Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 06, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-31568 | |
Entity Registrant Name | New England Realty Associates Limited Partnership | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2619298 | |
Entity Address, Address Line One | 39 Brighton Avenue | |
Entity Address, City or Town | Allston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02134 | |
City Area Code | 617 | |
Local Phone Number | 783-0039 | |
Title of 12(b) Security | Class A | |
Trading Symbol | NEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000746514 | |
Amendment Flag | false | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 97,405 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 23,134 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Rental Properties | $ 267,905,211 | $ 278,363,988 |
Cash and Cash Equivalents | 16,847,883 | 7,546,324 |
Rents Receivable | 1,124,853 | 484,610 |
Real Estate Tax Escrows | 503,431 | 446,781 |
Prepaid Expenses and Other Assets | 5,265,952 | 6,021,544 |
Investments in Unconsolidated Joint Ventures | 1,439,697 | 1,430,402 |
Total Assets | 293,087,027 | 294,293,649 |
LIABILITIES AND PARTNERS' CAPITAL | ||
Mortgage Notes Payable | 283,927,890 | 281,771,246 |
Notes Payable | 17,000,000 | 18,000,000 |
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture | 20,505,288 | 19,970,089 |
Accounts Payable and Accrued Expenses | 3,765,731 | 4,274,266 |
Advance Rental Payments and Security Deposits | 7,218,279 | 8,101,835 |
Total Liabilities | 332,417,188 | 332,117,436 |
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (39,330,161) | (37,823,787) |
Total Liabilities and Partners' Capital | $ 293,087,027 | $ 294,293,649 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||||
Partners' Capital, units outstanding | 121,756 | 121,978 | 122,181 | 124,386 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Rental income | $ 15,046,646 | $ 15,038,675 | $ 46,946,889 | $ 44,693,574 |
Laundry and sundry income | 95,620 | 117,226 | 330,066 | 335,875 |
Total Revenues | 15,142,266 | 15,155,901 | 47,276,955 | 45,029,449 |
Expenses | ||||
Administrative | 511,812 | 622,459 | 1,608,664 | 1,861,397 |
Depreciation and amortization | 4,612,713 | 3,627,142 | 13,779,797 | 10,900,060 |
Management fee | 598,111 | 599,864 | 1,862,645 | 1,787,670 |
Operating | 1,228,750 | 1,111,613 | 4,188,934 | 4,121,444 |
Renting | 332,157 | 348,896 | 657,636 | 773,470 |
Repairs and maintenance | 2,524,050 | 2,654,769 | 6,659,443 | 6,886,313 |
Taxes and insurance | 2,107,037 | 2,014,141 | 6,503,299 | 5,991,245 |
Total Expenses | 11,914,630 | 10,978,884 | 35,260,418 | 32,321,599 |
Income Before Other Income (Expense) | 3,227,636 | 4,177,017 | 12,016,537 | 12,707,850 |
Other Income (Expense) | ||||
Interest income | 11 | 66 | 171 | 335 |
Interest expense | (3,417,348) | (3,011,347) | (10,291,255) | (9,145,075) |
Income from investments in unconsolidated joint ventures | (249,583) | 224,993 | 669,098 | 1,287,339 |
Other expense | (6,750) | (201,710) | ||
Total Other Income (Expense) | (3,666,920) | (2,793,038) | (9,621,986) | (8,059,111) |
Net (Loss) Income | $ (439,284) | $ 1,383,979 | $ 2,394,551 | $ 4,648,739 |
Income per Unit | ||||
Net (Loss) Income per Unit (in dollars per unit) | $ (3.61) | $ 11.32 | $ 19.66 | $ 37.93 |
Weighted Average Number of Units Outstanding (in units) | 121,756 | 122,298 | 121,796 | 122,572 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER'S CAPITAL - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Partners' Capital | ||||
Balance | $ (37,823,787) | $ (35,624,010) | ||
Balance (in units) | 121,978 | 124,386 | ||
Distribution to Partners | $ (3,506,894) | $ (3,525,701) | ||
Stock Buyback | $ (394,031) | $ (3,680,570) | ||
Stock Buyback (in units) | (222) | (2,205) | ||
Net income | $ (439,284) | $ 1,383,979 | $ 2,394,551 | $ 4,648,739 |
Balance | $ (39,330,161) | $ (38,181,542) | $ (39,330,161) | $ (38,181,542) |
Balance (in units) | 121,756 | 122,181 | 121,756 | 122,181 |
Subtotal | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance (in units) | 180,225 | 180,225 | ||
Balance (in units) | 180,225 | 180,225 | 180,225 | 180,225 |
General Partnership | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | $ (376,827) | $ (354,833) | ||
Balance (in units) | 1,802 | 1,802 | ||
Distribution to Partners | $ (35,069) | $ (35,257) | ||
Stock Buyback | (3,941) | (36,803) | ||
Net income | 23,946 | 46,487 | ||
Balance | $ (391,891) | $ (380,406) | $ (391,891) | $ (380,406) |
Balance (in units) | 1,802 | 1,802 | 1,802 | 1,802 |
Treasury Units | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance (in units) | (58,247) | (55,839) | ||
Stock Buyback (in units) | (222) | (2,205) | ||
Balance (in units) | (58,469) | (58,044) | (58,469) | (58,044) |
Class A | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | $ (30,287,245) | $ (28,527,352) | ||
Balance (in units) | 144,180 | 144,180 | ||
Distribution to Partners | $ (2,805,515) | $ (2,820,561) | ||
Stock Buyback | (315,220) | (2,944,508) | ||
Net income | 1,915,640 | 3,718,992 | ||
Balance | $ (31,492,340) | $ (30,573,429) | $ (31,492,340) | $ (30,573,429) |
Balance (in units) | 144,180 | 144,180 | 144,180 | 144,180 |
Class B | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | $ (7,159,715) | $ (6,741,825) | ||
Balance (in units) | 34,243 | 34,243 | ||
Distribution to Partners | $ (666,310) | $ (669,883) | ||
Stock Buyback | (74,870) | (699,259) | ||
Net income | 454,965 | 883,260 | ||
Balance | $ (7,445,930) | $ (7,227,707) | $ (7,445,930) | $ (7,227,707) |
Balance (in units) | 34,243 | 34,243 | 34,243 | 34,243 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 2,394,551 | $ 4,648,739 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 13,779,797 | 10,900,060 |
Amortization of deferred finance costs | 179,795 | 281,848 |
(Income) from investments in joint venture | (669,098) | (1,287,339) |
Allowance for doubtful accounts | 1,094,588 | 255,240 |
Change in operating assets and liabilities | ||
Proceeds from unconsolidated joint ventures | 20,000 | 975,000 |
(Increase) in rents receivable | (1,734,831) | (49,694) |
Increase (Decrease) in accounts payable and accrued expense | (508,534) | (169,704) |
Decrease (Increase) in real estate tax escrow | (56,650) | 69,574 |
Decrease (Increase) in prepaid expenses and other assets | (311,297) | (672,463) |
Increase (Decrease) in advance rental payments and security deposits | (883,556) | 788,204 |
Total Adjustments | 10,910,214 | 11,090,726 |
Net cash provided by operating activities | 13,304,765 | 15,739,465 |
Cash Flows From Investing Activities | ||
Distribution in excess of investment in unconsolidated joint ventures | 1,186,732 | 2,326,073 |
(Investment) in unconsolidated joint ventures | (11,732) | (33,073) |
