Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Entity Registrant Name | NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP | |
Entity Central Index Key | 0000746514 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Class A | ||
Entity Common Stock, Shares Outstanding | 98,073 | |
Class B | ||
Entity Common Stock, Shares Outstanding | 23,292 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Rental Properties | $ 227,660,057 | $ 230,511,263 |
Cash and Cash Equivalents | 7,649,882 | 9,059,901 |
Rents Receivable | 779,159 | 762,923 |
Real Estate Tax Escrows | 471,913 | 495,824 |
Prepaid Expenses and Other Assets | 4,812,005 | 4,219,749 |
Investments in Unconsolidated Joint Ventures | 1,801,702 | 1,985,680 |
Total Assets | 243,174,718 | 247,035,340 |
LIABILITIES AND PARTNERS' CAPITAL | ||
Mortgage Notes Payable | 251,953,066 | 252,370,843 |
Notes Payable | 2,000,000 | |
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture | 18,858,645 | 18,351,562 |
Accounts Payable and Accrued Expenses | 4,126,517 | 3,927,889 |
Advance Rental Payments and Security Deposits | 6,468,073 | 6,009,056 |
Total Liabilities | 281,406,301 | 282,659,350 |
Partners’ Capital 124,386 and 124,386 units outstanding in 2018 and 2017 respectively | (38,231,583) | (35,624,010) |
Total Liabilities and Partners' Capital | $ 243,174,718 | $ 247,035,340 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
CONSOLIDATED BALANCE SHEETS | ||||
Partners' Capital, units outstanding | 122,591 | 124,386 | 124,386 | 124,386 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Rental income | $ 14,768,475 | $ 13,942,645 |
Laundry and sundry income | 113,669 | 116,355 |
Total Revenues | 14,882,144 | 14,059,000 |
Expenses | ||
Administrative | 612,757 | 539,145 |
Depreciation and amortization | 3,682,678 | 3,507,091 |
Management fee | 590,610 | 559,629 |
Operating | 1,884,017 | 1,900,766 |
Renting | 182,058 | 107,899 |
Repairs and maintenance | 1,944,231 | 1,814,283 |
Taxes and insurance | 2,034,106 | 1,868,483 |
Total Expenses | 10,930,457 | 10,297,296 |
Income Before Other Income (Expense) | 3,951,687 | 3,761,704 |
Other Income (Expense) | ||
Interest income | 179 | 164 |
Interest expense | (3,000,289) | (2,984,210) |
Income from investments in unconsolidated joint ventures | 548,939 | 1,100,900 |
Total Other Income (Expense) | (2,451,171) | (1,883,146) |
Net Income | $ 1,500,516 | $ 1,878,558 |
Income per Unit | ||
Net Income per Unit (in dollars per unit) | $ 12.21 | $ 15.10 |
Weighted Average Number of Units Outstanding (in units) | 122,941 | 124,386 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER'S CAPITAL - USD ($) | 3 Months Ended | 139 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Increase (Decrease) in Partners' Capital | |||
Balance | $ (35,624,010) | $ (35,315,177) | |
Balance (in units) | 124,386 | 124,386 | |
Distribution to Partners | $ (1,177,353) | $ (1,119,481) | |
Stock Buyback | $ (2,930,736) | $ (43,205,000) | |
Stock Buyback (in units) | (1,795) | ||
Net income | $ 1,500,516 | 1,878,558 | |
Balance | $ (38,231,583) | $ (34,556,100) | $ (38,231,583) |
Balance (in units) | 122,591 | 124,386 | 122,591 |
Subtotal | |||
Increase (Decrease) in Partners' Capital | |||
Balance (in units) | 180,225 | 180,225 | |
Balance (in units) | 180,225 | 180,225 | 180,225 |
General Partnership | |||
Increase (Decrease) in Partners' Capital | |||
Balance | $ (354,833) | $ (351,745) | |
Balance (in units) | 1,802 | 1,802 | |
Distribution to Partners | $ (11,774) | $ (11,195) | |
Stock Buyback | $ (29,307) | ||
Stock Buyback (in units) | (18) | ||
Net income | $ 15,005 | 18,786 | |
Balance | $ (380,909) | $ (344,154) | $ (380,909) |
Balance (in units) | 1,802 | 1,802 | 1,802 |
Treasury Units | |||
Increase (Decrease) in Partners' Capital | |||
Balance (in units) | (55,839) | (55,839) | |
Stock Buyback (in units) | (1,795) | ||
Balance (in units) | (57,634) | (55,839) | (57,634) |
Class A | |||
Increase (Decrease) in Partners' Capital | |||
Balance | $ (28,527,352) | $ (28,280,285) | |
Balance (in units) | 144,180 | 144,180 | |
Distribution to Partners | $ (941,882) | $ (895,585) | |
Stock Buyback | (2,344,601) | ||
Net income | 1,200,413 | 1,502,846 | |
Balance | $ (30,613,422) | $ (27,673,024) | $ (30,613,422) |
Balance (in units) | 144,180 | 144,180 | 144,180 |
Class B | |||
Increase (Decrease) in Partners' Capital | |||
Balance | $ (6,741,825) | $ (6,683,147) | |
Balance (in units) | 34,243 | 34,243 | |
Distribution to Partners | $ (223,697) | $ (212,701) | |
Stock Buyback | (556,828) | ||
Net income | 285,098 | 356,926 | |
Balance | $ (7,237,252) | $ (6,538,922) | $ (7,237,252) |
Balance (in units) | 34,243 | 34,243 | 34,243 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,500,516 | $ 1,878,558 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 3,682,678 | 3,507,091 |
Amortization of deferred finance costs | 54,843 | 51,541 |
(Income) from investments in joint venture | (548,939) | (1,100,900) |
Change in operating assets and liabilities | ||
Distribution from unconsolidated joint ventures | 425,000 | 1,770,000 |
Decrease in rents receivable | (16,236) | (23,160) |
Increrase (Decrease) in accounts payable and accrued expense | 198,628 | (25,471) |
Decrease (Increase) in real estate tax escrow | 23,911 | 1,640 |
(Increase) in prepaid expenses and other assets | (746,891) | (523,530) |
Increase in advance rental payments and security deposits | 459,025 | 87,257 |
Total Adjustments | 3,532,019 | 3,744,468 |
Net cash provided by operating activities | 5,032,535 | 5,623,026 |
Cash Flows From Investing Activities | ||
Distribution in excess of investment in unconsolidated joint ventures | 823,490 | 210,402 |
(Investment) in unconsolidated joint ventures | (8,490) | (526,402) |
Improvement of rental properties | (676,844) | (868,468) |
Purchase of rental property | (13,213,294) | |
Net cash (used in) investing activities | 138,156 | (14,397,762) |
Cash Flows from Financing Activities | ||
Payment of financing costs | (148,004) | |
Proceeds of mortgage notes payable | 83,684 | |
Proceeds of note payable | 8,000,000 | |
Payment of note payable | (2,000,000) | |
Principal payments of mortgage notes payable | (472,621) | (452,900) |
Stock buyback | (2,930,736) | |
Distributions to partners | (1,177,353) | (1,119,481) |
Net cash (used in) provided by financing activities | (6,580,710) | 6,363,299 |
Net Increase in Cash and Cash Equivalents | (1,410,019) | (2,411,437) |
Cash and Cash Equivalents, at beginning of period | 9,059,901 | 7,238,905 |
Cash and Cash Equivalents, at end of period | $ 7,649,882 | $ 4,827,468 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
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 27 properties which include 19 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,711 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 8 residential and mixed use properties consisting of 690 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 eight 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 some 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 $55,000 and $52,000 for the three months ended March 31, 2019 and 2018, 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 2019 or 2018 other than net income as reported. Income (Loss) 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 2019 or 2018. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At March 31, 2019, 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 1.61%. At March 31, 2019 and December 31, 2018, respectively approximately $7,406,000, and $10,784,000 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 $62,969 and $44,381 for the three months ended March 31, 2019 and 2018, respectively. 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 three months ended March 31, 2019 and 2018 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. |
RENTAL PROPERTIES
RENTAL PROPERTIES | 3 Months Ended |
Mar. 31, 2019 | |
RENTAL PROPERTIES | |
RENTAL PROPERTIES | NOTE 2. RENTAL PROPERTIES As of March 31, 2019, the Partnership and its Subsidiary Partnerships owned 2,711 residential apartment units in 23 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 March 31, 2019, 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 eight residential and mixed use complexes (the “Investment Properties”) at March 31, 2019 with a total of 690 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments. Rental properties consist of the following: March 31, 2019 December 31, 2018 Useful Life Land, improvements and parking lots $ $ 15 - 40 years Buildings and improvements 15 - 40 years Kitchen cabinets 5 - 10 years Carpets 5 - 10 years Air conditioning 5 - 10 years Laundry equipment 5 - 7 years Elevators 20 - 40 years Swimming pools 10 - 30 years Equipment 5 - 30 years Motor vehicles 5 years Fences 5 - 15 years Furniture and fixtures 5 - 7 years Smoke alarms 5 - 7 years Total fixed assets Less: Accumulated depreciation $ $ On March 29, 2018, Hamilton Highlands, LLC (“Hamilton Highlands”), a wholly-owned subsidiary of New England Realty Associates Limited Partnership (the “Partnership”), purchased Webster Green Apartments, a 79 unit apartment complex located at 755-757 Highland Avenue, Needham, Massachusetts. The sale was consummated pursuant to the terms of a Purchase and Sale Contract by and between Webster Green Apartments, LLC, the prior owner of the Property, and The Hamilton Companies, Inc., an affiliate of the Partnership, which agreement was subsequently assigned by Hamilton to Hamilton Highlands. In connection with the purchase, the Hamilton Highlands entered into an Assumption and Modification Agreement dated as of March 29, 2018 with Brookline Bank pursuant to which the Hamilton Highlands assumed a note dated as of January 14, 2016 in the principal amount of $21,500,000 and various agreements relating to the Note including a Mortgage, Assignment of Leases and Rents, Security Agreement, Fixture Filing dated as of January 14, 2016. The purchase price was $34,500,000, consisting of a payment of approximately $13,000,000 in cash and the assumption of the note and mortgage. Hamilton Highlands funded $5,000,000 of the cash portion of the purchase price out of cash reserves and the remaining $8,000,000 by drawing on an existing line of credit. The closing costs were approximately $141,000. From the purchase price, the Partnership allocated approximately $502,000 for in- place leases, and approximately $40,000 to the value of tenant relationships. These amounts are being amortized over 12 and 24 months respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
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 of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $591,000 and $560,000 for the three months ended March 31, 2019 and 2018, 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 three months ended March 31, 2019 and 2018, approximately $349,000 and $354,000, was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2019 expenses referred to above, approximately $108,000 consisted of repairs and maintenance, $90,000 of administrative expense and $1,000 for rental commissions. Approximately $150,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2019, the Hamilton Company received approximately $316,000 from the Investment Properties of which approximately $163,000 was the management fee, approximately $121,000 for rental commissions, approximately $18,000 was for maintenance services, approximately $11,000 was for administrative services and approximately $3,000 for architectural services and supervision of capital projects. The management fee is equal to 4% of gross receipts of 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 $789,000 and $824,000 for the three months ended March 31, 2019 and 2018, 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 2018. For the three months ended March 31, 2019, the Partnership contributed $12,000 for the employer’s match portion to the plan. See Note 15. Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the three months ended March 31, 2019 and 2018, the Management Company charged the Partnership $31,250 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above. The former President of the Management Company performed asset management consulting services and received an asset management fee from the Partnership. The Partnership did not have a written agreement with this individual. During the three months ended March 31, 2018 this individual received fees of $18,750. At June 29, 2018, the individual resigned his position. The Partnership has invested in eight 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 the Estate of Harold Brown, and five current and previous employees of the Management Company. Harold Brown’s ownership interest was between 47.6% and 59%. See Note 14 for a description of the properties and their operations. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2019 | |
OTHER ASSETS | |
OTHER ASSETS | NOTE 4. OTHER ASSETS Approximately $2,639,000, and $2,571,000 of security deposits are included in prepaid expenses and other assets at March 31, 2019 and December 31, 2018, respectively. The security deposits and escrow accounts are restricted cash. Included in prepaid expenses and other assets at March 31, 2019 and December 31, 2018 is approximately $494,000 and $477,000, respectively, held in escrow to fund future capital improvements. Intangible assets on the acquisitions of Webster Green Apartments and Woodland Park Apartments are included in prepaid expenses and other assets. Intangible assets are approximately $18,000 net of accumulated amortization of approximately $1,093,000 and approximately $152,000 net of accumulated amortization of approximately $959,000 at March 31, 2019 and December 31, 2018, respectively. Financing fees in association with the line of credit of approximately $68,000 and $78,000 are net of accumulated amortization of approximately $60,000 and $50,000 at March 31, 2019 and December 31, 2018 respectively. |
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2019 | |
MORTGAGE NOTES PAYABLE | |
