The following summarizes our activity in storage facilities during the nine months ended September 30, 2020:

(dollars in thousands)
Cost:
Beginning balance	$	4,749,473
Acquisition of storage facilities		413,022
Improvements and equipment additions		43,888
Net decrease in construction in progress		(5,884	)
Dispositions		(247	)
Ending balance	$	5,200,252
Accumulated Depreciation:
Beginning balance	$	756,333
Additions during the period		86,424
Dispositions		(165	)
Ending balance	$	842,592

The Company acquired 31 self-storage facilities during the nine months ended September 30, 2020. 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 purchase prices of the facilities acquired in 2020 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		Mortgage Assumed		Net Other Liabilities (Assets) Assumed		Land		Building, Equipment, and Improvements		Construction in Progress		In-Place Customers Leases
CA		6	3/9/2020	$	124,298	$	124,204	$	—	$	94	$	20,307	$	101,734	$	582	$	1,675
FL, GA, NJ, OH, PA, TX		25	9/29/2020		295,310		293,726		—		1,584		32,555		257,844		—		4,911
Total acquired in 2020		31		$	419,608	$	417,930	$	—	$	1,678	$	52,862	$	359,578	$	582	$	6,586

The six facilities purchased in the first quarter of 2020 were acquired from 191 III Life Storage Holdings LLC (“191 III”), an unconsolidated joint venture in which the Company holds a 20% ownership interest. Seventeen of the 25 facilities purchased in the third quarter of 2020 were acquired from Sovran HHF Storage Holdings LLC (“Sovran HHF”) and eight of the 25 facilities purchased in the third quarter of 2020 were acquired from Sovran HHF Storage Holdings II LLC (“Sovran HHF II”), unconsolidated joint ventures in which the Company holds 20% and 15% ownership interests, respectively. In accordance with ASC Topic 970, “Real Estate – General,” the Company recorded its equity in the profit from the sales of these self-storage facilities as a reduction in the

respective purchase price allocated to land and depreciable fixed assets. In addition to the $124.2 million cash payment for the six self-storage facilities acquired from 191 III, the Company also recognized $8.4 million as a return on the Company’s investment in 191 III as discussed further in Note 10. In addition to the $293.7 million cash payments combined for the 25 self-storage facilities acquired from Sovran HHF and Sovran HHF II, the Company also recognized $32.7 million as a return on the Company’s investment in Sovran HHF and Sovran HHF II as discussed further in Note 10.

Non-cash investing activities during the nine months ended September 30, 2020 include the assumption of net other liabilities totaling $1.7 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.

In-place customer leases are included in other assets on the Company’s consolidated balance sheets as follows:

(Dollars in thousands)	September 30, 2020			December 31, 2019
In-place customer leases	$	85,327		$	78,741
Accumulated amortization		(79,642	)		(75,832	)
Net carrying value at the end of period	$	5,685		$	2,909

Amortization expense related to in-place customer leases was $1.1 million and $3.8 million for the three and nine months ended September 30, 2020, respectively, and $0.8 million and $1.7 million for the three and nine months ended September 30, 2019, respectively.

As part of the Company’s capital improvement efforts during 2018, 2019, and 2020, buildings at certain self-storage facilities were 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 an increase in depreciation expense of approximately $4.4 million during both the three and nine months ended September 30, 2020 and $0.3 million and $1.1 million during the three and nine months ended September 30, 2019, 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, 2020 will result an increase in depreciation expense of approximately $1.1 million during the remainder of 2020 and an additional $1.1 million during the first quarter of 2021.

The accelerated depreciation resulting from the events discussed above reduced both basic and diluted earnings per share/unit by approximately $0.09 for both the three and nine months ended September 30, 2020 and by less than $0.01 and by approximately $0.02 for the three and nine months ended September 30, 2019, respectively.