Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
Entity Registrant Name | NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP | |
Entity Central Index Key | 746,514 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Class A | ||
Entity Common Stock, Shares Outstanding | 99,939 | |
Class B | ||
Entity Common Stock, Shares Outstanding | 23,735 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Rental Properties | $ 173,679,492 | $ 176,697,314 |
Cash and Cash Equivalents | 7,890,008 | 10,298,186 |
Rents Receivable | 499,158 | 433,744 |
Insurance Recovery Receivable | 168,131 | 345,645 |
Real Estate Tax Escrows | 391,444 | 370,981 |
Prepaid Expenses and Other Assets | 3,863,899 | 4,762,535 |
Investments in Unconsolidated Joint Ventures | 7,079,962 | 7,819,162 |
Total Assets | 193,572,094 | 200,727,567 |
LIABILITIES AND PARTNERS' CAPITAL | ||
Mortgage Notes Payable | 214,130,912 | 194,500,820 |
Notes Payable | 25,000,000 | |
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture | 2,468,307 | 2,288,090 |
Accounts Payable and Accrued Expenses | 2,699,964 | 4,640,767 |
Advance Rental Payments and Security Deposits | 5,440,743 | 5,108,843 |
Total Liabilities | 224,739,926 | 231,538,520 |
Partners' Capital 124,923 and 125,374 units outstanding in 2016 and 2015 respectively | (31,167,832) | (30,810,953) |
Total Liabilities and Partners' Capital | $ 193,572,094 | $ 200,727,567 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||||
Partners' Capital, units outstanding | 124,923 | 125,374 | 126,400 | 127,653 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Rental income | $ 12,136,355 | $ 10,948,498 | $ 24,209,211 | $ 21,921,289 |
Laundry and sundry income | 117,909 | 112,920 | 228,341 | 215,649 |
Total Revenues | 12,254,264 | 11,061,418 | 24,437,552 | 22,136,938 |
Expenses | ||||
Administrative | 455,160 | 487,233 | 953,416 | 1,020,310 |
Depreciation and amortization | 3,060,994 | 2,477,497 | 6,088,148 | 4,919,024 |
Management fee | 501,288 | 465,716 | 1,001,495 | 916,419 |
Operating | 1,069,692 | 908,112 | 2,493,937 | 2,994,297 |
Renting | 155,962 | 155,274 | 243,226 | 221,201 |
Repairs and maintenance | 2,193,186 | 1,822,707 | 3,820,886 | 3,169,921 |
Taxes and insurance | 1,583,385 | 1,450,928 | 3,187,255 | 2,913,904 |
Total Expenses | 9,019,667 | 7,767,467 | 17,788,363 | 16,155,076 |
Income Before Other Income (Expense) and Discontinued Operations | 3,234,597 | 3,293,951 | 6,649,189 | 5,981,862 |
Other Income (Expense) | ||||
Interest income | 203 | 168 | 405 | 362 |
Interest expense | (2,542,692) | (2,419,248) | (5,096,325) | (4,822,928) |
Income (Loss) from investments in joint ventures | 288,478 | 221,586 | 658,082 | 346,820 |
Total Other Income (Expense) | (2,254,011) | (2,197,494) | (4,437,838) | (4,475,746) |
Net Income | $ 980,586 | $ 1,096,457 | $ 2,211,351 | $ 1,506,116 |
Income per Unit | ||||
Net Income (Loss), Per Outstanding Limited Partnership Unit, Basic, Net of Tax | $ 7.85 | $ 8.66 | $ 17.69 | $ 11.87 |
Weighted Average Number of Units Outstanding (in units) | 124,923 | 126,646 | 125,032 | 126,859 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) | Subtotal | General Partnership | Treasury Units | Class A | Class B | Total |
Balance at Dec. 31, 2014 | $ (272,859) | $ (21,910,488) | $ (5,184,335) | $ (27,367,682) | ||
Balance (in units) at Dec. 31, 2014 | 180,225 | 1,802 | 52,572 | 144,180 | 34,243 | 127,653 |
Increase (Decrease) in Partners' Capital | ||||||
Distribution to Partners | $ (18,999) | $ (1,519,908) | $ (360,978) | $ (1,899,885) | ||
Stock Buyback | (18,668) | (1,505,645) | (354,688) | (1,879,001) | ||
Stock Buyback (in units) | 1,253 | |||||
Net income | 15,061 | 1,204,893 | 286,162 | 1,506,116 | ||
Balance at Jun. 30, 2015 | $ (295,465) | $ (23,731,148) | $ (5,613,839) | $ (29,640,452) | ||
Balance (in units) at Jun. 30, 2015 | 180,225 | 1,802 | 53,825 | 144,180 | 34,243 | 126,400 |
Balance at Dec. 31, 2015 | $ (306,870) | $ (24,673,535) | $ (5,830,548) | $ (30,810,953) | ||
Balance (in units) at Dec. 31, 2015 | 180,225 | 1,802 | 54,851 | 144,180 | 34,243 | 125,374 |
Increase (Decrease) in Partners' Capital | ||||||
Distribution to Partners | $ (18,738) | $ (1,499,080) | $ (356,032) | $ (1,873,850) | ||
Stock Buyback | $ (6,783) | $ 451 | (558,723) | $ (128,874) | (694,380) | |
Stock Buyback (in units) | 5 | 86 | ||||
Net income | $ 22,113 | 1,769,081 | $ 420,157 | 2,211,351 | ||
Balance at Jun. 30, 2016 | $ (310,278) | $ (24,962,257) | $ (5,895,297) | $ (31,167,832) | ||
Balance (in units) at Jun. 30, 2016 | 180,225 | 1,802 | 55,302 | 144,180 | 34,243 | 124,923 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 2,211,351 | $ 1,506,116 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 6,088,148 | 4,919,024 |
Amortization of deferred financing costs | 93,986 | 85,533 |
(Income) Loss from investments in joint venture | (658,082) | (346,820) |
Change in operating assets and liabilities | ||
(Increase) in rents receivable | (65,414) | (52,004) |
Increase (Decrease) in accounts payable and accrued expense | (1,940,803) | 1,199,425 |
(Increase) in insurance recovery receivable | 177,514 | (952,084) |
(Increase) Decrease in real estate tax escrow | (20,463) | 2,247 |
(Increase) in prepaid expenses and other assets | 600,109 | (519,096) |
Increase in advance rental payments and security deposits | 331,900 | 426,825 |
Total Adjustments | 4,606,895 | 4,763,050 |
Net cash provided by operating activities | 6,818,246 | 6,269,166 |
Cash Flows From Investing Activities | ||
Proceeds from unconsolidated joint ventures | 1,331,282 | 1,254,487 |
Distribution in excess of investment in unconsolidated joint ventures | 300,000 | 165,000 |
(Investment) in unconsolidated joint ventures | (53,782) | (21,987) |
Improvement of rental properties | (2,771,798) | (2,431,625) |
Net cash (used in) investing activities | (1,194,298) | (1,034,125) |
Cash Flows from Financing Activities | ||
Payment of financing costs | (174,718) | |
Proceeds of mortgage notes payable | 20,071,000 | |
Payment of note payable | (25,000,000) | |
Principal payments of mortgage notes payable | (360,178) | (65,804) |
Stock buyback | (694,380) | (1,879,001) |
Distributions to partners | (1,873,850) | (1,899,885) |
Net cash provided by (used in) financing activities | (8,032,126) | (3,844,690) |
Net (Decrease) in Cash and Cash Equivalents | (2,408,178) | 1,390,351 |
Cash and Cash Equivalents, at beginning of period | 10,298,186 | 14,015,898 |
Cash and Cash Equivalents, at end of period | $ 7,890,008 | $ 15,406,249 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Line of Business : New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 25 properties which include 17 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2, 506 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50 % interest in 9 residential and mixed use properties consisting of 78 5 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire. Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances. Principles of Consolidation : The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the nine limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures). The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.) The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE. Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved. Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Contingent rent for commercial properties are received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis. Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease values for acquired properties are amortized as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases. Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships. In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required. Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable. Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $94,000 and $86,000 for the six months ended June 30, 2016 and 2015, respectively. Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 13). Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less. Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment. Comprehensive Income: Comprehensive income is defined as changes in partners’ equity, exclusive of transactions with owners (such as capital contributions and dividends). NERA did not have any comprehensive income items in 2016 or 2015 other than net income as reported. Income Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3 -for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10 -to-1 to 30 - to-1 , such that each Depositary Receipt represents one-thirtieth ( 1 / 30 ) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split. Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital). Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2016 or 2015. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2016, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.35% . At June 30, 2016 and December 31, 2015, respectively approximately $9,340,000, and $11,592,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts. Advertising Expense: Advertising is expensed as incurred. Advertising expense was $93,394 and $73,961 for the six months ended June 30, 2016 and 2015, respectively. Discontinued Operations and Rental Property Held for Sale : In April 2014, the FASB issued guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. This guidance defines a discontinued operation as a component or group of components disposed or classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and final result; the guidance states that a strategic shift could include a disposal of a major geographical area of operations, a major line of business, a major equity method investment or other major parts of an entity. The guidance also provides for additional disclosure requirements in connection with both discontinued operations and other dispositions not qualifying as discontinued operations. The Partnership has elected to early adopt this standard effective with the interim period beginning January 1, 2014. Prior to January 1, 2014, properties identified as held for sale and/or disposed of were presented in discontinued operations for all periods presented. Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2016 and 2015 there was no capitalized interest. Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt. Reclassifications: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation. The reclassifications were related primarily to conform to ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. This new standard was effective for interim and annual reporting beginning after December 15, 2015 and requires retrospective application. Approximately $1.4 million of deferred financing costs were reclassified to contra term loans on the balance sheet at December 31, 2015. There was no change to the net income for any period presented as a result of these reclassifications. |
RENTAL PROPERTIES
RENTAL PROPERTIES | 6 Months Ended |
Jun. 30, 2016 | |
RENTAL PROPERTIES | |
RENTAL PROPERTIES | NOTE 2. RENTAL PROPERTIES As of June 30, 2016, the Partnership and its Subsidiary Partnerships owned 2,506 residential apartment units in 21 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts. Additionally, as of June 30, 2016, the Partnership and Subsidiary Partnerships owned a commercial shopping center in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.” The Partnership also owned a 40% to 50% ownership interest in nine residential and mixed use complexes (the “Investment Properties”) at June 30, 2016 with a total of 78 5 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments. On September 18, 2015, R esidences at Captain Parker, LLC, a Massachusetts limited liability company (“Captain Parker”) a newly formed subsidiary of the Partnership, purchased the Residence at Captain Parkers, a 94 unit apartment complex located at 125 Worthen Road and Ryder Lane in Lexington, Massachusetts. The purchase price was $31,600,000 and the closing costs were approximately $49,000 . From the purchase price, the Partnership allocated approximately $474,000 for in-place leases, and approximately $31,000 to the value of tenant relationships. These amounts are being amortized over 12 and 24 months respectively. To fund the purchase, the Partnership utilized the available line of credit of $25,000,000 , and the balance from the Partnership’s cash reserves. Rental properties consist of the following: June 30, 2016 December 31, 2015 Useful Life Land, improvements and parking lots $ $ - 40 years Buildings and improvements - 40 years Kitchen cabinets - 10 years Carpets - 10 years Air conditioning - 10 years Laundry equipment - 7 years Elevators - 40 years Swimming pools - 30 years Equipment - 7 years Motor vehicles 5 years Fences - 15 years Furniture and fixtures - 7 years Smoke alarms - 7 years Total fixed assets Less: Accumulated depreciation $ $ |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2016 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 3. RELATED PARTY TRANSACTIONS The Partnership’s properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of gross receipts rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $1,001,000 and $916,000 for the six months ended June 30, 2016 and 2015, respectively. The Partnership Agreement permits the General Partner or Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the six months ended June 30, 2016 and 2015, approximately $557,000 and $441,000 , was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2016 expenses referred to above, approximately $197,000 consisted of repairs and maintenance, $165,000 of administrative expense and $67,000 for commercial brokerage fees. Approximately $128,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2016, the Hamilton Company received approximately $434,000 from the Investment Properties of which approximately $354,000 was the management fee, approximately $30,000 was for maintenance services, approximately $17,000 was for administrative services and $33,000 for architectural services and supervision of capital projects. The management fee is equal to 4% of gross receipts rental income on the majority of investment properties and 2% on Dexter Park. The Partnership reimburses the management company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $1,509,000 and $1,383,000 for the six months ended June 30, 2016 and 2015, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. There were no employer contributions during 2016 and 2015. Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the six months ended June 30, 2016 and 2015, the Management Company charged the Partnership $62,500 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above. The President of the Management Company performs asset management consulting services and receives an asset management fee from the Partnership. The Partnership does not have a written agreement with this individual. During the six months ended June 30, 2016 and 2015 this individual received fees of $37,500 . The Partnership has invested in nine limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management Company. Harold Brown’s ownership interest is between 43.2% and 57% . See Note 14 for a description of the properties and their operations. See Note 8 for information regarding the repurchase of Class B and General Partnership Units. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
OTHER ASSETS | |