Improvement of rental properties | (2,254,130) | (2,593,079) |
Net cash provided by (used in) investing activities | (1,079,130) | (300,079) |
Cash Flows from Financing Activities | ||
Payment of financing costs | (136,326) | (235,147) |
Proceeds of mortgage notes payable | 3,781,877 | 679,000 |
Payment of line of credit | (1,000,000) | (2,000,000) |
Principal payments of mortgage notes payable | (1,668,702) | (1,591,251) |
Stock buyback | (394,031) | (3,680,570) |
Distributions to partners | (3,506,894) | (3,525,701) |
Net cash provided by (used in) provided by financing activities | (2,924,076) | (10,353,669) |
Net Increase (Decrease) in Cash and Cash Equivalents | 9,301,559 | 5,085,717 |
Cash and Cash Equivalents, at beginning of period | 7,546,324 | 9,059,901 |
Cash and Cash Equivalents, at end of period | $ 16,847,883 | $ 14,145,618 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
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 29 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 50 Basis of Presentation: 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 seven 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: Revenue Recognition: 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 . In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 modifies the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract: the lessee and the lessor. ASU 2016-02 provides new guidelines that change the accounting for leasing arrangements for lessees, whereby their rights and obligations under substantially all leases, existing and new, are capitalized and recorded on the balance sheet. For lessors, however, the new standard remains generally consistent with existing guidance, but has been updated to align with certain changes to the lessee model and ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). Under this standard, the Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred. We adopted this guidance for our interim and annual periods beginning January 1, 2019 using the modified retrospective method, applying the transition provisions at the beginning of the period of adoption rather than at the beginning of the earliest comparative period presented. We elected the allowable practical expedients as permitted under the transition guidance, which allowed us to not reassess whether arrangements contain leases, lease classification, and initial direct costs. The adoption of the lease standard did not result in a cumulative effect adjustment recognized in the opening balance of retained earnings as of January 1, 2019. The adoption of this standard does not have a material impact to the Partnership’s financial statements. Rental Properties: 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: Deferred Financing Costs 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 2020 or 2019 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 2020 or 2019. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At September 30, 2020, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.03%. At September 30, 2020 and December 31, 2019, respectively approximately $16,492,000, and $7,407,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts. Advertising Expense: Interest Capitalized: 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 | 9 Months Ended |
Sep. 30, 2020 | |
RENTAL PROPERTIES | |
RENTAL PROPERTIES | NOTE 2. RENTAL PROPERTIES As of September 30, 2020, the Partnership and its Subsidiary Partnerships owned 2,892 residential apartment units in 25 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 September 30, 2020, 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 seven residential and mixed use complexes (the “Investment Properties”) at September 30, 2020 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments. Rental properties consist of the following: September 30, 2020 December 31, 2019 Useful Life Land, improvements and parking lots $ 86,864,868 $ 86,693,759 15 - 40 years Buildings and improvements 253,304,984 252,896,183 15 - 40 years Kitchen cabinets 17,704,969 17,376,841 5 - 10 years Carpets 11,534,099 10,976,972 5 - 10 years Air conditioning 573,389 573,389 5 - 10 years Laundry equipment 709,210 709,210 5 - 7 years Elevators 1,885,265 1,885,265 20 - 40 years Swimming pools 1,092,194 1,092,194 10 - 30 years Equipment 17,709,810 17,391,731 5 - 30 years Motor vehicles 211,660 178,847 5 years Fences 46,872 38,482 5 - 15 years Furniture and fixtures 8,655,678 8,235,292 5 - 7 years Smoke alarms 505,835 505,835 5 - 7 years Total fixed assets 400,798,833 398,554,000 Less: Accumulated depreciation (132,893,622) (120,190,012) $ 267,905,211 $ 278,363,988 On December 20, 2019, Mill Street Gardens, LLC and Mill Street Development, LLC, collectively referred to as Mill Street, a wholly-owned subsidiary of New England Realty Associates Limited Partnership closed on a Purchase Agreement dated as of September 27, 2019 with Ninety-Three Realty Limited Partnership pursuant to which Mill Street acquired Country Club Garden Apartments, a On December 20, 2019, Mill Street entered into a Loan Agreement with Insurance Strategy Funding Corp. LLC providing for a loan in the maximum principal amount of $35,000,000, consisting of the initial advance of $31,000,000 and a subsequent advance of up to $4,000,000 if certain financial conditions are met. Interest on the Note is payable on a monthly basis at a fixed interest rate of: (i) 3.586% per annum with respect to the initial advance and (ii) the greater of (A) the sum of the market spread rate and the interpolated (based on the remaining term of the Loan) US Treasury rate at the time of the advance and (B) 3.500 % with respect to any subsequent advance. The principal amount of the Note is due and payable on January 1, 2035. The Note is secured by a mortgage on the Property and is guaranteed by the Partnership pursuant to a Guaranty Agreement dated December 20, 2019. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