MORTGAGE NOTES PAYABLE | NOTE 5. MORTGAGE NOTES PAYABLE At March 31, 2019 and December 31, 2018, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At March 31, 2019, the interest rates on these loans ranged from 3.76% to 5.81%, payable in monthly installments aggregating approximately $1,139,000 including principal, to various dates through 2029. The majority of the mortgages are subject to prepayment penalties. At March 31, 2019, the weighted average interest rate on the above mortgages was 4.63%. The effective rate of 4.71% 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. Financing fees of approximately $1,354,000 and $1,420,000 are net of accumulated amortization of approximately $1,363,000 and $1,298,000 at March 31, 2019 and December 31, 2018, respectively. The Partnership has pledged tenant leases as additional collateral for certain of these loans. Approximate annual maturities at March 31, 2019 are as follows: 2020—current maturities $ 4,319,000 2021 2,049,000 2022 2,606,000 2023 67,098,000 2024 Thereafter 138,804,000 253,238,000 Less: unamortized deferred financing costs (1,285,000) $ 251,953,000 On March 29, 2018, Hamilton Highlands, LLC (Hamilton Highlands), a wholly-owned subsidiary of New England Realty Associates Limited Partnership, purchased Webster Green Apartments, a 79 unit apartment complex located at 755-757 Highland Avenue, Needham, Massachusetts. The purchase was consummated pursuant to the terms of a Purchase and Sale Contract by and between Webster Green Apartments, LLC, the prior owner of the Property, and The Hamilton Companies, Inc., an affiliate of the Partnership, which agreement was subsequently assigned to Hamilton Highlands. In connection with the purchase, Hamilton Highlands entered into an Assumption and Modification Agreement dated as of March 29, 2018 with Brookline Bank pursuant to which Hamilton Highlands assumed a note dated as of January 14, 2016 in the principal amount of $21,500,000 and various agreements relating to the Note including a Mortgage, Assignment of Leases and Rents, Security Agreement, Fixture Filing dated as of January 14, 2016. The purchase price was $34,500,000, consisting of a payment of approximately $13,000,000 in cash and the assumption of the Note and Mortgage. Hamilton Highlands funded $5,000,000 of the cash portion of the purchase price out of cash reserves and the remaining $8,000,000 by drawing on an existing line of credit. The closing costs were approximately $141,000. On March 12, 2018, the loan for 659 Worcester Road was refinanced with Brookline Bank in the amount of $6,083,683. The loan is due on March 12, 2023. Interest only until March 12, 2021. Commencing in April, 2021, monthly payments of principal and interest in the amount of $32,427 are being made based on an assumed amortization period of thirty (30) years. The loan bears a fixed annual rate equal to 4.87%. The proceeds of the new loan were used to pay off the existing loan. The closing costs were approximately $69,000 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 was for 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 agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. The Partnership borrowed $25,000,000 to partially fund the purchase of Woodland Park. It paid down $8,000,000 through the financing of the property and its’ cash reserve. On March 29, 2018, the Partnership drew down $8,000,000 in conjunction with the purchase of Webster Green Apartments. On June 4, 2018, the Partnership paid down the credit line by $16,000,000 as a result of the proceeds from the refinancing of Hamilton Park Towers, LLC, also known as Dexter Park. In July, 2018, the Partnership paid down the line of credit by $4,000,000. In October of 2018, the Partnership paid down the line of credit by $3,000,000. In January 2019, the Partnership paid off the $2,000,000 balance on the line of credit. 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 $12,000 in fees for the three months ended March 31, 2019. 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 March 31, 2019. |
ADVANCE RENTAL PAYMENTS AND SEC
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, amounts received for prepaid rents of approximately $2,234,000 are included in cash and cash equivalents, and security deposits of approximately $2,639,000 are included in prepaid expenses and other assets and are restricted cash. |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 3 Months Ended |
Mar. 31, 2019 | |
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 January 2019, the Partnership approved a quarterly distribution to its Class A Limited Partners and holders of Depositary Receipts of record as of March 15, 2019 and payable on March 31, 2019, of $9.60 per unit ($0.32 per receipt). In 2018, regular quarterly distributions of $9.00 per unit ($0.30 per receipt) were paid in March, June, September and December. 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: Three Months Ended March 31, 2019 2018 Net Income per Depositary Receipt $ 0.41 $ 0.50 Distributions per Depositary Receipt $ 0.32 $ 0.30 |
TREASURY UNITS
TREASURY UNITS | 3 Months Ended |
Mar. 31, 2019 | |
TREASURY UNITS | |
TREASURY UNITS | NOTE 8. TREASURY UNITS Treasury Units at March 31, 2019 are as follows: Class A 46,107 Class B 10,950 General Partnership 577 57,634 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). Over time, the General Partner has authorized increases in the equity repurchase program. 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 time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through March 31, 2019, the Partnership has repurchased 1,408,401 Depositary Receipts at an average price of $27.97 per receipt (or $839.10 per underlying Class A Unit), 3,413 Class B Units and 180 General Partnership Units, both at an average price of $996.79 per Unit, totaling approximately $43,205,000 including brokerage fees paid by the Partnership. During the three months ended March 31, 2019, the Partnership purchased a total of 43,095 Depositary Receipts. The average price was $54.40 per receipt or $1,632.12 per unit. The total cost including commission was $2,344,601. The Partnership was required to repurchase 341 Class B Units and 18 General Partnership units at a cost of $556,828 and $29,307 respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
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. In February, 2019, a water pipe broke at Hamilton Oak in Brockton, MA. resulting in the evacuation of 40 apartments for approximately one week. The Partnership has insurance coverage on both the repairs and rental loss. As of March 31, 2019, the Partnership has received $75,000 on this claim, and has an estimated insurance recovery receivable of approximately $212,000, which is included on the prepaid expenses and other assets as of March 31, 2019. |
RENTAL INCOME
RENTAL INCOME | 3 Months Ended |
Mar. 31, 2019 | |
RENTAL INCOME | |
RENTAL INCOME | NOTE 10. RENTAL INCOME During the three months ended March 31, 2019, approximately 94% 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 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at March 31, 2019 as follows: Commercial Property Leases 2020 $ 2,565,000 2021 2,299,000 2022 1,591,000 2023 946,000 2024 523,000 Thereafter 756,000 $ 8,680,000 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 $129,000 and $223,000 for the three months ended March 31, 2019 and 2018 respectively. Staples and Trader Joes, tenants at Staples Plaza, are approximately 36% 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 March 31, expiring leases for expiring leases leases expiring expiring leases 2020 $ 454,412 22,400 % 2021 225,337 5,679 7 8 % 2022 1,143,867 47,854 10 39 % 2023 246,341 7,087 4 9 % 2024 658,784 19,209 8 22 % 2025 15,936 604 3 1 % 2026 — — — — % 2027 — — — — % 2028 — — — — % 2029 — — — — % 2030 142,450 3,850 1 5 % Totals $ 2,887,127 106,683 45 100 % Rents receivable are net of an allowance for doubtful accounts of approximately $369,000 and $532,000 at March 31, 2019 and December 31, 2018. Included in rents receivable at March 31, 2019 is approximately $69,000 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 at 62 Boylston Street and Staples Plaza in Massachusetts. Rents receivable at March 31, 2019 also includes approximately $82,000 representing the deferral of rental concession primarily related to the residential properties. |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
CASH FLOW INFORMATION | |
CASH FLOW INFORMATION | NOTE 11. CASH FLOW INFORMATION During the three months ended March 31, 2019 and 2018, cash paid for interest was approximately $2,944,000, and $3,010,000 respectively. Cash paid for state income taxes was approximately $48,000 and $47,000 during the three months ended March 31, 2019 and 2018 respectively. Additionally, at March 31,2018, the Partnership was involved in a non-cash financing activity of approximately $21,000,000 in connection with the purchase of |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 12. FAIR VALUE MEASUREMENTS Fair Value Measurements on a Recurring Basis At March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018 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 March 31, 2019 and December 31, 2018, 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 March 31, 2019 and December 31, 2018, 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 March 31, 2019 * $ 251,953,066 $ 235,100,502 At December 31, 2018 * $ 252,370,843 $ 233,362,501 Investment Properties At March 31, 2019 * $ 166,471,296 $ 163,347,932 At December 31, 2018 * $ 166,492,692 $ 160,956,055 * Net of unamortized deferred financing costs Disclosure about fair value of financial instruments is based on pertinent information available to management as of March 31, 2019 and December 31, 2018. 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 March 31, 2019 and current estimates of fair value may differ significantly from the amounts presented herein. |
TAXABLE INCOME AND TAX BASIS
TAXABLE INCOME AND TAX BASIS | 3 Months Ended |
Mar. 31, 2019 | |
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, other items with limited tax deductibility and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Taxable income of approximately $4,841,000 was approximately $672,000 more than statement income for the year ended December 31, 2018. The cumulative tax basis of the Partnership’s real estate at December 31, 2018 is approximately $878,000 less than the statement basis. The primary reasons for the difference in tax basis are tax free exchanges, accelerated depreciation and bonus depreciation. The Partnership’s tax basis in its joint venture investments is approximately $1,121,000 more than statement basis. 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. Allowable accelerated depreciation deductions were extended through 2018. The 2018 tax law changes had a significant impact on the taxable income of the Partnership. 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 March 31, 2019, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2015 forward. |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 3 Months Ended |
Mar. 31, 2019 | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES The Partnership has invested in eight 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 were Harold Brown, and five current and former employees of the Management Company. Harold Brown’s ownership interest was between 47.6% and 59%, 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, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and it matured in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter. On May 31, 2018, Hamilton Park Towers, LLC (“Hamilton Park”), entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note is payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018. Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its’ owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. In connection with this refinancing, the property incurred a defeasance charge of approximately $3,830,000. Based on its’ ownership in the property, the Partnership incurred 40% of this charge, an expense of approximately $1,532,000. This charge had a material effect on the 2018 net income. At March 31, 2019, the balance on this mortgage before unamortized deferred financing costs is approximately $125,000,000.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 Joint Venture sold 120 units as condominiums and retained 48 units for long-term investment. In February 2007, the Joint Venture 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 was to be amortized over 30 years thereafter and matured in March, 2017. On March 1, 2017, the mortgage balance was paid in full, with the Partnership contributing its share of the mortgage balance of approximately $2,222,000. 2 units were sold in the first three months of 2019, resulting in a gain of approximately $433,000. This investment is referred to as Hamilton Bay Apartments, LLC. As of March 31, 2019, all units were sold by this Joint Venture. 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 Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture 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 Joint Venture restructured the mortgages on both parcels at Essex 81. 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. 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. At March 31, 2019, the balance on this mortgage before unamortized deferred financing costs is approximately $10,000,000. 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 Joint Venture sold 127 of the units as condominiums and retained 49 units for long‑term investment. The Joint Venture obtained a new 10‑year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 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. 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. As of March 31, 2019, 1 unit was under purchase and sales agreement and the Partnership owned 3 units. This investment is referred to as Hamilton 1025, LLC. 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 Joint Venture obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Joint Venture obtained a new 10- year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan was 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. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. This investment is referred to as Hamilton Minuteman, LLC. At March 31, 2019, the balance on this mortgage before unamortized deferred financing costs is approximately $6,000,000.This investment is referred to as Hamilton Minuteman, LLC. In 2018, 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 to fund its share of any future operating deficiencies, if needed. 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 Joint Venture 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 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. At March 31, 2019, the balance of the mortgage before unamortized deferred financing costs is approximately $16,900,000.The investment is referred to as Hamilton on Main LLC. In 2018, 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 to fund its share of any future operating deficiencies, if needed. 