A groundbreaking took place to begin construction of a new, 2.7 million-square-foot rental car facility at Newark Liberty International Airport.
Elected officials, community and labor leaders, members from the Port Authority of New York & New Jersey, and rent-a-car executives gathered Tuesday to celebrate the redevelopment that is expected to consolidate all 10 rental car brands at Newark under one roof.
The approval of the project by the Port Authority is part of the Terminal One Redevelopment Program, the developers of the project said.
The ConRAC facility will be constructed on a 19.31-acre site with 2,925 public parking spaces and 3,380 rental car spaces to support the 10 brands. It will also include a retail operation, vehicle fleet storage, security, 15 car washes, 54 fueling stations, waste management, service bays, and more.
The developers said they plan to hit certain project goals, including workforce investment, development and inclusivity. Up to $350 million is slated for spend in the local economy, with as much as 95% of the project being completed by local workers.
Completion of the public parking area is expected by 2021 with the ConRAC opening entirely in 2023.
“This facility will provide efficiency and convenience for all Newark Airport travelers, not just rental car customers,” Kevin O’Toole, chairman, Port Authority, said. “With the new Terminal One project, Newark will be host to an even greater volume of travelers with much improved amenities and operations, and the ConRAC will be there to support them.”
Financing for the $500 million project was arranged by Conrac Solutions Capital with equity provided by Related Fund Management and Fengate Asset Management. Key advisors to Conrac include Goldman Sachs as financial advisor and Allen & Overy LLP as legal counsel.
“We are incredibly proud to break ground on this facility,” Mark Pfeffer, chairman and CEO of Conrac Solutions, said. “The project’s innovative financing has provided great benefits for all involved, especially the traveling public at Newark Airport. I’d like to thank Port Authority, rent-a-car industry and community leadership for their involvement and counsel, without which this would not be possible.”