The following summarizes our activity in storage facilities during the three months ended March 31, 2021:

(dollars in thousands)
Cost:
Beginning balance	$	5,330,323
Acquisition of storage facilities		263,299
Improvements and equipment additions		4,289
Net increase in construction in progress		6,024
Dispositions		(99	)
Ending balance	$	5,603,836
Accumulated Depreciation:
Beginning balance	$	873,178
Additions during the period		31,293
Dispositions		(51	)
Ending balance	$	904,420

The Company acquired 16 self-storage facilities during the three months ended March 31, 2021. 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 2021 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		Net Other Liabilities (Assets) Assumed		Land		Building, Equipment, and Improvements		In-Place Customer Leases
SC		1	1/4/2021	$	8,070	$	8,042	$	28	$	812	$	7,153	$	105
CA		1	1/21/2021		18,287	$	18,251		36		1,322		16,830		135
NY		1	3/4/2021		47,947	$	47,933		14		10,591		37,020		336
FL		8	3/11/2021		85,156	$	84,586		570		13,381		70,538		1,237
AZ		3	3/24/2021		67,089	$	66,890		199		7,129		59,320		632
WA		2	3/25/2021		39,666	$	39,495		171		6,166		33,037		443
Total acquired in 2021		16		$	266,215	$	265,197	$	1,018	$	39,401	$	223,898	$	2,888

The facility purchased in New York in the first quarter of 2021 was acquired from SNL Orix Merrick (“Merrick”), an unconsolidated joint venture in which the Company holds a 5% ownership interest. In accordance with ASC Topic 970, “Real Estate – General,” the Company recorded its equity in the profit from the sales of this self-storage facility as a reduction in the respective purchase price allocated to land and depreciable fixed assets. In addition to the $47.9 million cash payment for the self-storage facility acquired from Merrick, the Company also recognized $0.8 million as a return on the Company’s investment in Merrick as discussed further in Note 10.

Non-cash investing activities during the three months ended March 31, 2021 include the assumption of net other liabilities totaling $1.0 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:

Amortization expense related to in-place customer leases was $2.1 million and $1.3 million for the three months ended March 31, 2021 and 2020, respectively, and is included in depreciation and amortization expense on the consolidated statements of operations.

As part of the Company’s capital improvement efforts during 2020 and 2021, 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 $1.4 million during the three months ended March 31, 2021. There were no facilities identified for replacement or related impact on depreciation expense during the three months ended March 31, 2020. The Company estimates that due to buildings recently identified for replacement, the change in estimated useful lives of buildings identified for replacement as of March 31, 2021 will result in an increase in depreciation expense of approximately $0.4 million during the remainder of 2021.

The accelerated depreciation resulting from the events discussed above reduced both basic and diluted earnings per share/unit by approximately $0.02 for the three months ended March 31, 2021.