Real Estate Assets

12 Months Ended

Dec. 31, 2018

4. REAL ESTATE ASSETS

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

	December 31, 2018			December 31, 2017
Buildings, improvements, and equipment, at cost:
Beginning balance	$	51,415,779		$	51,156,701
Improvements and equipment additions		93,829			259,078
Newly developed facilities opened for operation		369,719			—
Ending balance		51,879,327			51,415,779
Land:
Beginning balance		5,493,814			5,493,814
Ending balance		5,493,814			5,493,814
Accumulated depreciation:
Beginning balance		(2,257,862	)		(875,447	)
Depreciation expense		(1,398,358	)		(1,382,415	)
Ending balance		(3,656,220	)		(2,257,862	)
Construction in progress:
Beginning balance		393,832			—
Current development		70,703			393,832
Newly developed facilities opened for operation		(369,719	)		—
Ending balance		94,816			393,832
Total real estate assets	$	53,811,737		$	55,045,563

The Merrillville, IN expansion was completed in January 2018 and added 13,300 leasable square feet of traditional drive-up storage units. In 2019 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 underway and the Company is actively evaluating proposals for its construction. As of December 31, 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.