New York’s JFK International Airport will be home to the world’s only privately owned animal handling cargo terminal under the terms of a 30-year lease signed between Racebrook Capital and the Port Authority of New York (PANYNJ). Racebook is the developer of the $48 million, 178,000 sq ft facility.
The animal handling cargo terminal will be constructed at the Cargo Building 78 at JFK, which has been vacant for close to a decade.
It is surrounded by 14.4 acres and has direct airside access to the taxiway and large aircraft ramp parking.
More than 180 jobs will be created through the project, which will generate approximately $108 million in revenues for the PANYNJ over the entire term of the lease.
ARK Development L.L.C, which is an affiliate of Racebrook, will be responsible for developing, financing, and constructing the new animal handling cargo terminal. Once construction is complete, ARK will take charge of operating and managing it.
Having any company, including major airlines and cargo handlers, enter into a long-term lease with the Port Authority is an extremely rare occurrence, according to Dr. Aaron Perl, the founder and managing director of the ARK at JFK and general counsel of The Racebrook Portfolio Cos.
The fact that this project has entered into a 30-year lease is “a testament to the cooperation of numerous private and public entities, as well as the perseverance and real estate of parent company Racebrook,” according to Dr. Perl.
With this deal, the Port Authority will be guaranteed more than $100 million in revenues without having to spend any additional funds in capital investment.
The animal terminal will be divided into three sections:
Raceway is subleasing about half the space to Consolidated Aviation Services, which will be the facility’s anchor tenant. Paradise 4 Paws will operate a 20,000 sq ft pet resort for dogs and cats, which will operate on a 24/7 basis.
LIFECARE Veterinary Health System will be responsible for providing medical care to the animals.
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