Weekly Real Estate News
Developer KDC is seeking approximately $3.5 billion in credit-tenant-lease financing for AT&T’s planned headquarters campus in Plano, Texas, according to an October 22 Bloomberg report cited by MT Newswires.
The financing would be supported by anticipated lease payments from AT&T after the campus is developed. CRE Daily reported that CGA Capital and CBRE are arranging the proposed debt, which is expected to have a weighted-average life of about 18.7 years.
A large test for lease-backed financing
Credit-tenant-lease financing generally relies heavily on a major tenant’s contractual rental obligations. The proposed $3.5 billion amount is far larger than typical transactions in that market, making the project noteworthy for commercial real estate lenders and institutional investors.
The planned AT&T campus occupies approximately 54 acres in Plano. The company’s move from downtown Dallas would also affect the region’s office market.
The proposed financing has not been confirmed as closed. The requested amount is not necessarily the project’s final construction cost, and the terms may change before any transaction is completed.
