Note 3. Real Estate Facilities

The following summarizes the activity in real estate facilities during the nine months ended September 30, 2015:


Real estate facilities
Balance at December 31, 2014	$	20,857,880
Facility acquisitions		123,493,750
Improvements and additions		1,858,244

Balance at September 30, 2015	$	146,209,874

Accumulated depreciation
Balance at December 31, 2014	$	(93,433	)
Depreciation expense		(2,691,124	)

Balance at September 30, 2015	$	(2,784,557	)

On August 14, 2014, the Company, through 26 wholly-owned subsidiaries of our Operating Partnership, executed 26 partial assignments of the purchase and sale agreement originally executed by a subsidiary of our Prior Sponsor on July 9, 2014, with unaffiliated third parties for the acquisition of 14 self storage facilities located in California; four self storage facilities located in Michigan; three self storage facilities located in Colorado; two self storage facilities located in Illinois and one self storage facility located in each of New Jersey, Washington and Maryland (the “26 Property Portfolio”).

On January 23, 2015, we closed on seven self storage facilities located in California, Colorado, Illinois and Maryland representing the first phase of the acquisition of the 26 Property Portfolio for a purchase price of $26.3 million, plus closing costs and acquisition fees. On January 29, 2015, we closed on five self storage facilities located in California and Colorado representing the second phase of the acquisition of the 26 Property Portfolio for a purchase price of approximately $28.6 million, plus closing costs and acquisition fees. On February 5, 2015, we closed on seven self storage facilities located in California, Colorado and Washington representing the third phase of the acquisition of the 26 Property Portfolio for a purchase price of approximately $45.8 million, plus closing costs and acquisition fees. On February 19, 2015, we closed on two self storage facilities located in California and Illinois representing the fourth phase of the acquisition of the 26 Property Portfolio for a purchase price of approximately $10.9 million, plus closing costs and acquisition fees. On May 8, 2015, we closed on three self storage facilities located in Michigan representing the fifth phase of the acquisition of the 26 Property Portfolio for a purchase price of approximately $11.9 million, plus closing costs and acquisition fees. On May 21, 2015, we closed on the purchase of the sixth phase of the 26 Property Portfolio which consisted of one self storage facility located in Michigan for a purchase price of approximately $3.9 million, plus closing costs and acquisition fees. On May 28, 2015, we closed on one self storage facility located in New Jersey, representing the seventh and final phase of the acquisition of the 26 Property Portfolio for a purchase price of approximately $2.2 million, plus closing costs and acquisition fees.

The Company funded the acquisitions of the 26 Property Portfolio with a combination of proceeds from draws under the KeyBank Facility (Note 5), issuance of preferred units in the Operating Partnership (Note 6), and proceeds from our Primary Offering.

On September 11, 2015 we closed on a self storage facility located in Foley, Alabama for a purchase price of approximately $8.0 million, plus closing costs and acquisition fees. The Company funded the acquisition of the Foley property with proceeds from our Primary Offering.

The following table summarizes the purchase price allocation for our acquisitions during the nine months ended September 30, 2015:


Property	Acquisition Date		Real Estate Assets		Intangibles⁽¹⁾		Total⁽²⁾		Debt Issued		2015 Revenue⁽³⁾		2015 Property Operating Income⁽⁴⁾
La Verne - CA		01/23/15	$	3,746,875	$	420,000	$	4,166,875	$	2,370,000	$	407,151	$	239,725
Chico - CA		01/23/15		1,516,875		310,000		1,826,875		1,230,000		234,189		118,153
Riverside - CA		01/23/15		2,406,875		400,000		2,806,875		1,740,000		351,539		203,225
Fairfield - CA		01/23/15		3,416,875		510,000		3,926,875		2,250,000		368,597		219,662
Littleton - CO		01/23/15		4,016,875		330,000		4,346,875		2,310,000		371,799		190,313
Crestwood - IL		01/23/15		2,046,875		440,000		2,486,875		1,650,000		358,032		136,643
Forestville - MD		01/23/15		6,196,875		500,000		6,696,875		3,870,000		447,530		246,622
Upland - CA		01/29/15		5,676,875		600,000		6,276,875		3,540,000		453,979		282,372
Lancaster - CA		01/29/15		1,546,875		260,000		1,806,875		1,140,000		298,238		125,250
Santa Rosa - CA		01/29/15		9,596,875		870,000		10,466,875		5,760,000		814,326		529,571
Vallejo - CA		01/29/15		4,746,875		540,000		5,286,875		3,360,000		475,341		316,585
Federal Heights - CO		01/29/15		4,296,875		450,000		4,746,875		2,550,000		346,481		199,715
Santa Ana - CA		02/05/15		8,666,875		610,000		9,276,875		4,350,000		623,537		351,094
La Habra - CA		02/05/15		4,176,875		430,000		4,606,875		2,340,000		411,549		265,814
Monterey Park - CA		02/05/15		3,986,875		440,000		4,426,875		2,340,000		350,727		176,486
Huntington Beach - CA		02/05/15		9,826,875		1,050,000		10,876,875		5,760,000		743,342		526,996
Lompoc - CA		02/05/15		3,416,875		620,000		4,036,875		2,460,000		409,785		268,399
Aurora - CO		02/05/15		6,656,875		680,000		7,336,875		4,140,000		596,590		415,192
Everett - WA		02/05/15		4,866,875		330,000		5,196,875		2,190,000		308,949		163,207
Whittier - CA		02/19/15		5,246,875		670,000		5,916,875		3,330,000		499,352		332,725
Bloomingdale - IL		02/19/15		4,436,875		560,000		4,996,875		2,520,000		362,296		210,582
Warren I - MI		05/08/15		3,086,875		350,000		3,436,875		1,620,000		187,797		99,160
Warren II - MI		05/08/15		3,196,875		440,000		3,636,875		2,040,000		202,426		117,308
Troy - MI		05/08/15		4,236,875		580,000		4,816,875		2,880,000		284,484		186,352
Sterling Heights – MI		05/21/15		3,386,875		470,000		3,856,875		2,190,000		189,148		111,922
Beverly - NJ		05/28/15		1,926,875		250,000		2,176,875		1,365,000		141,134		64,546
Foley – AL		09/11/15		7,165,000		800,000		7,965,000		—		56,602		37,749

Total			$	123,493,750	$	13,910,000	$	137,403,750	$	71,295,000	$	10,294,920	$	6,135,368

⁽¹⁾	Intangible assets are amortized over a weighted average period of approximately 28 months.

⁽²⁾	The allocations noted above are preliminary based on the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting.

⁽³⁾	The operating results of the facilities acquired above have been included in our statement of operations since their respective acquisition date.

⁽⁴⁾	Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, and acquisition expenses.

The purchase price allocations included above are preliminary and therefore, subject to change upon the completion of our analysis of appraisals and other information related to the acquisitions. We anticipate finalizing the purchase price allocations within one year of their acquisition date, as further evaluations are completed and additional information is received from third parties.

We incurred acquisition fees to our Advisor related to the above property acquisitions of approximately $2.4 million for the nine months ended September 30, 2015.