Jacoby Development, Inc. has taken +/-138 acres in Midtown Atlanta, formerly known as the Atlantic Steel site, and is transforming it into a live, work and play project. When Atlantic Station opens with more than 2 million square feet in September of 2003, this will be just a fraction of what will ultimately be a 12 million-square-foot, $2.2 billion development that will be the model for open-air, mixed-use developments reclaimed from brownfields across the United States.

The origin of Atlantic Station goes back to 1901, when Atlantic Steel was founded as the Atlanta Steel Hoop Company to make cotton bale ties and barrel hoops. It was reorganized into the Atlantic Steel Company in 1915 and expanded its lines over the years. In 1979, Atlantic Steel was acquired by Ivaco, a publicly traded Canadian company headquartered in Montreal.

In May 1997, Atlanta-based Jacoby Development, Inc. (JDI) reached an agreement to purchase the Atlantic Steel site from Ivaco. Under terms of that purchase, Ivaco was responsible for the environmental work on the site and, in conjunction with JDI, it has prepared a Phase I environmental site analysis and a Phase II remediation work plan. On December 31, 1998, the Atlantic Steel Mill ceased operations.

Atlantic Station is located at the nexus of Interstates 75 and 85 in Midtown Atlanta, a central location that is prime for a mixed-use development. A direct connection to the Interstate and the MARTA Arts Center rapid rail transit station via a new multi-modal bridge will allow the new community' employees and residents to live, work and play within the development.

Regional location, alternative transportation options and the development' site design have garnered the attention of the U.S. Environmental Protection Agency (EPA). Through the EPA' Project XL, the Atlantic Steel redevelopment is the first Transportation Control Measure (TCM) of its kind, and the national model for Smart Growth and Brownfield Redevelopment. Approximately 400,000 cars drive by the site each day, and JDI is doing its part to improve Atlanta' air quality by making sure Atlantic Station' air quality is as pure as it can be. Atlantic Station residents are expected to drive an average of 27 miles each day, which is 10 miles less than the regional average.

In December 1999, AIG Global Real Estate, Inc. joined JDI to complete the acquisition of the property and continue the team' progress toward creating a great urban community. Upon completion, Atlantic Station will encompass 1.5 million square feet of retail space, approximately 4,000 residential units, 6 million square feet of office space and 1.5 million square feet of high-tech office space.

"This is truly going to be a city within a city," says Chad Martin, president of Martin, Mantle & Bignon, a marketing firm working with the head of Atlantic Station' retail leasing team, Denver McGarey, president of The McGarey Group. "This project involves an immense undertaking and is going to change the way people think about Atlanta." There will be 10,000 people living in Atlantic Station when it is complete, and 30,000 people will come to work there every day.

In order to make the project unique, JDI and Martin, Mantle & Bignon are striving to bring new tenants to Atlanta, so that the only place shoppers will be able to find certain retailers is at Atlantic Station. "The good news is that everyone wants to be here, in a lifestyle, open-air type of center," boasts Jim Jacoby, president of JDI. "We have a million square feet of names that we' working with right now."

JDI currently has letters of intent from a department store for a 250,000-square-foot, three-story store to anchor the project, as well as a 20-screen theater with stadium seating for 4,000. The company is in negotiations with a hotel developer, for what would be the first of a new brand of convention hotel. JDI is also dealing with a number of specialty stores including the Gap, Gap Kids, Banana Republic, Old Navy, Abercrombie & Fitch and The Limited, as well as gourmet grocery and value-oriented grocery stores.

In addition to the tenant mix, the style and architecture of Atlantic Station is going to set it apart from the competition. Development Design Group (DDG) of Baltimore is serving as the project architect. DDG is working with several retailers to create new looks for their stores. Not only is JDI pushing for tenants to open stores with new designs, the company has found that retailers want to try new concepts at Atlantic Station.

"We have retailers saying, ØWhat can I do here?1" explains Martin. "The bookstore we' working with right now is a perfect example. They1ve worked with our designers so that the entryways have a different feel to them. It's going to be a completely different look for this particular bookstore." Martin adds that they are looking for new ways to do signage, move traffic, and new ideas in the areas of handling waste, security, communication and electrical energy.

Amenities at Atlantic Station include underground parking and red carpet valet service. "We're trying to be edgy and create an upscale place to visit," says Martin. Another unique and extremely important priority for the Atlantic Station team is the attention to the environment. Atlantic Station will offer residents, workers and shoppers two parks: one in the center of the retail shops, and the other with a lake and an amphitheater where concerts can be held. JDI is also working with The PATH Foundation, a non-profit organization dedicated to developing a metro-wide bike and walking trail system for Atlanta.

Atlantic Station will also have a state-of-the-art security program. There will be security cameras, bicycle patrols and potentially an Atlanta police department substation on site. In addition to shopper safety, added security is needed for the approximately 10,000 people that will live there.

In September 2003 the development will open with as many as 200 townhomes. The Lane Companies of Atlanta is also developing multifamily units on the site. The Commons at Atlantic Station will be a $150 million project that will include 1,150 apartment units. "To keep from flooding the market, we're having to ration the number of residential units that will come on line at one time," says Jacoby. "So we' only going to come up with between 1,000 and 1,200 units. We currently have under contract over 15 acres."


©2001 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.