Atlantic Station, which the company has been involved with since 1999, has been in the works for more than a decade. AIG partnered with locally based developer Jacoby Development Inc. to build the initial stages and is now the sole developer of the master plan, which includes six million sf of class A office space, two million sf of retail and entertainment, 5,000 residences and 1,000 hotel rooms.

"When we talk about [Atlantic Station], it's developed by AIG Global Real Estate," says Brian Leary, VP of AIG Real Estate Investment Corp. AIG Global is a New York City-based entity that is comprised of a group of international companies within AIG Investments. "Atlantic Station is unaffected by any of the current AIG parent company issues. It is fully funded and construction is under way and will continue," Leary tells GlobeSt.com.

AIG and the brokers that work on the various aspects of Atlantic Station assure that the project is not at risk, and that's a good thing because there is a lot at stake with the development. Currently, Atlantic Station's 2,600 residences are more than 95% occupied, including apartments, condominiums and single-family homes.

An additional condo tower to include 400 upscale luxury condos, called The Atlantic, is currently under construction. That building is being developed as a joint venture with Atlanta-based Novare Group and doesn't deliver for another year. A 100-room hotel in Atlantic Station called Twelve Hotel was also developed and is managed by Novare.

In addition, 1.3 million sf of retail and entertainment are complete, according to Stephanie Ives, leasing specialist with the Shopping Center Group, the exclusive agent for Atlantic Station's retail component. The project includes tenants like Dillard's, Target, Regal Cinemas, a 366,000-sf Ikea home furnishings store and the project's newest tenants: a 25,000-sf H&M flagship store and Premier Exhibitions, which is bringing a new show from Europe called "Dialogue in the Dark" to its 23,000 sf. The entire retail portion is 93% leased, says Ives.

"We have not seen any effect as of yet regarding the financial industry and what's going on in the economy at this time," Ives tells GlobeSt.com. "We have national retailers looking at the [20,000-sf] space we still have available and have had really strong interest." Average rents at the center are in the mid-to-high $30s per sf, she adds.

[IMGCAP(2)]The office component of Atlantic Station consists of Wachovia Tower, a 510,000-sf, LEED-certified building that is fully leased and was recently sold to JP Morgan, and 201 17th St., a 350,000-sf LEED "gold" building completed last year that is about 50% leased to tenants including Newmark Knight Frank Global Real Estate, the law firm of Nelson Mullins Riley & Scarborough, and Regus. A third building, 271 17th St., totaling 500,000 sf is currently under construction to be delivered in March 2009 and is already 50% preleased, anchored by BB&T Bank.

According to AIG's Leary, the residential and office building under construction are already funded and the remainder of the residential and office components of the project will take the next ten years to be built up. The majority of retail is already built, he says, and what will be added will be part of the mixed-use components, such as the office buildings.

Local brokers are confident that AIG's current situation will not affect the current state of Atlantic Station, but are worried that it could stunt future development plans. "From my perspective, I see there being a problem not so much with Atlantic Station as it sits today, but in order for them to make the money they're looking for, they need to continue development and they may not be able to do that now," says Steven Barton, senior vice president with CB Richard Ellis in Atlanta. He says that the project has been hugely successful and doesn't imagine anything negative happening to it, but adds that "what's happening today is unprecedented, and I think there's still more to come."