OTHER ASSETS | NOTE 4. OTHER ASSETS Approximately $2,392,000, and $2,257,000 of security deposits are included in prepaid expenses and other assets at June 30, 2016 and December 31, 2015, respectively. The security deposits and escrow accounts are restricted cash. Included in prepaid expenses and other assets at June 30, 2016 and December 31, 2015 is approximately $483,000 and $801,000 , respectively, held in escrow to fund future capital improvements. As of June 30, 2016, approximately $118,000 of the replacement reserve was related to the fire damage at Westgate Apartments. The reserve will be refunded when the repairs are complete. Intangible assets on the acquisitions of Hamilton Green and the Residence at Captain Parkers are included in prepaid expenses and other assets. Intangible assets are approximately $121,00 0 net of accumulated amortization of approximately $2,136,000 and approximately $382,000 net of accumulated amortization of approximately $1,875,000 at June 30, 2016 and December 31, 2015, respectively. Financing fees in association with the line of credit of approximately $51,000 and $75,000 are net of accumulated amortization of approximately $90,000 and $66,000 at June 30, 2016 and December 31, 2015 respectively. |
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2016 | |
MORTGAGE NOTES PAYABLE | |
MORTGAGE NOTES PAYABLE | NOTE 5. MORTGAGE NOTES PAYABLE At June 30, 2016 and December 31, 2015, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At June 30, 2016, the interest rates on these loans ranged from 2.45% to 5.97% , payable in monthly installments aggregating approximately $850,000 including principal, to various dates through 2029. The majority of the mortgages are subject to prepayment penalties. At June 30, 2016, the weighted average interest rate on the above mortgages was 4.59% . The effective rate of 4.68% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations. The Partnership has pledged tenant leases as additional collateral for certain of these loans. Approximate annual maturities at June 30, 2016 are as follows: 2017—current maturities $ 2018 2019 2020 2021 Thereafter Less: unamortized deferred financing costs $ On January 7, 2016, Captain Parker entered into a Multifamily Loan and Security Agreement (the “Loan Agreement”) with K eyBank National Association (the “Lender”). The manager of Captain Parker is NewReal, Inc. (“New Real”), the general partner of New England Realty Associates Limited Partnership (the “Partnership”). The Partnership is the sole member of Captain Parker. The Loan Agreement provides for a term loan (the “Loan”) in the principal amount of $20,071,000 . The Loan is due on February 1, 2026 (the “Due Date”), unless the due date is accelerated in accordance with the Loan’s terms. Borrowings under the Loan will bear interest at rates equal to (i) the one month LIBOR rate for United States Dollar Deposits, determined monthly, plus 201 basis points. The interest rate increases upon an event of default. Captain Parker is required to repay the aggregate principal amount of the Loan by the Due Date. Interest payments on the Loans are payable monthly in arrears on specified dates set forth in the Loan Agreement. Principal payments on the Loan are also payable monthly commencing on March 1, 2021. The note issued by Captain Parker in connection with the Loan Agreement (the “Note”) also contains provisions for optional prepayment with a penalty under certain circumstances. Line of Credit On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line is three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5% . The costs associated with the line of credit were approximately $125,000 . As of June 30, 2016, the credit line had a balance of $0 . On September 15, 2015, the Partnership, in connection with the purchase of the Residence at Captain Parker Apartments, used the entire line of credit, along with cash reserve, to purchase the property. (See Note 2: Rental Properties, for the details of the transaction.) On January 7, 2016, Captain Parker entered into a Multifamily Loan and Security Agreement (the “Loan Agreement”) with K eyBank National Association (the “Lender”). As a result of securing the financing, the Partnership used the proceeds of the loan and cash reserves of the Partnership to pay down the Line of Credit to zero . A payment was made on January 7, 2016 for $23,000,000 , and another payment for $2,000,000 was made on January 15, 2016. The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay distributions, make distributions or acquire equity interests of the Partnership. The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities. The Partnership paid fees to secure the line of credit. Any unused balance of the line of credit is subject to a fee ranging from 15 to 20 basis points per annum. The Partnership paid approximately $24,000 for the six months ended June 30, 2016. The line of credit agreement has several covenants, such as providing cash flow projections and compliance certificates, as well as other financial information. The covenants include, but are not limited to the following: maintain a leverage ratio that does not exceed 65%; aggregate increase in indebtedness of the subsidiaries and joint ventures should not exceed $15,000,000; maintain a tangible net worth (as defined in the agreement) of a minimum of $150,000,000; a minimum ratio of net operating income to total indebtedness of at least 9.5%; debt service coverage ratio of at least 1.6 to 1, as well as other items. The Partnership is in compliance with these covenants as of June 30, 2016. |
ADVANCE RENTAL PAYMENTS AND SEC
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | 6 Months Ended |
Jun. 30, 2016 | |
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | |
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS The Partnership’s residential lease agreements may require tenants to maintain a one -month advance rental payment and/or a security deposit. At June 30, 2016, amounts received for prepaid rents of approximately $1,905,000 are included in cash and cash equivalents, and security deposits of approximately $2,392,000 are included in prepaid expenses and other assets and are restricted cash. |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 6 Months Ended |
Jun. 30, 2016 | |
PARTNERS' CAPITAL | |
PARTNERS' CAPITAL | NOTE 7. PARTNERS’ CAPITAL The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1% , respectively, of the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests. In 2016, the Partnership announced the approval of quarterly distributions of its Class A Limited Partners and holders of Depositary Receipts of record as of March 15, 2016, and June 15, 2016, payable on March 31, 2016 and June 30, 2016, respectively, of $7.50 per unit and $0.25 per receipt. In July, 2016, the Partnership announced the approval of a quarterly distribution for the third quarter of 2016, of $7.50 per unit and $0.25 per receipt. In 2015, the Partnership paid quarterly distributions of $7.50 per unit ( $0.25 per receipt) in March, June, September, and December for a total distribution of $30.00 per unit ( $1.00 per receipt) for the year. The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt: Six Months Ended June 30, 2016 2015 Net Income per Depositary Receipt $ $ Distributions per Depositary Receipt $ $ |
TREASURY UNITS
TREASURY UNITS | 6 Months Ended |
Jun. 30, 2016 | |
TREASURY UNITS | |
TREASURY UNITS | NOTE 8. TREASURY UNITS Treasury Units at June 30, 2016 are as follows: Class A Class B General Partnership On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). On January 15, 2008, the General Partner authorized an increase in the Repurchase Program from 300,000 to 600,000 Depositary Receipts. On January 30, 2008 the General Partner authorized an increase the Repurchase Program from 600,000 to 900,000 Depositary Receipts. On March 6, 2008, the General Partner authorized the increase in the total number of Depositary Receipts that could be repurchased pursuant to the Repurchase Program from 900,000 to 1,500,000 . On August 8, 2008, the General Partner re- authorized and renewed the Repurchase Program for an additional 12 -month period ended August 19, 2009. On March 22, 2010, the General Partner re-authorized and renewed the Repurchase Program that expired on August 19, 2009. Under the terms of the renewed Repurchase Program, the Partnership may purchase up to 1,500,000 Depositary Receipts from the start of the program in 2007 through March 31, 2015. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80% , 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restate Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from tim e to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through June 30, 2016, the Partnership has repurchased 1,352, 427 Depositary Receipts at an average price of $26.81 per receipt (or $804.30 per underlying Class A Unit), 2 ,970 Class B Units and 156 General Partnership Units, both at an average price of $895.21 per Unit, totaling approximately $39,291,000 including brokerage fees paid by the Partnership. During the six months ended June 30, 2016, the Partnership purchased a total of 10,829 Depositary Receipts. The average price was $50.11 per receipt or $1,503.26 per unit. The total cost including commission was $558,723 . The Partnership was required to repurchase 86 Class B Units and 5 General Partnership units at a cost of $128,874 and $6,783 respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 9. COMMITMENTS AND CONTINGENCIES From time to time, the Partnership is involved in various ordinary routine litigation incidental to its business. The Partnership either has insurance coverage or provides for any uninsured claims when appropriate. The Partnership is not involved in any material pending legal proceedings. On June 9, 2015, a fire broke out at 12 Westgate Drive apartment complex in Woburn, MA, resulting in approximately 10 apartments being damaged which will remain unoccupied for an extended period. The Partnership has insurance coverage on both repairs and rental loss for the extended period until the apartments are available for rent, and has received approximately $714,000 from the insurance company to date, leaving an estimated insurance recovery receivable of approximately $155,000 at June 30, 2016, which is included in the insurance recovery receivable on the balance sheet. |
RENTAL INCOME
RENTAL INCOME | 6 Months Ended |
Jun. 30, 2016 | |
RENTAL INCOME | |
RENTAL INCOME | NOTE 10. RENTAL INCOME During the six months ended June 30, 2016, approximately 93% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 7% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at June 30, 2016 as follows: Commercial Property Leases 2017 $ 2018 2019 2020 2021 Thereafter $ The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $304,000 and $345,000 for the six months ended June 30, 2016 and 2015 respectively. Staples and Trader Joes, tenants at Staples Plaza, are approximately 30% of the total commercial rental income. The following information is provided for commercial leases: Annual base Percentage of rent for Total square feet Total number of annual base rent for Through June 30, expiring leases for expiring leases leases expiring expiring leases 2017 $ % 2018 % 2019 % 2020 % 2021 % 2022 % 2023 — — — % 2024 % 2025 — — — % 2026 — — — % Totals $ % Rents receivable are net of an allowance for doubtful accounts of approximately $517,000 and $373,000 at June 30, 2016 and December 31, 2015. Included in rents receivable at June 30, 2016 is approximately $118,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis. The majority of this amount is for long-term leases with Staples and Trader Joe’s at Staples Plaza in Framingham, Massachusetts. Rents receivable at June 30, 2016 also includes approximately $92,000 representing the deferral of rental concession primarily related to the residential properties. For the six months ended June 30, 2016 rent at the commercial properties includes approximately $1,000 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts. |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
CASH FLOW INFORMATION | |
CASH FLOW INFORMATION | NOTE 11. CASH FLOW INFORMATION During the six months ended June 30, 2016 and 2015, cash paid for interest was approximately $4,947,000 , and $4,753,000 respectively. Cash paid for state income taxes was approximately $41,000 and $18,000 during the six months ended June 30, 2016 and 2015 respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2016 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 12. FAIR VALUE MEASUREMENTS Fair Value Measurements on a Recurring Basis At June 30, 2016 and December 31, 2015, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements. Financial Assets and Liabilities not Measured at Fair Value At June 30, 2016 and December 31, 2015 the carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and note payable, accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments or, the recent acquisition of these items. At June 30, 2016 and December 31, 2015, we estimated the fair value of our mortgages payable and other notes based upon quoted market prices for the same (Level 1) or similar (Level 2) issues when current quoted market prices are available. We estimated the fair value of our secured mortgage debt that does not have current quoted market prices available by discounting the future cash flows using rates currently available to us for debt with similar terms and maturities (Level 3). The differences in the fair value of our debt from the carrying value are the result of differences in interest rates and/or borrowing spreads that were available to us at June 30, 2016 and December 31, 2015, as compared with those in effect when the debt was issued or acquired. The secured mortgage debt contain pre-payment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so. The following methods and assumptions were used by the Partnership in estimating the fair value of its financial instruments: · For cash and cash equivalents, accounts receivable, other assets, investment in partnerships, accounts payable, advance rents and security deposits: fair value approximates the carrying value of such assets and liabilities. · For mortgage notes payable: fair value is generally based on estimated future cash flows, which are discounted using the quoted market rate from an independent source for similar obligations. Refer to the table below for the carrying amount and estimated fair value of such instruments. The following table reflects the carrying amounts and estimated fair value of our debt. Carrying Amount Estimated Fair Value Mortgage Notes Payable Partnership Properties At June 30, 2016 * $ $ At December 31, 2015 * $ $ Investment Properties At June 30, 2016 * $ $ At December 31, 2015 * $ $ * Net of unamortized deferred financing costs Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2016 and December 31, 2015. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since June 30, 2016 and current estimates of fair value may differ significantly from the amounts presented herein. |
TAXABLE INCOME AND TAX BASIS
TAXABLE INCOME AND TAX BASIS | 6 Months Ended |
Jun. 30, 2016 | |
TAXABLE INCOME AND TAX BASIS | |
TAXABLE INCOME AND TAX BASIS | NOTE 13. TAXABLE INCOME AND TAX BASIS Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, accelerated depreciation, different tax lives, and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Taxable income of approximately $2,106,000 was approximately $1,667,000 less than statement income for the year ended December 31, 2015. The primary reason for the difference is due to accelerated depreciation, tax free exchange and other differences in the treatment of certain expenditures. The cumulative tax basis of the Partnership’s real estate at December 31, 2015 is approximately $7,000,000 less than the statement basis. The primary reasons for the lower tax basis are tax free exchanges, and accelerated depreciation. The Partnership’s tax basis in its joint venture investments is approximately $1,500,000 less than statement basis because of accelerated depreciation. Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidates financial statements. While allowable accelerated tax depreciation deductions were extended, future tax law changes may significantly affect taxable income. The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Partnership recognized no material adjustment regarding its tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense. In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of June 30, 2016, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2012 forward. |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 6 Months Ended |
