Lender still 'committed' to latest Buckhead tower

The developer, Charlotte-based Crescent Resources, said last year it would move ahead with the speculative project, even though three other unfinished Buckhead office towers had no tenants. But with prices and demand for office space pulled down by the recession, Crescent, like some other developers, now finds itself in a financial bind.

Speculation has been rampant within Atlanta's commercial real estate community that Manulife would foreclose on the Phipps Tower project.

But Tina Acranis, an assistant vice president in Manulife's real estate division, said in an e-mail that the project will be finished. She declined to comment on whether any tenants are signed.

"Though currently market conditions have no doubt been soft, we are confident that the building's superior features and location will ultimately establish Phipps Tower as the preeminent building in Buckhead and prove to the long term success of the project," the statement said.

A Crescent spokesman said Monday the company is continuing to evaluate options, including a bankruptcy filing, to deal with $1.4 billion in debt.

"Like most companies in the real estate industry, Crescent Resources has been impacted by the economic downturn," Art Fields, Crescent's chief executive officer, said in an e-mail released by the company. "We are currently working constructively with our stakeholders to evaluate a number of alternatives to enable the company to right size its business and capital structure in light of the current market conditions."

Crescent has residential and commercial projects in several states in the Southwest and Southeast, including Georgia. Satellite Place near Gwinnett Mall, Crescent Ridge in Cobb County, Corporate Centre at Deerfield, and Riverside on the Chattahoochee River are among Crescent's office and industrial projects in metro Atlanta.