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 Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture 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. At March 31, 2019, the balance of this mortgage before unamortized deferred financing costs is approximately $9,504,000. This investment is referred to as 345 Franklin, LLC. Summary financial information as of March 31, 2019 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ Rental property held for sale Cash & Cash Equivalents Rent Receivable 49,619 1,487 Real Estate Tax Escrow — — Prepaid Expenses & Other Assets Total Assets $ 7,878,980 $ 2,925,245 $ 6,250,143 $ 346,529 $ 362,886 $ 5,736,566 $ 16,872,775 $ 89,199,278 $ 129,572,402 LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ — $ $ — $ — $ $ $ $ 166,471,297 Accounts Payable & Accrued Expense 2,187 1,197,603 Advance Rental Pmts & Security Deposits — 3,723,576 Total Liabilities Partners’ Capital 2,923,058 (3,596,885) 328,511 351,834 (345,699) (536,400) (38,530,934) Total Liabilities and Capital $ 7,878,980 $ 2,925,245 $ 6,250,143 $ 346,529 $ 362,886 $ 5,736,566 $ 16,872,775 $ 89,199,278 $ 129,572,402 Partners’ Capital %—NERA 50 % 50 % 50 % 50 % 50 % 50 % 50 % 40 % Investment in Unconsolidated Joint Ventures $ $ 1,461,529 $ $ 164,256 $ 175,917 $ $ $ 1,801,702 Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ (1,206,780) $ — $ (1,798,443) $ — $ — $ (172,850) $ (268,200) $ (15,412,374) (18,858,645) Total Investment in Unconsolidated Joint Ventures (Net) $ (17,056,944) Total units/condominiums Apartments 48 — 40 175 48 42 148 409 1,030 Commercial 1 1 — 1 — — — — 3 Total 49 1 40 176 48 42 148 409 1,033 Units to be retained 49 1 40 — — 42 148 409 690 Units to be sold — — — 175 48 — — — 343 Units sold through May 1, 2019 — — — 173 48 — — — 221 Unsold units — — — 3 — — — — 3 Unsold units with deposits for future sale as of May 1, 2019 — — — 1 — — — — 1 Financial information for the three months ended March 31, 2019 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total Revenues Rental Income $ 459,573 $ 75,290 $ 385,243 $ 23,594 $ 3,629 $ 274,837 $ 822,668 4,028,259 $ 6,073,093 Laundry and Sundry Income 3,005 — 1,389 — — 1,907 10,062 24,025 40,388 462,578 75,290 386,632 23,594 3,629 276,744 832,730 4,052,284 6,113,481 Expenses Administrative 5,379 2,092 5,390 1,694 3,445 3,716 17,847 55,532 95,095 Depreciation and Amortization 119,544 5,074 86,226 3,196 5,420 88,595 258,438 900,101 1,466,594 Management Fees 17,206 2,160 14,056 965 145 11,067 31,868 86,149 163,616 Operating 21,450 8 22,603 775 (109) 23,755 107,289 381,644 557,415 Renting 3,330 — 3,520 2,032 16,112 19,663 44,657 Repairs and Maintenance 37,884 — 18,467 8,040 10,266 36,672 124,192 256,585 492,106 Taxes and Insurance 61,830 15,677 40,241 7,349 4,906 32,251 104,431 518,726 785,411 266,623 25,011 190,503 22,019 24,073 198,088 660,177 2,218,400 3,604,894 Income Before Other Income 195,955 50,279 196,129 1,575 (20,444) 78,656 172,553 1,833,884 2,508,587 Other Income (Loss) Interest Expense (121,005) — (94,247) (6) (57,991) (188,268) (1,270,103) (1,731,620) Gain on Sale of Real Estate — — 754 432,908 433,662 (121,005) — (94,247) 754 432,902 (57,991) (188,268) (1,270,103) (1,297,958) Net Income (Loss) $ 74,950 $ 50,279 $ 101,882 $ 2,329 $ 412,458 $ 20,665 $ (15,715) $ 563,781 $ 1,210,629 Net Income (Loss)—NERA 50% $ 37,475 $ 25,140 $ 50,941 $ 1,165 $ 206,229 $ 10,333 $ (7,858) 323,424 Net Income —NERA 40% $ 225,515 225,515 $ 548,939 Future annual mortgage maturities at March 31, 2019 are as follows: Hamilton 345 Hamilton Hamilton on Dexter Period End Essex 81 Franklin Minuteman Main Apts Park Total 3//31/2020 $ — $ 199,661 $ $ — $ $ 199,661 3/31/2021 — 207,527 — 207,527 3/31/2022 — 215,702 — — 215,702 3/31/2023 — 224,199 — — 224,199 3/31/2024 — 233,032 — — 233,032 Thereafter 6,000,000 16,900,000 125,000,000 166,323,670 6,000,000 16,900,000 125,000,000 167,403,791 Less: unamortized deferred financing costs (101,953) (86,944) (592,377) (932,494) $ 9,910,371 $ 9,442,200 $ 5,898,047 $ 16,813,056 $ 124,407,623 $ 166,471,297 At March 31, 2019 the weighted average interest rate on the above mortgages was 3.87%. The effective rate was 3.94% including the amortization expense of deferred financing costs. Summary financial information as March 31, 2018 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ Cash & Cash Equivalents Rent Receivable — 5,206 Real Estate Tax Escrow — — — Prepaid Expenses & Other Assets Total Assets $ $ $ $ $ $ $ $ $ LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ — $ $ — $ — $ $ $ $ Accounts Payable & Accrued Expense 2,188 Advance Rental Pmts& Security Deposits — Total Liabilities Partners’ Capital 2,645,728 (3,477,285) 1,597,180 2,381,668 (40,771) 443,960 8,630,513 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 — — — 46 — — — Units sold through May1, 2018 — — — 1 — — — Unsold units — — — 32 47 — — — Unsold units with deposits for future sale as of May 1, 2018 — — — 4 10 — — — 14 Financial information for the three months ended March 31, 2018 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total Revenues Rental Income $ 411,222 $ 53,928 $ 403,837 $ 38,221 $ 22,203 $ 263,051 $ 858,213 $ 3,894,603 $ 5,945,278 Laundry and Sundry Income 3,005 — 1,217 — — 675 9,126 24,688 38,711 414,227 53,928 405,054 38,221 22,203 263,726 867,339 3,919,291 5,983,989 Expenses Administrative 9,680 488 6,455 1,499 3,066 1,824 13,127 65,429 101,568 Depreciation and Amortization 114,285 665 86,251 — 10,000 87,722 255,506 874,142 1,428,571 Management Fees 13,204 2,157 16,126 1,508 1,022 10,368 32,443 83,012 159,840 Operating 24,131 — 20,580 156 825 33,850 120,393 379,875 579,810 Renting 3,291 — 497 — — 3,378 8,652 29,782 45,600 Repairs and Maintenance 54,501 4,163 21,497 40,207 34,224 19,617 182,374 318,666 675,249 Taxes and Insurance 62,527 16,723 41,631 18,171 16,459 31,046 104,551 419,289 710,397 281,619 24,196 193,037 61,541 65,596 187,805 717,046 2,170,195 3,701,035 Income Before Other Income 132,608 29,732 212,017 (23,320) (43,393) 75,921 150,293 1,749,096 2,282,954 Other Income (Loss) Interest Expense (99,313) — (96,961) (26) (49) (58,519) (188,239) (1,166,238) (1,609,345) Interest Income — — — — — — Gain on sale of real estate — — 817,006 827,757 — — — 1,644,763 (99,313) — (96,961) 816,980 827,708 (58,519) (188,239) (1,166,238) 35,418 Net Income (Loss) $ 33,295 $ 29,732 $ 115,056 $ 793,660 $ 784,315 $ 17,402 $ (37,946) $ 582,858 $ 2,318,372 Net Income (Loss)—NERA 50% $ 16,648 $ 14,866 $ 57,528 $ 396,830 $ 392,158 $ 8,701 $ (18,973) 867,757 Net Income (Loss)—NERA 40% $ 233,143 233,143 $ 1,100,900 |
EMPLOYEE BENEFIT 401(k) PLANS
EMPLOYEE BENEFIT 401(k) PLANS | 3 Months Ended |
Mar. 31, 2019 | |
EMPLOYEE BENEFTI 401(k) PLANS | |
EMPLOYEE BENEFIT 401(k) PLANS | Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total Revenues Rental Income $ 411,222 $ 53,928 $ 403,837 $ 38,221 $ 22,203 $ 263,051 $ 858,213 $ 3,894,603 $ 5,945,278 Laundry and Sundry Income 3,005 — 1,217 — — 675 9,126 24,688 38,711 414,227 53,928 405,054 38,221 22,203 263,726 867,339 3,919,291 5,983,989 Expenses Administrative 9,680 488 6,455 1,499 3,066 1,824 13,127 65,429 101,568 Depreciation and Amortization 114,285 665 86,251 — 10,000 87,722 255,506 874,142 1,428,571 Management Fees 13,204 2,157 16,126 1,508 1,022 10,368 32,443 83,012 159,840 Operating 24,131 — 20,580 156 825 33,850 120,393 379,875 579,810 Renting 3,291 — 497 — — 3,378 8,652 29,782 45,600 Repairs and Maintenance 54,501 4,163 21,497 40,207 34,224 19,617 182,374 318,666 675,249 Taxes and Insurance 62,527 16,723 41,631 18,171 16,459 31,046 104,551 419,289 710,397 281,619 24,196 193,037 61,541 65,596 187,805 717,046 2,170,195 3,701,035 Income Before Other Income 132,608 29,732 212,017 (23,320) (43,393) 75,921 150,293 1,749,096 2,282,954 Other Income (Loss) Interest Expense (99,313) — (96,961) (26) (49) (58,519) (188,239) (1,166,238) (1,609,345) Interest Income — — — — — — Gain on sale of real estate — — 817,006 827,757 — — — 1,644,763 (99,313) — (96,961) 816,980 827,708 (58,519) (188,239) (1,166,238) 35,418 Net Income (Loss) $ 33,295 $ 29,732 $ 115,056 $ 793,660 $ 784,315 $ 17,402 $ (37,946) $ 582,858 $ 2,318,372 Net Income (Loss)—NERA 50% $ 16,648 $ 14,866 $ 57,528 $ 396,830 $ 392,158 $ 8,701 $ (18,973) 867,757 Net Income (Loss)—NERA 40% $ 233,143 233,143 $ 1,100,900 NOTE 15. EMPLOYEE BENEFIT 401(k) PLANS Effective January 1, 2019, employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Management Company’s 401(k) Plan (the “401(k) Plan”). Eligible employees may elect to defer up to 90 percent of their eligible compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. The amounts contributed by employees are immediately vested and non-forfeitable. Beginning January 1, 2019, the Partnership matched 50% up to the 6% of compensation deferred by each employee in the 401(k) plan. The Partnership may make discretionary matching or profit-sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year. Participants are always 100 percent vested in their pre-tax contributions and will begin vesting in any matching or profit-sharing contributions made on their behalf after two years of service with the Partnership at a rate of 20 percent per year, becoming 100 percent vested after a total of six years of service with the Partnership. Total expense recognized by the Partnership for the 401(k) Plan for the three months ended March 31, 2019 was $12,000. |
IMPACT OF RECENTLY-ISSUED ACCOU
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2019 | |
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | |
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | NOTE 16. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS There have been no new accounting pronouncements applicable to the Partnership that would have a material impact on the Partnership’s consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 17—SUBSEQUENT EVENTS From April 1, 2019 through May 3, 2019, the Partnership purchased a total of 1,540 Depository Receipts. The average price was $64.91 per receipt or $1,947.21 per unit. The total cost was $96,861. The Partnership is required to purchase 12 Class B units and 1 General Partnership units at a cost of $23,740 and $1,249 respectively. The Partnership is currently negotiating a refinancing of the mortgage for Captain Parker held by KeyBank. The new loan would be for $20,750,000 for 10 years, interest only at 4.05%. If the negotiation is successful, there will be a 1% prepayment penalty on the existing loan balance of $20,071,000. The penalty charge would be approximately $200,000, and would have a material effect on the 2019 second quarter net income. The Partnership is expected to close on the refinancing at the end of May, 2019. Effective as of May 3, 2019, the Board of Directors of the Partnership’s General Partner, NewReal, Inc. (“New Real”), elected Andrew Bloch as a member of the Board. Mr. Bloch is the CO-CEO and CFO of The Hamilton Company, Inc., the Manager of the Partnership’s properties. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 27 properties which include 19 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,711 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 8 residential and mixed use properties consisting of 690 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 eight 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 some 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. |
Leasing Fees and Deferred Financing Costs | 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 $55,000 and $52,000 for the three months ended March 31, 2019 and 2018, respectively. |
Income Taxes | 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 2019 or 2018 other than net income as reported. |
Income (Loss) Per Depositary Receipt | Income (Loss) 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 2019 or 2018. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At March 31, 2019, 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 1.61%. At March 31, 2019 and December 31, 2018, respectively approximately $7,406,000, and $10,784,000 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 $62,969 and $44,381 for the three months ended March 31, 2019 and 2018, respectively. |
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 three months ended March 31, 2019 and 2018 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) | 3 Months Ended |
Mar. 31, 2019 | |
RENTAL PROPERTIES | |
Schedule of rental properties | March 31, 2019 December 31, 2018 Useful Life Land, improvements and parking lots $ $ 15 - 40 years Buildings and improvements 15 - 40 years Kitchen cabinets 5 - 10 years Carpets 5 - 10 years Air conditioning 5 - 10 years Laundry equipment 5 - 7 years Elevators 20 - 40 years Swimming pools 10 - 30 years Equipment 5 - 30 years Motor vehicles 5 years Fences 5 - 15 years Furniture and fixtures 5 - 7 years Smoke alarms 5 - 7 years Total fixed assets Less: Accumulated depreciation $ $ |
MORTGAGE NOTES PAYABLE (Tables)
MORTGAGE NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
MORTGAGE NOTES PAYABLE | |
Schedule of approximate annual maturities | Approximate annual maturities at March 31, 2019 are as follows: 2020—current maturities $ 4,319,000 2021 2,049,000 2022 2,606,000 2023 67,098,000 2024 Thereafter 138,804,000 253,238,000 Less: unamortized deferred financing costs (1,285,000) $ 251,953,000 |
PARTNERS' CAPITAL (Tables)
PARTNERS' CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
PARTNERS' CAPITAL | |
Schedule of information per depositary receipt | Three Months Ended March 31, 2019 2018 Net Income per Depositary Receipt $ 0.41 $ 0.50 Distributions per Depositary Receipt $ 0.32 $ 0.30 |
TREASURY UNITS (Tables)
TREASURY UNITS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
TREASURY UNITS | |
Schedule of treasury units | Treasury Units at March 31, 2019 are as follows: Class A 46,107 Class B 10,950 General Partnership 577 57,634 |
RENTAL INCOME (Tables)
RENTAL INCOME (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
RENTAL INCOME | |
Schedule of minimum future annual rental income on non-cancellable operating leases | Approximately 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at March 31, 2019 as follows: Commercial Property Leases 2020 $ 2,565,000 2021 2,299,000 2022 1,591,000 2023 946,000 2024 523,000 Thereafter 756,000 $ 8,680,000 |
Schedule of information for commercial leases | Annual base Percentage of rent for Total square feet Total number of annual base rent for Through March 31, expiring leases for expiring leases leases expiring expiring leases 2020 $ 454,412 22,400 % 2021 225,337 5,679 7 8 % 2022 1,143,867 47,854 10 39 % 2023 246,341 7,087 4 9 % 2024 658,784 19,209 8 22 % 2025 15,936 604 3 1 % 2026 — — — — % 2027 — — — — % 2028 — — — — % 2029 — — — — % 2030 142,450 3,850 1 5 % Totals $ 2,887,127 106,683 45 100 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
Schedule of carrying amounts and estimated fair value of debt | Carrying Amount Estimated Fair Value Mortgage Notes Payable Partnership Properties At March 31, 2019 * $ 251,953,066 $ 235,100,502 At December 31, 2018 * $ 252,370,843 $ 233,362,501 Investment Properties At March 31, 2019 * $ 166,471,296 $ 163,347,932 At December 31, 2018 * $ 166,492,692 $ 160,956,055 * Net of unamortized deferred financing costs |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of future annual mortgage maturities | Future annual mortgage maturities at March 31, 2019 are as follows: Hamilton 345 Hamilton Hamilton on Dexter Period End Essex 81 Franklin Minuteman Main Apts Park Total 3//31/2020 $ — $ 199,661 $ $ — $ $ 199,661 3/31/2021 — 207,527 — 207,527 3/31/2022 — 215,702 — — 215,702 3/31/2023 — 224,199 — — 224,199 3/31/2024 — 233,032 — — 233,032 Thereafter 6,000,000 16,900,000 125,000,000 166,323,670 6,000,000 16,900,000 125,000,000 167,403,791 Less: unamortized deferred financing costs (101,953) (86,944) (592,377) (932,494) $ 9,910,371 $ 9,442,200 $ 5,898,047 $ 16,813,056 $ 124,407,623 $ 166,471,297 At March |
