Self Storage Facilities

3 Months Ended

Mar. 31, 2016

5. SELF STORAGE FACILITIES

The carrying value of the Company’s real estate assets is summarized as follows:

Self storage facilities, at cost:
Beginning balance	$	23,668,445
Capital expenditures for office remodeling and equipment acquisition		8,622
Ending balance		23,677,067

Land
Beginning balance		2,661,000
Ending balance		2,661,000

Accumulated depreciation:
Beginning balance		-
Depreciation expense		(201,369	)
Ending balance		(201,369	)

Construction in progress:
Beginning balance		111,116
Current development		229,793
Ending balance		340,909

Fair value adjustment due to the change in status		7,967,086
Total real estate facilities at March 31, 2016	$	34,444,693

The real estate assets as of March 31, 2016, have been adjusted to reflect the appreciated fair value of the self storage facilities as of the date of the change in status from an investment company.

Construction in progress as of March 31, 2016 consists of the expansion project in Bolingbrook, IL which, when completed, will add approximately 45,000 leasable square feet of climate-controlled and traditional storage units, for an aggregate cost of approximately $2,400,000.