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Banner Storage Group Breaks Ground on Extra Space Self-Storage Facility in Mount Greenwood, IL

Update 10/19/16 – Banner Storage Group has broken ground on the Extra Space self-storage facility on 111th Street in Mount Greenwood. Although the plan has changed from two stories and a functional basement to three full stories, the building will remain at the agreed-upon height of 35 feet, according to the source. Expected to be complete in August, the facility will comprise 70,000 square feet in about 600 storage units. It will include a small store that sells locks, packing supplies and other moving-related items rather than the originally proposed coffee shop.

October 19, 2016

4 Min Read
Banner Storage Group Breaks Ground on Extra Space Self-Storage Facility in Mount Greenwood, IL

Update 10/19/16 – Banner Storage Group has broken ground on the Extra Space self-storage facility on 111th Street in Mount Greenwood. Although the plan has changed from two stories and a functional basement to three full stories, the building will remain at the agreed-upon height of 35 feet, according to the source. Expected to be complete in August, the facility will comprise 70,000 square feet in about 600 storage units. It will include a small store that sells locks, packing supplies and other moving-related items rather than the originally proposed coffee shop.

Workers are currently laying the foundation. Issues related to the original plan for a full basement necessitated the new building plan, according to Delaney.

The self-storage facility is being built on the former site of St. Casmir Memorials. When the developer broke ground last month, workers uncovered several blank headstones. "I had expected that," Delaney told the source. "I figured when we knocked down that shed, we'd find some of them in there."

9/17/15 – Banner Storage Group LLC, a subsidiary of Banner Apartments LLC, which buys, builds, finances and sells self-storage properties, has proposed a self-storage development that would replace a vacant lot at the northeast corner of 111th Street and Harding Avenue in the Mount Greenwood neighborhood of Chicago. The two-story facility would comprise 600 units and cost about $9 million to build, according to the source. It would be operated by self-storage real estate investment trust Extra Space Storage Inc.

“We want to be part of the community,” Gary Delaney, president of Banner Storage Group, told community officials and residents during a recent public meeting.

Alderman Matt O’Shea told the audience he would prefer to see a restaurant or popular retail brand develop the site but acknowledged the only other developers to express interest in the property want to build apartments or condominiums. He told residents the decision was in their hands. "Personally, I don't feel self-storage adds to our commercial strip, but ultimately, the decision needs to come from all of you," he said.

Reaction to the proposal was mixed among residents who attended the meeting, the source reported. The primary concerns among those in opposition were traffic and additional parking, but Delaney said the self-storage facility would likely have about 15 customer visits per day. “Self-storage facilities are about the lowest traffic generators than any other commercial site,” he said.

Delaney also said all loading and unloading of tenant belongings would be conducted inside the building, which will have only interior units. Entrance to the facility is designed to face Harding Avenue, but Banner Storage Group is open to moving it to 111th Street if residents prefer, Delaney said.

The developer also proposed a storefront that could include a coffee shop or other type of retail business, but residents rejected the idea over parking concerns, according to the source. Instead, the retail space could be used for additional storage space, Delaney said.

Resident Kelly Jaros told meeting participants she remained concerned about potential traffic but was encouraged by the building drawings shared by Delaney. “I’d rather see something go in there than an empty lot,” she said.

Based on a demographics study, Delaney said the self-storage facility would draw about 85 percent of customers from within two miles of the property. Approximately 22,000 people live within one mile of the site, he said.

He also argued the self-storage development would provide a substantial boost in taxes. The vacant lot currently generates about $18,000 in property taxes, which would improve to about $300,000 if the storage facility is built, Delaney said.

No tax incentives would be used for the deal, and the builders would be required to use union labor, O'Shea said.

With residents split on the proposal, O'Shea said he would plan another meeting to discuss the project in further detail.

Banner Storage Group was formed in July 2013 to diversify Banner Apartments’ real estate holdings. The subsidiary is led by Delaney and John Nikolich, executive vice president, who have more than 35 years of combined experience in the acquisition, development, disposition and financing of self-storage properties, portfolios and operating companies.

Sources:

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