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 $1,863,000 and $1,788,000 for the nine months ended September 30, 2020 and 2019, 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 nine months ended September 30, 2020 and 2019, approximately $816,000 and $852,000, was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2020 expenses referred to above, approximately $145,000 consisted of repairs and maintenance, and $178,000 of administrative expense. Approximately $493,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2020, the Hamilton Company received approximately $726,000 from the Investment Properties of which approximately $458,000 was the management fee, approximately $17,000 was for maintenance services, approximately $11,000 was for administrative services and approximately $240,000 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 $2,571,000 and $2,478,000 for the nine months ended September 30, 2020 and 2019, 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. For the nine months ended September 30, 2020, the Partnership accrued $33,000 for the employer’s match portion to the plan. For the nine months ended September 30, 2019, the Partnership contributed $27,000 for the employer’s match portion to the plan. Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the nine months ended September 30, 2020 and 2019, the Management Company charged the Partnership $93,750 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above. The Partnership has invested in seven 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 Brown family related entities, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest was between 47.6% and 59%. See Note 14 for a description of the properties and their operations. |
PREPAID EXPENSES and OTHER ASSE
PREPAID EXPENSES and OTHER ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
PREPAID EXPENSES and OTHER ASSETS | |
OTHER ASSETS | NOTE 4. PREPAID EXPENSES and OTHER ASSETS Approximately $2,696,000, and $2,936,000 of security deposits are included in prepaid expenses and other assets at September 30, 2020 and December 31, 2019, respectively. The security deposits and escrow accounts are restricted cash. Also, included in prepaid expenses and other assets at September 30, 2020 and December 31, 2019 is approximately $921,000 and $501,000, respectively, held in escrow to fund future capital improvements. Intangible assets on the acquisitions of Mill Street Apartments and Webster Green Apartments are included in prepaid expenses and other assets. Intanbible assets are approximately $383,000 net of accumulated amortization of approximately $1,177,000 and approximately $1,382,000 net of accumulated amortization of approximately $178,000 at September 30, 2020 and December 31, 2019, respectively. Financing fees in association with the line of credit of approximately $4,000 and $36,000 are net of accumulated amortization of approximately $125,000 and $93,000 at September 30, 2020 and December 31, 2019 respectively. |
MORTGAGE NOTES PAYABLE
MORTGAGE NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2020 | |
MORTGAGE NOTES PAYABLE | |
MORTGAGE NOTES PAYABLE | NOTE 5. MORTGAGE NOTES PAYABLE At September 30, 2020 and December 31, 2019, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At September 30, 2020, the interest rates on these loans ranged from 3.53% to 5.66%, payable in monthly installments aggregating approximately $1,257,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At September 30, 2020, the weighted average interest rate on the above mortgages was 4.43%. The effective rate of 4.51% 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 $1,405,000 and $1,449,000 are net of accumulated amortization of approximately $1,504,000 and $1,411,000 at September 30, 2020 and December 31, 2019, respectively offset the total mortgage notes payable. The Partnership has pledged tenant leases as additional collateral for certain of these loans. Approximate annual maturities at September 30, 2020 are as follows: 2021—current maturities $ 2,443,000 2022 2,569,000 2023 102,651,000 2024 10,935,000 2025 3,260,000 Thereafter 163,475,000 285,333,000 Less: unamortized deferred financing costs (1,405,000) $ 283,928,000 On March 31, 2020, Nera Brookside Associates, LLC (“Brookside Apartments”), entered into a Mortgage Note with KeyBank National Associates ( KeyBank) in the principal amount of $6,175,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.53% per annum, and the principal amount of the Note is due and payable on April 1, 2035. The Note is secured by a mortgage on the Brookside apartment complex located at 5-12 Totman Drive, Woburn, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated March 31, 2020. The Note is guaranteed by the Partnership pursuant to a Guaranty Agreement dated March 31, 2020. Brookside Apartments used the proceeds of the loan to pay off an outstanding loan of approximately $2,390,000, with the remaining portion of the proceeds added to cash reserves. In connection with this refinancing, there were closing costs of approximately $136,000. On December 20, 2019, Mill Street Gardens, LLC and Mill Street Development LLC, collectively referred to as Mill Street, wholly-owned subsidiaries of New England Realty Associates Limited Partnership closed on a Purchase Agreement dated as of September 27, 2019 with Ninety-Three Realty Limited Partnership pursuant to which Mill Street acquired Country Club Garden Apartments, a On December 20, 2019, Mill Street entered into a Loan Agreement with Insurance Strategy Funding Corp. LLC providing for a loan in the maximum principal amount of $35,000,000, consisting of an initial advance of $31,000,000 and a subsequent advance of up to $4,000,000 if certain conditions are met. Interest on the Note is payable on a monthly basis at a fixed interest rate of: (i) 3.586% per annum with respect to the initial advance and (ii) the greater of (A) the sum of the market spread rate and the interpolated (based on the remaining term of the Loan) US Treasury rate at the time of the advance and (B) 3.500 % with respect to any subsequent advance. The principal amount of the Note is due and payable on January 1, 2035. The Note is secured by a mortgage on the Property and is guaranteed by the Partnership pursuant to a Guaranty Agreement dated December 20, 2019. On May 31, 2019, Residences at Captain Parker, LLC (“Captain Parker”), entered into a Mortgage Note with Strategy Funding Corp., LLC in the principal amount of $20,750,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 4.05% per annum, and the principal amount of the Note is due and payable on June 1, 2029. The Note is secured by a mortgage on the Captain Parker apartment complex located at 125 Worthen Road and Ryder Lane, Lexington, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2019. The Note is guaranteed by the Partnership pursuant to a Guaranty Agreement dated May 31, 2019. Captain Parker used the proceeds of the loan to pay off an outstanding loan of approximately $20,071,000. In connection with this refinancing, the property incurred a prepayment penalty of approximately $202,000. This expense was included in other expense on the consolidated statement of income. 