but he may also consider buying a larger stake in AIG’ds other Atlantic Station “I’m looking at my side of this and we’ve got to protecf our interest,” Jacoby said.
“Atlantic Station is not just any othefr realestate development. It forms the hearft of Atlanta.” Atlantic Station is Jacoby’sz legacy project. He gained nationak accolades for the redevelopment ofAtlantic Steel, an environmentallh contaminated site, into the massive mixed-use development that risezs at the Interstate 75/I-85 Connector and 17th It contains the 17th Street office towers, home furnishings retailefr IKEA, the hotel, condos and apartments. The entird project is appraised atroughly $1.2 billiob by the Fulton County Assessors Jacoby and AIG (NYSE: AIG) each own a 50 percent stake in the Atlantic Town Center.
It includes a the , and retailers such as , Banans Republic and Ann Taylor. It also includezs restaurants . Atlantic Town Center is probablhy valued closeto $120 million, say commercia real estate sources familiar with similard properties. Jacoby has several reasons to increase his investmenyt inAtlantic Station, said C. Whitneyh Knoll, senior managing director of Holiday FenoglipFowler L.P. in Atlanta, 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 valuwe of beingin control, and not a 50/5 0 partner. He had the vision, not AIG. AIG helped put it but Jacoby hadthe vision.
” The unstablee commercial real estate market will create financintg hurdles for Jacoby. The pipelinee for commercial mortgage-backed securities has been shut off, and balance sheey lenders suchas (NYSE: ) and BAC) have also halted much of their lendinyg to combat their overexposure to toxic commercial loans. Lenderd have been particularly cautious aboutretail transactions, sourcesa said. “The challenge is going to be financing,” said John an investment sales broket with the real estate services firmAckerman & Co. “Thd lending conduits are shut down.” — Staff writeer Lisa R. Schoolcraft contributed to this story.