Real Estate Assets

9 Months Ended

Sep. 30, 2018

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	$	51,415,779
Newly developed properties opened for operation		369,719
Improvements and equipment additions		36,342
Ending balance		51,821,840

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

Accumulated depreciation:
Beginning balance		(2,257,862	)
Depreciation expense		(1,047,553	)
Ending balance		(3,305,415	)

Construction in progress:
Beginning balance		393,832
Current development		74,808
Newly developed properties opened for operation		(369,719	)
Ending balance		98,921

Total real estate assets at September 30, 2018	$	54,109,160

The Merrillville, IN expansion was completed in January 2018 and added 13,300 leasable square feet of traditional drive-up storage units. In 2018 the Company expects to break ground on 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, 2018, development costs for these projects have been capitalized while the projects that are under construction and are reflected in real estate assets, net on the Company’s consolidated balance sheet.