2019 | |
Summary of financial position and income statements relating to investment in unconsolidated joint ventures | Summary financial information as of March 31, 2019 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ Rental property held for sale Cash & Cash Equivalents Rent Receivable 49,619 1,487 Real Estate Tax Escrow — — Prepaid Expenses & Other Assets Total Assets $ 7,878,980 $ 2,925,245 $ 6,250,143 $ 346,529 $ 362,886 $ 5,736,566 $ 16,872,775 $ 89,199,278 $ 129,572,402 LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ — $ $ — $ — $ $ $ $ 166,471,297 Accounts Payable & Accrued Expense 2,187 1,197,603 Advance Rental Pmts & Security Deposits — 3,723,576 Total Liabilities Partners’ Capital 2,923,058 (3,596,885) 328,511 351,834 (345,699) (536,400) (38,530,934) Total Liabilities and Capital $ 7,878,980 $ 2,925,245 $ 6,250,143 $ 346,529 $ 362,886 $ 5,736,566 $ 16,872,775 $ 89,199,278 $ 129,572,402 Partners’ Capital %—NERA 50 % 50 % 50 % 50 % 50 % 50 % 50 % 40 % Investment in Unconsolidated Joint Ventures $ $ 1,461,529 $ $ 164,256 $ 175,917 $ $ $ 1,801,702 Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ (1,206,780) $ — $ (1,798,443) $ — $ — $ (172,850) $ (268,200) $ (15,412,374) (18,858,645) Total Investment in Unconsolidated Joint Ventures (Net) $ (17,056,944) Total units/condominiums Apartments 48 — 40 175 48 42 148 409 1,030 Commercial 1 1 — 1 — — — — 3 Total 49 1 40 176 48 42 148 409 1,033 Units to be retained 49 1 40 — — 42 148 409 690 Units to be sold — — — 175 48 — — — 343 Units sold through May 1, 2019 — — — 173 48 — — — 221 Unsold units — — — 3 — — — — 3 Unsold units with deposits for future sale as of May 1, 2019 — — — 1 — — — — 1 |
Summary of income statement relating to investment in unconsolidated joint ventures | Financial information for the three months ended March 31, 2019 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total Revenues Rental Income $ 459,573 $ 75,290 $ 385,243 $ 23,594 $ 3,629 $ 274,837 $ 822,668 4,028,259 $ 6,073,093 Laundry and Sundry Income 3,005 — 1,389 — — 1,907 10,062 24,025 40,388 462,578 75,290 386,632 23,594 3,629 276,744 832,730 4,052,284 6,113,481 Expenses Administrative 5,379 2,092 5,390 1,694 3,445 3,716 17,847 55,532 95,095 Depreciation and Amortization 119,544 5,074 86,226 3,196 5,420 88,595 258,438 900,101 1,466,594 Management Fees 17,206 2,160 14,056 965 145 11,067 31,868 86,149 163,616 Operating 21,450 8 22,603 775 (109) 23,755 107,289 381,644 557,415 Renting 3,330 — 3,520 2,032 16,112 19,663 44,657 Repairs and Maintenance 37,884 — 18,467 8,040 10,266 36,672 124,192 256,585 492,106 Taxes and Insurance 61,830 15,677 40,241 7,349 4,906 32,251 104,431 518,726 785,411 266,623 25,011 190,503 22,019 24,073 198,088 660,177 2,218,400 3,604,894 Income Before Other Income 195,955 50,279 196,129 1,575 (20,444) 78,656 172,553 1,833,884 2,508,587 Other Income (Loss) Interest Expense (121,005) — (94,247) (6) (57,991) (188,268) (1,270,103) (1,731,620) Gain on Sale of Real Estate — — 754 432,908 433,662 (121,005) — (94,247) 754 432,902 (57,991) (188,268) (1,270,103) (1,297,958) Net Income (Loss) $ 74,950 $ 50,279 $ 101,882 $ 2,329 $ 412,458 $ 20,665 $ (15,715) $ 563,781 $ 1,210,629 Net Income (Loss)—NERA 50% $ 37,475 $ 25,140 $ 50,941 $ 1,165 $ 206,229 $ 10,333 $ (7,858) 323,424 Net Income —NERA 40% $ 225,515 225,515 $ 548,939 |
2018 | |
Summary of financial position and income statements relating to investment in unconsolidated joint ventures | Summary financial information as March 31, 2018 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total ASSETS Rental Properties $ $ $ $ $ $ $ $ $ Cash & Cash Equivalents Rent Receivable — 5,206 Real Estate Tax Escrow — — — Prepaid Expenses & Other Assets Total Assets $ $ $ $ $ $ $ $ $ LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ $ — $ $ — $ — $ $ $ $ Accounts Payable & Accrued Expense 2,188 Advance Rental Pmts& Security Deposits — Total Liabilities Partners’ Capital 2,645,728 (3,477,285) 1,597,180 2,381,668 (40,771) 443,960 8,630,513 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 — — — 46 — — — Units sold through May1, 2018 — — — 1 — — — Unsold units — — — 32 47 — — — Unsold units with deposits for future sale as of May 1, 2018 — — — 4 10 — — — 14 |
Summary of income statement relating to investment in unconsolidated joint ventures | Financial information for the three months ended March 31, 2018 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Bay Apts Apts Apts Park Total Revenues Rental Income $ 411,222 $ 53,928 $ 403,837 $ 38,221 $ 22,203 $ 263,051 $ 858,213 $ 3,894,603 $ 5,945,278 Laundry and Sundry Income 3,005 — 1,217 — — 675 9,126 24,688 38,711 414,227 53,928 405,054 38,221 22,203 263,726 867,339 3,919,291 5,983,989 Expenses Administrative 9,680 488 6,455 1,499 3,066 1,824 13,127 65,429 101,568 Depreciation and Amortization 114,285 665 86,251 — 10,000 87,722 255,506 874,142 1,428,571 Management Fees 13,204 2,157 16,126 1,508 1,022 10,368 32,443 83,012 159,840 Operating 24,131 — 20,580 156 825 33,850 120,393 379,875 579,810 Renting 3,291 — 497 — — 3,378 8,652 29,782 45,600 Repairs and Maintenance 54,501 4,163 21,497 40,207 34,224 19,617 182,374 318,666 675,249 Taxes and Insurance 62,527 16,723 41,631 18,171 16,459 31,046 104,551 419,289 710,397 281,619 24,196 193,037 61,541 65,596 187,805 717,046 2,170,195 3,701,035 Income Before Other Income 132,608 29,732 212,017 (23,320) (43,393) 75,921 150,293 1,749,096 2,282,954 Other Income (Loss) Interest Expense (99,313) — (96,961) (26) (49) (58,519) (188,239) (1,166,238) (1,609,345) Interest Income — — — — — — Gain on sale of real estate — — 817,006 827,757 — — — 1,644,763 (99,313) — (96,961) 816,980 827,708 (58,519) (188,239) (1,166,238) 35,418 Net Income (Loss) $ 33,295 $ 29,732 $ 115,056 $ 793,660 $ 784,315 $ 17,402 $ (37,946) $ 582,858 $ 2,318,372 Net Income (Loss)—NERA 50% $ 16,648 $ 14,866 $ 57,528 $ 396,830 $ 392,158 $ 8,701 $ (18,973) 867,757 Net Income (Loss)—NERA 40% $ 233,143 233,143 $ 1,100,900 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Business) (Details) | Mar. 31, 2019ft²propertyitem | Mar. 31, 2018property |
Line of Business | ||
Number of units | property | 1,033 | |
Residential and mixed-use properties | ||
Line of Business | ||
Number of Real Estate Properties | 23 | |
Number of units | 2,711 | |
Residential buildings | ||
Line of Business | ||
Number of units | property | 1,030 | |
Commercial | ||
Line of Business | ||
Number of units | property | 3 | |
Condominium | ||
Line of Business | ||
Number of units | 19 | |
Wholly owned properties | ||
Line of Business | ||
Number of Real Estate Properties | 27 | |
Wholly owned properties | Residential buildings | ||
Line of Business | ||
Number of Real Estate Properties | 19 | |
Number of units | 2,711 | |
Wholly owned properties | Mixed use residential, retail and office buildings | ||
Line of Business | ||
Number of Real Estate Properties | 4 | |
Wholly owned properties | Commercial | ||
Line of Business | ||
Number of Real Estate Properties | 3 | |
Area of property (in square feet) | ft² | 108,043 | |
Wholly owned properties | Condominium | ||
Line of Business | ||
Number of Real Estate Properties | 1 | |
Number of units | 19 | |
Partially owned properties | Residential and mixed-use properties | ||
Line of Business | ||
Number of Real Estate Properties | 8 | |
Number of units | 690 | |
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 | |
Investment Properties | Residential buildings | ||
Line of Business | ||
Number of units | property | 1,030 | |
Investment Properties | Commercial | ||
Line of Business | ||
Number of units | property | 3 | |
Investment Properties | Partially owned properties | Residential and mixed-use properties | ||
Line of Business | ||
Number of units | property | 690 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | Jan. 03, 2012 | Mar. 31, 2019USD ($)itemshares | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Aug. 20, 2007 |
Principles of Consolidation | |||||||
Value at which partnership investments discontinue use of equity method | $ 0 | ||||||
Amount of legal obligations related to investments no longer classified as equity method | $ 0 | ||||||
Revenue Recognition | |||||||
Period for which arrears are charged against income | 60 days | ||||||
Deferred Financing Costs | |||||||
Amortization of deferred financing costs | $ 55,000 | $ 52,000 | |||||
Income Taxes | |||||||
Provision for income taxes | $ 0 | ||||||
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 | $ 7,406,000 | $ 10,784,000 | |||||
Advertising Expense | |||||||
Advertising expense | $ 62,969 | $ 44,381 | |||||
Interest Capitalized | |||||||
Capitalized interest | $ 0 | $ 0 | |||||
Minimum | |||||||
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 | Cash and cash equivalents | |||||||
Concentration of Credit Risks and Financial Instruments | |||||||
Interest rate on interest bearing accounts (as a percent) | 1.61% | ||||||
Less Than Wholly Owned Subsidiaries [Member] | Minimum | |||||||
Principles of Consolidation | |||||||
Ownership interest in each subsidiary (as a percent) | 99.67% | ||||||
Less Than Wholly Owned Subsidiaries [Member] | Maximum | |||||||
Principles of Consolidation | |||||||
Ownership interest in each subsidiary (as a percent) | 100.00% | ||||||
Investment Properties | |||||||
Principles of Consolidation | |||||||
Number of limited liability companies/partnerships | item | 8 | ||||||
Investment Properties | Minimum | |||||||
Principles of Consolidation | |||||||
Percentage of ownership interest | 40.00% | ||||||
Investment Properties | 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) | 3 Months Ended | ||
Mar. 31, 2019USD ($)propertyitem | Dec. 31, 2018USD ($) | Mar. 31, 2018property | |
RENTAL PROPERTIES | |||
Number of units | property | 1,033 | ||
Rental properties | |||
Total fixed assets | $ 338,579,255 | $ 337,902,411 | |
Less: Accumulated depreciation | (110,919,198) | (107,391,148) | |
Total fixed assets, net | 227,660,057 | 230,511,263 | |
Land, improvements and parking lots | |||
Rental properties | |||
Total fixed assets | $ 72,547,547 | 72,547,547 | |
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 | $ 221,837,652 | 221,697,939 | |
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 | $ 12,247,767 | 12,134,519 | |
Kitchen cabinets | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Kitchen cabinets | Maximum | |||
Rental properties | |||
Useful Life | 10 years | ||
Carpets | |||
Rental properties | |||
Total fixed assets | $ 7,773,940 | 7,591,591 | |
Carpets | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Carpets | Maximum | |||
Rental properties | |||
Useful Life | 10 years | ||
Air conditioning | |||
Rental properties | |||
Total fixed assets | $ 603,149 | 603,149 | |
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 | $ 349,071 | 327,643 | |
Laundry equipment | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Laundry equipment | Maximum | |||
Rental properties | |||
Useful Life | 7 years | ||
Elevators | |||
Rental properties | |||
Total fixed assets | $ 1,873,847 | 1,839,590 | |
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 | $ 13,016,249 | 12,919,389 | |
Equipment | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Equipment | Maximum | |||
Rental properties | |||
Useful Life | 30 years | ||
Motor vehicles | |||
Rental properties | |||
Total fixed assets | $ 216,260 | 216,260 | |
Motor vehicles | Maximum | |||
Rental properties | |||
Useful Life | 5 years | ||
Fences | |||
Rental properties | |||
Total fixed assets | $ 38,213 | 38,213 | |
Fences | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Fences | Maximum | |||
Rental properties | |||
Useful Life | 15 years | ||
Furniture and fixtures | |||
Rental properties | |||
Total fixed assets | $ 7,102,834 | 7,013,845 | |
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 | $ 528,097 | $ 528,097 | |
Smoke alarms | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Smoke alarms | Maximum | |||
Rental properties | |||
Useful Life | 7 years | ||
Wholly owned properties | |||
RENTAL PROPERTIES | |||
Number of properties | item | 27 | ||
Investment Properties | |||
RENTAL PROPERTIES | |||
Number of units | property | 1,033 | ||
Residential and mixed-use properties | |||
RENTAL PROPERTIES | |||
Number of units | item | 2,711 | ||
Number of properties | item | 23 | ||
Residential and mixed-use properties | Partially owned properties | |||
RENTAL PROPERTIES | |||
Number of units | item | 690 | ||
Number of properties | item | 8 | ||
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 | 690 | ||
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 (Webster Gree
RENTAL PROPERTIES (Webster Green Apartments) (Details) | Mar. 29, 2018USD ($)item | Mar. 31, 2018property |
RENTAL PROPERTIES | ||
Number of units | property | 1,033 | |
Webster Green Apartments | ||
RENTAL PROPERTIES | ||
Number of units | item | 79 | |
Loan amount | $ 21,500,000 | |
Purchase price of real estate properties | 34,500,000 | |
Cash payment | 13,000,000 | |
Cash from reserves | 5,000,000 | |
Line of credit | 8,000,000 | |
Closing costs associated with financing | 141,000 | |
Purchase price allocated to the value of the in-place leases | 502,000 | |
Purchase price allocated to the value of the tenant relationships | $ 40,000 | |
Amortization period of value of the in-place leases | 12 months | |
Amortization period of value of the tenant relationships | 24 months |
RENTAL PROPERTIES (Woodland Par
RENTAL PROPERTIES (Woodland Park Apartments) (Details) | Mar. 31, 2018property |
RENTAL PROPERTIES | |
Number of units | 1,033 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Mar. 31, 2019USD ($)item | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | |
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 | $ 591,000 | $ 560,000 | ||
Management fee | 590,610 | 559,629 | ||
Repairs and maintenance | 1,944,231 | 1,814,283 | ||
Administrative expense | 612,757 | 539,145 | ||
Employer contributions in 401K plan | $ 12,000 | |||
Number of limited partnerships and limited liability companies in which the entity has invested | item | 8 | |||
Interest expense | $ 3,000,289 | 2,984,210 | ||
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 | 18,750 | |||
Harold Brown | Minimum | ||||
RELATED PARTY TRANSACTIONS | ||||
Ownership interest (as a percent) | 47.60% | |||
Harold Brown | Maximum | ||||
RELATED PARTY TRANSACTIONS | ||||
Ownership interest (as a percent) | 59.00% | |||
General Partner or Management Company [Member] | ||||
RELATED PARTY TRANSACTIONS | ||||
Repairs and maintenance | $ 108,000 | |||
