The partners in Atlantic Station are battling over an ownership stake in an office tower at the Midtown complex.
Jim Jacoby, the Atlanta developer who spearheaded the project to turn a former steel mill into a mixed-use residential, retail and office project, this week sued AIG Global Real Estate Investment Corp. and managing partner John Whitaker for breach of contract, fraudulent concealment and conspiracy to commit fraud.
Jacoby claims AIG forced him to take a smaller ownership interest in the office building at 201 17th Street during negotiations with a major tenant.
He also claims AIG conspired to build another tower, thereby hurting the value of Jacoby’s investment in the 17-story building at 201 17th Street.
“Be assured that we do not believe that Mr. Jacoby’s claims have merit,” said Emmet Bondurant, an Atlanta lawyer for AIG. “We will defend the case both vigorously and appropriately.”
Jacoby claims AIG required him to drop his ownership stake from 50 to 40 percent and to drop his development fee in return for approving a lease he brokered with law firm Nelson Mullins Riley & Scarborough to be the lead tenant for 201 17th Street.
“Where gratitude to Jim Jacoby was clearly due, he instead was met with greed and overreaching by his partners,” according to the suit, filed Monday in Fulton County Superior Court in Atlanta.
Jacoby said the new tower AIG planned – at 271 17th Street -- threatened to reduce the value of his investment in the 201 building, which was only 50 percent leased. Work started on the 201 building in 2005, and in 2006 it was valued at nearly $260 million. The 25-story building at 271 17th Street is now the BB&T Tower and was completed in 2009.
Jacoby seeks punitive damages along with compensation for loss of his ownership stake.
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