Real Estate Assets

9 Months Ended

Sep. 30, 2017

5. REAL ESTATE ASSETS

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

Self storage properties, at cost:
Beginning balance	$	51,156,701
Improvements and equipment additions		212,973
Ending balance		51,369,674

Land
Beginning balance		5,493,814
Ending balance		5,493,814

Accumulated depreciation:
Beginning balance		(875,447	)
Depreciation expense		(1,057,305	)
Ending balance		(1,932,752	)

Construction in progress:
Beginning balance	—
Current development		100,389
Ending balance		100,389

Total real estate assets at September 30, 2017	$	55,031,125

Construction in progress consists of the expansion projects in Merrillville, IN and Millbrook, NY. The Merrillville, IN expansion, which, when completed, will add approximately 13,300 gross square feet of traditional drive-up storage units, for an aggregate cost of approximately $400,000. The Millbrook, NY expansion, which, when completed, will add approximately 16,500 of gross square feet of all-climate-controlled units. The planning for the Millbrook, NY expansion is under development and the Company is actively evaluating proposals for its construction. As of September 30, 2017, a final estimate of construction costs has not yet been determined. As of September 30, 2017, development costs for these projects have been capitalized while the projects are under construction and are reflected in real estate assets, net on the Company’s consolidated balance sheet.