Jun. 30, 2016 | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES The Partnership has invested in nine limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three partnerships investing in commercial property. The Partnership has between a 40% - 50% ownership interest in each investment. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management Company. Harold Brown’s ownership interest is between 43.2% and 57% , with the balance owned by the others. A description of each investment is as follows: On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, referred to as Dexter Park, is a 409 unit residential complex. The purchase price was $129,500,000 . The total mortgage was $89,914,000 with an interest rate of 5.57% and it matures in 2019. The mortgage calls for interest only payments for the first two years of the loan and amortized over 30 years thereafter. The balance of this mortgage is approximately $84,018,000 at June 30, 2016. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park. On October 3, 2005, the Partnership invested $2,500,000 for a 50% ownership interest in a 168 -unit apartment complex in Quincy, Massachusetts. The purchase price was $30,875,000 . The Partnership sold 120 units as condominiums and retained 48 units for long-term investment. In February 2007, the Partnership refinanced the 48 units with a new mortgage in the amount of $4,750,000 with an interest rate of 5.57% , interest only for five years. The loan is amortized over 30 years thereafter and matures in March 2017. As of June 30, 2016, the balance of the mortgage is approximately $4,464,000 . This investment is referred to as Hamilton Bay Apartments, LLC. In April 2008, the Partnership refinanced an additional 20 units and obtained a new mortgage in the amount of $2,368,000 with interest at 5.75% , interest only, which matured in 2013. On October 18, 2013 , the Partnership and its joint venture partner each made capital contributions to the entity of $660,000 . The capital was used to pay off the outstanding mortgage. One unit was sold in the quarter ended June 30, 2016, with a gain on the sale of approximately $67,000 . As of August 1, 2016, 2 units are still owned by the Partnership. This investment is referred to as Hamilton Bay, LLC. On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50 -car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000 , with a $10,750,000 mortgage. The Partnership planned to operate the building and initiate development of the parking lot. In June 2007, the Partnership separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Partnership restructured the mortgages on both parcels at Essex 81 and transferred the residential apartments to Hamilton Essex 81, LLC. On September 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286 . The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction. Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000 , interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $ 8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. As of June 30, 2016, the balance of the mortgage is approximately $9,872,000 . The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC. On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176 -unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000 . The Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10 -yea r mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. The interest on the new loan is 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. The balance of this mortgage is approximately $4,694,000 at June 30, 2016. This investment is referred to as Hamilton 1025, LLC. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42 -unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000 . In October 2004, the Partnership obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Partnership obtained a new 10 - year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan is 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. At June 30, 2016, the balance of this mortgage is approximately $5,170,000 . This investment is referred to as Hamilton Minuteman, LLC. In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280 -unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000 . The Partnership sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000 , with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000 , which were used to reduce the existing mortgage. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000 . As of June 30, 2016, the balance of the mortgage is approximately $16,769,000 . In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40 -unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87% , interest only for 3 years and is amortized on a 30 -year schedule for the balance of the term. The Partnership paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the property made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero . The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. As of June 30, 2016, the balance of the mortgage is approximately $9,920,000 . This investment is referred to as 345 Franklin, LLC. Summary financial information as of June 30, 2016 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ $ Cash & Cash Equivalents Rent Receivable — — Real Estate Tax Escrow — — Prepaid Expenses & Other Assets Total Assets $ $ $ $ $ $ $ $ $ $ LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ — $ $ $ — $ $ $ $ $ Accounts Payable & Accrued Expense Advance Rental Pmts & Security Deposits — Total Liabilities Partners’ Capital Total Liabilities and Capital $ $ $ $ $ $ $ $ $ $ Partners’ Capital %—NERA % % % % % % % % % Investment in Unconsolidated Joint Ventures $ — $ $ — $ $ $ $ $ $ Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ $ — $ $ — $ — $ — $ — $ — $ — Total Investment in Unconsolidated Joint Ventures (Net) $ Total units/condominiums Apartments — Commercial — — — — — — Total Units to be retained — Units to be sold — — — — — — — Units sold through August 1, 2016 — — — — — — — Unsold units — — — — — — — — Unsold units with deposits for future sale as of August 1, 2016 — — — — — — — — — — Financial information for the six months ended June 30, 2016 +++++++++++++++++++++++++++++++ Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — Repairs and Maintenance Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense — Interest Income — — — — — — — — Gain on Sale of Real Estate — — — — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ Financial information for the three months ended June 30, 2016 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — Repairs and Maintenance Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense — Interest Income — — — — — — — Gain on sale of real estate — — — — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ Future annual mortgage maturities at June 30, 2016 are as follows: Hamilton 345 Hamilton Hamilton Hamilton Hamilton on Dexter Period End Essex 81 Franklin 1025 Bay Apts Minuteman Main Apts Park Total 3/31/2017 $ — $ $ $ $ $ — $ $ 3/31/2018 — — — — — 3/31/2019 — — — — — 3/31/2020 — — — — — 3/31/2021 — — — — — — Thereafter — — — — Less: unamortized deferred financing costs $ $ $ $ $ $ $ $ At June 30, 2016 the weighted average interest rate on the above mortgages was 5.08% . The effective rate was 5.16% including the amortization expense of deferred financing costs. Summary financial information as of June 30, 2015 Financial information has been restated to conform to the current period reporting. Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ $ Cash & Cash Equivalents Rent Receivable — Real Estate Tax Escrow — — Prepaid Expenses & Other Assets — Total Assets $ $ $ $ $ $ $ $ $ $ LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ $ $ $ — $ $ $ $ $ Accounts Payable & Accrued Expense Advance Rental Pmts& Security Deposits — Total Liabilities Partners’ Capital Total Liabilities and Capital $ $ $ $ $ $ $ $ $ $ Partners’ Capital %—NERA % % % % % % % % % Investment in Unconsolidated Joint Ventures $ $ $ — $ $ $ $ $ $ $ Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ — $ — $ $ — $ — $ — $ — $ — $ — Total Investment in Unconsolidated Joint Ventures (Net) $ Total units/condominiums Apartments — Commercial — — — — — — Total Units to be retained — Units to be sold — — — — — — — Units sold through May 1, 2015 — — — — — — — Unsold units — — — — — — — — Unsold units with deposits for future sale as of May 1, 2015 — — — — — — — — — — Financial information for the six months ended June 30, 2015 Financial information has been restated to conform to the current period reporting. Hamilton Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Bay Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — — Repairs and Maintenance — Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense Interest Income — — — — — Other Income ( Expense) — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ Financial information for the three months ended June 30, 2015 Financial information has been restated to conform to the current period reporting. Hamilton Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Bay Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — — — Repairs and Maintenance — Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense Interest Income — — — — — — — — Gain on sale of Real Estate — — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ |
IMPACT OF RECENTLY-ISSUED ACCOU
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2016 | |
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | |
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | NOTE 15. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, modifying the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for in the same manner as operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The guidance supersedes previously issued guidance under ASC Topic 840 “Leases”. The guidance is effective on January 1, 2019, with early adoption permitted. The Partnership is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Partnership’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, which eliminates a requirement for the retroactive adjustment on a step by step basis of the investment, results of operations, and retained earnings as if the equity method had been effective during all previous periods that the investment had been held when an investment qualifies for equity method accounting due to an increase in the level of ownership or degree of influence. The cost of acquiring the additional interest in the investee is to be added to the current basis of the investor’s previously held interest and the equity method of accounting should be adopted as of the date the investment becomes qualified for equity method accounting. This guidance is to be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. The adoption of ASU 2016-07 will have no significant impact on the Partnership’s consolidated financial statements. NOTE 16. SUBSEQUENT EVENTS On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of its mortgage. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. The Partnership is in the process of selling a single house with a parcel of land at Hamilton Green for $1 million. The sale is expected to be completed by August 5, 2016, with the proceeds to be used to pay down the mortgage on the property. Management is actively reviewing its mortgage exposure and anticipates lowering its borrowing costs at Hamilton Minuteman, LLC (a Joint Venture Property). Management has secured 15 years of interest only debt at $6 million at a rate of 3.64% versus the current rate of 5.67% . This loan is expected to close in the third quarter of 2016. |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Line of Business | Line of Business : New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 25 properties which include 17 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2, 506 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50 % interest in 9 residential and mixed use properties consisting of 78 5 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire. |
Basis of Presentation | Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances. |
Principles of Consolidation | Principles of Consolidation : The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the nine limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures). The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.) The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE. |
Impairment | Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved. |
Revenue Recognition | Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Contingent rent for commercial properties are received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis. Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease values for acquired properties are amortized as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases. |
Rental Properties | Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships. In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required. |
Financing and Leasing Fees | Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable. |
Income Taxes | Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $94,000 and $86,000 for the six months ended June 30, 2016 and 2015, respectively. Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 13). |
Cash Equivalents | Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less. |
Segment Reporting | Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment. |
Comprehensive Income | Comprehensive Income: Comprehensive income is defined as changes in partners’ equity, exclusive of transactions with owners (such as capital contributions and dividends). NERA did not have any comprehensive income items in 2016 or 2015 other than net income as reported. |
Income (Loss) Per Depositary Receipt | Income Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3 -for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10 -to-1 to 30 - to-1 , such that each Depositary Receipt represents one-thirtieth ( 1 / 30 ) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split. |
Income Per Unit | Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital). |
Concentration of Credit Risks and Financial Instruments | Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2016 or 2015. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At June 30, 2016, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.35% . At June 30, 2016 and December 31, 2015, respectively approximately $9,340,000, and $11,592,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts. |
Advertising Expense | Advertising Expense: Advertising is expensed as incurred. Advertising expense was $93,394 and $73,961 for the six months ended June 30, 2016 and 2015, respectively. |
Discontinued Operations and Rental Property Held for Sale | Discontinued Operations and Rental Property Held for Sale : In April 2014, the FASB issued guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. This guidance defines a discontinued operation as a component or group of components disposed or classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and final result; the guidance states that a strategic shift could include a disposal of a major geographical area of operations, a major line of business, a major equity method investment or other major parts of an entity. The guidance also provides for additional disclosure requirements in connection with both discontinued operations and other dispositions not qualifying as discontinued operations. The Partnership has elected to early adopt this standard effective with the interim period beginning January 1, 2014. Prior to January 1, 2014, properties identified as held for sale and/or disposed of were presented in discontinued operations for all periods presented. |
