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INVESTMENT ACTIVITY | 3 Months Ended
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Mar. 31, 2017
INVESTMENT ACTIVITY |
INVESTMENT ACTIVITY | 4. INVESTMENT ACTIVITY 2017 Acquisitions During the three months ended March 31, 2017, the Company did not acquire any stores. As of March 31, 2017, the Company was under contract and had made aggregate deposits of $1.8 million associated with four stores under construction for a total purchase price of $61.1 million. The deposits are reflected in Other assets, net on the Company’s consolidated balance sheets. The purchase of these four stores is expected to occur by the fourth quarter of 2017 after the completion of construction and the issuance of a certificate of occupancy. These acquisitions are subject to due diligence and other customary closing conditions and no assurance can be provided that these acquisitions will be completed on the terms described, or at all. 2016 Acquisitions During the year ended December 31, 2016, the Company acquired 28 stores, including three stores upon completion of construction and the issuance of a certificate of occupancy, located throughout the United States for an aggregate purchase price of approximately $403.6 million. In connection with these acquisitions, the Company allocated a portion of the purchase price to the tangible and intangible assets acquired based on fair value. Intangible assets consist of in-place leases, which aggregated $18.8 million at the time of the acquisitions and prior to any amortization of such amounts. The estimated life of these in-place leases was 12 months, and the amortization expense that was recognized during the three months ended March 31, 2017 was approximately $3.9 million. In connection with one of the acquired stores, the Company assumed mortgage debt that was recorded at a fair value of $6.5 million, which fair value includes an outstanding principal balance totaling $6.3 million and a net premium of $0.2 million to reflect the estimated fair value of the debt at the time of assumption. Development As of March 31, 2017, the Company had six contracts through joint ventures for the construction of six self-storage properties located in Massachusetts (1) and New York (5) (see note 12). Additionally, during the second quarter of 2016, the Company issued 61,224 OP Units, valued at approximately $1.5 million, to pay the remaining consideration on its store that is under construction in Washington, D.C. and was previously owned by a joint venture. Construction for all projects is expected to be completed by the fourth quarter of 2018. As of March 31, 2017, development costs incurred to date for these projects totaled $195.1 million. Total construction costs for these projects are expected to be $321.1 million. These costs are capitalized to construction in progress while the projects are under development and are reflected in Storage properties on the Company’s consolidated balance sheets. The Company has completed the construction and opened for operation the following stores during the period beginning on January 1, 2016 through March 31, 2017. The costs associated with the construction of these stores are capitalized to land, building, and improvements as well as equipment and are reflected in Storage properties on the Company’s consolidated balance sheets.
|  |  |  |  |  | CubeSmart |  |  |
|  | Number of |  |  |  | Ownership |  | Total
Store Location |  | Stores |  | Date Opened |  | Interest |  | Construction Costs
|  |  |  |  |  |  |  | (in thousands)
North Palm Beach, FL |  | 1 |  | Q1 2017 |  | 100% |  | $ | 9,700
Bronx, NY (1) (2) |  | 1 |  | Q2 2016 |  | 100% |  |  | 32,200
Queens, NY (1) |  | 1 |  | Q1 2016 |  | 100% |  |  | 31,800
|  | 3 |  |  |  |  |  | $ | 73,700
| (1) |  | These properties were previously owned through two separate consolidated joint ventures, of which the Company owned a 51% interest in each. On April 5, 2016, the noncontrolling member in the venture that owned the Queens, NY store put its 49% interest in the venture to the Company for $12.5 million. On August 12, 2016, the noncontrolling member in the venture that owned the Bronx, NY store put its 49% interest in the venture to the Company for $17.0 million.
| (2) |  | This store is subject to a ground lease.

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