Administrative expense | 90,000 | |||
Commercial brokerage fees | 1,000 | |||
Expenses for construction, architectural services and supervision of capital projects | 150,000 | |||
Costs related to professional services | 349,000 | 354,000 | ||
Management Company [Member] | ||||
RELATED PARTY TRANSACTIONS | ||||
Reimbursement to related party for payroll transfers | 789,000 | 824,000 | ||
Employer contributions in 401K plan | $ 12,000 | $ 0 | ||
Number of accounting staff of related party providing bookkeeping and accounting functions | item | 14 | |||
Fees for accounting and bookkeeping services | $ 31,250 | $ 31,250 | ||
Number of employees having ownership interest in the investment properties | item | 5 | |||
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 | $ 163,000 | |||
Repairs and maintenance | 18,000 | |||
Administrative expense | 11,000 | |||
Commercial brokerage fees | 121,000 | |||
Construction, architectural services and supervision of capital projects | 3,000 | |||
Amount paid to related party | $ 316,000 | |||
Residential and mixed-use properties | Partially owned properties | Minimum | ||||
RELATED PARTY TRANSACTIONS | ||||
Ownership interest (as a percent) | 40.00% | |||
Residential and mixed-use properties | Partially owned properties | Maximum | ||||
RELATED PARTY TRANSACTIONS | ||||
Ownership interest (as a percent) | 50.00% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
OTHER ASSETS | ||
Security deposits | $ 2,639,000 | $ 2,571,000 |
Escrow deposits to fund future capital improvements | 494,000 | 477,000 |
Deposits and escrows held for acquisitions | 471,913 | 495,824 |
Intangible assets, net of accumulated amortization | 18,000 | 152,000 |
Financing fees, net | 68,000 | 78,000 |
Accumulated amortization on intangible assets | $ 1,093,000 | $ 959,000 |
MORTGAGE NOTES PAYABLE (Mortgag
MORTGAGE NOTES PAYABLE (Mortgages Payable) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
MORTGAGE NOTES PAYABLE | ||
Effective interest rate (as a percent) | 3.94% | |
Financing fees, net | $ 68,000 | $ 78,000 |
Accumulated amortization on financing and leasing fees | 60,000 | 50,000 |
Annual maturities of mortgage debt | ||
2020-current maturities | 4,319,000 | |
2021 | 2,049,000 | |
2022 | 2,606,000 | |
2023 | 67,098,000 | |
2024 | 38,362,000 | |
Thereafter | 138,804,000 | |
Total | 253,238,000 | |
Less: unamortized deferred financing costs | (1,285,000) | |
Secured Debt | 251,953,066 | 252,370,843 |
Mortgages payable | ||
MORTGAGE NOTES PAYABLE | ||
Amount of monthly installments including principal | $ 1,139,000 | |
Weighted average interest rate (as a percent) | 4.63% | |
Effective interest rate (as a percent) | 4.71% | |
Financing fees, net | $ 1,354,000 | 1,420,000 |
Accumulated amortization on financing and leasing fees | $ 1,363,000 | $ 1,298,000 |
Mortgages payable | Minimum | ||
MORTGAGE NOTES PAYABLE | ||
Interest rate (as a percent) | 3.76% | |
Mortgages payable | Maximum | ||
MORTGAGE NOTES PAYABLE | ||
Interest rate (as a percent) | 5.81% |
MORTGAGE NOTES PAYABLE (Mortg_2
MORTGAGE NOTES PAYABLE (Mortgage by property) (Details) | Mar. 29, 2018USD ($)item | Mar. 12, 2018USD ($) | Mar. 31, 2019property | Mar. 31, 2018property | Aug. 31, 2014 | Dec. 31, 2005 | Mar. 07, 2005item |
MORTGAGE NOTES PAYABLE | |||||||
Number of units | property | 1,033 | ||||||
Hamilton Essex 81 | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Number of units | 49 | 49 | 48 | ||||
Webster Green Apartments | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Number of units | item | 79 | ||||||
Loan amount | $ 21,500,000 | ||||||
Purchase price of real estate properties | 34,500,000 | ||||||
Cash payment | 13,000,000 | ||||||
Cash from reserves | 5,000,000 | ||||||
Line of credit | 8,000,000 | ||||||
Closing Costs | $ 141,000 | ||||||
659 Worcester Road | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Loan amount | $ 6,083,683 | ||||||
Closing Costs | $ 69,000 | ||||||
Interest rate (as a percent) | 4.87% | ||||||
Amortization period of debt | 30 years | ||||||
Future monthly payment amount | $ 32,427 | ||||||
Mortgages payable | Hamilton on Main Apartments, LLC | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Interest rate (as a percent) | 4.34% | 5.18% | |||||
Amortization period of debt | 30 years | ||||||
Mortgages payable | Minimum | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Interest rate (as a percent) | 3.76% | ||||||
Mortgages payable | Maximum | |||||||
MORTGAGE NOTES PAYABLE | |||||||
Interest rate (as a percent) | 5.81% |
MORTGAGE NOTES PAYABLE (Line of
MORTGAGE NOTES PAYABLE (Line of Credit) (Details) | Jun. 04, 2018USD ($) | Sep. 29, 2017USD ($) | Sep. 30, 2015 | Jul. 31, 2014USD ($)item | May 31, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Aug. 31, 2014 | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2005 | Mar. 29, 2018USD ($) | Jul. 16, 2017USD ($) | Mar. 07, 2005item |
Line of Credit | |||||||||||||||
Interest expense | $ 3,000,289 | $ 2,984,210 | |||||||||||||
Line Of Credit Facility Unused Capacity Commitment Fee | 12,000 | ||||||||||||||
Webster Green Apartments | |||||||||||||||
Line of Credit | |||||||||||||||
Loan amount | $ 21,500,000 | ||||||||||||||
Credit line balance | 8,000,000 | ||||||||||||||
Hamilton Essex 81 | |||||||||||||||
Line of Credit | |||||||||||||||
Number of properties in which borrowing amount collateralized | item | 1 | ||||||||||||||
Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts | Subsequent event | |||||||||||||||
Line of Credit | |||||||||||||||
Term of debt | 10 years | ||||||||||||||
Loan amount | $ 20,750,000 | ||||||||||||||
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 | ||||||||||||||
Maximum | |||||||||||||||
Line of Credit | |||||||||||||||
Leverage ratio | 65.00% | ||||||||||||||
Aggregate increase in indebtedness | $ 15,000,000 | ||||||||||||||
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 | |||||||||||||
Mortgages payable | LIBOR | Hamilton Essex 81 | |||||||||||||||
Line of Credit | |||||||||||||||
Margin over basis of interest rate (as a percent) | 2.18% | ||||||||||||||
Line of Credit | |||||||||||||||
Line of Credit | |||||||||||||||
Maximum borrowings | $ 25,000,000 | ||||||||||||||
Term of debt | 3 years | ||||||||||||||
Payment on line of credit | $ 8,000,000 | $ 2,000,000 | $ 3,000,000 | $ 4,000,000 | |||||||||||
Amount of refinancing costs | $ 128,000 | ||||||||||||||
Credit line balance | $ 25,000,000 | ||||||||||||||
Number of properties in which borrowing amount collateralized | item | 23 | ||||||||||||||
Line of Credit | Dexter Park | |||||||||||||||
Line of Credit | |||||||||||||||
Payment on line of credit | $ 16,000,000 | ||||||||||||||
Line of Credit | Hamilton Highlands LLC Residential Needham Massachusetts [Member] | |||||||||||||||
Line of Credit | |||||||||||||||
Funds drawn by the company | $ 8,000,000 | ||||||||||||||
Line of Credit | Federal Funds Rate | |||||||||||||||
Line of Credit | |||||||||||||||
Basis of effective interest rate used in calculation of Base Rate (as a percent) | 0.50% | ||||||||||||||
Line of Credit | LIBOR | |||||||||||||||
Line of Credit | |||||||||||||||
Basis of effective interest rate used in calculation of Base Rate (as a percent) | 1.00% | ||||||||||||||
Margin over basis of interest rate (as a percent) | 2.50% | ||||||||||||||
Line of Credit | Minimum | |||||||||||||||
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% | ||||||||||||||
Line of Credit | Maximum | |||||||||||||||
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% |
ADVANCE RENTAL PAYMENTS AND S_2
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | |
Period for advance rental payment | 1 month |
Amount received for prepaid rent | $ 2,234,000 |
Security deposits | $ 2,639,000 |
PARTNERS' CAPITAL (Details)
PARTNERS' CAPITAL (Details) | Jan. 03, 2012 | Jan. 31, 2019$ / item | Mar. 31, 2019item$ / item | Mar. 31, 2018$ / item | Dec. 31, 2018$ / item | Sep. 30, 2018$ / item | Jun. 30, 2018$ / item | Aug. 20, 2007 |
Depositary receipts exchange ratio for Class A units | item | 30 | |||||||
Quarterly distribution per unit approved (in dollars per unit) | 9.60 | |||||||
Quarterly distributions per depositary receipt (in dollars per receipt) | 0.32 | 0.30 | 0.30 | 0.30 | 0.30 | |||
Quarterly distribution per unit (in dollars per unit) | 9 | 9 | 9 | 9 | ||||
Earnings per depository receipt | ||||||||
Net Income per Depositary Receipt (in dollars per receipt) | 0.41 | 0.50 | ||||||
Distributions per Depositary Receipt (in dollars per share) | 0.32 | 0.30 | ||||||
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 | ||||||
Class B | ||||||||
Fixed distribution percentage of unit holders | 19.00% |
TREASURY UNITS (Details)
TREASURY UNITS (Details) | Mar. 10, 2015shares | Aug. 31, 2007$ / itemshares | Aug. 20, 2007shares | May 03, 2019USD ($)$ / itemshares | Apr. 30, 2019USD ($)shares | Sep. 30, 2007$ / itemshares | Mar. 31, 2019USD ($)$ / itemshares | Dec. 31, 2018$ / itemshares | Mar. 31, 2019USD ($)$ / itemshares | Mar. 06, 2008shares |
Treasury units | 57,634 | 57,634 | ||||||||
Period for repurchase of depository receipts | 5 years | 12 months | ||||||||
Depository receipts authorized to be repurchased | 2,000,000 | 300,000 | 1,500,000 | |||||||
Number of depository receipts repurchased | 1,408 | 1,408 | 1,408 | 1,408 | ||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 27.97 | |||||||||
Units required to be repurchased (in shares) | 1,795 | |||||||||
Total cost of repurchase | $ | $ 2,930,736 | $ 43,205,000 | ||||||||
Subsequent event | ||||||||||
Number of depository receipts repurchased | 1,540 | |||||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 64.91 | |||||||||
Total cost of repurchase | $ | $ 96,861 | |||||||||
General Partnership | ||||||||||
Treasury units | 577 | 577 | ||||||||
Fixed distribution percentage of unit holders | 1.00% | |||||||||
Number of depository receipts repurchased | 180 | 180 | 180 | 180 | ||||||
Units required to be repurchased (in shares) | 18 | |||||||||
Total cost of repurchase | $ | $ 29,307 | |||||||||
Value of units required to be repurchased | $ | $ 29,307 | |||||||||
General Partnership | Subsequent event | ||||||||||
Units required to be repurchased (in shares) | 1 | |||||||||
Value of units required to be repurchased | $ | $ 1,249 | |||||||||
Treasury Units | ||||||||||
Units required to be repurchased (in shares) | 1,795 | |||||||||
Class A | ||||||||||
Treasury units | 46,107 | 46,107 | ||||||||
Fixed distribution percentage of unit holders | 80.00% | |||||||||
Repurchase price of units (in dollars per unit) | $ / item | 839.10 | 839.10 | 839.10 | 839.10 | ||||||
Total cost of repurchase | $ | $ 2,344,601 | |||||||||
Class B | ||||||||||
Treasury units | 10,950 | 10,950 | ||||||||
Fixed distribution percentage of unit holders | 19.00% | |||||||||
Number of depository receipts repurchased | 3,413 | 3,413 | 3,413 | 3,413 | ||||||
Total cost of repurchase | $ | $ 556,828 | |||||||||
Class B | Subsequent event | ||||||||||
Units required to be repurchased (in shares) | 12 | |||||||||
Value of units required to be repurchased | $ | $ 23,740 | |||||||||
Class B | ||||||||||
Value of units required to be repurchased | $ | $ 556,828 | |||||||||
Class B | General Partnership | ||||||||||
Units required to be repurchased (in shares) | 341 | |||||||||
Repurchase price of units (in dollars per unit) | $ / item | 996.79 | 996.79 | 996.79 | 996.79 | ||||||
Treasury Units | ||||||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 54.40 | |||||||||
Units required to be repurchased (in shares) | 43,095 | |||||||||
Repurchase price of units (in dollars per unit) | $ / item | 1,632.12 | |||||||||
Total cost of repurchase | $ | $ 2,344,601 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($) | Feb. 28, 2019item | |
COMMITMENTS AND CONTINGENCIES | ||
Number of apartments damaged | item | 40 | |
Proceeds from Insurance | $ 75,000 | |
Insurance recovery receivable | $ 212,000 |
RENTAL INCOME (Details)
RENTAL INCOME (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
RENTAL INCOME | ||
Percentage of rental income related to residential apartments and condominium units with leases of one year or less | 94.00% | |
Maximum period of non-cancelable operating lease | 1 year | |
Percentage of rental income related to commercial properties | 6.00% | |
Minimum future rental income | ||
2020 | $ 2,565,000 | |
2021 | 2,299,000 | |
2022 | 1,591,000 | |
2023 | 946,000 | |
2024 | 523,000 | |
Thereafter | 756,000 | |
Commercial Property Leases | 8,680,000 | |
Aggregate contingent rentals from continuing operations | $ 129,000 | $ 223,000 |
RENTAL INCOME (Concentration) (
RENTAL INCOME (Concentration) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Commercial rental income | Major tenant | |
Concentration Risk | |
Concentration risk percentage | 36.00% |
RENTAL INCOME (Commercial Lease
RENTAL INCOME (Commercial Leases) (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)ft²item | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 2,887,127 |
Total square feet for expiring leases | ft² | 106,683 |
Total number of leases expiring | item | 45 |
Percentage of annual base rent for expiring leases | 100.00% |
Through March 31, 2020 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 454,412 |
Total square feet for expiring leases | ft² | 22,400 |
Total number of leases expiring | item | 12 |
Percentage of annual base rent for expiring leases | 16.00% |
Through March 31, 2021 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 225,337 |
Total square feet for expiring leases | ft² | 5,679 |
Total number of leases expiring | item | 7 |
Percentage of annual base rent for expiring leases | 8.00% |
Through March 31, 2022 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 1,143,867 |
Total square feet for expiring leases | ft² | 47,854 |
Total number of leases expiring | item | 10 |
Percentage of annual base rent for expiring leases | 39.00% |
Through March 31, 2023 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 246,341 |
Total square feet for expiring leases | ft² | 7,087 |
Total number of leases expiring | item | 4 |
Percentage of annual base rent for expiring leases | 9.00% |
Through March 31, 2024 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 658,784 |
Total square feet for expiring leases | ft² | 19,209 |
Total number of leases expiring | item | 8 |
Percentage of annual base rent for expiring leases | 22.00% |
Through March 31, 2025 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 15,936 |
Total square feet for expiring leases | ft² | 604 |
Total number of leases expiring | item | 3 |
Percentage of annual base rent for expiring leases | 1.00% |
Through March 31, 2030 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 142,450 |
Total square feet for expiring leases | ft² | 3,850 |
Total number of leases expiring | item | 1 |
Percentage of annual base rent for expiring leases | 5.00% |
RENTAL INCOME (Rent Receivable)