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 one per annum, plus the applicable margin of extended until October 31, 2020. The costs associated with the line of credit extension in 2017 were approximately $128,000 . Management is currently working with the lender on a three year renewal of the line of credit. As of October 31, 2020, the Partnership had not completed the renewal and exercised a one year extension. The Partnership paid an extension fee of approximately $37,500 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 20 On December 19, 2019, the Partnership drew down on the line of credit in the amount of . As of September 30, 2020, the line of credit had an outstanding balance of $17,000,000. 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 September 30, 2020. In management’s continuing discussions with the lender regarding the renewal of the line of credit for an additional three years, management expects and the lender has indicated its willingness to relax certain covenants, to test covenant compliance on the outstanding balance of the line of credit through September 30, 2022, and to give the Partnership a 90 day period to cure any covenant breach by partially paying down the balance to restore the Partnership to covenant compliance. In exchange for the relaxation of loan covenants and other changes, the Partnership will not be allowed to make further draws upon the line of credit until December 31, 2022; and covenant compliance then will be measured by the original covenant levels. In addition, subject to the Partnership’s compliance with the original covenants and the lender’s sole approval, the lender may allow for draws on the line of credit prior to December 31, 2022. |
ADVANCE RENTAL PAYMENTS AND SEC
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020, amounts received for prepaid rents of approximately $1,924,000 are included in cash and cash equivalents, and security deposits of approximately $2,696,000 are included in prepaid expenses and other assets and are restricted cash. |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 9 Months Ended |
Sep. 30, 2020 | |
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 2020, the Partnership approved a quarterly distribution to its Class A Limited Partners and holders of Depositary Receipts of record as of March 15, 2020 and payable on March 31, 2020, of $9.60 per unit ($0.32 per receipt). In June 2020, the Partnership approved a quarterly distribution to its Class A Limited Partners and holders of Depositary Receipts of record as of June 15, 2020 and payable on June 30, 2020, of $9.60 per unit ($0.32 per receipt). In September 2020, the Partnership approved a quarterly distribution to its Class A Limited Partners and holders of Depositary Receipts of record as of September 15, 2020 and payable on September 30, 2020, of $9.60 per unit ($0.32 per receipt ). In 2019, regular quarterly distributions of $9.60 per unit ($0.32 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: Nine Months Ended September 30, 2020 2019 Net Income per Depositary Receipt $ 0.66 $ 1.26 Distributions per Depositary Receipt $ 0.96 $ 0.96 |
TREASURY UNITS
TREASURY UNITS | 9 Months Ended |
Sep. 30, 2020 | |
TREASURY UNITS | |
TREASURY UNITS | NOTE 8. TREASURY UNITS Treasury Units at September 30, 2020 are as follows: Class A 46,775 Class B 11,109 General Partnership 585 58,469 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 During the nine months ended September 30, 2020, the Partnership purchased a total of 5,328 Depositary Receipts. The average price was $59.14 per receipt or $1,774.20 per unit. The total cost including commission was $315,216. The Partnership was required to repurchase 42.18 Class B Units and 2.22 General Partnership units at a cost of $74,839 and $3,939 respectively. Given the economic uncertainty caused by the coronavirus issue, as of April 15, 2020, the Partnership has elected to temporarily suspend the repurchase program. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
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. |
RENTAL INCOME
RENTAL INCOME | 9 Months Ended |
Sep. 30, 2020 | |
RENTAL INCOME | |
RENTAL INCOME | NOTE 10. RENTAL INCOME During the nine months ended September 30, 2020, approximately 95% 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 5% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at September 30, 2020 as follows: Commercial Property Leases 2021 $ 2,480,000 2022 1,616,000 2023 1,230,000 2024 646,000 2025 199,000 Thereafter 547,000 $ 6,718,000 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 $383,000 and $450,000 for the nine months ended September 30, 2020 and 2019 respectively. Staples and Trader Joe’s, tenants at Staples Plaza, are approximately 27% 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 September 30, expiring leases for expiring leases leases expiring expiring leases 2021 $ 906,712 48,746 19 32 % 2022 538,983 17,038 7 19 % 2023 361,132 11,156 7 13 % 2024 747,762 24,903 11 27 % 2025 116,916 2,461 4 4 % 2026 — — — — % 2027 — — — — % 2028 — — — — % 2029 142,450 3,850 1 5 % 2030 — — — — % Totals $ 2,813,955 108,154 49 100 % Rents receivable are net of an allowance for doubtful accounts of approximately $1,095,000 and $240,000 at September 30, 2020 and December 31, 2019. Included in rents receivable at September 30, 2020 is approximately $96,000 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, Cypress Street, and Staples Plaza in Massachusetts. Rents receivable at September 30, 2020 also includes approximately $351,000 representing the deferral of rental concession primarily related to the residential properties. |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
CASH FLOW INFORMATION | |
CASH FLOW INFORMATION | NOTE 11. CASH FLOW INFORMATION During the nine months ended September 30, 2020 and 2019, cash paid for interest was approximately $9,973,000, and $8,893,000 respectively. Cash paid for state income taxes was approximately $82,000 and $77,000 during the nine months ended September 30, 2020 and 2019 respectively. Additionally, during the nine months ended September 30, 2020, the Partnership was involved in a non-cash financing activity of approximately $2,393,000 in connection with the refinancing of Brookside Apartments. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 12. FAIR VALUE MEASUREMENTS Fair Value Measurements on a Recurring Basis At September 30, 2020 and December 31, 2019, 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 September 30, 2020 and December 31, 2019 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 September 30, 2020 and December 31, 2019, 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 September 30, 2020 and December 31, 2019, 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 September 30, 2020 * $ 283,927,890 $ 308,211,420 At December 31, 2019 * $ 281,771,246 $ 290,892,652 Investment Properties At September 30, 2020 * $ 166,332,832 $ 182,015,689 At December 31, 2019 * $ 166,404,255 $ 169,988,236 Disclosure about fair value of financial instruments is based on pertinent information available to management as of September 30, 2020 and December 31, 2019. 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 September 30, 2020 and current estimates of fair value may differ significantly from the amounts presented herein. |