Interest Capitalized | Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the six months ended June 30, 2016 and 2015 there was no capitalized interest. |
Extinguishment of Debt | Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt. |
Reclassifications | Reclassifications: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation. |
RENTAL PROPERTIES (Tables)
RENTAL PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
RENTAL PROPERTIES | |
Schedule of rental properties | June 30, 2016 December 31, 2015 Useful Life Land, improvements and parking lots $ $ - 40 years Buildings and improvements - 40 years Kitchen cabinets - 10 years Carpets - 10 years Air conditioning - 10 years Laundry equipment - 7 years Elevators - 40 years Swimming pools - 30 years Equipment - 7 years Motor vehicles 5 years Fences - 15 years Furniture and fixtures - 7 years Smoke alarms - 7 years Total fixed assets Less: Accumulated depreciation $ $ |
MORTGAGE NOTES PAYABLE (Tables)
MORTGAGE NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
MORTGAGE NOTES PAYABLE | |
Schedule of approximate annual maturities | Approximate annual maturities at June 30, 2016 are as follows: 2017—current maturities $ 2018 2019 2020 2021 Thereafter Less: unamortized deferred financing costs $ |
PARTNERS' CAPITAL (Tables)
PARTNERS' CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
PARTNERS' CAPITAL | |
Schedule of information per depositary receipt | Six Months Ended June 30, 2016 2015 Net Income per Depositary Receipt $ $ Distributions per Depositary Receipt $ $ |
TREASURY UNITS (Tables)
TREASURY UNITS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
TREASURY UNITS | |
Schedule of treasury units | Treasury Units at June 30, 2016 are as follows: Class A Class B General Partnership |
RENTAL INCOME (Tables)
RENTAL INCOME (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
RENTAL INCOME | |
Schedule of minimum future annual rental income on non-cancellable operating leases | Approximately 7% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at June 30, 2016 as follows: Commercial Property Leases 2017 $ 2018 2019 2020 2021 Thereafter $ |
Schedule of information for commercial leases | Annual base Percentage of rent for Total square feet Total number of annual base rent for Through June 30, expiring leases for expiring leases leases expiring expiring leases 2017 $ % 2018 % 2019 % 2020 % 2021 % 2022 % 2023 — — — % 2024 % 2025 — — — % 2026 — — — % Totals $ % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
FAIR VALUE MEASUREMENTS | |
Schedule of carrying amounts and estimated fair value of debt | Carrying Amount Estimated Fair Value Mortgage Notes Payable Partnership Properties At June 30, 2016 * $ $ At December 31, 2015 * $ $ Investment Properties At June 30, 2016 * $ $ At December 31, 2015 * $ $ |
INVESTMENT IN UNCONSOLIDATED 29
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Current Year [Member] | |
Summary of financial position relating to investment in unconsolidated joint ventures | Summary financial information as of June 30, 2016 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ $ Cash & Cash Equivalents Rent Receivable — — Real Estate Tax Escrow — — Prepaid Expenses & Other Assets Total Assets $ $ $ $ $ $ $ $ $ $ LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ — $ $ $ — $ $ $ $ $ Accounts Payable & Accrued Expense Advance Rental Pmts & Security Deposits — Total Liabilities Partners’ Capital Total Liabilities and Capital $ $ $ $ $ $ $ $ $ $ Partners’ Capital %—NERA % % % % % % % % % Investment in Unconsolidated Joint Ventures $ — $ $ — $ $ $ $ $ $ Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ $ — $ $ — $ — $ — $ — $ — $ — Total Investment in Unconsolidated Joint Ventures (Net) $ Total units/condominiums Apartments — Commercial — — — — — — Total Units to be retained — Units to be sold — — — — — — — Units sold through August 1, 2016 — — — — — — — Unsold units — — — — — — — — Unsold units with deposits for future sale as of August 1, 2016 — — — — — — — — — — |
Summary of income statement relating to investment in unconsolidated joint ventures | Financial information for the six months ended June 30, 2016 +++++++++++++++++++++++++++++++ Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — Repairs and Maintenance Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense — Interest Income — — — — — — — — Gain on Sale of Real Estate — — — — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ Financial information for the three months ended June 30, 2016 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — Repairs and Maintenance Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense — Interest Income — — — — — — — Gain on sale of real estate — — — — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ |
Schedule of future annual mortgage maturities | Future annual mortgage maturities at June 30, 2016 are as follows: Hamilton 345 Hamilton Hamilton Hamilton Hamilton on Dexter Period End Essex 81 Franklin 1025 Bay Apts Minuteman Main Apts Park Total 3/31/2017 $ — $ $ $ $ $ — $ $ 3/31/2018 — — — — — 3/31/2019 — — — — — 3/31/2020 — — — — — 3/31/2021 — — — — — — Thereafter — — — — Less: unamortized deferred financing costs $ $ $ $ $ $ $ $ |
Prior Year [Member] | |
Summary of financial position relating to investment in unconsolidated joint ventures | Summary financial information as of June 30, 2015 Financial information has been restated to conform to the current period reporting. Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Sales Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ $ Cash & Cash Equivalents Rent Receivable — Real Estate Tax Escrow — — Prepaid Expenses & Other Assets — Total Assets $ $ $ $ $ $ $ $ $ $ LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ $ $ $ — $ $ $ $ $ Accounts Payable & Accrued Expense Advance Rental Pmts& Security Deposits — Total Liabilities Partners’ Capital Total Liabilities and Capital $ $ $ $ $ $ $ $ $ $ Partners’ Capital %—NERA % % % % % % % % % Investment in Unconsolidated Joint Ventures $ $ $ — $ $ $ $ $ $ $ Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ — $ — $ $ — $ — $ — $ — $ — $ — Total Investment in Unconsolidated Joint Ventures (Net) $ Total units/condominiums Apartments — Commercial — — — — — — Total Units to be retained — Units to be sold — — — — — — — Units sold through May 1, 2015 — — — — — — — Unsold units — — — — — — — — Unsold units with deposits for future sale as of May 1, 2015 — — — — — — — — — — |
Summary of income statement relating to investment in unconsolidated joint ventures | Financial information for the six months ended June 30, 2015 Financial information has been restated to conform to the current period reporting. Hamilton Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Bay Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — — Repairs and Maintenance — Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense Interest Income — — — — — Other Income ( Expense) — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ Financial information for the three months ended June 30, 2015 Financial information has been restated to conform to the current period reporting. Hamilton Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Bay Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Sales Bay Apts Apts Apts Park Total Revenues Rental Income $ $ $ $ $ $ $ $ $ $ Laundry and Sundry Income — — — — — — — Expenses Administrative Depreciation and Amortization Management Fees Operating — Renting — — — — Repairs and Maintenance — Taxes and Insurance Income Before Other Income Other Income (Loss) Interest Expense Interest Income — — — — — — — — Gain on sale of Real Estate — — — — — — — Net Income (Loss) $ $ $ $ $ $ $ $ $ $ Net Income (Loss)—NERA 50% $ $ $ $ $ $ $ $ Net Income —NERA 40% $ $ |
SIGNIFICANT ACCOUNTING POLICI30
SIGNIFICANT ACCOUNTING POLICIES (Business) (Details) | Jun. 30, 2016ft²propertyitem | Jun. 30, 2015property |
Residential and mixed-use properties | ||
Line of Business | ||
Number of properties | 21 | |
Number of units | 2,506 | |
Condominium | ||
Line of Business | ||
Number of units | 19 | |
Wholly owned properties | ||
Line of Business | ||
Number of properties | 25 | |
Wholly owned properties | Residential buildings | ||
Line of Business | ||
Number of properties | 17 | |
Number of units | 2,506 | |
Wholly owned properties | Mixed use residential, retail and office buildings | ||
Line of Business | ||
Number of properties | 4 | |
Wholly owned properties | Commercial | ||
Line of Business | ||
Number of properties | 3 | |
Area of property (in square feet) | ft² | 108,043 | |
Wholly owned properties | Condominium | ||
Line of Business | ||
Number of properties | 1 | |
Number of units | 19 | |
Partially owned properties | Residential and mixed-use properties | ||
Line of Business | ||
Number of properties | 9 | |
Number of units | 785 | |
Area of property (in square feet) | ft² | 12,500 | |
Partially owned properties | Residential and mixed-use properties | Minimum | ||
Line of Business | ||
Ownership interest (as a percent) | 40.00% | |
Partially owned properties | Residential and mixed-use properties | Maximum | ||
Line of Business | ||
Ownership interest (as a percent) | 50.00% | |
Partially owned properties | Car parking lot | ||
Line of Business | ||
Capacity of real estate property (in cars per lot) | 50 | |
Investment Properties | ||
Line of Business | ||
Number of units | property | 1,033 | 1,033 |
Investment Properties | Residential buildings | ||
Line of Business | ||
Number of units | property | 1,030 | 1,030 |
Investment Properties | Commercial | ||
Line of Business | ||
Number of units | property | 3 | 3 |
Investment Properties | Partially owned properties | Residential and mixed-use properties | ||
Line of Business | ||
Number of units | property | 785 |
SIGNIFICANT ACCOUNTING POLICI31
SIGNIFICANT ACCOUNTING POLICIES (Details) | Jan. 03, 2012 | Jun. 30, 2016USD ($)itemshares | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2013USD ($) | Aug. 20, 2007 |
Principles of Consolidation | ||||||
Value of equity method investment to discontinued partnership | $ 0 | |||||
Revenue Recognition | ||||||
Period for which arrears are charged against income | 60 days | |||||
Income Taxes | ||||||
Provision for income taxes | $ 0 | |||||
Deferred financing costs | $ 1,400,000 | |||||
Amortization of deferred financing costs | $ 94,000 | $ 86,000 | ||||
Segment Reporting | ||||||
Number of segments | item | 1 | |||||
Income Per Unit | ||||||
Dilutive units | shares | 0 | |||||
Concentration of Credit Risks and Financial Instruments | ||||||
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets | $ 9,340,000 | $ 11,592,000 | ||||
Advertising Expense | ||||||
Advertising expense | 93,394 | 73,961 | ||||
Interest Capitalized | ||||||
Capitalized interest | $ 0 | $ 0 | ||||
Minimum | ||||||
Principles of Consolidation | ||||||
Ownership interest in each subsidiary (as a percent) | 99.67% | |||||
Interest Capitalized | ||||||
Criteria of capitalization of interest on property based on specified period of construction | 1 year | |||||
Minimum | Cash and cash equivalents | ||||||
Concentration of Credit Risks and Financial Instruments | ||||||
Interest rate on interest bearing accounts (as a percent) | 0.01% | |||||
Maximum | ||||||
Principles of Consolidation | ||||||
Ownership interest in each subsidiary (as a percent) | 100.00% | |||||
Maximum | Cash and cash equivalents | ||||||
Concentration of Credit Risks and Financial Instruments | ||||||
Interest rate on interest bearing accounts (as a percent) | 0.35% | |||||
345 Franklin | ||||||
Principles of Consolidation | ||||||
Value of equity method investment to discontinued partnership | $ 0 | |||||
Total | ||||||
Principles of Consolidation | ||||||
Number of limited liability companies/partnerships | item | 9 | |||||
Total | Minimum | ||||||
Principles of Consolidation | ||||||
Percentage of ownership interest | 40.00% | |||||
Total | Maximum | ||||||
Principles of Consolidation | ||||||
Percentage of ownership interest | 50.00% | |||||
Class A | ||||||
Income (Loss) Per Depositary Receipt | ||||||
Forward split of depositary receipts | 3 | |||||
Exchange ratio of depositary receipts for partnership units before adjustment | 10 | |||||
Exchange ratio of depositary receipts for partnership units after adjustment | 30 | |||||
Number of units in each depository receipt | 0.03333 | 0.1 |
RENTAL PROPERTIES (Details)
RENTAL PROPERTIES (Details) | 6 Months Ended | |||
Jun. 30, 2016USD ($)propertyitem | Dec. 31, 2015USD ($) | Sep. 18, 2015item | Jun. 30, 2015property | |
Rental properties | ||||
Total fixed assets | $ 264,048,696 | $ 261,276,898 | ||
Less: Accumulated depreciation | (90,369,204) | (84,579,584) | ||
Total fixed assets, net | 173,679,492 | 176,697,314 | ||
Land, improvements and parking lots | ||||
Rental properties | ||||
Total fixed assets | $ 53,190,785 | 52,852,877 | ||
Land, improvements and parking lots | Minimum | ||||
Rental properties | ||||
Useful Life | 15 years | |||
Land, improvements and parking lots | Maximum | ||||
Rental properties | ||||
Useful Life | 40 years | |||
Buildings and improvements | ||||
Rental properties | ||||
Total fixed assets | $ 172,989,882 | 172,277,299 | ||
Buildings and improvements | Minimum | ||||
Rental properties | ||||
Useful Life | 15 years | |||
Buildings and improvements | Maximum | ||||
Rental properties | ||||
Useful Life | 40 years | |||
Kitchen cabinets | ||||
Rental properties | ||||
Total fixed assets | $ 8,768,999 | 8,493,696 | ||
Kitchen cabinets | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Kitchen cabinets | Maximum | ||||
Rental properties | ||||
Useful Life | 10 years | |||
Carpets | ||||
Rental properties | ||||
Total fixed assets | $ 7,822,111 | 7,361,966 | ||
Carpets | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Carpets | Maximum | ||||
Rental properties | ||||
Useful Life | 10 years | |||
Air conditioning | ||||
Rental properties | ||||
Total fixed assets | $ 718,531 | 718,531 | ||
Air conditioning | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Air conditioning | Maximum | ||||
Rental properties | ||||
Useful Life | 10 years | |||
Laundry equipment | ||||
Rental properties | ||||
Total fixed assets | $ 244,771 | 244,771 | ||
Laundry equipment | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Laundry equipment | Maximum | ||||
Rental properties | ||||
Useful Life | 7 years | |||
Elevators | ||||
Rental properties | ||||
Total fixed assets | $ 1,139,296 | 1,139,296 | ||
Elevators | Minimum | ||||
Rental properties | ||||
Useful Life | 20 years | |||
Elevators | Maximum | ||||
Rental properties | ||||
Useful Life | 40 years | |||
Swimming pools | ||||
Rental properties | ||||
Total fixed assets | $ 444,629 | 444,629 | ||
Swimming pools | Minimum | ||||
Rental properties | ||||
Useful Life | 10 years | |||
Swimming pools | Maximum | ||||
Rental properties | ||||
Useful Life | 30 years | |||
Equipment | ||||
Rental properties | ||||
Total fixed assets | $ 10,040,444 | 9,502,977 | ||
Equipment | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Equipment | Maximum | ||||
Rental properties | ||||
Useful Life | 7 years | |||
Motor vehicles | ||||
Rental properties | ||||
Total fixed assets | $ 169,076 | 130,563 | ||
Motor vehicles | Maximum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Fences | ||||
Rental properties | ||||
Total fixed assets | $ 38,115 | 38,115 | ||
Fences | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Fences | Maximum | ||||
Rental properties | ||||
Useful Life | 15 years | |||
Furniture and fixtures | ||||
Rental properties | ||||
Total fixed assets | $ 8,265,230 | 7,855,351 | ||
Furniture and fixtures | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Furniture and fixtures | Maximum | ||||
Rental properties | ||||
Useful Life | 7 years | |||
Smoke alarms | ||||
Rental properties | ||||
Total fixed assets | $ 216,827 | $ 216,827 | ||
Smoke alarms | Minimum | ||||
Rental properties | ||||
Useful Life | 5 years | |||
Smoke alarms | Maximum | ||||