RENTAL INCOME (Rent Receivable) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
RENTAL INCOME | ||
Allowance for doubtful rent receivable | $ 369,000 | $ 532,000 |
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis | 69,000 | |
Deferred rental concession | $ 82,000 |
CASH FLOW INFORMATION (Details)
CASH FLOW INFORMATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOW INFORMATION | ||
Cash paid for interest | $ 2,944,000 | $ 3,010,000 |
Cash paid for state income taxes | 48,000 | $ 47,000 |
Non-cash financing activities in connection with acquisition | $ 21,000,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Mortgage Notes Payable | ||
Carrying Amount | $ 251,953,066 | $ 252,370,843 |
Estimated Fair Value | 235,100,502 | 233,362,501 |
Partially owned properties | ||
Mortgage Notes Payable | ||
Carrying Amount | 166,471,296 | 166,492,692 |
Estimated Fair Value | $ 163,347,932 | $ 160,956,055 |
TAXABLE INCOME AND TAX BASIS (D
TAXABLE INCOME AND TAX BASIS (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
TAXABLE INCOME AND TAX BASIS | |
Taxable net income | $ 4,841,000 |
Excess amount of statement income over taxable income | 672,000 |
Excess amount of cumulative statement basis over cumulative taxable basis | 878,000 |
Excess amount of statement income from joint venture investments over taxable income | $ 1,121,000 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) | 3 Months Ended |
Mar. 31, 2019item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of limited partnerships and limited liability companies in which the entity has invested | 8 |
Number of partnerships investing in commercial property | 3 |
Limited Partnerships | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of limited partnerships and limited liability companies in which the entity has invested | 8 |
Management Company [Member] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of employees having ownership interest in the investment properties | 5 |
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) | 47.60% |
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) | 59.00% |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Dexter) (Details) | May 31, 2018USD ($) | Oct. 28, 2009USD ($)item | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($)property | Dec. 31, 2018USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 1,801,702 | $ 6,986,470 | $ 1,985,680 | |||
Number of units | property | 1,033 | |||||
Outstanding amount of mortgage | 251,953,066 | $ 252,370,843 | ||||
Distribution to the Partnership | 1,177,353 | $ 1,119,481 | ||||
Dexter Park | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 15,925,000 | $ 3,452,204 | ||||
Ownership interest (as a percent) | 40.00% | 40.00% | ||||
Number of units | 409 | 409 | ||||
Purchase price of investments | $ 129,500,000 | |||||
Outstanding amount of mortgage | $ 82,000,000 | 125,000,000 | ||||
Distribution to the Partnership | 41,200,000 | |||||
Dexter Park | Mortgages payable | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Loan amount | $ 89,914,000 | |||||
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 | |||||
John Hancock | Dexter Park | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Loan amount | $ 125,000,000 | |||||
Interest rate (as a percent) | 3.99% | |||||
Defeasance cost | $ 3,830,000 | |||||
Defeasance cost (as a percent) | 40.00% | |||||
General Partnership | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Distribution to the Partnership | $ 11,774 | $ 11,195 | ||||
General Partnership | Dexter Park | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Distribution to the Partnership | $ 16,500,000 | |||||
General Partnership | John Hancock | Dexter Park | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Defeasance cost | $ 1,532,000 | |||||
Residential buildings | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 1,030 | |||||
Residential buildings | Dexter Park | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 409 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Bay Apts and Sales) (Details) | 1 Months Ended | 3 Months Ended | ||||
Feb. 28, 2007USD ($)item | Mar. 31, 2019USD ($)property | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($)property | Mar. 01, 2017USD ($) | Oct. 03, 2005USD ($)item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 1,801,702 | $ 1,985,680 | $ 6,986,470 | |||
Number of units | property | 1,033 | |||||
Number of units retained for long-term investment | property | (690) | |||||
Outstanding amount of mortgage | 251,953,066 | $ 252,370,843 | ||||
Unsold units | property | 79 | |||||
Hamilton Bay Apts | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 175,917 | $ 1,190,833 | $ 2,500,000 | |||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||
Number of units | 48 | 48 | 168 | |||
Number of units sold | item | 120 | |||||
Number of units retained for long-term investment | 0 | 48 | ||||
Interest rate (as a percent) | 5.57% | |||||
Period for which the entity is required to make interest only payments | 5 years | |||||
Amortization period of debt | 30 years | |||||
Outstanding amount of mortgage | $ 2,222,000 | |||||
Gain on the sale of real estate | $ 433,000 | |||||
Unsold units | property | 47 | |||||
Purchase price of investments | $ 30,875,000 | |||||
Borrowings | $ 4,750,000 | |||||
Residential buildings | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 1,030 | |||||
Residential buildings | Hamilton Bay Apts | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | 48 | 48 | 48 | |||
Mortgages payable | Minimum | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Interest rate (as a percent) | 3.76% | |||||
Mortgages payable | Maximum | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Interest rate (as a percent) | 5.81% |
INVESTMENT IN UNCONSOLIDATED _6
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Essex) (Details) | Sep. 30, 2015USD ($) | Sep. 28, 2015USD ($) | Mar. 07, 2005USD ($)item | Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | Dec. 31, 2018USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 1,801,702 | $ 6,986,470 | $ 1,985,680 | |||
Number of units | property | 1,033 | |||||
Distribution to the Partnership | 1,177,353 | $ 1,119,481 | ||||
Mortgage Notes Payable | $ 251,953,066 | $ 252,370,843 | ||||
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 | ||||||
Ownership interest (as a percent) | 50.00% | |||||
Number of units | 48 | 49 | 49 | |||
Number of properties in which borrowing amount collateralized | item | 1 | |||||
Capital contributions | $ 100,000 | |||||
Distribution to the Partnership | $ 978,193 | |||||
Hamilton Essex Development | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 1,461,529 | $ 1,322,863 | ||||
Ownership interest (as a percent) | 50.00% | |||||
Number of units | property | 1 | 1 | ||||
Capacity of real estate property (in cars per lot) | item | 50 | |||||
Capital contributions | 978,193 | |||||
Residential buildings | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 1,030 | |||||
Residential buildings | Hamilton Essex 81 | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 48 | 48 | ||||
Commercial | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 3 | |||||
Commercial | Hamilton Essex 81 | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 1 | 1 | ||||
Commercial | Hamilton Essex Development | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 1 | 1 | ||||
Mortgages payable | Maximum | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Interest rate (as a percent) | 5.81% | |||||
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 | ||||||
Amount of loan proceeds utilized for pay off the existing mortgage | $ 8,040,719 | |||||
Term of debt | 10 years | |||||
Mortgage Notes Payable | $ 10,000,000 | |||||
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 |
INVESTMENT IN UNCONSOLIDATED _7
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton 1025) (Details) | Jul. 08, 2016USD ($) | Mar. 02, 2005USD ($)item | Mar. 31, 2019propertyitem | Mar. 31, 2019item | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($)property |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ | $ 1,801,702 | $ 1,985,680 | $ 6,986,470 | ||||
Number of units | property | 1,033 | ||||||
Unsold units | property | 79 | ||||||
Number of units retained for long-term investment | property | (690) | ||||||
Outstanding amount of mortgage | $ | 251,953,066 | $ 252,370,843 | |||||
Hamilton 1025 | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ | $ 2,352,000 | $ 164,256 | $ 798,589 | ||||
Ownership interest (as a percent) | 50.00% | 50.00% | |||||
Number of units | 176 | 176 | 3 | 176 | |||
Number of units sold | item | 127 | ||||||
Unsold units | property | 3 | 32 | |||||
Number of units retained for long-term investment | 49 | 0 | |||||
Capital contributions | $ | $ 2,359,500 | ||||||
Number of units under a purchase and sale agreement | item | 1 | ||||||
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 | ||||||
Borrowings | $ | $ 5,000,000 | ||||||
Residential buildings | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Number of units | property | 1,030 | ||||||
Residential buildings | Hamilton 1025 | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Number of units | property | 175 | 175 |
INVESTMENT IN UNCONSOLIDATED _8
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Minuteman) (Details) | Sep. 12, 2016USD ($) | Jan. 31, 2007USD ($) | Oct. 31, 2004USD ($) | Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | Dec. 31, 2018USD ($) | Dec. 31, 2006USD ($) | Sep. 30, 2004USD ($)item |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Investments in joint venture | $ 1,801,702 | $ 6,986,470 | $ 1,985,680 | |||||
Number of units | property | 1,033 | |||||||
Distribution to the Partnership | 1,177,353 | $ 1,119,481 | ||||||
Outstanding amount of mortgage | $ 251,953,066 | $ 252,370,843 | ||||||
Hamilton Minuteman | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Investments in joint venture | $ 5,075,000 | |||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
Number of units | 42 | 42 | 42 | |||||
Cash contribution by the entity towards loan | $ 1,250,000 | |||||||
Outstanding amount of mortgage | $ 6,000,000 | |||||||
Purchase price of investments | $ 10,100,000 | |||||||
Amount returned to partnership | $ 3,775,000 | |||||||
Residential buildings | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Number of units | property | 1,030 | |||||||
Residential buildings | Hamilton Minuteman | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Number of units | property | 42 | 42 | ||||||
Mortgages payable | Hamilton Minuteman | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Distribution to the Partnership | $ 385,000 | |||||||
Mortgage amount | 6,000,000 | |||||||
Term of debt | 10 years | |||||||
Amount of mortgage paid off | 5,158,000 | |||||||
Refinancing costs | $ 123,000 | |||||||
Interest rate (as a percent) | 3.71% | 5.67% | ||||||
Period for which the entity is required to make interest only payments | 15 years | 5 years | ||||||
Amortization period of debt | 30 years | |||||||
Borrowings | $ 5,500,000 | $ 8,025,000 |
INVESTMENT IN UNCONSOLIDATED _9
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton on Main) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2014USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($)property | Dec. 31, 2005USD ($)item | Dec. 31, 2018USD ($) | Aug. 31, 2004USD ($)item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 1,801,702 | $ 6,986,470 | $ 1,985,680 | |||
Number of units | property | 1,033 | |||||
Outstanding amount of mortgage | 251,953,066 | $ 252,370,843 | ||||
Distribution to the Partnership | 1,177,353 | $ 1,119,481 | ||||
Hamilton on Main Apts | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 221,979 | $ 8,000,000 | ||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||
Number of units | 148 | 280 | ||||
Number of units sold | item | 137 | |||||
Purchase price of investments | $ 56,000,000 | |||||
Residential buildings | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 1,030 | |||||
Residential buildings | Hamilton on Main Apts | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | property | 148 | |||||
Mortgages payable | Hamilton on Main Apartments, LLC | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Term of debt | 10 years | 10 years | ||||
Number of buildings | item | 3 | |||||
Outstanding amount of mortgage | $ 16,900,000 | |||||
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 | |||||
Repayment of loan | 15,205,000 | |||||
Cost associated with loan extension | 161,000 | |||||
Borrowings | $ 16,900,000 | $ 16,825,000 |
INVESTMENT IN UNCONSOLIDATED_10
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (345 Franklin) (Details) | 1 Months Ended | 3 Months Ended | |||
Jun. 30, 2013USD ($) | Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | Dec. 31, 2018USD ($) | Nov. 30, 2001USD ($)item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Investments in joint venture | $ 1,801,702 | $ 6,986,470 | $ 1,985,680 | ||
Number of units | property | 1,033 | ||||
Distribution to the Partnership | 1,177,353 | $ 1,119,481 | |||
Outstanding amount of mortgage | $ 251,953,066 | $ 252,370,843 | |||
Maximum | Mortgages payable | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Interest rate (as a percent) | 5.81% | ||||
345 Franklin | Mortgages payable | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Outstanding amount of mortgage | $ 9,504,000 | ||||
Residential buildings | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Number of units | property | 1,030 | ||||
345 Franklin | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Investments in joint venture | $ 1,533,000 | ||||
Ownership interest (as a percent) | 50.00% | 50.00% | |||
Number of units | 40 | 40 | 40 | ||
Distribution to the Partnership | $ 1,610,000 | ||||
Legal obligation to fund operating results | $ 0 | ||||
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 | ||||
345 Franklin | Residential buildings | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Number of units | property | 40 | 40 |
INVESTMENT IN UNCONSOLIDATED_11
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Balance Sheet) (Details) | Mar. 31, 2019property | Mar. 31, 2019item | Mar. 31, 2019USD ($) | Mar. 31, 2019 | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($)property | Oct. 28, 2009USD ($)item | Feb. 28, 2007item | Oct. 03, 2005USD ($)item | Mar. 07, 2005item | Mar. 02, 2005USD ($)item | Sep. 30, 2004USD ($)item | Aug. 31, 2004USD ($)item | Nov. 30, 2001USD ($)item |
ASSETS | ||||||||||||||
Rental Properties | $ 131,325,750 | |||||||||||||
Cash & Cash Equivalents | 1,652,736 | |||||||||||||
Rent Receivable | 410,459 | |||||||||||||
Real Estate Tax Escrow | 665,426 | |||||||||||||
Prepaid Expenses & Other Assets | 4,193,283 | |||||||||||||
Total Assets | 138,247,654 | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 123,720,733 | |||||||||||||