TAXABLE INCOME AND TAX BASIS
TAXABLE INCOME AND TAX BASIS | 9 Months Ended |
Sep. 30, 2020 | |
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, different depreciation methods, different tax lives, other items with limited tax deductibility and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Federal taxable income of approximately $2,039,000 was approximately $4,508,000 less than statement income for the year ended December 31, 2019. The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2019 is approximately $5,311,000 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 Federal tax basis in its joint venture investments is approximately $1,688,000 more than statement basis. State taxable income may be significantly different due to different tax treatments for certain items. 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. 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 September 30, 2020, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2016 forward. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the COVID-19 pandemic. The act, among other changes, increases the business interest expense limitation to 50% of adjusted taxable income for tax years beginning in 2020 for partnerships. |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 9 Months Ended |
Sep. 30, 2020 | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’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 was to mature 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 , 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 are 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. At September 30, 2020, the balance on this mortgage before unamortized deferred financing costs is $125,000,000 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 10 year mortgage in the original 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 with a maturity date of 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. After paying off the mortgage, the Partnership sold the individual units. 3 units were sold in 2019, resulting in a gain of approximately $433,000. In 2019, all units were sold by this Joint Venture. This investment is referred to as Hamilton Bay Apartments, LLC. On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The 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 to Hamilton Essex Development LLC for its share of the funds required for the transaction. Additionally, the Partnership made a capital contribution of to Hamilton Essex 81, LLC. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 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. After paying off the mortgage, the Partnership began to sell off the individual units. . In 2019, all residential units were sold. The Partnership still owns the commercial building. 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. At September 30, 2020, the balance on this mortgage before unamortized deferred financing costs is approximately $6,000,000. 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. This investment is referred to as Hamilton Minuteman, LLC. In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The 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 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 Summary financial information as of September 30, 2020 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Apts Apts Park Total ASSETS Rental Properties $ 6,758,283 $ 2,591,281 $ 5,439,844 $ 85,635 $ 5,077,525 $ 15,343,928 $ 81,537,329 $ 116,833,825 Cash & Cash Equivalents 281,585 70,894 183,638 12,305 210,705 610,816 2,870,227 4,240,170 Rent Receivable 220,578 48,878 11,367 811 — 46,780 501,843 830,257 Real Estate Tax Escrow 66,248 — 57,079 — 31,378 92,122 — 246,827 Prepaid Expenses & Other Assets 319,434 84,898 82,969 2,129 26,428 162,421 1,406,740 2,085,019 Total Assets $ 7,646,128 $ 2,795,951 $ 5,774,897 $ 100,880 $ 5,346,036 $ 16,256,067 $ 86,316,139 $ 124,236,098 LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ 9,931,055 $ — $ 9,149,766 $ — $ 5,910,322 $ 16,837,132 $ 124,504,557 $ 166,332,832 Accounts Payable & Accrued Expense 53,569 2,400 101,651 15,038 64,341 168,318 762,288 1,167,605 Advance Rental Pmts & Security Deposits 202,659 — 217,832 — 157,932 435,679 2,053,602 3,067,704 Total Liabilities 10,187,283 2,400 9,469,249 15,038 6,132,595 17,441,129 127,320,447 170,568,141 Partners’ Capital (2,541,155) 2,793,551 (3,694,352) 85,842 (786,559) (1,185,062) (41,004,308) (46,332,043) Total Liabilities and Capital $ 7,646,128 $ 2,795,951 $ 5,774,897 $ 100,880 $ 5,346,036 $ 16,256,067 $ 86,316,139 $ 124,236,098 Partners’ Capital %—NERA 50 % 50 % 50 % 50 % 50 % 50 % 40 % Investment in Unconsolidated Joint Ventures $ 1,396,776 $ 42,921 1,439,697 Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ (1,270,578) $ — $ (1,847,175) $ — $ (393,280) $ (592,531) $ (16,401,724) (20,505,288) Total Investment in Unconsolidated Joint Ventures (Net) $ (19,065,591) Total units/condominiums Apartments 48 — 40 175 42 148 409 862 Commercial 1 1 — 1 — — — 3 Total 49 1 40 176 42 148 409 865 Units to be retained 49 1 40 1 42 148 409 690 Units to be sold — — — — — — — — Units sold through November 1, 2020 — — — 175 — — — 175 Unsold units — — — — — — — — Unsold units with deposits for future sale as of November 1, 2020 — — — — — — — — Financial information for the nine months ended September 30, 2020 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Apts Apts Park Total Revenues Rental Income $ 940,486 $ 68,726 $ 1,182,050 $ 65,486 $ 883,075 $ 2,648,277 11,676,769 $ 17,464,869 Laundry and Sundry Income 9,288 — 498 — 1,915 26,135 60,266 98,102 949,774 68,726 1,182,548 65,486 884,990 2,674,412 11,737,035 17,562,971 Expenses Administrative 15,451 3,044 23,860 11,769 10,281 43,466 136,437 244,308 Depreciation and Amortization 365,779 15,223 253,716 2,448 260,994 788,181 2,764,842 4,451,183 Management Fees 37,803 2,203 45,548 2,587 35,212 100,654 234,155 458,162 Operating 64,247 — 51,077 147 69,487 255,794 778,020 1,218,772 Renting 6,430 — 29,776 — 7,440 52,202 211,830 307,678 Repairs and Maintenance 94,415 3,180 79,254 — 71,112 388,818 1,094,213 1,730,992 Taxes and Insurance 192,490 45,784 120,056 12,701 108,214 346,997 1,716,234 2,542,476 776,615 69,434 603,287 29,652 562,740 1,976,112 6,935,731 10,953,571 Income Before Other Income 173,159 (708) 579,261 35,834 322,250 698,300 4,801,304 6,609,400 Other Income (Loss) Interest Expense (236,053) — (278,456) — (178,402) (574,239) (3,804,746) (5,071,896) (236,053) — (278,456) — (178,402) (574,239) (3,804,746) (5,071,896) Net Income (Loss) $ (62,894) $ (708) $ 300,805 $ 35,834 $ 143,848 $ 124,061 $ 996,558 $ 1,537,504 Net Income (Loss)—NERA 50% $ (31,447) $ (354) $ 150,403 $ 17,917 $ 71,924 $ 62,031 270,473 Net Income —NERA 40% $ 398,625 398,625 $ 669,098 Financial information for the three months ended September 30, 2020 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Apts Apts Park Total Revenues Rental Income $ 120,398 $ 2,864 $ 334,431 $ 24,369 $ 301,865 $ 844,963 $ 3,446,320 $ 5,075,210 Laundry and Sundry Income 2,605 — — — 1,289 8,780 14,559 27,233 123,003 2,864 334,431 24,369 303,154 853,743 3,460,879 5,102,443 Expenses Administrative 3,971 844 7,531 713 3,631 13,991 43,664 74,345 Depreciation and Amortization 122,210 5,074 84,680 816 87,214 264,047 925,922 1,489,963 Management Fees 9,751 — 13,253 942 12,209 32,925 67,909 136,989 Operating 17,948 — 22,313 51 18,832 78,199 248,176 385,519 Renting 3,026 — 20,094 — 1,690 36,709 180,947 242,466 Repairs and Maintenance 27,206 134 35,879 — 32,161 154,828 582,965 833,173 Taxes and Insurance 63,090 15,328 40,342 4,021 36,038 114,523 577,282 850,624 247,202 21,380 224,092 6,543 191,775 695,222 2,626,865 4,013,079 Income Before Other Income (124,199) (18,516) 110,339 17,826 111,379 158,521 834,014 1,089,364 Other Income (Loss) Interest Expense (63,961) — (92,048) — (59,900) (191,453) (1,267,960) (1,675,322) Interest Income — — — — — — — — Gain on sale of real estate — — — — — — — — (63,961) — (92,048) — (59,900) (191,453) (1,267,960) (1,675,322) Net Income (Loss) $ (188,160) $ (18,516) $ 18,291 $ 17,826 $ 51,479 $ (32,932) $ (433,946) $ (585,958) Net Income (Loss)—NERA 50% $ (94,080) $ (9,257) $ 9,146 $ 8,913 $ 25,740 $ (16,466) (76,005) Net Income (Loss)—NERA 40% $ (173,578) (173,578) $ (249,583) Future annual mortgage maturities at September 30, 2020 are as follows: Hamilton 345 Hamilton Hamilton on Dexter Period End Essex 81 Franklin Minuteman Main Apts Park Total 9/30/2021 $ — $ 211,575 $ — $ — $ — $ 211,575 9/30/2022 — 219,910 — — — 219,910 9/30/2023 — 228,573 — — — 228,573 9/30/2024 — 237,577 — 16,900,000 — 17,137,577 9/30/2025 10,000,000 246,936 — — — 10,246,936 Thereafter — 8,056,797 6,000,000 — 125,000,000 139,056,797 10,000,000 9,201,368 6,000,000 16,900,000 125,000,000 167,101,368 Less: unamortized deferred financing costs (68,945) (51,602) (89,678) (62,868) (495,443) (768,536) $ 9,931,055 $ 9,149,766 $ 5,910,322 $ 16,837,132 $ 124,504,557 $ 166,332,832 At September 30, 2020 the weighted average interest rate on the above mortgages was 3.91%. The effective rate was 3.98% including the amortization expense of deferred financing costs. Summary financial information at September 30, 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 $ 6,966,539 $ 2,593,771 $ 5,748,520 $ 86,850 $ — $ 5,413,076 $ 16,075,655 $ 84,722,545 $ 121,606,956 Cash & Cash Equivalents 342,346 44,020 156,545 24,496 10,775 120,874 172,829 1,449,013 2,320,898 Rent Receivable 243,635 28,041 5,426 — — 2,202 13,651 48,495 341,450 Real Estate Tax Escrow 72,146 — 53,249 — — 28,147 92,138 — 245,680 Prepaid Expenses & Other Assets 309,502 102,546 86,574 1,761 2,951 26,661 174,851 1,435,797 2,140,643 Total Assets $ 7,934,168 $ 2,768,378 $ 6,050,314 $ 113,107 $ 13,726 $ 5,590,960 $ 16,529,124 $ 87,655,850 $ 126,655,627 LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ 9,917,266 $ — $ 9,346,663 $ — $ — $ 5,902,139 $ 16,821,081 $ 124,439,934 $ 166,427,083 Accounts Payable & Accrued Expense 85,115 1,964 103,905 7,976 4,411 57,338 181,510 818,027 1,260,246 Advance Rental Pmts& Security Deposits 286,274 — 293,858 1,310 101 141,128 443,274 2,519,816 3,685,761 Total Liabilities 10,288,655 1,964 9,744,426 9,286 4,512 6,100,605 17,445,865 127,777,777 171,373,090 Partners’ Capital (2,354,487) 2,766,414 (3,694,112) 103,821 9,214 (509,645) (916,741) (40,121,927) (44,717,463) Total Liabilities and Capital $ 7,934,168 $ 2,768,378 $ 6,050,314 $ 113,107 $ 13,726 $ 5,590,960 $ 16,529,124 $ 87,655,850 $ 126,655,627 Partners’ Capital %—NERA 50 % 50 % 50 % 50 % 50 % 50 % 50 % 40 % Investment in Unconsolidated Joint Ventures $ — $ 1,383,207 $ — $ 51,910 $ 4,607 $ — $ — $ — 1,439,724 Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ (1,177,243) $ — $ (1,847,056) $ — $ — $ (254,823) $ (458,371) $ (16,048,771) (19,786,262) Total Investment in Unconsolidated Joint Ventures (Net) $ (18,346,539) Total units/condominiums Apartments 48 — 40 175 48 42 148 409 910 Commercial 1 1 — 1 — — — — 3 Total 49 1 40 176 48 42 148 409 913 Units to be retained 49 1 40 1 — 42 148 409 690 Units to be sold — — — 175 48 — — — 223 Units sold through November 1, 2019 — — — 175 48 — — — 223 Unsold units — — — — — — — — — Unsold units with deposits for future sale as of November 1, 2019 — — — — — — — — — Financial information for the nine months ended September 30, 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 $ 1,339,583 $ 161,712 $ 1,207,094 $ 72,558 $ 3,541 $ 850,523 $ 2,553,301 $ 12,164,375 $ 18,352,687 Laundry and Sundry Income 10,680 — 2,390 — — 2,560 30,517 79,398 125,545 1,350,263 161,712 1,209,484 72,558 3,541 853,083 2,583,818 12,243,773 18,478,232 Expenses Administrative 22,968 21,162 17,366 5,834 5,576 7,283 51,020 152,119 283,328 Depreciation and Amortization 360,417 15,223 258,722 9,580 5,420 267,546 781,400 2,720,532 4,418,840 Management Fees 51,454 6,494 46,506 2,786 145 33,995 98,381 253,132 492,893 Operating 53,817 8 54,291 925 (8) 70,695 284,679 834,181 1,298,588 Renting 32,092 — 21,210 64 — 2,674 39,532 306,092 401,664 Repairs and Maintenance 101,995 3,180 86,964 28,399 10,266 104,727 495,863 1,088,349 1,919,743 Taxes and Insurance 184,210 46,176 111,239 18,402 5,206 98,389 313,906 1,543,795 2,321,323 806,953 92,243 596,298 65,990 26,605 585,309 2,064,781 6,898,200 11,136,379 Income Before Other Income 543,310 69,469 613,186 6,568 (23,064) 267,774 519,037 5,345,573 7,341,853 Other Income (Loss) Interest Expense (360,122) — (283,531) — (6) (176,056) (575,093) (3,802,783) (5,197,591) Gain on Sale of Real Estate — — — 306,075 432,908 — — — 738,983 (360,122) — (283,531) 306,075 432,902 (176,056) (575,093) (3,802,783) (4,458,608) Net Income (Loss) $ 183,188 $ 69,469 $ 329,655 $ 312,643 $ 409,838 $ 91,718 $ (56,056) $ 1,542,790 $ 2,883,245 Net Income (Loss)—NERA 50% $ 91,593 $ 34,734 $ 164,827 $ 156,321 $ 204,918 $ 45,859 $ (28,028) 670,223 Net Income (Loss)—NERA 40% $ 617,116 617,116 $ 1,287,339 Financial information for the three months ended September 30, 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 $ 429,472 $ 60,471 $ 404,000 $ 25,497 $ (88) $ 294,454 $ 865,299 $ 4,103,409 $ 6,182,514 Laundry and Sundry Income 3,810 — 1,806 — — 425 10,437 30,678 47,156 433,282 60,471 405,806 25,497 (88) 294,879 875,736 4,134,087 6,229,670 Expenses Administrative 7,713 11,488 7,324 1,432 1,291 1,533 16,108 56,202 103,091 