Rental properties | ||||
Useful Life | 7 years | |||
Residences at CaptainParkers LLC Residential Apartments Lexington, Massachusetts | ||||
RENTAL PROPERTIES | ||||
Number of units | item | 94 | |||
Wholly owned properties | ||||
RENTAL PROPERTIES | ||||
Number of properties | item | 25 | |||
Investment Properties | ||||
RENTAL PROPERTIES | ||||
Number of units | property | 1,033 | 1,033 | ||
Residential and mixed-use properties | ||||
RENTAL PROPERTIES | ||||
Number of units | item | 2,506 | |||
Number of properties | item | 21 | |||
Residential and mixed-use properties | Partially owned properties | ||||
RENTAL PROPERTIES | ||||
Number of units | item | 785 | |||
Number of properties | item | 9 | |||
Residential and mixed-use properties | Partially owned properties | Minimum | ||||
RENTAL PROPERTIES | ||||
Ownership interest (as a percent) | 40.00% | |||
Residential and mixed-use properties | Partially owned properties | Maximum | ||||
RENTAL PROPERTIES | ||||
Ownership interest (as a percent) | 50.00% | |||
Residential and mixed-use properties | Investment Properties | Partially owned properties | ||||
RENTAL PROPERTIES | ||||
Number of units | property | 785 | |||
Condominium | ||||
RENTAL PROPERTIES | ||||
Number of units | item | 19 | |||
Condominium | Wholly owned properties | ||||
RENTAL PROPERTIES | ||||
Number of units | item | 19 | |||
Number of properties | item | 1 |
RENTAL PROPERTIES (Captain Park
RENTAL PROPERTIES (Captain Parkers) (Details) - Residences at CaptainParkers LLC Residential Apartments Lexington, Massachusetts | Sep. 18, 2015USD ($)item |
RENTAL PROPERTIES | |
Number of units | item | 94 |
Purchase price of real estate properties | $ 31,600,000 |
Closing costs associated with financing | 49,000 |
Purchase price allocated to the value of the in-place leases | 474,000 |
Purchase price allocated to the value of the tenant relationships | $ 31,000 |
Amortization period of value of the in-place leases | 12 months |
Amortization period of value of the tenant relationships | 24 months |
Line of credit | $ 25,000,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 6 Months Ended | 18 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | |
RELATED PARTY TRANSACTIONS | |||||
Management fee as percentage of gross receipts rental revenue | 4.00% | ||||
Management fee as a percentage of gross receipts rental revenue of Linewt, LLC | 3.00% | ||||
Management fees of related party | $ 1,001,000 | $ 916,000 | |||
Management fee | $ 501,288 | $ 465,716 | 1,001,495 | 916,419 | |
Repairs and maintenance | 2,193,186 | 1,822,707 | 3,820,886 | 3,169,921 | |
Administrative expense | $ 455,160 | $ 487,233 | $ 953,416 | 1,020,310 | |
Number of limited partnerships and limited liability companies in which the entity has invested | item | 9 | ||||
Dexter Park | |||||
RELATED PARTY TRANSACTIONS | |||||
Management fee as percentage of gross receipts rental revenue | 2.00% | ||||
President of Management Company | |||||
RELATED PARTY TRANSACTIONS | |||||
Quarterly fee for asset management consulting services | $ 37,500 | 37,500 | |||
Harold Brown | Minimum | |||||
RELATED PARTY TRANSACTIONS | |||||
Ownership interest (as a percent) | 43.20% | 43.20% | 43.20% | ||
Harold Brown | Maximum | |||||
RELATED PARTY TRANSACTIONS | |||||
Ownership interest (as a percent) | 57.00% | 57.00% | 57.00% | ||
General Partner or Management Company [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Repairs and maintenance | $ 197,000 | ||||
Administrative expense | 165,000 | ||||
Commercial brokerage fees | 67,000 | ||||
Expenses for construction, architectural services and supervision of capital projects | 128,000 | ||||
Costs related to professional services | 557,000 | 441,000 | |||
Management Company [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Reimbursement to related party for payroll transfers | 1,509,000 | 1,383,000 | |||
Employer contributions in 401K plan | $ 0 | 0 | |||
Number of accounting staff of related party providing bookkeeping and accounting functions | item | 14 | ||||
Fees for accounting and bookkeeping services | $ 62,500 | $ 62,500 | |||
Number of employees having ownership interest in the investment properties | item | 6 | ||||
Fees for accounting and bookkeeping services per year | $ 125,000 | ||||
Partially owned properties | |||||
RELATED PARTY TRANSACTIONS | |||||
Management fee as percentage of gross receipts rental revenue | 4.00% | ||||
Management fee | $ 354,000 | ||||
Repairs and maintenance | 30,000 | ||||
Administrative expense | 17,000 | ||||
Construction, architectural services and supervision of capital projects | 33,000 | ||||
Amount paid to related party | $ 434,000 | ||||
Residential and mixed-use properties | Partially owned properties | Minimum | |||||
RELATED PARTY TRANSACTIONS | |||||
Ownership interest (as a percent) | 40.00% | 40.00% | 40.00% | ||
Residential and mixed-use properties | Partially owned properties | Maximum | |||||
RELATED PARTY TRANSACTIONS | |||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
OTHER ASSETS | ||
Security deposits | $ 2,392,000 | $ 2,257,000 |
Escrow deposits to fund future capital improvements | 483,000 | 801,000 |
Replacement reserve | 118,000 | |
Intangible assets, net of accumulated amortization | 121,000 | 382,000 |
Accumulated amortization on intangible assets | 2,136,000 | 1,875,000 |
Financing fees, net | 51,000 | 75,000 |
Accumulated amortization on financing and leasing fees | $ 90,000 | $ 66,000 |
MORTGAGE NOTES PAYABLE AND LINE
MORTGAGE NOTES PAYABLE AND LINE OF CREDIT (Mortgages Payable) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Annual maturities of mortgage debt | ||
2016-current maturities | $ 1,626,000 | |
2,017 | 1,817,000 | |
2,018 | 7,897,000 | |
2,019 | 4,329,000 | |
2,020 | 2,192,000 | |
Thereafter | 197,789,000 | |
Total | 215,650,000 | |
Less: unamortized deferred financing costs | (1,519,000) | |
Secured Debt | 214,130,912 | $ 194,500,820 |
Mortgages payable | ||
MORTGAGE NOTES PAYABLE | ||
Amount of monthly installments including principal | $ 850,000 | |
Weighted average interest rate (as a percent) | 4.59% | |
Effective interest rate (as a percent) | 4.68% | |
Mortgages payable | Minimum | ||
MORTGAGE NOTES PAYABLE | ||
Interest rate (as a percent) | 2.45% | |
Mortgages payable | Maximum | ||
MORTGAGE NOTES PAYABLE | ||
Interest rate (as a percent) | 5.97% |
MORTGAGE NOTES PAYABLE AND LI37
MORTGAGE NOTES PAYABLE AND LINE OF CREDIT (Mortgage by property) (Details) - USD ($) | Sep. 30, 2015 | Jul. 31, 2014 | Aug. 31, 2014 | Dec. 31, 2005 | Jun. 30, 2016 | Jan. 15, 2016 | Jan. 07, 2016 |
Line of Credit | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Term of debt | 3 years | ||||||
Mortgage amount | $ 0 | ||||||
Residences at CaptainParkers LLC Residential Apartments Lexington, Massachusetts | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Amount of loan proceeds utilized for pay off the existing mortgage | $ 2,000,000 | 23,000,000 | |||||
Mortgages payable | Hamilton Essex 81 | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Term of debt | 10 years | ||||||
Mortgage amount | $ 9,872,000 | ||||||
Amount of loan proceeds utilized for pay off the existing mortgage | $ 8,040,719 | ||||||
Mortgages payable | Hamilton on Main Apartments, LLC | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Term of debt | 10 years | 10 years | |||||
Mortgage amount | $ 16,769,000 | ||||||
Interest rate (as a percent) | 4.34% | 5.18% | |||||
Period for which the entity is required to make interest only payments | 3 years | ||||||
Amortization period of debt | 30 years | ||||||
Amount of loan proceeds utilized for pay off the existing mortgage | $ 15,205,000 | ||||||
Mortgages payable | Residences at CaptainParkers LLC Residential Apartments Lexington, Massachusetts | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Mortgage amount | $ 20,071,000 | ||||||
Mortgages payable | Minimum | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Interest rate (as a percent) | 2.45% | ||||||
Mortgages payable | Maximum | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Interest rate (as a percent) | 5.97% |
MORTGAGE NOTES PAYABLE AND LI38
MORTGAGE NOTES PAYABLE AND LINE OF CREDIT (Line of Credit) (Details) | Jan. 07, 2016 | Sep. 30, 2015 | Jul. 31, 2014USD ($)item | Aug. 31, 2014 | Jun. 30, 2016USD ($) | Dec. 31, 2005item | Mar. 07, 2005item |
Line of Credit | |||||||
Line Of Credit Facility Unused Capacity Commitment Fee | $ 24,000 | ||||||
Hamilton Essex 81 | |||||||
Line of Credit | |||||||
Number of properties in which borrowing amount collateralized | item | 1 | ||||||
Line of Credit | |||||||
Line of Credit | |||||||
Maximum borrowings | $ 25,000,000 | ||||||
Term of debt | 3 years | ||||||
Amount of refinancing costs | $ 125,000 | ||||||
Funds drawn by the company | 0 | ||||||
Number of properties in which borrowing amount collateralized | item | 23 | ||||||
Base Rate | Line of Credit | |||||||
Line of Credit | |||||||
Reference rate used in calculation of Base Rate | base | ||||||
Prime Rate [Member] | Line of Credit | |||||||
Line of Credit | |||||||
Reference rate used in calculation of Base Rate | Prime | ||||||
Federal Funds Rate | Line of Credit | |||||||
Line of Credit | |||||||
Reference rate used in calculation of Base Rate | Federal Funds | ||||||
Basis of effective interest rate used in calculation of Base Rate (as a percent) | 0.50% | ||||||
LIBOR | Residences at CaptainParkers LLC Residential Apartments Lexington, Massachusetts | |||||||
Line of Credit | |||||||
Margin over basis of interest rate (as a percent) | 201.00% | ||||||
LIBOR | Line of Credit | |||||||
Line of Credit | |||||||
Reference rate used in calculation of Base Rate | one month LIBOR | ||||||
Basis of effective interest rate used in calculation of Base Rate (as a percent) | 1.00% | ||||||
Minimum | |||||||
Line of Credit | |||||||
Tangible net worth | $ 150,000,000 | ||||||
Ratio of net operating income to total indebtedness | 9.50% | ||||||
Debt service coverage ratio | 1.6 | ||||||
Minimum | Line of Credit | |||||||
Line of Credit | |||||||
Pledged interests of the Partnership's ownership interest (as a percent) | 49.00% | ||||||
Commitment fee for unused amount (as a percent) | 0.15% | ||||||
Minimum | Base Rate | Line of Credit | |||||||
Line of Credit | |||||||
Margin over basis of interest rate (as a percent) | 2.50% | ||||||
Maximum | |||||||
Line of Credit | |||||||
Leverage ratio | 65.00% | ||||||
Aggregate increase in indebtedness | $ 15,000,000 | ||||||
Maximum | Line of Credit | |||||||
Line of Credit | |||||||
Pledged interests of the Partnership's ownership interest (as a percent) | 100.00% | ||||||
Commitment fee for unused amount (as a percent) | 0.20% | ||||||
Mortgages payable | Hamilton Essex 81 | |||||||
Line of Credit | |||||||
Term of debt | 10 years | ||||||
Mortgages payable | Hamilton on Main Apartments, LLC | |||||||
Line of Credit | |||||||
Term of debt | 10 years | 10 years | |||||
Number of properties in which borrowing amount collateralized | item | 3 | ||||||
Mortgages payable | LIBOR | Hamilton Essex 81 | |||||||
Line of Credit | |||||||
Margin over basis of interest rate (as a percent) | 2.18% |
ADVANCE RENTAL PAYMENTS AND S39
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | |
Period for advance rental payment | 1 month |
Amount received for prepaid rent | $ 1,905,000 |
Security deposits | $ 2,392,000 |
PARTNERS' CAPITAL (Details)
PARTNERS' CAPITAL (Details) | Jan. 03, 2012 | Jun. 30, 2016item$ / item | Jun. 30, 2015$ / item | Jul. 31, 2016$ / item | Jun. 15, 2016$ / item | Mar. 15, 2016$ / item | Dec. 31, 2015$ / shares$ / item | Sep. 30, 2015$ / item | Mar. 31, 2015$ / item | Aug. 20, 2007 |
Depositary receipts exchange ratio for Class A units | item | 30 | |||||||||
Quarterly distributions per depositary receipt (in dollars per receipt) | 0.25 | 0.25 | 0.25 | 0.25 | ||||||
Quarterly distribution per unit (in dollars per unit) | 7.50 | 7.50 | 7.50 | 7.50 | ||||||
Distribution per unit (in dollars per unit) | $ / shares | $ 30 | |||||||||
Earnings per depository receipt | ||||||||||
Net Income per Depositary Receipt (in dollars per receipt) | 0.59 | 0.40 | ||||||||
Distributions per Depositary Receipt (in dollars per share) | 0.50 | 0.50 | 1 | |||||||
Limited Partner | ||||||||||
Number of classes of partners | item | 2 | |||||||||
General Partnership | ||||||||||
Number of classes of partners | item | 1 | |||||||||
Fixed distribution percentage of unit holders | 1.00% | |||||||||
Class A | ||||||||||
Fixed distribution percentage of unit holders | 80.00% | |||||||||
Forward split of depositary receipts | 3 | |||||||||
Exchange ratio of depositary receipts for partnership units before adjustment | 10 | |||||||||
Exchange ratio of depositary receipts for partnership units after adjustment | 30 | |||||||||
Number of units in each depository receipt | 0.03333 | 0.1 | ||||||||
Quarterly distributions per depositary receipt (in dollars per receipt) | 0.25 | 0.25 | 0.25 | |||||||
Quarterly distribution per unit (in dollars per unit) | 7.50 | 7.50 | 7.50 | |||||||
Class B | ||||||||||
Fixed distribution percentage of unit holders | 19.00% |
TREASURY UNITS (Details)
TREASURY UNITS (Details) | Mar. 10, 2015shares | Aug. 08, 2008 | Aug. 31, 2007$ / itemshares | Aug. 20, 2007shares | Sep. 30, 2007$ / itemshares | Mar. 31, 2016$ / itemshares | Dec. 31, 2007$ / itemshares | Jun. 30, 2016USD ($)$ / itemshares | Jun. 30, 2015USD ($)shares | Dec. 31, 2015$ / itemshares | Mar. 31, 2016USD ($)$ / itemshares | Jan. 03, 2012 | Mar. 06, 2008shares | Jan. 30, 2008shares | Jan. 15, 2008shares |
Treasury units | 55,302 | ||||||||||||||
Period for repurchase of depository receipts | 5 years | 12 months | 12 months | ||||||||||||
Depository receipts authorized to be repurchased | 2,000,000 | 300,000 | 1,500,000 | 900,000 | 600,000 | ||||||||||
Number of depository receipts repurchased | 1,352,427 | ||||||||||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 26.81 | ||||||||||||||
Total cost of repurchase | $ | $ 694,380 | $ 1,879,001 | $ 39,291,000 | ||||||||||||
General Partnership | |||||||||||||||
Treasury units | 553 | ||||||||||||||
Fixed distribution percentage of unit holders | 1.00% | ||||||||||||||
Number of depository receipts repurchased | 156 | 156 | 156 | 156 | 156 | ||||||||||
Units repurchased (in shares) | 5 | ||||||||||||||
Total cost of repurchase | $ | $ 6,783 | $ 18,668 | |||||||||||||
Treasury Units | |||||||||||||||
Units repurchased (in shares) | 1,253 | ||||||||||||||
Total cost of repurchase | $ | $ (451) | ||||||||||||||
Class A | |||||||||||||||
Treasury units | 44,242 | ||||||||||||||
Number of units in each depository receipt | 0.1 | 0.03333 | |||||||||||||
Fixed distribution percentage of unit holders | 80.00% | ||||||||||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 50.11 | ||||||||||||||
Repurchase price of units (in dollars per unit) | $ / item | 804.30 | 804.30 | 804.30 | 804.30 | 1,503.26 | 804.30 | |||||||||
Total cost of repurchase | $ | $ 558,723 | $ 1,505,645 | |||||||||||||
Repurchase of depository receipts | $ | $ 10,829 | ||||||||||||||
Class B | |||||||||||||||
Treasury units | 10,507 | ||||||||||||||
Fixed distribution percentage of unit holders | 19.00% | ||||||||||||||
Number of depository receipts repurchased | 2,970 | 2,970 | 2,970 | 2,970 | 2,970 | ||||||||||
Units repurchased (in shares) | 86 | ||||||||||||||
Total cost of repurchase | $ | $ 128,874 | $ 354,688 | |||||||||||||
Class B | General Partnership | |||||||||||||||
Repurchase price of units (in dollars per unit) | $ / item | 895.21 | 895.21 | 895.21 | 895.21 | 895.21 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 09, 2015property | |
Loss Contingencies [Line Items] | |||
Insurance recovery receivable | $ 168,131 | $ 345,645 | |
Westgate Apartments LLC | |||
Loss Contingencies [Line Items] | |||
Number of apartments damaged | property | 10 | ||
Proceeds from Insurance | 714,000 | ||
Insurance recovery receivable | $ 155,000 |
RENTAL INCOME (Details)
