Teresa Caldwell was driving through Midtown three years ago when a construction site caught her attention. "I wrote down the number and called my broker, who told me it was going to be the new hot area," she said.

Fast-forward to a rainy day in October 2005, when people spilled onto the streets for the grand opening of Taste Clothing Boutique, her new store in what was by then known as Atlantic Station.

Photos by MIKKI K. HARRIS/Staff (ENLARGE)

A designer handbag is among the upscale offerings at Taste Clothing Boutique. "When my customers come in my store, they are looking for the hottest thing and the newest thing," says owner Teresa Caldwell.

(ENLARGE)

Taste Clothing Boutique owner Teresa Caldwell (top) embraces staffer Jessica Nash after the store's opening.

(ENLARGE)

Lynette Stinson checks out the styles at K-La. "I can get clothes that not everyone else has on," she says of the store.

(ENLARGE)

Sean Phillips of New York browses the shirt selection at K-La boutique in Atlantic Station

City Walk: A different approach Around the same time as Atlantic Station was opening in Midtown, City Walk popped up in Sandy Springs. Its Boutique Row was created as a destination for smaller store owners. But it didn't start out that way. "This was 100,000 square feet for a traditional grocery-anchored shopping center," said Bill Worthington, a partner in Maxwell Properties, the developer of City Walk. "Because of the surrounding residential development, we saw a need for a retail community marketplace." Instead of a strip mall with a Publix, City Walk became a collection of upscale stores catering to residents who would no longer have to trek to Buckhead or Virginia-Highland to shop. Clothing boutiques such as Fab'rik, Chelsea Parkes, Sandpiper and Potpourri have gained a strong following in an area where the most recognizable national brand is a Baskin Robbins ice cream parlor. But Worthington is clear on one point: What worked for City Walk may not work for other areas. It's a complex equation of factors ranging from demographics to the placement of a street light that can determine the success or failure of a retail development. And when something works, he said, the temptation is to try to duplicate it. "You just have to make sure you have all the ingredients before you bake the cake," Worthington said. "Otherwise it will come out flat."

Caldwell, mother of Atlanta rapper Bow Wow, was the sole boutique owner in a multimillion-dollar residential, retail and commercial district dominated by big brand-name stores. It helped that she already owned a boutique in Duluth. She also had a celebrity clientele that frequented the new location for premium denim and fashion-forward brands.

"Down here, you really have to push the merchandise," Caldwell said. "Now, when my customers come in my store, they are looking for the hottest thing and the newest thing. A boutique should be a trendsetting store."

At Atlantic Station, Caldwell was a pioneer.

"To build something like Atlantic Station, you have to have the national brands, known in the industry as 'credit tenants,' " said Brian Leary, vice-president of design and development for Atlantic Station. The presence of stores such as Ann Taylor, Banana Republic and Victoria's Secret helped make investors feel secure about funding such a large project.

But roughly a year after its arrival, Atlantic Station is beginning to evolve into a neighborhood with more diverse shopping options. "We absolutely want to be part of [the boutique scene]," said Leary. "We don't want to be the same retail establishment you have everywhere else." In September, K-La, a mid-priced men's and women's clothing and accessories store, made its debut. By the end of the month, Knitch, an upscale lifestyle store for men and women, will open for business.

"Everyone knew Atlantic Station was going to take off and become something big, but they wanted it to take off first before coming in," said Juliana Mesquita, who co-owns K-La with her two siblings. Mesquita said they had made repeated attempts to enter Atlantic Station, but there was always another boutique with a similar focus vying for the 25 percent of the total retail space reserved for local and regional businesses.

Once K-La was granted entry, Mesquita said she never had a second thought. "I'd rather be one of the first ones [here] and be established than want something later that I couldn't have," she said.

Located next to Ann Taylor, K-La is the most inexpensive boutique of the three. It offers trendy brands such as Juicy Couture and Frenzii for women or Ben Sherman and Monarchy for men, with merchandise priced $100 or less. Since the store's Sept. 15 opening, sales have been fantastic, said Mesquita, who also co-owns a location at the Forum on Peachtree Parkway.

Shoppers also appear enthusiastic about the arrival of more boutiques.

"Some people look for different and unique things," said Summer Gourdine, 29, of Clayton County. "It kind of reminds me of New York, that's why I like it."

Creating a balance

Back when Atlantic Station was still a rendering on paper, it was reasonable for a boutique owner to worry about getting lost in the cluster of national chain stores.

Today, with only 30 percent of the development built out, Atlantic Station attracts about 150,000 visitors a week, said Leary. The area is home to about 2,000 residents; another 1,000 are anticipated when current construction, including ATL Lofts, is complete.

While a new 150,000 square-foot Target store is scheduled to open March 2007, the balance will be stores such as Nani Salon and Spa — an Aveda Lifestyle Center with services ranging from $45 haircuts to $175 spa packages — opening in February.

"Our goal is not just to fill up our retail space and move on," Leary said. "We look at what we are missing in terms of fashion or food."

With its growing roster of attractions, including more restaurants and events, Leary said developers want it to resemble great shopping neighborhoods around the country such as Soho and Chelsea in New York.

For Midtown residents like Jason Taylor, 26, the evolution makes sense.

"Midtown in general seems to have a lot of smaller boutique stores, so to see Atlantic Station have that makes it more consistent with the neighborhood," he said.

The concept was attractive enough for Ryan Glover to choose the area for his first retail outpost. Glover, one name behind the RyanKenny clothing label, is also co-owner of Knitch, an upscale store complete with a full-service bar and high-end designer clothing.

"I'm looking for this to be a destination spot for people traveling to Atlanta, as well as to people who live outside of Atlantic Station," Glover said. He hopes Knitch will become a "landmark."

In addition to exclusive items from the RyanKenny line, the store will stock items from upscale designers Catherine Malandrino, Marc Jacobs and Evisu, with price points ranging from $40 for a T-shirt to $740 for a cashmere sweater.

A change of strategy

A high-end strategy didn't work for Taste's Caldwell. A year ago, customers seemed uninterested in $300 jeans and $500 jackets, she said. Her prices now run $200 for jeans and $60 for jackets. Most of her customers, she says, have been tourists.

While Caldwell understands the vision for Atlantic Station, she said the reality has been different. Special events such as Taste of Atlanta — designed to enhance foot traffic in the area — actually hurt business because people focused on eating rather than shopping, she said.

"If they don't change something, that's not going to work," said Caldwell, who is planning to open a third Taste store at Terminus in Buckhead, a location she expects to have more niche boutiques than Atlantic Station.

Developers are refining their event calendar at Atlantic Station, said representatives. Next year, they will be more selective and choose fewer special events.

"Atlanta is in a very exciting period in its history," Leary said. "The city is really raising the level of quality of life and we are excited to be part of it."