The Company acquired 43 self-storage facilities during the nine months ended September 30, 2022. The acquisitions of these facilities were accounted for as asset acquisitions. The costs of the facilities, including closing costs, were allocated to land, building, equipment and improvements, and in-place customer leases based upon their relative fair values. The operating results of the facilities acquired have been included in the Company's operations since the respective acquisition dates.

The purchase prices of the facilities acquired in 2022 have been assigned as follows:


(dollars in thousands)						Consideration paid									Acquisition Date Fair Value
States	Number of Properties		Date of Acquisition	Purchase Price		Cash Paid		Carrying Value of Noncontrolling Interest in Joint Venture		Value of Operating Partnership Units Issued		Net Other Liabilities (Assets) Assumed			Land		Building, Equipment, and Improvements		In-Place Customer Leases
CA		6	1/4/2022	$	165,225	$	165,160	$	-	$	-	$	65		$	20,321	$	143,243	$	1,661
GA, NC, SC		3	3/11/2022		48,586		48,446		-		-		140			3,926		44,300		360
IL, NC, TX		8	3/15/2022		116,048		115,410		-		-		638			12,292		102,439		1,317
MD		1	3/28/2022		21,651		21,646		-		-		5			1,640		19,856		155
NY		1	4/4/2022		35,802		5,557		30,186		-		59			10,287		25,280		235
FL		3	4/19/2022		52,343		52,060		-		-		283			7,894		43,814		635
GA		1	4/22/2022		16,403		16,390		-		-		13			1,333		14,903		167
MA		1	4/25/2022		20,083		20,087		-		-		(4	)		810		19,041		232
FL		1	5/10/2022		17,218		17,112		-		-		106			3,712		13,306		200
FL		1	5/12/2022		36,452		36,254		-		-		198			5,101		31,079		272
NY		2	5/17/2022		32,487		32,374		-		-		113			1,524		30,594		369
TX		1	5/17/2022		17,097		6,608		-		10,300		189			1,273		15,615		209
FL		1	5/31/2022		22,021		21,880		-		-		141			3,563		18,171		287
CA		1	6/21/2022		12,675		12,641		-		-		34			5,967		6,572		136
NC		1	7/6/2022		20,059		19,970		-		-		89			428		19,428		203
NV		1	8/12/2022		29,113		29,154		-		-		(41	)		2,354		26,512		247
NY		1	8/12/2022		29,000		24,130		4,915		-		(45	)		8,079		20,734		187
CA		1	8/23/2022		10,709		10,690		-		-		19			1,324		9,292		93
AZ		1	8/24/2022		30,550		30,388		-		-		162			3,959		26,255		336
MO		5	9/14/2022		93,103		91,820		-		-		1,283			8,212		83,702		1,189
MA		1	9/21/2022		16,650		16,618		-		-		32			640		15,819		191
FL		1	9/22/2022		17,363		17,233		-		-		130			1,830		15,369		164
Total acquired in 2022		43		$	860,638	$	811,628	$	35,101	$	10,300	$	3,609		$	106,469	$	745,324	$	8,845

The facility purchased in New York during April 2022 was acquired as a result of the Company's acquisition of the remaining 14.2% ownership interest in Life Storage 898 McDonald LLC ("McDonald"). Prior to this acquisition, McDonald was a joint venture between the Company and an otherwise unrelated third-party which had been accounted for by the Company using the equity method of accounting (see Note 10 for additional information on McDonald). The purchase price for this acquisition includes the carrying value of the Company's equity investment in McDonald of $30.2 million at the time of the acquisition.

During August 2022, the Company purchased a self-storage facility in New York from an unrelated joint venture partner for total consideration of $29.0 million, which includes $4.9 million related to the seller's retained interest in the joint venture. The Company owns 83% of this joint venture with the remaining 17% owned by the Company's joint venture partner. Based on the facts and circumstances of the joint venture, the Company determined that the facility should be consolidated in accordance with ASC 810, Consolidation. The assets and liabilities of the property are included in the Company's consolidated balance sheets. Additionally included in the Company's consolidated balance sheets is the joint venture partner's noncontrolling interest, which totals $4.9 million at September 30, 2022. The Company's net investment in the joint venture is $24.1 million at September 30, 2022.

Non-cash investing activities during the nine months ended September 30, 2022 include the Company's equity investment in McDonald at carrying value, the issuance of $10.3 million of common operating partnership units valued based on the average closing price of the Parent Company's common stock over the 15 consecutive trading days immediately preceding the closing date, the noncontrolling interest in the self-storage facility acquired in New York, and the assumption of net other liabilities totaling $3.6 million.

The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the 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). The Company measures the value of trade names, which have an indefinite life and are not amortized, by calculating discounted cash flows utilizing the relief from royalty method.

Amortization expense related to in-place customer leases was $5.0 million and $16.1 million for the three and nine months ended September 30, 2022, respectively, and $3.6 million and $8.4 million for the three and nine months ended September 30, 2021, respectively, and is included in depreciation and amortization expense in the consolidated statements of operations.

As part of the Company’s capital improvement efforts, buildings at certain self-storage facilities have been identified for replacement. As a result of the decision to replace these buildings, the Company reassessed the estimated useful lives of the then existing buildings. This useful life reassessment resulted in a minimal change in depreciation expense during the three months ended September 30, 2022 and 2021 and an increase in depreciation expense of approximately $0.2 million and $2.5 million during the nine months ended September 30, 2022 and 2021, respectively. The Company estimates that due to buildings recently identified for replacement, the change in estimated useful lives of buildings identified for replacement as of September 30, 2022 will have a minimal impact on depreciation expense during the remainder of 2022.

The accelerated depreciation resulting from the events discussed above had minimal impact on earnings per share/unit for the three and nine months ended September 30, 2022 and reduced both basic and diluted earnings per share/unit by approximately $0.03 for the nine months ended September 30, 2021.