Private financing for the new consolidated rental facility (CONRAC) planned for Newark Liberty International Airport (EWR) has been secured, Conrac Solutions announced.
The recent approval by the Port Authority of New York & New Jersey brings the airport one step closer to having a world-class facility that brings all rent-a-car companies at Newark under one roof as part of the Terminal One Redevelopment Program.
EWR's new 2.7-million-square-foot CONRAC will be constructed on a 16.65-acre site, with 2,925 public parking spaces and 3,380 rental car spaces to support 10 rent-a-car brands. It incorporates retail operations with customer wayfinding and traffic circulation, provides vehicle fleet storage and enhanced security, and includes shared components such as 15 car washes and 54 fueling positions along with vacuum systems, waste management, and service bays.
Groundbreaking for the project is anticipated in May 2019, with completion of the public parking area in 2021 and the CONRAC in 2023.
Financing of the $500 million project was arranged by Conrac Solutions Capital with equity provided and critical strategic implementation by Related Fund Management and Fengate Asset Management. A consortium of banks led by MUFG, CIBC, and NBC is providing the debt financing for the project.
The project structure includes all design, construction, financing, operations, maintenance and lifecycle management throughout construction, and the 35-year lease period.
"The Port Authority has a renewed customer-centric focus that not only improves the travel experience, but provides customers with services and amenities that complement our mission to build world-class facilities," Port Authority Chairman Kevin O'Toole said in a statement.
The financing structure utilized is both unique and an anticipated model for Conracs at airports throughout the nation with the financing supplied by equity partners and then repaid solely out of proceeds received from the customer facility charge applied to rental car transactions.
"Unlike similar projects at other major U.S. airports, that can put airports at risk for availability payments, this financial structure was made possible by CS Capital and its equity partners, Related and Fengate, with sponsorship from the rent-a-car industry, and the foresight of the Port Authority to embrace an innovative approach," Mark Pfeffer, Chairman and CEO of Conrac Solutions, said in a statement.
The project employs several sustainability initiatives including a solar roof, electric vehicle charging stations, LED efficient lighting, and water reclamation and air quality systems.