RENTAL INCOME (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
RENTAL INCOME | ||
Percentage of rental income related to residential apartments and condominium units with leases of one year or less | 93.00% | |
Maximum period of non-cancelable operating lease | 1 year | |
Percentage of rental income related to commercial properties | 7.00% | |
Minimum future rental income | ||
2,016 | $ 2,638,000 | |
2,017 | 2,235,000 | |
2,018 | 1,836,000 | |
2,019 | 1,201,000 | |
2,020 | 941,000 | |
Thereafter | 422,000 | |
Commercial Property Leases | 9,273,000 | |
Aggregate contingent rentals from continuing operations | $ 304,000 | $ 345,000 |
RENTAL INCOME (Concentration) (
RENTAL INCOME (Concentration) (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Commercial rental income | Major tenant | |
Concentration Risk | |
Concentration risk percentage | 30.00% |
RENTAL INCOME (Commercial Lease
RENTAL INCOME (Commercial Leases) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)ft²item | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 2,917,645 |
Total square feet for expiring leases | ft² | 108,043 |
Total number of leases expiring | item | 44 |
Percentage of annual base rent for expiring leases | 100.00% |
Through December 31, 2016 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 505,659 |
Total square feet for expiring leases | ft² | 20,639 |
Total number of leases expiring | item | 7 |
Percentage of annual base rent for expiring leases | 17.00% |
Through December 31, 2017 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 408,902 |
Total square feet for expiring leases | ft² | 13,175 |
Total number of leases expiring | item | 9 |
Percentage of annual base rent for expiring leases | 14.00% |
Through December 31, 2018 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 311,883 |
Total square feet for expiring leases | ft² | 9,634 |
Total number of leases expiring | item | 10 |
Percentage of annual base rent for expiring leases | 11.00% |
Through December 31, 2019 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 708,151 |
Total square feet for expiring leases | ft² | 24,259 |
Total number of leases expiring | item | 9 |
Percentage of annual base rent for expiring leases | 25.00% |
Through December 31, 2020 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 614,715 |
Total square feet for expiring leases | ft² | 24,741 |
Total number of leases expiring | item | 5 |
Percentage of annual base rent for expiring leases | 21.00% |
Through December 31, 2021 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 210,892 |
Total square feet for expiring leases | ft² | 10,824 |
Total number of leases expiring | item | 3 |
Percentage of annual base rent for expiring leases | 7.00% |
Through December 31, 2022 | |
RENTAL INCOME | |
Percentage of annual base rent for expiring leases | 0.00% |
Through December 31, 2023 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 157,443 |
Total square feet for expiring leases | ft² | 4,771 |
Total number of leases expiring | item | 1 |
Percentage of annual base rent for expiring leases | 5.00% |
Through December 31, 2024 | |
RENTAL INCOME | |
Percentage of annual base rent for expiring leases | 0.00% |
Through December 31, 2025 | |
RENTAL INCOME | |
Percentage of annual base rent for expiring leases | 0.00% |
RENTAL INCOME (Rent Receivable)
RENTAL INCOME (Rent Receivable) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
RENTAL INCOME | ||
Allowance for doubtful rent receivable | $ 517,000 | $ 373,000 |
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis | 118,000 | |
Deferred rental concession | 92,000 | |
Amortization of deferred rents | $ 1,000 |
CASH FLOW INFORMATION (Details)
CASH FLOW INFORMATION (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOW INFORMATION | ||
Cash paid for interest | $ 4,947,000 | $ 4,753,000 |
Cash paid for state income taxes | $ 41,000 | $ 18,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Mortgage Notes Payable | ||
Carrying Amount | $ 214,130,912 | $ 194,500,820 |
Wholly owned properties | ||
Mortgage Notes Payable | ||
Carrying Amount | 214,130,912 | 194,500,820 |
Estimated Fair Value | 235,857,841 | 205,240,993 |
Partially owned properties | ||
Mortgage Notes Payable | ||
Carrying Amount | 134,906,750 | 135,657,988 |
Estimated Fair Value | $ 144,534,646 | $ 142,512,272 |
TAXABLE INCOME AND TAX BASIS (D
TAXABLE INCOME AND TAX BASIS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
TAXABLE INCOME AND TAX BASIS | |||||
Excess amount of statement income over taxable income | $ 1,667,000 | ||||
Excess amount of cumulative statement basis over cumulative taxable basis | 7,000,000 | ||||
Excess amount of statement income from joint venture investments over taxable income | 1,500,000 | ||||
Reconciliation of GAAP net income to taxable income | |||||
Financial statement ("book") net income | $ 980,586 | $ 1,096,457 | $ 2,211,351 | $ 1,506,116 | |
Reconciliation of Income from Book Basis to Tax Basis Profit (Loss) Tax Basis | $ 2,106,000 |
INVESTMENT IN UNCONSOLIDATED 50
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) | 6 Months Ended |
Jun. 30, 2016item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of limited partnerships and limited liability companies in which the entity has invested | 9 |
Number of partnerships investing in commercial property | 3 |
Management Company [Member] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of employees having ownership interest in the investment properties | 6 |
Minimum | Limited Partnerships | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Ownership interest (as a percent) | 40.00% |
Minimum | Harold Brown | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Ownership interest (as a percent) | 43.20% |
Maximum | Limited Partnerships | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Ownership interest (as a percent) | 50.00% |
Maximum | Harold Brown | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Ownership interest (as a percent) | 57.00% |
INVESTMENT IN UNCONSOLIDATED 51
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Dexter) (Details) | Oct. 28, 2009USD ($)item | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Investments in joint venture | $ 7,079,962 | $ 7,819,162 | |
Outstanding amount of mortgage | 214,130,912 | $ 194,500,820 | |
Dexter Park | |||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Investments in joint venture | $ 15,925,000 | ||
Ownership interest (as a percent) | 40.00% | ||
Number of units | item | 409 | ||
Purchase price of investments | $ 129,500,000 | ||
Dexter Park | Mortgages payable | |||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Interest rate (as a percent) | 5.57% | ||
Period for which the entity is required to make interest only payments | 2 years | ||
Amortization period of debt | 30 years | ||
Outstanding amount of mortgage | $ 84,018,000 | ||
Borrowings | $ 89,914,000 |
INVESTMENT IN UNCONSOLIDATED 52
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Bay Apts and Sales) (Details) | 1 Months Ended | ||
Feb. 28, 2007item | Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Investments in joint venture | $ | $ 7,079,962 | $ 7,819,162 | |
Outstanding amount of mortgage | $ | $ 214,130,912 | $ 194,500,820 | |
Hamilton Bay Apts | |||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Number of units refinanced | item | 48 | ||
Condominium | |||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Number of units | item | 19 | ||
Mortgages payable | Minimum | |||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Interest rate (as a percent) | 2.45% | ||
Mortgages payable | Maximum | |||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||
Interest rate (as a percent) | 5.97% |
INVESTMENT IN UNCONSOLIDATED 53
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Essex) (Details) | Sep. 30, 2015USD ($) | Sep. 28, 2015USD ($) | Mar. 07, 2005USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 7,079,962 | $ 7,819,162 | ||||
Distribution to the Partnership | $ 1,873,850 | $ 1,899,885 | ||||
Hamilton Essex Development, LLC and Hamilton Essex 81, LLC | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 2,000,000 | |||||
Ownership interest (as a percent) | 50.00% | |||||
Purchase price of investments | $ 14,300,000 | |||||
Hamilton Essex 81 | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | item | 48 | |||||
Capital contributions | $ 100,000 | |||||
Distribution to the Partnership | $ 978,193 | |||||
Hamilton Essex Development | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Capacity of real estate property (in cars per lot) | item | 50 | |||||
Capital contributions | 978,193 | |||||
Minimum | Limited Partnerships | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Ownership interest (as a percent) | 40.00% | |||||
Maximum | Limited Partnerships | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Ownership interest (as a percent) | 50.00% | |||||
Mortgages payable | Hamilton Essex Development, LLC and Hamilton Essex 81, LLC | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Borrowings | $ 10,750,000 | |||||
Mortgages payable | Hamilton Essex 81 | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Mortgage amount | $ 9,872,000 | |||||
Term of debt | 10 years | |||||
Borrowings | $ 10,000,000 | |||||
Mortgages payable | Hamilton Essex 81 | LIBOR | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Margin over basis of interest rate (as a percent) | 2.18% | |||||
Mortgages payable | Hamilton Essex Development | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Repayment of loan | $ 1,952,286 | |||||
Mortgages payable | Minimum | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Interest rate (as a percent) | 2.45% | |||||
Mortgages payable | Maximum | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Interest rate (as a percent) | 5.97% |
INVESTMENT IN UNCONSOLIDATED 54
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton 1025) (Details) | Jul. 08, 2016USD ($) | Mar. 02, 2005USD ($)item | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||
Investments in joint venture | $ 7,079,962 | $ 7,819,162 | ||
Outstanding amount of mortgage | 214,130,912 | $ 194,500,820 | ||
Hamilton 1,025 | ||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||
Investments in joint venture | $ 2,352,000 | |||
Ownership interest (as a percent) | 50.00% | |||
Number of units | item | 176 | |||
Number of units sold | item | 127 | |||
Number of units retained for long-term investment | item | 49 | |||
Capital contributions | $ 2,359,500 | |||
Purchase price of investments | $ 23,750,000 | |||
Hamilton 1025 | Mortgages payable | ||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||
Term of debt | 10 years | |||
Interest rate (as a percent) | 5.67% | |||
Period for which the entity is required to make interest only payments | 5 years | |||
Amortization period of debt | 30 years | |||
Outstanding amount of mortgage | $ 4,694,000 | |||
Borrowings | $ 5,000,000 |
INVESTMENT IN UNCONSOLIDATED 55
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Minuteman) (Details) | 1 Months Ended | 6 Months Ended | |||||
Jan. 31, 2007USD ($) | Oct. 31, 2004USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2006USD ($) | Sep. 30, 2004USD ($)item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ 7,079,962 | $ 7,819,162 | |||||
Distribution to the Partnership | 1,873,850 | $ 1,899,885 | |||||
Outstanding amount of mortgage | 214,130,912 | $ 194,500,820 | |||||
Hamilton Minuteman | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ 5,075,000 | ||||||
Ownership interest (as a percent) | 50.00% | ||||||
Number of units | item | 42 | ||||||
Cash contribution by the entity towards loan | $ 1,250,000 | ||||||
Purchase price of investments | $ 10,100,000 | ||||||
Amount returned to partnership | $ 3,775,000 | ||||||
Mortgages payable | Hamilton Minuteman | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Term of debt | 10 years | ||||||
Interest rate (as a percent) | 5.67% | ||||||
Period for which the entity is required to make interest only payments | 5 years | ||||||
Amortization period of debt | 30 years | ||||||
Outstanding amount of mortgage | $ 5,170,000 | ||||||
Borrowings | $ 5,500,000 | $ 8,025,000 |
INVESTMENT IN UNCONSOLIDATED 56
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton on Main) (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 31, 2014USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2005USD ($) | Dec. 31, 2015USD ($) | Aug. 31, 2004USD ($)item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 7,079,962 | $ 7,819,162 | ||||
Distribution to the Partnership | 1,873,850 | $ 1,899,885 | ||||
Hamilton on Main Apts | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 8,000,000 | |||||
Ownership interest (as a percent) | 50.00% | |||||
Number of units | item | 280 | |||||
Number of units sold | item | 137 | |||||
Purchase price of investments | $ 56,000,000 | |||||
Mortgages payable | Hamilton on Main Apartments, LLC | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Term of debt | 10 years | 10 years | ||||
Mortgage amount | $ 16,769,000 | |||||
Interest rate (as a percent) | 4.34% | 5.18% | ||||
Period for which the entity is required to make interest only payments | 3 years | |||||
Amortization period of debt | 30 years | |||||
Debt Instrument, Loan Proceeds distributed to the Partnership | $ 850,000 | |||||
Term excluding period for which interest only payments to be made | 7 years | |||||
Net proceeds after funding escrow accounts and closing costs | $ 16,700,000 | |||||
Cost associated with loan extension | 161,000 | |||||
Borrowings | $ 16,900,000 | $ 16,825,000 |
INVESTMENT IN UNCONSOLIDATED 57
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (345 Franklin) (Details) | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2013USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2001USD ($)item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Investments in joint venture | $ 7,079,962 | $ 7,819,162 | |||
Distribution to the Partnership | 1,873,850 | $ 1,899,885 | |||
Outstanding amount of mortgage | 214,130,912 | $ 194,500,820 | |||
345 Franklin | Mortgages payable | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Mortgage amount | $ 9,920,000 | ||||
Maximum | Mortgages payable | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Interest rate (as a percent) | 5.97% | ||||
345 Franklin | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Investments in joint venture | $ 1,533,000 | ||||
Ownership interest (as a percent) | 50.00% | ||||
Number of units | item | 40 | ||||
Distribution to the Partnership | $ 1,610,000 | ||||
345 Franklin | Mortgages payable | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Term of debt | 15 years | ||||
Interest rate (as a percent) | 3.87% | ||||
Period for which the entity is required to make interest only payments | 3 years | ||||
Amortization period of debt | 30 years | ||||
Repayment of loan | $ 6,776,000 | ||||
Borrowings | $ 10,000,000 |
INVESTMENT IN UNCONSOLIDATED 58
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Balance Sheet) (Details) | Jun. 30, 2016USD ($)property | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($)property | Oct. 28, 2009USD ($)item | Oct. 03, 2005USD ($)item | Mar. 07, 2005item | Mar. 02, 2005USD ($)item | Sep. 30, 2004USD ($)item | Aug. 31, 2004USD ($)item | Nov. 30, 2001USD ($)item |
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Investment in Unconsolidated Joint Ventures | $ 7,079,962 | $ 7,819,162 | ||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (2,468,307) | $ (2,288,090) | ||||||||
Investment Properties | ||||||||||
ASSETS | ||||||||||
Rental Properties | 145,999,494 | $ 151,316,712 | ||||||||
Cash & Cash Equivalents | 1,640,161 | 1,719,138 | ||||||||
Rent Receivable | 183,110 | 188,006 | ||||||||
Real Estate Tax Escrow | 539,506 | 668,176 | ||||||||
Prepaid Expenses & Other Assets | 2,690,531 | 2,340,334 | ||||||||
Total Assets | 151,052,802 | 156,232,366 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 134,906,750 | 136,507,135 | ||||||||
