The approval of the facility by the Port Authority of New York & New Jersey is part of the Terminal One Redevelopment Program.
The new 2.7 million-square-foot facility will be constructed on a 16.65-acre site with 2,925 public parking spaces and 3,380 rental care spaces to support 10 rent-a-car brands. It will also include retail operations, vehicle fleet storage, security, a solar roof, vehicle charging stations, 15 car washes, 54 fueling stations, waste management, service bays and more.
Financing was arranged by Conrac with equity provided by Related Fund Management and Fengate Asset Management. A consortium of banks led by MUFG and CIBC is providing the debt financing for the project. The deal includes a Design Build contract for construction with a joint venture of Austin Commercial Inc. and VRH Construction Corp. Key advisors to Conrac Solutions on this deal include Goldman Sachs as financial advisor and Allen & Overy LLP as legal counsel.
“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.
“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. “The ConRAC facility is a perfect complement to the new Terminal One which will serve travelers as a gateway to New Jersey and the region.”
Fengate develops and invests in infrastructure projects that require design, construction, financing, operations, maintenance and lifecycle management throughout a construction and operations period, it said.
“We are pleased to be involved in this landmark transaction and applaud the Port Authority of New York & New Jersey for recognizing the merits of partnering with private capital,” Mac Bell, director and head of P3 investments, Fengate, said.
The project is expected to break ground in May, with completion of the public parking area in 2021 and the ConRAC in 2023.