Newark Liberty International Airport Consolidated Rent-A-Car Facility
Conrac Solutions, with equity partners Related Fund Management and Fengate Asset Management, are providing design, construction, financing, operations and maintenance of a consolidated rent-a-car center (ConRAC) and public parking facility at Newark Liberty International Airport (EWR). EWR ConRAC, LLC, a special purpose vehicle formed by Conrac Solutions Capital (CS Capital), entered into a 35-year lease with the Port Authority of New York and New Jersey to deliver and operate the project.
CS Capital organized and executed the financing of the project. Conrac Solutions Project Delivery (CS Project Delivery) is overseeing project development and is managing the design and construction. Design and construction are being performed by Austin VRH Joint Venture under a fixed-price, date-certain design and construction contract. Once operational, Conrac Solutions Operators (CS Operators) will manage the operations, maintenance and lifecycle of the project under a full-term operations and maintenance contract.
The Newark Liberty International Airport ConRAC is an integral component of the Terminal One Redevelopment Program to create a world-class airport experience. When complete, this new facility will offer numerous benefits to the Airport, RACs, their customers, and the traveling public.
Project News Releases
Innovative Financing of Consolidated Rent‐A‐Car Facility at Newark Liberty International Airport Receives Global Award Recognition
Project Finance International Recognizes New Model of Private Financing for ConRAC Facilities as: P3 Deal of the Year for the Americas
NEWARK, NJ – January 8, 2020 – The Newark Liberty International Airport’s $500 million consolidated rent‐a‐car facility (ConRAC) project has been selected as the P3 Deal of the Year for the Americas, by Project Finance International. Conrac Solutions Capital leads the development team that closed Newark, the first privately financed ConRAC facility in the U.S. Financing closed in the spring of 2019 and included equity participation by Related Fund Management and Fengate Asset Management.
PFI is an international resource in global project finance and capital markets information. The annual PFI Yearbook awards are the industry’s most prestigious annual awards presented in London in February of each year.
“Credit for this project is rightfully owed to the rent‐a‐car industry in making this project a reality. Further, hats off to Port Authority of New York and New Jersey for forward thinking to utilize this delivery method. It will be a world‐class facility, but without any burden to local tax payers,” said Chairman and CEO of Conrac Solutions, Mark Pfeffer.
CS Capital, the finance subsidiary of the CS family of companies, arranged private debt and equity to be repaid solely from a Customer Facility Charge (CFC) collected from rent‐a‐car customers over the facility’s 35‐year lease period.
CS’ successful utilization of this model allowed the PANYNJ to keep financing completely off‐balance sheet, freeing up credit capacity for allocation elsewhere. Further, the PANYNJ maintained control of the asset development terms and will remain long‐term owners of the facility, fully maintained with lifecycle cost guarantees from CS Operators.
Unique to any previously developed ConRAC, using this model will exempt the rent‐a‐car industry from coverage of shortfall revenue requirements. It also enables CFC rates to be pre‐set for the life of the facility and not subject to adjustment as is typical under an airport‐issued bond financing.
Financial close for the project took place May 2019, and construction is now underway. Completion of the public parking area is scheduled for September 2021 with the ConRAC opening in April 2023.
The 2.7 million square foot ConRAC will be constructed on a 19.31 ‐acre site, with 2,925 public parking spaces and 3,380 rent‐a‐car spaces to support 10 rent‐a‐car brands. It integrates 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. Further, the project employs several sustainability initiatives including a solar roof, electric vehicle charging stations, LED efficient lighting, and water reclamation and air quality systems.
Additional Press Releases
- Newark Airport Breaks Ground on $500 Million Consolidated Rental Car Facility
- Conrac Solutions Closes on Financing for Consolidated Rent-A-Car Facility at Newark Liberty International Airport
EWR ConRAC In the News
- News 12 NJ - EWR Groundbreaking Broadcast
- NJBiz.com - Consolidated Rent-A-Car breaks ground on $500M facility at Newark airport
- ROI-NJ - Newark airport breaks ground on $500M car rental facility
- Airport Technology - Conrac to secure financing for new facility at Newark Liberty Airport
- Auto Rental News - Conrac bringing $500M car rental facility to Newark airport
- NJbiz.com - 2.7-million-square-foot rent-a-car- facility coming to Newark Airport
Video footage courtesy of PANYNJ
- EWR ConRAC Fact Sheet
- About Conrac Solutions
- About Related Fund Management
- About Fengate Asset Management
Project Construction Updates
- 2020: May
- 2020: April
- 2020: March
- 2020: February
- 2020: January
- 2019: December
- 2019: November
- 2019: October
- 2019: September
- 2019: August
- 2019: July
- Project & CFC Implementation Approval – July 2018
- Design Development Docs Complete – Sep 2018
- Close on Financing – May 2019
- Construction Start – June 2019
- Partial Public Opening to Coincide with Terminal One Opening – Sep 2021
- Facility Activation – June 2022
- Commissioning – Sep 2022
- Equipment Startup and Burn-in – Feb 2023
- ConRAC Construction Substantial Completion – April 2023
- ConRAC Open to Public/Operations – April 2023
Cassidy Davis, Conrac Solutions