Accounts Payable and Accrued Expenses | 986,745 | 1,118,568 | ||||||||
Advance Rental Payments and Security Deposits | 4,142,392 | 3,863,685 | ||||||||
Total Liabilities | 140,035,887 | 141,489,388 | ||||||||
Partners' Capital | 11,016,915 | 14,742,978 | ||||||||
Total Liabilities and Capital | 151,052,802 | 156,232,366 | ||||||||
Investment in Unconsolidated Joint Ventures | 7,079,962 | 7,866,077 | ||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (2,468,307) | (1,534,258) | ||||||||
Total Investment in Unconsolidated Joint Ventures (Net) | $ 4,611,655 | $ 6,331,819 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 1,033 | 1,033 | ||||||||
Units to be retained | property | 786 | 786 | ||||||||
Units to be sold | property | 247 | 247 | ||||||||
Units sold | property | 245 | 240 | ||||||||
Unsold units | property | 2 | 7 | ||||||||
Investment Properties | Residential buildings | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 1,030 | 1,030 | ||||||||
Investment Properties | Commercial | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 3 | 3 | ||||||||
Hamilton Essex 81 | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | $ 9,872,451 | |||||||||
Total units/ condominiums | ||||||||||
Total | item | 48 | |||||||||
Hamilton Essex 81 | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | 8,233,823 | $ 8,564,474 | ||||||||
Cash & Cash Equivalents | 111,271 | 29,625 | ||||||||
Rent Receivable | 46,713 | 25,517 | ||||||||
Real Estate Tax Escrow | 83,814 | 123,085 | ||||||||
Prepaid Expenses & Other Assets | 105,562 | 92,967 | ||||||||
Total Assets | 8,581,183 | 8,835,668 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 9,872,451 | 8,020,648 | ||||||||
Accounts Payable and Accrued Expenses | 54,553 | 59,786 | ||||||||
Advance Rental Payments and Security Deposits | 196,372 | 199,886 | ||||||||
Total Liabilities | 10,123,376 | 8,280,320 | ||||||||
Partners' Capital | (1,542,193) | 555,348 | ||||||||
Total Liabilities and Capital | $ 8,581,183 | $ 8,835,668 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 277,674 | |||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | $ (771,097) | |||||||||
Total units/ condominiums | ||||||||||
Total | property | 49 | 49 | ||||||||
Units to be retained | property | 49 | 49 | ||||||||
Hamilton Essex 81 | Residential buildings | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 48 | 48 | ||||||||
Hamilton Essex 81 | Commercial | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 1 | 1 | ||||||||
Hamilton Essex Development | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | $ 2,617,251 | $ 2,620,081 | ||||||||
Cash & Cash Equivalents | 42,323 | 33,530 | ||||||||
Prepaid Expenses & Other Assets | 1,351 | |||||||||
Total Assets | 2,660,925 | 2,653,611 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 1,959,763 | |||||||||
Accounts Payable and Accrued Expenses | 850 | 5,308 | ||||||||
Total Liabilities | 850 | 1,965,071 | ||||||||
Partners' Capital | 2,660,075 | 688,540 | ||||||||
Total Liabilities and Capital | $ 2,660,925 | $ 2,653,611 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 1,330,037 | $ 344,270 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 1 | 1 | ||||||||
Units to be retained | property | 1 | 1 | ||||||||
Hamilton Essex Development | Commercial | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 1 | 1 | ||||||||
345 Franklin | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | $ 9,920,098 | |||||||||
Partners' Capital % - NERA | 50.00% | |||||||||
Investment in Unconsolidated Joint Ventures | $ 1,533,000 | |||||||||
Total units/ condominiums | ||||||||||
Total | item | 40 | |||||||||
345 Franklin | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | 6,607,281 | $ 6,951,074 | ||||||||
Cash & Cash Equivalents | 183,078 | 116,046 | ||||||||
Rent Receivable | 8,347 | 4,123 | ||||||||
Real Estate Tax Escrow | 16,713 | 17,330 | ||||||||
Prepaid Expenses & Other Assets | 37,218 | 51,470 | ||||||||
Total Assets | 6,852,637 | 7,140,043 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 9,920,098 | 9,913,439 | ||||||||
Accounts Payable and Accrued Expenses | 67,207 | 64,628 | ||||||||
Advance Rental Payments and Security Deposits | 259,754 | 230,492 | ||||||||
Total Liabilities | 10,247,059 | 10,208,559 | ||||||||
Partners' Capital | (3,394,422) | (3,068,516) | ||||||||
Total Liabilities and Capital | $ 6,852,637 | $ 7,140,043 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | $ (1,697,210) | $ (1,534,258) | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 40 | 40 | ||||||||
Units to be retained | property | 40 | 40 | ||||||||
345 Franklin | Residential buildings | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 40 | 40 | ||||||||
Hamilton 1,025 | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | $ 4,693,693 | |||||||||
Partners' Capital % - NERA | 50.00% | |||||||||
Investment in Unconsolidated Joint Ventures | $ 2,352,000 | |||||||||
Total units/ condominiums | ||||||||||
Total | item | 176 | |||||||||
Units to be retained | item | 49 | |||||||||
Units sold | item | 127 | |||||||||
Hamilton 1025 | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | 4,829,662 | $ 5,039,485 | ||||||||
Cash & Cash Equivalents | 288 | 6,348 | ||||||||
Rent Receivable | 18,732 | 5,178 | ||||||||
Real Estate Tax Escrow | 83,537 | 72,812 | ||||||||
Prepaid Expenses & Other Assets | 68,884 | 54,129 | ||||||||
Total Assets | 5,001,103 | 5,177,952 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 4,693,693 | 4,762,744 | ||||||||
Accounts Payable and Accrued Expenses | 28,749 | 27,358 | ||||||||
Advance Rental Payments and Security Deposits | 89,470 | 97,276 | ||||||||
Total Liabilities | 4,811,912 | 4,887,378 | ||||||||
Partners' Capital | 189,191 | 290,574 | ||||||||
Total Liabilities and Capital | $ 5,001,103 | $ 5,177,952 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 94,594 | $ 145,287 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 176 | 176 | ||||||||
Units to be retained | property | 49 | 49 | ||||||||
Units to be sold | property | 127 | 127 | ||||||||
Units sold | property | 127 | 127 | ||||||||
Hamilton 1025 | Residential buildings | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 175 | 175 | ||||||||
Hamilton 1025 | Commercial | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 1 | 1 | ||||||||
Hamilton Bay Sales | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | $ 241,741 | $ 793,069 | ||||||||
Cash & Cash Equivalents | 28,695 | 8,106 | ||||||||
Rent Receivable | 2,400 | 1,605 | ||||||||
Prepaid Expenses & Other Assets | 1,891 | 19,977 | ||||||||
Total Assets | 274,727 | 822,757 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Accounts Payable and Accrued Expenses | 1,395 | 20,207 | ||||||||
Advance Rental Payments and Security Deposits | 2,373 | 5,810 | ||||||||
Total Liabilities | 3,768 | 26,017 | ||||||||
Partners' Capital | 270,959 | 796,740 | ||||||||
Total Liabilities and Capital | $ 274,727 | $ 822,757 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 135,479 | $ 398,370 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 120 | 120 | ||||||||
Units to be sold | property | 120 | 120 | ||||||||
Units sold | property | 118 | 113 | ||||||||
Unsold units | property | 2 | 7 | ||||||||
Hamilton Bay Sales | Residential buildings | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 120 | 120 | ||||||||
Hamilton Bay Apts | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | $ 4,463,701 | |||||||||
Partners' Capital % - NERA | 50.00% | |||||||||
Investment in Unconsolidated Joint Ventures | $ 2,500,000 | |||||||||
Total units/ condominiums | ||||||||||
Total | item | 168 | |||||||||
Units to be retained | item | 48 | |||||||||
Units sold | item | 120 | |||||||||
Hamilton Bay Apts | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | 6,017,735 | $ 6,288,296 | ||||||||
Cash & Cash Equivalents | 4,943 | 829 | ||||||||
Rent Receivable | 12,257 | 2,221 | ||||||||
Real Estate Tax Escrow | 37,780 | 56,520 | ||||||||
Prepaid Expenses & Other Assets | 74,021 | 55,989 | ||||||||
Total Assets | 6,146,736 | 6,403,855 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 4,463,701 | 4,528,267 | ||||||||
Accounts Payable and Accrued Expenses | 9,232 | 14,768 | ||||||||
Advance Rental Payments and Security Deposits | 98,765 | 95,435 | ||||||||
Total Liabilities | 4,571,698 | 4,638,470 | ||||||||
Partners' Capital | 1,575,038 | 1,765,385 | ||||||||
Total Liabilities and Capital | $ 6,146,736 | $ 6,403,855 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 787,518 | $ 882,693 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 48 | 48 | ||||||||
Units to be retained | property | 48 | 48 | ||||||||
Hamilton Bay Apts | Residential buildings | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 48 | 48 | ||||||||
Hamilton Minuteman | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | $ 5,169,696 | |||||||||
Partners' Capital % - NERA | 50.00% | |||||||||
Investment in Unconsolidated Joint Ventures | $ 5,075,000 | |||||||||
Total units/ condominiums | ||||||||||
Total | item | 42 | |||||||||
Hamilton Minuteman | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | 6,200,372 | $ 6,421,497 | ||||||||
Cash & Cash Equivalents | 170 | 42,200 | ||||||||
Rent Receivable | 152 | |||||||||
Real Estate Tax Escrow | 46,263 | 39,006 | ||||||||
Prepaid Expenses & Other Assets | 159,492 | 43,472 | ||||||||
Total Assets | 6,406,297 | 6,546,327 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 5,169,696 | 5,246,816 | ||||||||
Accounts Payable and Accrued Expenses | 57,401 | 47,865 | ||||||||
Advance Rental Payments and Security Deposits | 110,976 | 96,548 | ||||||||
Total Liabilities | 5,338,073 | 5,391,229 | ||||||||
Partners' Capital | 1,068,224 | 1,155,098 | ||||||||
Total Liabilities and Capital | $ 6,406,297 | $ 6,546,327 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 534,111 | $ 577,549 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 42 | 42 | ||||||||
Units to be retained | property | 42 | 42 | ||||||||
Hamilton Minuteman | Residential buildings | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 42 | 42 | ||||||||
Hamilton on Main Apts | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | $ 16,768,914 | |||||||||
Partners' Capital % - NERA | 50.00% | |||||||||
Investment in Unconsolidated Joint Ventures | $ 8,000,000 | |||||||||
Total units/ condominiums | ||||||||||
Total | item | 280 | |||||||||
Units sold | item | 137 | |||||||||
Hamilton on Main Apts | NERA 50% | ||||||||||
ASSETS | ||||||||||
Rental Properties | 18,146,220 | $ 19,007,097 | ||||||||
Cash & Cash Equivalents | 172,519 | 208,411 | ||||||||
Rent Receivable | 13,230 | 15,289 | ||||||||
Real Estate Tax Escrow | 37,745 | 94,677 | ||||||||
Prepaid Expenses & Other Assets | 109,424 | 82,262 | ||||||||
Total Assets | 18,479,138 | 19,407,736 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 16,768,914 | 16,752,864 | ||||||||
Accounts Payable and Accrued Expenses | 130,506 | 154,122 | ||||||||
Advance Rental Payments and Security Deposits | 357,657 | 337,614 | ||||||||
Total Liabilities | 17,257,077 | 17,244,600 | ||||||||
Partners' Capital | 1,222,061 | 2,163,136 | ||||||||
Total Liabilities and Capital | $ 18,479,138 | $ 19,407,736 | ||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 611,030 | $ 1,081,568 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 148 | 148 | ||||||||
Units to be retained | property | 148 | 148 | ||||||||
Hamilton on Main Apts | Residential buildings | NERA 50% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 148 | 148 | ||||||||
Dexter Park | ||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | $ 84,018,197 | |||||||||
Partners' Capital % - NERA | 40.00% | |||||||||
Investment in Unconsolidated Joint Ventures | $ 15,925,000 | |||||||||
Total units/ condominiums | ||||||||||
Total | item | 409 | |||||||||
Dexter Park | NERA 40% | ||||||||||
ASSETS | ||||||||||
Rental Properties | 93,105,409 | $ 95,631,639 | ||||||||
Cash & Cash Equivalents | 1,096,874 | 1,274,043 | ||||||||
Rent Receivable | 81,431 | 133,921 | ||||||||
Real Estate Tax Escrow | 233,654 | 264,746 | ||||||||
Prepaid Expenses & Other Assets | 2,132,688 | 1,940,068 | ||||||||
Total Assets | 96,650,056 | 99,244,417 | ||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||
Mortgage Notes Payable | 84,018,197 | 85,322,594 | ||||||||
Accounts Payable and Accrued Expenses | 636,852 | 724,526 | ||||||||
Advance Rental Payments and Security Deposits | 3,027,025 | 2,800,624 | ||||||||
Total Liabilities | 87,682,074 | 88,847,744 | ||||||||
Partners' Capital | 8,967,982 | 10,396,673 | ||||||||
Total Liabilities and Capital | $ 96,650,056 | $ 99,244,417 | ||||||||
Partners' Capital % - NERA | 40.00% | 40.00% | ||||||||
Investment in Unconsolidated Joint Ventures | $ 3,587,193 | $ 4,158,667 | ||||||||
Total units/ condominiums | ||||||||||
Total | property | 409 | 409 | ||||||||
Units to be retained | property | 409 | 409 | ||||||||
Dexter Park | Residential buildings | NERA 40% | ||||||||||
Total units/ condominiums | ||||||||||
Total | property | 409 | 409 |
INVESTMENT IN UNCONSOLIDATED 59
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Income) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Oct. 28, 2009 | Oct. 03, 2005 | Mar. 02, 2005 | Sep. 30, 2004 | Aug. 31, 2004 | Nov. 30, 2001 | |
Investment Properties | ||||||||||
Revenues | ||||||||||
Rental income | $ 6,025,406 | $ 5,849,952 | $ 12,116,129 | $ 11,622,093 | ||||||
Laundry and Sundry Income | 44,100 | 36,638 | 86,033 | 69,339 | ||||||
Total Revenues | 6,069,506 | 5,886,590 | 12,202,162 | 11,691,432 | ||||||
Expenses | ||||||||||
Administrative | 75,361 | 80,321 | 168,714 | 162,417 | ||||||
Depreciation and amortization | 1,482,711 | 1,469,370 | 2,954,638 | 2,932,705 | ||||||
Management Fees | 178,086 | 176,068 | 353,799 | 343,488 | ||||||
Operating | 390,264 | 367,515 | 894,324 | 1,072,391 | ||||||
Renting | 50,986 | 28,540 | 90,035 | 59,536 | ||||||
Repairs and Maintenance | 760,666 | 685,986 | 1,409,909 | 1,206,400 | ||||||
Taxes and Insurance | 715,582 | 669,580 | 1,436,671 | 1,328,837 | ||||||
Total Expenses | 3,653,656 | 3,477,380 | 7,308,090 | 7,105,774 | ||||||
Income Before Other Income | 2,415,850 | 2,409,210 | 4,894,072 | 4,585,658 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (1,787,741) | (1,877,917) | (3,581,247) | (3,742,642) | ||||||
Interest Income | 5 | 1 | 9 | 8 | ||||||
Other Income (Expense) | (28) | |||||||||
Gain on Sale of Real Estate | 67,462 | 96 | 235,470 | |||||||
Total Other Income (Loss) | (1,720,274) | (1,877,820) | (3,345,768) | (3,742,662) | ||||||
Net Income (Loss) | 695,576 | 531,390 | 1,548,304 | 842,996 | ||||||
Proportionate share of net income (loss) | 288,478 | 221,586 | 658,082 | 346,820 | ||||||
Investment Properties | NERA 50% | ||||||||||
Other Income (loss) | ||||||||||
Proportionate share of net income (loss) | 51,238 | 45,142 | 193,802 | 48,106 | ||||||
Investment Properties | NERA 40% | ||||||||||
Other Income (loss) | ||||||||||
Proportionate share of net income (loss) | 237,240 | 176,445 | 464,280 | 298,714 | ||||||
Hamilton Essex 81 | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | 369,120 | 362,007 | 767,917 | 721,908 | ||||||
Laundry and Sundry Income | 4,375 | 8,357 | 2,492 | |||||||
Total Revenues | 373,495 | 362,007 | 776,274 | 724,400 | ||||||
Expenses | ||||||||||
Administrative | 4,545 | 4,369 | 20,096 | 8,306 | ||||||
Depreciation and amortization | 113,230 | 108,848 | 225,194 | 216,187 | ||||||
Management Fees | 15,366 | 16,392 | 30,050 | 31,737 | ||||||
Operating | 19,855 | 21,230 | 50,358 | 58,763 | ||||||
Renting | 6,299 | 6,221 | 6,839 | 6,721 | ||||||
Repairs and Maintenance | 42,149 | 40,751 | 76,084 | 66,434 | ||||||
Taxes and Insurance | 57,873 | 53,458 | 115,308 | 106,875 | ||||||
Total Expenses | 259,317 | 251,269 | 523,929 | 495,023 | ||||||
Income Before Other Income | 114,178 | 110,738 | 252,345 | 229,377 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (71,039) | (123,160) | (141,647) | (245,523) | ||||||