Depreciation and Amortization 120,986 5,074 86,269 3,190 — 90,045 262,294 913,318 1,481,176 Management Fees 17,228 2,174 16,063 887 — 11,695 33,378 84,479 165,904 Operating 16,773 — 13,766 62 64 19,116 92,863 234,842 377,486 Renting 23,575 — 9,217 64 — 100 6,043 251,543 290,542 Repairs and Maintenance 37,324 — 44,687 — — 22,406 178,777 524,406 807,600 Taxes and Insurance 60,904 15,316 35,630 3,957 — 33,620 106,568 508,026 764,021 284,503 34,052 212,956 9,592 1,355 178,515 696,031 2,572,816 3,989,820 Income Before Other Income 148,779 26,419 192,850 15,905 (1,443) 116,364 179,705 1,561,271 2,239,850 Other Income (Loss) Interest Expense (117,103) — (94,449) — — (59,451) (194,554) (1,265,048) (1,730,605) Interest Income — — — — — — — — — (117,103) — (94,449) — — (59,451) (194,554) (1,265,048) (1,730,605) Net Income (Loss) $ 31,676 $ 26,419 $ 98,401 $ 15,905 $ (1,443) $ 56,913 $ (14,849) $ 296,222 $ 509,245 Net Income (Loss)—NERA 50% $ 15,837 $ 13,209 $ 49,200 $ 7,952 $ (723) $ 28,456 $ (7,426) 106,504 Net Income (Loss)—NERA 40% $ 118,489 118,489 $ 224,993 |
EMPLOYEE BENEFIT 401(k) PLANS
EMPLOYEE BENEFIT 401(k) PLANS | 9 Months Ended |
Sep. 30, 2020 | |
EMPLOYEE BENEFTI 401(k) PLANS | |
EMPLOYEE BENEFIT 401(k) PLANS | 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 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 nine months ended September 30, 2020 was $33,000. |
IMPACT OF RECENTLY-ISSUED ACCOU
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2020 | |
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | |
IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS | NOTE 16. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS In April 2020, the FASB issued a Staff Question & Answer (“Q&A”) which was intended to reduce the challenges of evaluating the enforceable rights and obligations of leases for concessions granted to lessees in response to the novel coronavirus disease (“COVID-19”), which was characterized on March 11, 2020 by the World Health Organization as a pandemic. Prior to this guidance, the Partnership was required to determine, on a lease by lease basis, if a lease concession should be accounted for as a lease modification, potentially resulting in any lease concessions granted being recorded as a reduction to revenue on a straight-line basis over the remaining terms of the leases. The Q&A allows both lessors and lessees to bypass this analysis and elect not to evaluate whether concessions provided in response to the COVID-19 pandemic are lease modifications. This relief is subject to certain conditions being met, including ensuring the total remaining lease payments are substantially the same or less as compared to the original lease payments prior to the concession being granted. The Partnership has elected to apply such relief and will therefore not evaluate if lease concessions that were granted in response to the COVID-19 pandemic meet the definition of a lease modification. Accordingly, the Partnership accounted for qualifying rent concessions as negative variable lease payments, which reduced revenue from such leases in the period the concessions were granted. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 17—SUBSEQUENT EVENTS 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 one per annum, plus the applicable margin of Management is currently working with the lender on a three year renewal of the line of credit. As of October 31, 2020, the Partership had not completed the renewal and exercised a one year extension. The Partnership paid an extension fee of approximately $37,500 in association with the extension. See Note 5 for a description of the ongoing discussions with lender regarding renewal of the line of credit. The current outbreak of the COVID-19 virus, which was characterized on March 11, 2020 by the World Health Organization as a pandemic, has currently resulted in a worldwide health crisis, which is adversely affecting international, national and local economies and financial markets generally, and continues to have an unprecedented effect on the rental housing and commercial property markets. Given the continuous evolution of the COVID-19 pandemic and the global response to curb its spread, the Partnership is not able to estimate the resulting effects on its results of operations, cash flows, financial condition, or liquidity for the year ending December 31, 2020 or beyond. The Government’s measures put into place to combat the spread of the virus have caused significant disruptions to life and business operations in Massachusetts, the country and the world. The length and severity of the current recession and the effects on the Partnership’s business are unknown at this time. During the current state of emergency, The Hamilton Company, the Partnership’s property manager, has taken steps to maintain the safety of its employees and tenants. Hamilton is providing essential services to ensure all properties are kept open, fully functioning and safe. Hamilton has implemented a work from home policy with a skeleton staff present at all site offices to provide for property management, maintenance, leasing and construction services. Leasing is limited to unoccupied units and a web based video technology is being used to remotely show apartments. Hamilton and the Partnership will continue to adjust their business practices to comply with Federal and State mandates for workplace and rental property operations. Past due rents receivable have increased and the Partnership is currently experiencing significantly higher vacancies for the upcoming rental season. Both State and Federal governments have taken steps to protect tenants during the Covid 19 Pandemic. These steps include extending the time required for a landlord to evict tenants who are not current with their rents. Although the eviction process has been significantly complicated and lengthened from approximately 4 weeks to a new estimated minimum of 3 months, the Management company is moving forward with evictions in compliance with applicable law. The pandemic has resulted in a significant reduction in the occupancy and rental rate for certain buildings located near Boston’s colleges and universities. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 29 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 50 |
Basis of Presentation | Basis of Presentation: |
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 seven 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: |
