- KDC is seeking about $3.5B in credit tenant lease financing, backed by AT&T’s future rent, to build the company’s new Plano campus, with CGA Capital and CBRE arranging the debt.
- The debt is expected to carry a weighted-average life of 18.7 years, in a niche market where deals typically run $25M to $100M, per PGIM.
- The size hints at what the 54-acre campus may cost, against Plano’s incentive agreement requiring AT&T to invest at least $1.35B in construction.
KDC, the developer of AT&T’s new Plano headquarters, is seeking about $3.5 billion in credit tenant lease financing to pay for the campus, Bloomberg reported exclusively.
CGA Capital and CBRE are placing the debt, which should carry an 18.7-year weighted-average life, Bloomberg’s unnamed sources said.
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How the Structure Works
KDC would borrow against the lease payments it expects from AT&T once the multi-building campus is built. In a credit tenant lease deal, repayment rests on rent from an investment-grade tenant, not on the underlying property.
Such deals usually land between $25M and $100M, per a PGIM report Bloomberg cited. This one would be many times larger.
A Clue on Cost
Plano’s city council approved incentives in February that require AT&T to put at least $1.35 billion into construction. Bloomberg said the new debt plans show what the build could ultimately cost.
KDC has already lined up bank money. CRE Daily reported that JPMorgan backed the project with a $400M construction loan in May.
The Campus and the Timeline
AT&T told employees in January that the campus will cover 54 acres, according to Bloomberg. The company is leaving downtown Dallas, as Wells Fargo and Caterpillar did when they chose big suburban campuses.
CRE Daily’s earlier coverage showed the project is close to starting: state filings listed 11 projects with costs above $1B, a Dec. 1 start and a March 2029 finish.
Why It Matters
A financing of this size would test the credit tenant lease market, which is built for far smaller deals. It also shows how an investment-grade name can turn a long lease into construction capital.
For Downtown Dallas, the move adds to pressure on office demand as large employers favor suburban campuses.
What’s Next
The financing is still being sought, and the people Bloomberg cited asked not to be named, so terms could change. CGA declined to comment, and the other three companies did not reply to Bloomberg.