Accounts Payable and Accrued Expenses | 1,042,477 | |||||||||||||
Advance Rental Payments and Security Deposits | 3,652,076 | |||||||||||||
Total Liabilities | 128,415,286 | |||||||||||||
Partners' Capital | 9,831,368 | |||||||||||||
Total Liabilities and Capital | 138,246,654 | |||||||||||||
Investment in Unconsolidated Joint Ventures | $ 1,801,702 | $ 1,985,680 | 6,986,470 | |||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (18,858,645) | $ (18,351,562) | (2,933,844) | |||||||||||
Total Investment in Unconsolidated Joint Ventures (Net) | $ 4,052,626 | |||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1,033 | |||||||||||||
Units to be retained | property | 690 | |||||||||||||
Units to be sold | property | 343 | |||||||||||||
Total number of units sold | property | 264 | |||||||||||||
Unsold units | property | 79 | |||||||||||||
Units unsold with deposits for future sale | property | 14 | |||||||||||||
NERA 50% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||||||
NERA 40% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 40.00% | 40.00% | ||||||||||||
Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1,030 | |||||||||||||
Commercial | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 3 | |||||||||||||
Investment Properties | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 123,969,482 | |||||||||||||
Assets held for sales | 159,188 | |||||||||||||
Cash & Cash Equivalents | 3,136,730 | |||||||||||||
Rent Receivable | 434,186 | |||||||||||||
Real Estate Tax Escrow | 247,443 | |||||||||||||
Prepaid Expenses & Other Assets | 1,625,373 | |||||||||||||
Total Assets | 129,572,402 | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 166,471,297 | |||||||||||||
Accounts Payable and Accrued Expenses | 1,197,603 | |||||||||||||
Advance Rental Payments and Security Deposits | 3,723,576 | |||||||||||||
Total Liabilities | 171,392,476 | |||||||||||||
Partners' Capital | (41,820,074) | |||||||||||||
Total Liabilities and Capital | 129,572,402 | |||||||||||||
Investment in Unconsolidated Joint Ventures | 1,801,702 | |||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (18,858,645) | |||||||||||||
Total Investment in Unconsolidated Joint Ventures (Net) | (17,056,944) | |||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1,033 | |||||||||||||
Units to be retained | property | 690 | |||||||||||||
Units to be sold | property | 343 | |||||||||||||
Total number of units sold | property | 221 | |||||||||||||
Unsold units | property | 3 | |||||||||||||
Units unsold with deposits for future sale | property | 1 | |||||||||||||
Investment Properties | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1,030 | |||||||||||||
Investment Properties | Commercial | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 3 | |||||||||||||
Hamilton Essex 81 | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 7,117,613 | $ 7,515,492 | ||||||||||||
Assets held for sales | 0 | |||||||||||||
Cash & Cash Equivalents | 192,441 | 148,701 | ||||||||||||
Rent Receivable | 222,191 | 133,580 | ||||||||||||
Real Estate Tax Escrow | 72,624 | 83,760 | ||||||||||||
Prepaid Expenses & Other Assets | 274,111 | 80,429 | ||||||||||||
Total Assets | 7,878,980 | 7,961,962 | ||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 9,910,371 | 9,896,582 | ||||||||||||
Accounts Payable and Accrued Expenses | 84,485 | 74,966 | ||||||||||||
Advance Rental Payments and Security Deposits | 297,683 | 341,039 | ||||||||||||
Total Liabilities | 10,292,539 | 10,312,587 | ||||||||||||
Partners' Capital | (2,413,559) | (2,349,625) | ||||||||||||
Total Liabilities and Capital | 7,878,980 | $ 7,962,962 | ||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (1,206,780) | $ (1,174,814) | ||||||||||||
Total units/ condominiums | ||||||||||||||
Total | 49 | 49 | 48 | |||||||||||
Units to be retained | property | 49 | 49 | ||||||||||||
Hamilton Essex 81 | NERA 50% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Hamilton Essex 81 | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 48 | 48 | ||||||||||||
Hamilton Essex 81 | Commercial | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1 | 1 | ||||||||||||
Hamilton Essex Development | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 2,595,015 | $ 2,597,633 | ||||||||||||
Assets held for sales | 0 | |||||||||||||
Cash & Cash Equivalents | 169,930 | 50,004 | ||||||||||||
Rent Receivable | 49,619 | |||||||||||||
Prepaid Expenses & Other Assets | 110,681 | 279 | ||||||||||||
Total Assets | 2,925,245 | 2,647,916 | ||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Accounts Payable and Accrued Expenses | 2,187 | 2,188 | ||||||||||||
Total Liabilities | 2,187 | 2,188 | ||||||||||||
Partners' Capital | 2,923,058 | 2,645,728 | ||||||||||||
Total Liabilities and Capital | 2,925,245 | $ 2,647,916 | ||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Investment in Unconsolidated Joint Ventures | 1,461,529 | $ 1,322,863 | ||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1 | 1 | ||||||||||||
Units to be retained | property | 1 | 1 | ||||||||||||
Hamilton Essex Development | NERA 50% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Hamilton Essex Development | Commercial | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1 | 1 | ||||||||||||
345 Franklin | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 5,919,727 | $ 6,242,990 | ||||||||||||
Assets held for sales | 0 | |||||||||||||
Cash & Cash Equivalents | 213,656 | 123,091 | ||||||||||||
Rent Receivable | 4,437 | 19,937 | ||||||||||||
Real Estate Tax Escrow | 50,334 | 46,751 | ||||||||||||
Prepaid Expenses & Other Assets | 61,989 | 50,269 | ||||||||||||
Total Assets | 6,250,143 | 6,483,038 | ||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 9,442,200 | 9,627,636 | ||||||||||||
Accounts Payable and Accrued Expenses | 121,342 | 87,137 | ||||||||||||
Advance Rental Payments and Security Deposits | 283,486 | 245,550 | ||||||||||||
Total Liabilities | 9,847,028 | 9,960,323 | ||||||||||||
Partners' Capital | (3,596,885) | (3,477,285) | ||||||||||||
Total Liabilities and Capital | 6,250,143 | $ 6,483,038 | ||||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||||||
Investment in Unconsolidated Joint Ventures | $ 1,533,000 | |||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (1,798,443) | $ (1,738,644) | ||||||||||||
Total units/ condominiums | ||||||||||||||
Total | 40 | 40 | 40 | |||||||||||
Units to be retained | property | 40 | 40 | ||||||||||||
345 Franklin | NERA 50% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
345 Franklin | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 40 | 40 | ||||||||||||
Hamilton 1025 | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 103,238 | $ 887,890 | ||||||||||||
Assets held for sales | 159,188 | |||||||||||||
Cash & Cash Equivalents | 51,285 | 136,822 | ||||||||||||
Rent Receivable | 2,441 | 6,902 | ||||||||||||
Prepaid Expenses & Other Assets | 30,377 | 586,555 | ||||||||||||
Total Assets | 346,529 | 1,618,169 | ||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Accounts Payable and Accrued Expenses | 10,844 | 8,434 | ||||||||||||
Advance Rental Payments and Security Deposits | 7,174 | 12,555 | ||||||||||||
Total Liabilities | 18,018 | 20,989 | ||||||||||||
Partners' Capital | 328,511 | 1,597,180 | ||||||||||||
Total Liabilities and Capital | 346,529 | $ 1,618,169 | ||||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||||||
Investment in Unconsolidated Joint Ventures | 164,256 | $ 798,589 | $ 2,352,000 | |||||||||||
Total units/ condominiums | ||||||||||||||
Total | 176 | 3 | 176 | 176 | ||||||||||
Units to be retained | 0 | (49) | ||||||||||||
Units to be sold | property | 175 | 176 | ||||||||||||
Total number of units sold | property | 173 | 143 | ||||||||||||
Unsold units | property | 3 | 32 | ||||||||||||
Units unsold with deposits for future sale | property | 1 | 4 | ||||||||||||
Hamilton 1025 | NERA 50% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Hamilton 1025 | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 175 | 175 | ||||||||||||
Hamilton 1025 | Commercial | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 1 | 1 | ||||||||||||
Hamilton Bay Apts | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 0 | $ 1,583,448 | ||||||||||||
Assets held for sales | 0 | |||||||||||||
Cash & Cash Equivalents | 359,291 | 122,350 | ||||||||||||
Rent Receivable | 0 | 2,463 | ||||||||||||
Real Estate Tax Escrow | 0 | |||||||||||||
Prepaid Expenses & Other Assets | 3,595 | 693,936 | ||||||||||||
Total Assets | 362,886 | 2,402,197 | ||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Accounts Payable and Accrued Expenses | 10,951 | 9,554 | ||||||||||||
Advance Rental Payments and Security Deposits | 101 | 10,975 | ||||||||||||
Total Liabilities | 11,052 | 20,529 | ||||||||||||
Partners' Capital | 351,834 | 2,381,668 | ||||||||||||
Total Liabilities and Capital | 362,886 | $ 2,402,197 | ||||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||||||
Investment in Unconsolidated Joint Ventures | 175,917 | $ 1,190,833 | $ 2,500,000 | |||||||||||
Total units/ condominiums | ||||||||||||||
Total | 48 | 48 | 168 | |||||||||||
Units to be retained | 0 | (48) | ||||||||||||
Units to be sold | property | 48 | 46 | ||||||||||||
Total number of units sold | property | 48 | 1 | ||||||||||||
Unsold units | property | 47 | |||||||||||||
Units unsold with deposits for future sale | property | 10 | |||||||||||||
Hamilton Bay Apts | NERA 50% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Hamilton Bay Apts | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | 48 | 48 | 48 | |||||||||||
Hamilton Minuteman | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 5,556,929 | $ 5,854,350 | ||||||||||||
Assets held for sales | 0 | |||||||||||||
Cash & Cash Equivalents | 132,903 | 107,268 | ||||||||||||
Rent Receivable | 1,487 | 5,206 | ||||||||||||
Real Estate Tax Escrow | 28,960 | 32,229 | ||||||||||||
Prepaid Expenses & Other Assets | 16,287 | 17,475 | ||||||||||||
Total Assets | 5,736,566 | 6,016,528 | ||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 5,898,047 | 5,889,863 | ||||||||||||
Accounts Payable and Accrued Expenses | 61,051 | 55,333 | ||||||||||||
Advance Rental Payments and Security Deposits | 123,167 | 112,103 | ||||||||||||
Total Liabilities | 6,082,265 | 6,057,299 | ||||||||||||
Partners' Capital | (345,699) | (40,771) | ||||||||||||
Total Liabilities and Capital | 5,736,566 | $ 6,016,528 | ||||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||||||
Investment in Unconsolidated Joint Ventures | $ 5,075,000 | |||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (172,850) | $ (20,387) | ||||||||||||
Total units/ condominiums | ||||||||||||||
Total | 42 | 42 | 42 | |||||||||||
Units to be retained | property | 42 | 42 | ||||||||||||
Hamilton Minuteman | NERA 50% | ||||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Hamilton Minuteman | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 42 | 42 | ||||||||||||
Hamilton on Main Apts | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | $ 17,359,777 | |||||||||||||
Cash & Cash Equivalents | 102,710 | |||||||||||||
Rent Receivable | 21,196 | |||||||||||||
Real Estate Tax Escrow | 152,782 | |||||||||||||
Prepaid Expenses & Other Assets | 95,705 | |||||||||||||
Total Assets | 17,732,170 | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 16,813,056 | 16,797,004 | ||||||||||||
Accounts Payable and Accrued Expenses | 169,932 | |||||||||||||
Advance Rental Payments and Security Deposits | 321,274 | |||||||||||||
Total Liabilities | 17,288,210 | |||||||||||||
Partners' Capital | 443,960 | |||||||||||||
Total Liabilities and Capital | $ 17,732,170 | |||||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | ||||||||||||
Investment in Unconsolidated Joint Ventures | $ 221,979 | $ 8,000,000 | ||||||||||||
Total units/ condominiums | ||||||||||||||
Total | 148 | 280 | ||||||||||||
Units to be retained | property | 148 | |||||||||||||
Hamilton on Main Apts | NERA 50% | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 16,490,749 | |||||||||||||
Assets held for sales | 0 | |||||||||||||
Cash & Cash Equivalents | 163,789 | |||||||||||||
Rent Receivable | 17,049 | |||||||||||||
Real Estate Tax Escrow | 95,525 | |||||||||||||
Prepaid Expenses & Other Assets | 105,663 | |||||||||||||
Total Assets | 16,872,775 | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 16,813,056 | |||||||||||||
Accounts Payable and Accrued Expenses | 205,044 | |||||||||||||
Advance Rental Payments and Security Deposits | 391,075 | |||||||||||||
Total Liabilities | 17,409,175 | |||||||||||||
Partners' Capital | (536,400) | |||||||||||||
Total Liabilities and Capital | 16,872,775 | |||||||||||||
Partners' Capital % - NERA | 50.00% | |||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (268,200) | |||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 148 | |||||||||||||
Units to be retained | property | 148 | |||||||||||||
Hamilton on Main Apts | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 148 | |||||||||||||
Hamilton on Main Apts | Residential buildings | NERA 50% | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 148 | |||||||||||||
Dexter Park | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | $ 89,284,170 | |||||||||||||
Cash & Cash Equivalents | 861,790 | |||||||||||||
Rent Receivable | 221,175 | |||||||||||||
Real Estate Tax Escrow | 349,904 | |||||||||||||
Prepaid Expenses & Other Assets | 2,668,635 | |||||||||||||
Total Assets | 93,385,674 | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 124,407,623 | 81,509,648 | ||||||||||||
Accounts Payable and Accrued Expenses | 634,933 | |||||||||||||
Advance Rental Payments and Security Deposits | 2,608,580 | |||||||||||||
Total Liabilities | 84,753,161 | |||||||||||||
Partners' Capital | 8,630,513 | |||||||||||||
Total Liabilities and Capital | $ 93,383,674 | |||||||||||||
Partners' Capital % - NERA | 40.00% | 40.00% | ||||||||||||
Investment in Unconsolidated Joint Ventures | $ 3,452,204 | $ 15,925,000 | ||||||||||||
Total units/ condominiums | ||||||||||||||
Total | 409 | 409 | ||||||||||||
Units to be retained | property | 409 | |||||||||||||
Dexter Park | NERA 40% | ||||||||||||||
ASSETS | ||||||||||||||
Rental Properties | 86,186,211 | |||||||||||||
Assets held for sales | 0 | |||||||||||||
Cash & Cash Equivalents | 1,853,435 | |||||||||||||
Rent Receivable | 136,962 | |||||||||||||
Real Estate Tax Escrow | 0 | |||||||||||||
Prepaid Expenses & Other Assets | 1,022,670 | |||||||||||||
Total Assets | 89,199,278 | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | ||||||||||||||
Mortgage Notes Payable | 124,407,623 | |||||||||||||
Accounts Payable and Accrued Expenses | 701,699 | |||||||||||||
Advance Rental Payments and Security Deposits | 2,620,890 | |||||||||||||
Total Liabilities | 127,730,212 | |||||||||||||
Partners' Capital | (38,530,934) | |||||||||||||
Total Liabilities and Capital | 89,199,278 | |||||||||||||
