The developer lined up to build AT&T's new headquarters campus in Plano is trying to borrow $3.5 billion for the job, according to a Bisnow report published Friday that cites Bloomberg.
Dallas-based KDC is pursuing the money through credit tenant lease financing, Bisnow reported. In that kind of deal, the private debt is secured by the rent an investment-grade tenant has agreed to pay, rather than by the land and buildings themselves. CGA Capital and CBRE are arranging the debt, which would have a weighted-average life of almost 19 years, according to the report.
A large deal for the type
Bisnow pointed to a case study from PGIM, the investment manager, that puts typical credit tenant lease financings in the range of $25 million to $100 million. The size of KDC's request suggests the campus could cost well more than $1.35 billion, the report said.
That $1.35 billion figure is the minimum construction investment the city set when it approved a $20 million incentive package for AT&T. The campus is planned for 54 acres at 5400 Legacy Drive and would hold about 2.3 million square feet of space, according to Bisnow, more than twice what the company has in its Whitacre Tower headquarters in downtown Dallas.
Beyond office space, the plans call for parking garages, a child care center, a pedestrian bridge and a cell tower 280 feet tall. AT&T CEO John Stankey has said the company is aiming to begin moving in during the second half of 2028.
