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Real Estate Assets
 12 Months Ended
Dec. 31, 2020
Real Estate [Abstract]  
Real Estate Assets

3. REAL ESTATE ASSETS

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

 

 

 

December 31,

2020

 

 

December 31,

2019

 

Land

 

$

6,122,065

 

 

$

6,122,065

 

Buildings, improvements, and equipment

 

 

60,317,918

 

 

 

57,178,338

 

Construction in progress

 

—

 

 

 

1,532,235

 

Self storage properties

 

 

66,439,983

 

 

 

64,832,638

 

Less: Accumulated depreciation

 

 

(6,671,450

)

 

 

(5,080,485

)

Real estate assets, net

 

$

59,768,533

 

 

$

59,752,153

 

 

In 2019, the Company broke ground on the Millbrook, NY expansion, which, upon completion in February 2020, added approximately 16,500 of gross square feet of all-climate-controlled units. As of December 31, 2020 and 2019, development costs for this project have been capitalized and are reflected in real estate assets, net on the Company’s consolidated balance sheets.  

 

In November 2019, the Company acquired a self storage property. The acquisition of the property was accounted for as an asset acquisition. The cost of the property, including closing costs, was assigned to land, buildings, equipment, and in-place customer leases based on their relative fair values.

 

The purchase price of the property acquired in 2019 has been assigned as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Consideration Paid

 

 

Acquisition Date Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumed

 

 

 

 

 

 

 

 

 

 

In-Place

 

 

Closing

 

 

 

Number of

 

Date of

 

Purchase

 

 

 

 

 

 

(Assets

 

 

 

 

 

 

Building and

 

 

Customer

 

 

Costs

 

State

 

Properties

 

Acquisition

 

Price

 

 

Cash Paid

 

 

Acquired)

 

 

Land

 

 

Equipment

 

 

Leases

 

 

Expensed

 

NY

 

1

 

11/19/2019

 

$

6,282,514

 

 

$

6,287,082

 

 

$

(4,568

)

 

$

628,251

 

 

$

5,240,825

 

 

$

413,438

 

 

$

—

 

Total

 

 

 

 

 

$

6,282,514

 

 

$

6,287,082

 

 

$

(4,568

)

 

$

628,251

 

 

$

5,240,825

 

 

$

413,438

 

 

$

—

 

 

The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the estimated cost to replace the in-place leases. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). Amortization expense related to in-place customer leases was $398,795 and $14,643 for the years ended December 31, 2020 and

2019, respectively.

 

During the year ended December 31, 2020, the Company did not make any acquisitions.