Total Other Income (Loss) | (71,039) | (123,160) | (141,647) | (245,523) | ||||||
Net Income (Loss) | 43,139 | (12,422) | 110,698 | (16,146) | ||||||
Proportionate share of net income (loss) | $ 21,570 | $ (6,211) | $ 55,349 | $ (8,073) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Hamilton Essex Development | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | $ 60,000 | $ 72,523 | $ 120,000 | $ 145,045 | ||||||
Total Revenues | 60,000 | 72,523 | 120,000 | 145,045 | ||||||
Expenses | ||||||||||
Administrative | 464 | 425 | 889 | 1,008 | ||||||
Depreciation and amortization | 707 | 707 | 1,415 | 1,415 | ||||||
Management Fees | 2,400 | 2,901 | 4,800 | 5,802 | ||||||
Repairs and Maintenance | 3,150 | 3,150 | ||||||||
Taxes and Insurance | 15,431 | 13,423 | 30,602 | 26,844 | ||||||
Total Expenses | 22,152 | 17,456 | 40,856 | 35,069 | ||||||
Income Before Other Income | 37,848 | 55,067 | 79,144 | 109,976 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (15,734) | (31,401) | ||||||||
Total Other Income (Loss) | (15,734) | (31,401) | ||||||||
Net Income (Loss) | 37,848 | 39,333 | 79,144 | 78,575 | ||||||
Proportionate share of net income (loss) | $ 18,924 | $ 19,667 | $ 39,572 | $ 39,287 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
345 Franklin | ||||||||||
Other Income (loss) | ||||||||||
Ownership interest (as a percent) | 50.00% | |||||||||
345 Franklin | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | $ 358,043 | $ 342,800 | $ 724,962 | $ 678,276 | ||||||
Laundry and Sundry Income | 507 | 2,097 | 323 | |||||||
Total Revenues | 358,550 | 342,800 | 727,059 | 678,599 | ||||||
Expenses | ||||||||||
Administrative | 6,211 | 6,620 | 16,198 | 14,381 | ||||||
Depreciation and amortization | 86,915 | 92,128 | 173,831 | 184,256 | ||||||
Management Fees | 15,988 | 15,131 | 30,825 | 29,240 | ||||||
Operating | 16,542 | 11,114 | 36,666 | 51,186 | ||||||
Renting | 10,355 | 2,760 | 10,540 | 9,105 | ||||||
Repairs and Maintenance | 12,627 | 13,075 | 29,334 | 19,062 | ||||||
Taxes and Insurance | 30,407 | 29,941 | 64,423 | 59,877 | ||||||
Total Expenses | 179,045 | 170,769 | 361,817 | 367,107 | ||||||
Income Before Other Income | 179,505 | 172,031 | 365,242 | 311,492 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (99,505) | (99,667) | (199,009) | (199,268) | ||||||
Total Other Income (Loss) | (99,505) | (99,667) | (199,009) | (199,268) | ||||||
Net Income (Loss) | 80,000 | 72,364 | 166,233 | 112,224 | ||||||
Proportionate share of net income (loss) | $ 40,000 | $ 36,182 | $ 83,117 | $ 56,111 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Hamilton 1,025 | ||||||||||
Other Income (loss) | ||||||||||
Ownership interest (as a percent) | 50.00% | |||||||||
Hamilton 1025 | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | $ 237,156 | $ 237,028 | $ 472,476 | $ 477,428 | ||||||
Total Revenues | 237,156 | 237,028 | 472,476 | 477,428 | ||||||
Expenses | ||||||||||
Administrative | 1,319 | 1,170 | 2,745 | 3,162 | ||||||
Depreciation and amortization | 58,999 | 58,777 | 118,064 | 117,548 | ||||||
Management Fees | 8,402 | 9,391 | 17,927 | 18,831 | ||||||
Operating | 220 | 223 | 585 | 348 | ||||||
Renting | 1,789 | 1,789 | ||||||||
Repairs and Maintenance | 78,417 | 78,891 | 155,898 | 155,388 | ||||||
Taxes and Insurance | 43,260 | 42,844 | 86,209 | 85,895 | ||||||
Total Expenses | 192,406 | 191,296 | 383,217 | 381,172 | ||||||
Income Before Other Income | 44,750 | 45,732 | 89,259 | 96,256 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (69,173) | (70,209) | (138,688) | (139,954) | ||||||
Interest Income | 5 | 1 | 9 | 8 | ||||||
Total Other Income (Loss) | (69,168) | (70,208) | (138,679) | (139,946) | ||||||
Net Income (Loss) | (24,418) | (24,476) | (49,420) | (43,690) | ||||||
Proportionate share of net income (loss) | $ (12,209) | $ (12,238) | $ (24,710) | $ (21,845) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Hamilton Bay Sales | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | $ 11,025 | $ 30,173 | $ 27,690 | $ 59,468 | ||||||
Total Revenues | 11,025 | 30,173 | 27,690 | 59,468 | ||||||
Expenses | ||||||||||
Administrative | 1,085 | 1,895 | 2,984 | 4,674 | ||||||
Depreciation and amortization | 6,291 | 8,988 | 12,584 | 17,974 | ||||||
Management Fees | 406 | 1,049 | 1,076 | 2,323 | ||||||
Operating | 48 | 181 | 200 | 205 | ||||||
Repairs and Maintenance | 5,551 | 12,390 | 13,569 | 23,876 | ||||||
Taxes and Insurance | 2,855 | 5,056 | 7,071 | 10,936 | ||||||
Total Expenses | 16,236 | 29,559 | 37,484 | 59,988 | ||||||
Income Before Other Income | (5,211) | 614 | (9,794) | (520) | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (11) | (104) | (59) | (214) | ||||||
Other Income (Expense) | (125) | |||||||||
Gain on Sale of Real Estate | 67,462 | 235,470 | ||||||||
Total Other Income (Loss) | 67,451 | (104) | 235,411 | (339) | ||||||
Net Income (Loss) | 62,240 | 510 | 225,617 | (859) | ||||||
Proportionate share of net income (loss) | $ 31,120 | $ 255 | $ 112,809 | $ (430) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Hamilton Bay Apts | ||||||||||
Other Income (loss) | ||||||||||
Ownership interest (as a percent) | 50.00% | |||||||||
Hamilton Bay Apts | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | $ 245,530 | $ 236,513 | $ 494,357 | $ 487,086 | ||||||
Total Revenues | 245,530 | 236,513 | 494,357 | 487,086 | ||||||
Expenses | ||||||||||
Administrative | 3,890 | 1,809 | 5,870 | 3,624 | ||||||
Depreciation and amortization | 79,462 | 78,372 | 158,855 | 156,110 | ||||||
Management Fees | 9,362 | 9,937 | 19,604 | 19,432 | ||||||
Operating | 714 | 44 | 1,008 | 708 | ||||||
Renting | 477 | 954 | 2,350 | |||||||
Repairs and Maintenance | 100,814 | 101,359 | 200,605 | 186,217 | ||||||
Taxes and Insurance | 42,070 | 38,394 | 83,979 | 76,225 | ||||||
Total Expenses | 236,789 | 229,915 | 470,875 | 444,666 | ||||||
Income Before Other Income | 8,741 | 6,598 | 23,482 | 42,420 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (65,065) | (66,366) | (130,978) | (132,420) | ||||||
Total Other Income (Loss) | (65,065) | (66,366) | (130,978) | (132,420) | ||||||
Net Income (Loss) | (56,324) | (59,768) | (107,496) | (90,000) | ||||||
Proportionate share of net income (loss) | $ (28,162) | $ (29,884) | $ (53,748) | $ (45,000) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Hamilton Minuteman | ||||||||||
Other Income (loss) | ||||||||||
Ownership interest (as a percent) | 50.00% | |||||||||
Hamilton Minuteman | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | $ 243,193 | $ 233,578 | $ 491,754 | $ 467,474 | ||||||
Laundry and Sundry Income | 53 | 299 | ||||||||
Total Revenues | 243,246 | 233,578 | 492,053 | 467,474 | ||||||
Expenses | ||||||||||
Administrative | 1,293 | 1,069 | 2,600 | 2,693 | ||||||
Depreciation and amortization | 84,896 | 80,984 | 169,581 | 161,510 | ||||||
Management Fees | 9,588 | 9,620 | 19,922 | 19,445 | ||||||
Operating | 22,568 | 13,935 | 46,231 | 46,482 | ||||||
Renting | 947 | 1,003 | 4,802 | 4,746 | ||||||
Repairs and Maintenance | 57,281 | 17,640 | 110,941 | 32,764 | ||||||
Taxes and Insurance | 30,075 | 31,013 | 59,499 | 61,971 | ||||||
Total Expenses | 206,648 | 155,264 | 413,576 | 329,611 | ||||||
Income Before Other Income | 36,598 | 78,314 | 78,477 | 137,863 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (76,031) | (77,058) | (152,347) | (153,541) | ||||||
Total Other Income (Loss) | (76,031) | (77,058) | (152,347) | (153,541) | ||||||
Net Income (Loss) | (39,433) | 1,256 | (73,870) | (15,678) | ||||||
Proportionate share of net income (loss) | $ (19,717) | $ 628 | $ (36,935) | $ (7,839) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Hamilton on Main Apts | ||||||||||
Other Income (loss) | ||||||||||
Ownership interest (as a percent) | 50.00% | |||||||||
Hamilton on Main Apts | NERA 50% | ||||||||||
Revenues | ||||||||||
Rental income | $ 806,669 | $ 762,855 | $ 1,604,997 | $ 1,524,128 | ||||||
Laundry and Sundry Income | 10,051 | 11,805 | 20,634 | 22,446 | ||||||
Total Revenues | 816,720 | 774,660 | 1,625,631 | 1,546,574 | ||||||
Expenses | ||||||||||
Administrative | 8,623 | 10,660 | 20,131 | 19,935 | ||||||
Depreciation and amortization | 239,165 | 238,342 | 477,061 | 475,090 | ||||||
Management Fees | 32,337 | 30,974 | 64,262 | 61,054 | ||||||
Operating | 81,925 | 46,638 | 151,015 | 184,893 | ||||||
Renting | 4,013 | 1,636 | 9,516 | 3,401 | ||||||
Repairs and Maintenance | 131,233 | 98,321 | 227,253 | 182,482 | ||||||
Taxes and Insurance | 128,012 | 82,793 | 255,822 | 166,301 | ||||||
Total Expenses | 625,308 | 509,364 | 1,205,060 | 1,093,156 | ||||||
Income Before Other Income | 191,412 | 265,296 | 420,571 | 453,418 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (191,988) | (191,906) | (383,871) | (381,729) | ||||||
Other Income (Expense) | 97 | |||||||||
Gain on Sale of Real Estate | 96 | |||||||||
Total Other Income (Loss) | (191,988) | (191,810) | (383,871) | (381,632) | ||||||
Net Income (Loss) | (576) | 73,486 | 36,700 | 71,786 | ||||||
Proportionate share of net income (loss) | $ (288) | $ 36,743 | $ 18,350 | $ 35,893 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Dexter Park | ||||||||||
Other Income (loss) | ||||||||||
Ownership interest (as a percent) | 40.00% | |||||||||
Dexter Park | NERA 40% | ||||||||||
Revenues | ||||||||||
Rental income | $ 3,694,670 | $ 3,572,475 | $ 7,411,976 | $ 7,061,280 | ||||||
Laundry and Sundry Income | 29,114 | 24,833 | 54,646 | 44,078 | ||||||
Total Revenues | 3,723,784 | 3,597,308 | 7,466,622 | 7,105,358 | ||||||
Expenses | ||||||||||
Administrative | 47,931 | 52,304 | 97,201 | 104,634 | ||||||
Depreciation and amortization | 813,046 | 802,224 | 1,618,053 | 1,602,615 | ||||||
Management Fees | 84,237 | 80,673 | 165,333 | 155,624 | ||||||
Operating | 248,392 | 274,150 | 608,261 | 729,806 | ||||||
Renting | 27,106 | 16,920 | 55,595 | 33,213 | ||||||
Repairs and Maintenance | 329,444 | 323,559 | 593,075 | 540,177 | ||||||
Taxes and Insurance | 365,599 | 372,658 | 733,758 | 733,913 | ||||||
Total Expenses | 1,915,755 | 1,922,488 | 3,871,276 | 3,899,982 | ||||||
Income Before Other Income | 1,808,029 | 1,674,820 | 3,595,346 | 3,205,376 | ||||||
Other Income (loss) | ||||||||||
Interest Expense | (1,214,929) | (1,233,713) | (2,434,648) | (2,458,592) | ||||||
Total Other Income (Loss) | (1,214,929) | (1,233,713) | (2,434,648) | (2,458,592) | ||||||
Net Income (Loss) | 593,100 | 441,107 | 1,160,698 | 746,784 | ||||||
Proportionate share of net income (loss) | $ 237,240 | $ 176,445 | $ 464,280 | $ 298,714 | ||||||
Ownership interest (as a percent) | 40.00% | 40.00% | 40.00% | 40.00% |
INVESTMENT IN UNCONSOLIDATED 60
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Mortgage Maturities) (Details) | Jun. 30, 2016USD ($) |
Hamilton Essex 81 | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Thereafter | $ 10,000,000 |
Total | 10,000,000 |
Less: unamortized deferred financing costs | (127,549) |
Debt maturities net of unamortized deferred financing costs | 9,872,451 |
345 Franklin | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
3/31/2017 | 162,063 |
3/31/2018 | 186,607 |
3/31/2019 | 193,959 |
3/31/2020 | 201,599 |
3/31/2021 | 209,541 |
Thereafter | 9,046,231 |
Total | 10,000,000 |
Less: unamortized deferred financing costs | (79,902) |
Debt maturities net of unamortized deferred financing costs | 9,920,098 |
Hamilton 1,025 | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
3/31/2017 | 4,695,747 |
Total | 4,695,747 |
Less: unamortized deferred financing costs | (2,054) |
Debt maturities net of unamortized deferred financing costs | 4,693,693 |
Hamilton Bay Apts | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
3/31/2017 | 4,467,678 |
Total | 4,467,678 |
Less: unamortized deferred financing costs | (3,977) |
Debt maturities net of unamortized deferred financing costs | 4,463,701 |
Hamilton Minuteman | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
3/31/2017 | 5,171,718 |
Total | 5,171,718 |
Less: unamortized deferred financing costs | (2,022) |
Debt maturities net of unamortized deferred financing costs | 5,169,696 |
Hamilton on Main Apts | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Thereafter | 16,900,000 |
Total | 16,900,000 |
Less: unamortized deferred financing costs | (131,086) |
Debt maturities net of unamortized deferred financing costs | 16,768,914 |
Dexter Park | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
3/31/2017 | 1,542,599 |
3/31/2018 | 1,630,749 |
3/31/2019 | 1,723,938 |
3/31/2020 | 79,314,659 |
Total | 84,211,945 |
Less: unamortized deferred financing costs | (193,748) |
Debt maturities net of unamortized deferred financing costs | 84,018,197 |
Total | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
3/31/2017 | 16,039,805 |
3/31/2018 | 1,817,356 |
3/31/2019 | 1,917,897 |
3/31/2020 | 79,516,258 |
3/31/2021 | 209,541 |
Thereafter | 35,946,231 |
Total | 135,447,088 |
Less: unamortized deferred financing costs | (540,338) |
Debt maturities net of unamortized deferred financing costs | $ 134,906,750 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Aug. 05, 2016USD ($) | Jul. 08, 2016USD ($) | Aug. 31, 2007shares | Sep. 30, 2007shares | Sep. 30, 2016USD ($) | Mar. 31, 2016shares | Dec. 31, 2007shares | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | Dec. 31, 2015shares | Mar. 31, 2016USD ($)$ / itemshares |
Subsequent events | |||||||||||
Number of depository receipts repurchased | shares | 1,352,427 | ||||||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 26.81 | ||||||||||
Total cost of repurchase | $ 694,380 | $ 1,879,001 | $ 39,291,000 | ||||||||
General Partnership | |||||||||||
Subsequent events | |||||||||||
Number of depository receipts repurchased | shares | 156 | 156 | 156 | 156 | 156 | ||||||
Total cost of repurchase | $ 6,783 | $ 18,668 | |||||||||
Units repurchased (in shares) | shares | 5 | ||||||||||
Hamilton 1,025 | |||||||||||
Subsequent events | |||||||||||
Capital contributions | $ 2,359,500 | ||||||||||
Hamilton Minuteman | |||||||||||
Subsequent events | |||||||||||
Interest rate (as a percent) | 5.67% | ||||||||||
Forecast | Hamilton Green | |||||||||||
Subsequent events | |||||||||||
Sale of real estate | $ 1,000,000 | ||||||||||
Forecast | Hamilton Minuteman | |||||||||||
Subsequent events | |||||||||||
Period for which the entity is required to make interest only payments | 15 years | ||||||||||
Interest rate (as a percent) | 3.64% | ||||||||||
Mortgage amount | $ 6,000,000 |
Uncategorized Items - nen-20160
Label | Element | Value |
Hamilton Bay Apartments L L C [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | us-gaap_DebtInstrumentInterestRateStatedPercentage | 5.57% |
Equity Method Investment, Aggregate Cost | us-gaap_EquityMethodInvestmentAggregateCost | $ 30,875,000 |
Debt Instrument, Term for which Interest Only Payments Required | nen_DebtInstrumentTermForWhichInterestOnlyPaymentsRequired | 5 years |
Proceeds from Issuance of Debt | us-gaap_ProceedsFromIssuanceOfDebt | $ 4,750,000 |
Debt Instrument, Amortization Term | nen_DebtInstrumentAmortizationTerm | 30 years |
Hamilton Bay Apartments L L C [Member] | Mortgages [Member] | ||
Secured Debt | us-gaap_SecuredDebt | $ 4,464,000 |
Hamilton Bay L L C [Member] | ||
Partners' Capital Account, Contributions | us-gaap_PartnersCapitalAccountContributions | $ 660,000 |
Hamilton Bay L L C [Member] | Residential Apartment [Member] | ||
Number of Units in Real Estate Property Unsold | nen_NumberOfUnitsInRealEstatePropertyUnsold | 2 |
Number of Units in Real Estate Property Sold | nen_NumberOfUnitsInRealEstatePropertySold | 1 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | us-gaap_DiscontinuedOperationGainLossOnDisposalOfDiscontinuedOperationNetOfTax | $ 67,000 |
Hamilton Bay L L C [Member] | Mortgages [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | us-gaap_DebtInstrumentInterestRateStatedPercentage | 5.75% |
Number of Units in Real Estate Property | us-gaap_NumberOfUnitsInRealEstateProperty | 20 |
Proceeds from Issuance of Debt | us-gaap_ProceedsFromIssuanceOfDebt | $ 2,368,000 |