Partners' Capital % - NERA | 40.00% | |||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | $ (15,412,374) | |||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 409 | |||||||||||||
Units to be retained | property | 409 | |||||||||||||
Dexter Park | Residential buildings | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 409 | |||||||||||||
Dexter Park | Residential buildings | NERA 40% | ||||||||||||||
Total units/ condominiums | ||||||||||||||
Total | property | 409 |
INVESTMENT IN UNCONSOLIDATED_12
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Income) (Details) - USD ($) | 3 Months Ended | |||||||
Mar. 31, 2019 | Mar. 31, 2018 | Oct. 28, 2009 | Oct. 03, 2005 | Mar. 02, 2005 | Sep. 30, 2004 | Aug. 31, 2004 | Nov. 30, 2001 | |
Revenues | ||||||||
Rental income | $ 6,073,093 | $ 5,945,278 | ||||||
Laundry and Sundry Income | 40,388 | 38,711 | ||||||
Total Revenues | 6,113,481 | 5,983,989 | ||||||
Expenses | ||||||||
Administrative | 95,095 | 101,568 | ||||||
Depreciation and amortization | 1,466,594 | 1,428,571 | ||||||
Management Fees | 163,616 | 159,840 | ||||||
Operating | 557,415 | 579,810 | ||||||
Renting | 44,657 | 45,600 | ||||||
Repairs and Maintenance | 492,106 | 675,249 | ||||||
Taxes and Insurance | 785,411 | 710,397 | ||||||
Total Expenses | 3,604,894 | 3,701,035 | ||||||
Income Before Other Income | 2,508,587 | 2,282,954 | ||||||
Other Income (loss) | ||||||||
Interest Expense | (1,731,620) | (1,609,345) | ||||||
Gain on Sale of Real Estate | 433,662 | 1,644,763 | ||||||
Total Other Income (Loss) | (1,297,958) | 35,418 | ||||||
Net Income (Loss) | 1,210,629 | 2,318,372 | ||||||
Proportionate share of net income (loss) | 548,939 | 1,100,900 | ||||||
NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 323,424 | $ 867,757 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
NERA 40% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 225,515 | $ 233,143 | ||||||
Ownership interest (as a percent) | 40.00% | 40.00% | ||||||
Hamilton Essex 81 | ||||||||
Revenues | ||||||||
Rental income | $ 459,573 | $ 411,222 | ||||||
Laundry and Sundry Income | 3,005 | 3,005 | ||||||
Total Revenues | 462,578 | 414,227 | ||||||
Expenses | ||||||||
Administrative | 5,379 | 9,680 | ||||||
Depreciation and amortization | 119,544 | 114,285 | ||||||
Management Fees | 17,206 | 13,204 | ||||||
Operating | 21,450 | 24,131 | ||||||
Renting | 3,330 | 3,291 | ||||||
Repairs and Maintenance | 37,884 | 54,501 | ||||||
Taxes and Insurance | 61,830 | 62,527 | ||||||
Total Expenses | 266,623 | 281,619 | ||||||
Income Before Other Income | 195,955 | 132,608 | ||||||
Other Income (loss) | ||||||||
Interest Expense | (121,005) | (99,313) | ||||||
Total Other Income (Loss) | (121,005) | (99,313) | ||||||
Net Income (Loss) | 74,950 | $ 33,295 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Hamilton Essex 81 | NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 37,475 | $ 16,648 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Hamilton Essex Development | ||||||||
Revenues | ||||||||
Rental income | $ 75,290 | 53,928 | ||||||
Total Revenues | 75,290 | 53,928 | ||||||
Expenses | ||||||||
Administrative | 2,092 | 488 | ||||||
Depreciation and amortization | 5,074 | 665 | ||||||
Management Fees | 2,160 | 2,157 | ||||||
Operating | 8 | |||||||
Repairs and Maintenance | 4,163 | |||||||
Taxes and Insurance | 15,677 | 16,723 | ||||||
Total Expenses | 25,011 | 24,196 | ||||||
Income Before Other Income | 50,279 | 29,732 | ||||||
Other Income (loss) | ||||||||
Net Income (Loss) | 50,279 | $ 29,732 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Hamilton Essex Development | NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 25,140 | $ 14,866 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
345 Franklin | ||||||||
Revenues | ||||||||
Rental income | $ 385,243 | 403,837 | ||||||
Laundry and Sundry Income | 1,389 | 1,217 | ||||||
Total Revenues | 386,632 | 405,054 | ||||||
Expenses | ||||||||
Administrative | 5,390 | 6,455 | ||||||
Depreciation and amortization | 86,226 | 86,251 | ||||||
Management Fees | 14,056 | 16,126 | ||||||
Operating | 22,603 | 20,580 | ||||||
Renting | 3,520 | 497 | ||||||
Repairs and Maintenance | 18,467 | 21,497 | ||||||
Taxes and Insurance | 40,241 | 41,631 | ||||||
Total Expenses | 190,503 | 193,037 | ||||||
Income Before Other Income | 196,129 | 212,017 | ||||||
Other Income (loss) | ||||||||
Interest Expense | (94,247) | (96,961) | ||||||
Total Other Income (Loss) | (94,247) | (96,961) | ||||||
Net Income (Loss) | 101,882 | $ 115,056 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
345 Franklin | NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 50,941 | $ 57,528 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Hamilton 1025 | ||||||||
Revenues | ||||||||
Rental income | $ 23,594 | 38,221 | ||||||
Total Revenues | 23,594 | 38,221 | ||||||
Expenses | ||||||||
Administrative | 1,694 | 1,499 | ||||||
Depreciation and amortization | 3,196 | |||||||
Management Fees | 965 | 1,508 | ||||||
Operating | 775 | 156 | ||||||
Repairs and Maintenance | 8,040 | 40,207 | ||||||
Taxes and Insurance | 7,349 | 18,171 | ||||||
Total Expenses | 22,019 | 61,541 | ||||||
Income Before Other Income | 1,575 | (23,320) | ||||||
Other Income (loss) | ||||||||
Interest Expense | (26) | |||||||
Gain on Sale of Real Estate | 754 | 817,006 | ||||||
Total Other Income (Loss) | 754 | 816,980 | ||||||
Net Income (Loss) | 2,329 | $ 793,660 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
Hamilton 1025 | NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 1,165 | $ 396,830 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Hamilton Bay Apts | ||||||||
Revenues | ||||||||
Rental income | $ 3,629 | 22,203 | ||||||
Total Revenues | 3,629 | 22,203 | ||||||
Expenses | ||||||||
Administrative | 3,445 | 3,066 | ||||||
Depreciation and amortization | 5,420 | 10,000 | ||||||
Management Fees | 145 | 1,022 | ||||||
Operating | (109) | 825 | ||||||
Repairs and Maintenance | 10,266 | 34,224 | ||||||
Taxes and Insurance | 4,906 | 16,459 | ||||||
Total Expenses | 24,073 | 65,596 | ||||||
Income Before Other Income | (20,444) | (43,393) | ||||||
Other Income (loss) | ||||||||
Interest Expense | (6) | (49) | ||||||
Gain on Sale of Real Estate | 432,908 | 827,757 | ||||||
Total Other Income (Loss) | 432,902 | 827,708 | ||||||
Net Income (Loss) | 412,458 | $ 784,315 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
Hamilton Bay Apts | NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 206,229 | $ 392,158 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Hamilton Minuteman | ||||||||
Revenues | ||||||||
Rental income | $ 274,837 | 263,051 | ||||||
Laundry and Sundry Income | 1,907 | 675 | ||||||
Total Revenues | 276,744 | 263,726 | ||||||
Expenses | ||||||||
Administrative | 3,716 | 1,824 | ||||||
Depreciation and amortization | 88,595 | 87,722 | ||||||
Management Fees | 11,067 | 10,368 | ||||||
Operating | 23,755 | 33,850 | ||||||
Renting | 2,032 | 3,378 | ||||||
Repairs and Maintenance | 36,672 | 19,617 | ||||||
Taxes and Insurance | 32,251 | 31,046 | ||||||
Total Expenses | 198,088 | 187,805 | ||||||
Income Before Other Income | 78,656 | 75,921 | ||||||
Other Income (loss) | ||||||||
Interest Expense | (57,991) | (58,519) | ||||||
Total Other Income (Loss) | (57,991) | (58,519) | ||||||
Net Income (Loss) | 20,665 | $ 17,402 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
Hamilton Minuteman | NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 10,333 | $ 8,701 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Hamilton on Main Apts | ||||||||
Revenues | ||||||||
Rental income | $ 822,668 | 858,213 | ||||||
Laundry and Sundry Income | 10,062 | 9,126 | ||||||
Total Revenues | 832,730 | 867,339 | ||||||
Expenses | ||||||||
Administrative | 17,847 | 13,127 | ||||||
Depreciation and amortization | 258,438 | 255,506 | ||||||
Management Fees | 31,868 | 32,443 | ||||||
Operating | 107,289 | 120,393 | ||||||
Renting | 16,112 | 8,652 | ||||||
Repairs and Maintenance | 124,192 | 182,374 | ||||||
Taxes and Insurance | 104,431 | 104,551 | ||||||
Total Expenses | 660,177 | 717,046 | ||||||
Income Before Other Income | 172,553 | 150,293 | ||||||
Other Income (loss) | ||||||||
Interest Expense | (188,268) | (188,239) | ||||||
Total Other Income (Loss) | (188,268) | (188,239) | ||||||
Net Income (Loss) | (15,715) | $ (37,946) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
Hamilton on Main Apts | NERA 50% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ (7,858) | $ (18,973) | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Dexter Park | ||||||||
Revenues | ||||||||
Rental income | $ 4,028,259 | 3,894,603 | ||||||
Laundry and Sundry Income | 24,025 | 24,688 | ||||||
Total Revenues | 4,052,284 | 3,919,291 | ||||||
Expenses | ||||||||
Administrative | 55,532 | 65,429 | ||||||
Depreciation and amortization | 900,101 | 874,142 | ||||||
Management Fees | 86,149 | 83,012 | ||||||
Operating | 381,644 | 379,875 | ||||||
Renting | 19,663 | 29,782 | ||||||
Repairs and Maintenance | 256,585 | 318,666 | ||||||
Taxes and Insurance | 518,726 | 419,289 | ||||||
Total Expenses | 2,218,400 | 2,170,195 | ||||||
Income Before Other Income | 1,833,884 | 1,749,096 | ||||||
Other Income (loss) | ||||||||
Interest Expense | (1,270,103) | (1,166,238) | ||||||
Total Other Income (Loss) | (1,270,103) | (1,166,238) | ||||||
Net Income (Loss) | 563,781 | $ 582,858 | ||||||
Ownership interest (as a percent) | 40.00% | 40.00% | ||||||
Dexter Park | NERA 40% | ||||||||
Other Income (loss) | ||||||||
Proportionate share of net income (loss) | $ 225,515 | $ 233,143 | ||||||
Ownership interest (as a percent) | 40.00% |
INVESTMENT IN UNCONSOLIDATED_13
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Mortgage Maturities) (Details) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||
Less: unamortized deferred financing costs | $ (1,285,000) | |
Debt maturities net of unamortized deferred financing costs | $ 123,720,733 | |
Weighted average interest rate (as a percent) | 3.87% | |
Effective interest rate (as a percent) | 3.94% | |
Investment Properties | ||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||
3/31/2019 | $ 199,661 | |
3/31/2020 | 207,527 | |
3/31/2021 | 215,702 | |
3/31/2022 | 224,199 | |
3/31/2023 | 233,032 | |
Thereafter | 166,323,670 | |
Total | 167,403,791 | |
Less: unamortized deferred financing costs | (932,494) | |
Debt maturities net of unamortized deferred financing costs | 166,471,297 | |
Hamilton Essex 81 | ||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||
Thereafter | 10,000,000 | |
Total | 10,000,000 | |
Less: unamortized deferred financing costs | (89,629) | |
Debt maturities net of unamortized deferred financing costs | 9,910,371 | 9,896,582 |
345 Franklin | ||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||
3/31/2019 | 199,661 | |
3/31/2020 | 207,527 | |
3/31/2021 | 215,702 | |
3/31/2022 | 224,199 | |
3/31/2023 | 233,032 | |
Thereafter | 8,423,670 | |
Total | 9,503,791 | |
Less: unamortized deferred financing costs | (61,591) | |
Debt maturities net of unamortized deferred financing costs | 9,442,200 | 9,627,636 |
Hamilton Minuteman | ||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||
Thereafter | 6,000,000 | |
Total | 6,000,000 | |
Less: unamortized deferred financing costs | (101,953) | |
Debt maturities net of unamortized deferred financing costs | 5,898,047 | 5,889,863 |
Hamilton on Main Apts | ||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||
Thereafter | 16,900,000 | |
Total | 16,900,000 | |
Less: unamortized deferred financing costs | (86,944) | |
Debt maturities net of unamortized deferred financing costs | 16,813,056 | 16,797,004 |
Dexter Park | ||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||
Thereafter | 125,000,000 | |
Total | 125,000,000 | |
Less: unamortized deferred financing costs | (592,377) | |
Debt maturities net of unamortized deferred financing costs | $ 124,407,623 | $ 81,509,648 |
EMPLOYEE BENEFIT 401(k) PLANS (
EMPLOYEE BENEFIT 401(k) PLANS (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
EMPLOYEE BENEFTI 401(k) PLANS | |
Maximum deferral percentage | 90.00% |
Matching contribution (as a percent) | 50.00% |
Percent of compensation | 6.00% |
Employee contribution vesting percentage | 100.00% |
Years of service required to vest in employer contributions | 2 years |
Years of service required to vest 100% in employer contributions | 6 years |
Annual vesting percentage | 20.00% |
Total plan expense | $ 12,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Jul. 31, 2014 | Aug. 31, 2007shares | May 31, 2019USD ($) | May 03, 2019USD ($)$ / itemshares | Apr. 30, 2019USD ($)shares | Sep. 30, 2007shares | Mar. 31, 2019USD ($)shares | Dec. 31, 2018shares | Mar. 31, 2019USD ($)$ / item | Mar. 29, 2018USD ($) |
Subsequent events | ||||||||||
Number of depository receipts repurchased | shares | 1,408 | 1,408 | 1,408 | 1,408 | ||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 27.97 | |||||||||
Total cost of repurchase | $ 2,930,736 | $ 43,205,000 | ||||||||
Units required to be repurchased (in shares) | shares | 1,795 | |||||||||
Loan balance | $ 253,238,000 | $ 253,238,000 | ||||||||
Webster Green Apartments | ||||||||||
Subsequent events | ||||||||||
Loan amount | $ 21,500,000 | |||||||||
Line of Credit | ||||||||||
Subsequent events | ||||||||||
Term of debt | 3 years | |||||||||
Subsequent event | ||||||||||
Subsequent events | ||||||||||
Number of depository receipts repurchased | shares | 1,540 | |||||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 64.91 | |||||||||
Price per unit of depository receipts | $ / item | 1,947.21 | |||||||||
Total cost of repurchase | $ 96,861 | |||||||||
Subsequent event | Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts | ||||||||||
Subsequent events | ||||||||||
Loan amount | $ 20,750,000 | |||||||||
Term of debt | 10 years | |||||||||
Interest rate (as a percent) | 4.05% | |||||||||
Loan balance | $ 20,071,000 | |||||||||
Mortgage prepayment penalties | $ 200,000 | |||||||||
Mortgage prepayment penalties (as a percent) | 1.00% | |||||||||
Class B | ||||||||||
Subsequent events | ||||||||||
Number of depository receipts repurchased | shares | 3,413 | 3,413 | 3,413 | 3,413 | ||||||
Total cost of repurchase | $ 556,828 | |||||||||
Class B | Subsequent event | ||||||||||
Subsequent events | ||||||||||
Units required to be repurchased (in shares) | shares | 12 | |||||||||
Value of units required to be repurchased | $ 23,740 | |||||||||
General Partnership | ||||||||||
Subsequent events | ||||||||||
Number of depository receipts repurchased | shares | 180 | 180 | 180 | 180 | ||||||
Total cost of repurchase | $ 29,307 | |||||||||
Units required to be repurchased (in shares) | shares | 18 | |||||||||
Value of units required to be repurchased | $ 29,307 | |||||||||
General Partnership | Subsequent event | ||||||||||
Subsequent events | ||||||||||
Units required to be repurchased (in shares) | shares | 1 | |||||||||
Value of units required to be repurchased | $ 1,249 |