Revenue Recognition | Revenue Recognition: 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 . In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 modifies the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract: the lessee and the lessor. ASU 2016-02 provides new guidelines that change the accounting for leasing arrangements for lessees, whereby their rights and obligations under substantially all leases, existing and new, are capitalized and recorded on the balance sheet. For lessors, however, the new standard remains generally consistent with existing guidance, but has been updated to align with certain changes to the lessee model and ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). Under this standard, the Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred. We adopted this guidance for our interim and annual periods beginning January 1, 2019 using the modified retrospective method, applying the transition provisions at the beginning of the period of adoption rather than at the beginning of the earliest comparative period presented. We elected the allowable practical expedients as permitted under the transition guidance, which allowed us to not reassess whether arrangements contain leases, lease classification, and initial direct costs. The adoption of the lease standard did not result in a cumulative effect adjustment recognized in the opening balance of retained earnings as of January 1, 2019. The adoption of this standard does not have a material impact to the Partnership’s financial statements. |
Rental Properties | Rental Properties: 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: Deferred Financing Costs |
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 2020 or 2019 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 2020 or 2019. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At September 30, 2020, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.03%. At September 30, 2020 and December 31, 2019, respectively approximately $16,492,000, and $7,407,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts. |
Advertising Expense | Advertising Expense: |
Interest Capitalized | Interest Capitalized: |
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) | 9 Months Ended |
Sep. 30, 2020 | |
RENTAL PROPERTIES | |
Schedule of rental properties | September 30, 2020 December 31, 2019 Useful Life Land, improvements and parking lots $ 86,864,868 $ 86,693,759 15 - 40 years Buildings and improvements 253,304,984 252,896,183 15 - 40 years Kitchen cabinets 17,704,969 17,376,841 5 - 10 years Carpets 11,534,099 10,976,972 5 - 10 years Air conditioning 573,389 573,389 5 - 10 years Laundry equipment 709,210 709,210 5 - 7 years Elevators 1,885,265 1,885,265 20 - 40 years Swimming pools 1,092,194 1,092,194 10 - 30 years Equipment 17,709,810 17,391,731 5 - 30 years Motor vehicles 211,660 178,847 5 years Fences 46,872 38,482 5 - 15 years Furniture and fixtures 8,655,678 8,235,292 5 - 7 years Smoke alarms 505,835 505,835 5 - 7 years Total fixed assets 400,798,833 398,554,000 Less: Accumulated depreciation (132,893,622) (120,190,012) $ 267,905,211 $ 278,363,988 |
MORTGAGE NOTES PAYABLE (Tables)
MORTGAGE NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
MORTGAGE NOTES PAYABLE | |
Schedule of approximate annual maturities | Approximate annual maturities at September 30, 2020 are as follows: 2021—current maturities $ 2,443,000 2022 2,569,000 2023 102,651,000 2024 10,935,000 2025 3,260,000 Thereafter 163,475,000 285,333,000 Less: unamortized deferred financing costs (1,405,000) $ 283,928,000 |
PARTNERS' CAPITAL (Tables)
PARTNERS' CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
PARTNERS' CAPITAL | |
Schedule of information per depositary receipt | Nine Months Ended September 30, 2020 2019 Net Income per Depositary Receipt $ 0.66 $ 1.26 Distributions per Depositary Receipt $ 0.96 $ 0.96 |
TREASURY UNITS (Tables)
TREASURY UNITS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
TREASURY UNITS | |
Schedule of treasury units | Treasury Units at September 30, 2020 are as follows: Class A 46,775 Class B 11,109 General Partnership 585 58,469 |
RENTAL INCOME (Tables)
RENTAL INCOME (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
RENTAL INCOME | |
Schedule of minimum future annual rental income on non-cancellable operating leases | Commercial Property Leases 2021 $ 2,480,000 2022 1,616,000 2023 1,230,000 2024 646,000 2025 199,000 Thereafter 547,000 $ 6,718,000 |
Schedule of information for commercial leases | Annual base Percentage of rent for Total square feet Total number of annual base rent for Through September 30, expiring leases for expiring leases leases expiring expiring leases 2021 $ 906,712 48,746 19 32 % 2022 538,983 17,038 7 19 % 2023 361,132 11,156 7 13 % 2024 747,762 24,903 11 27 % 2025 116,916 2,461 4 4 % 2026 — — — — % 2027 — — — — % 2028 — — — — % 2029 142,450 3,850 1 5 % 2030 — — — — % Totals $ 2,813,955 108,154 49 100 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of carrying amounts and estimated fair value of debt | Carrying Amount Estimated Fair Value Mortgage Notes Payable Partnership Properties At September 30, 2020 * $ 283,927,890 $ 308,211,420 At December 31, 2019 * $ 281,771,246 $ 290,892,652 Investment Properties At September 30, 2020 * $ 166,332,832 $ 182,015,689 At December 31, 2019 * $ 166,404,255 $ 169,988,236 |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of future annual mortgage maturities | Future annual mortgage maturities at September 30, 2020 are as follows: Hamilton 345 Hamilton Hamilton on Dexter Period End Essex 81 Franklin Minuteman Main Apts Park Total 9/30/2021 $ — $ 211,575 $ — $ — $ — $ 211,575 9/30/2022 — 219,910 — — — 219,910 9/30/2023 — 228,573 — — — 228,573 9/30/2024 — 237,577 — 16,900,000 — 17,137,577 9/30/2025 10,000,000 246,936 — — — 10,246,936 Thereafter — 8,056,797 6,000,000 — 125,000,000 139,056,797 10,000,000 9,201,368 6,000,000 16,900,000 125,000,000 167,101,368 Less: unamortized deferred financing costs (68,945) (51,602) (89,678) (62,868) (495,443) (768,536) $ 9,931,055 $ 9,149,766 $ 5,910,322 $ 16,837,132 $ 124,504,557 $ 166,332,832 At September 30, 2020 the weighted average interest rate on the above mortgages was 3.91%. The effective rate was 3.98% including the amortization expense of deferred financing costs. |
2020 | |
Summary of financial position and income statements relating to investment in unconsolidated joint ventures | Summary financial information as of September 30, 2020 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Apts Apts Park Total ASSETS Rental Properties $ 6,758,283 $ 2,591,281 $ 5,439,844 $ 85,635 $ 5,077,525 $ 15,343,928 $ 81,537,329 $ 116,833,825 Cash & Cash Equivalents 281,585 70,894 183,638 12,305 210,705 610,816 2,870,227 4,240,170 Rent Receivable 220,578 48,878 11,367 811 — 46,780 501,843 830,257 Real Estate Tax Escrow 66,248 — 57,079 — 31,378 92,122 — 246,827 Prepaid Expenses & Other Assets 319,434 84,898 82,969 2,129 26,428 162,421 1,406,740 2,085,019 Total Assets $ 7,646,128 $ 2,795,951 $ 5,774,897 $ 100,880 $ 5,346,036 $ 16,256,067 $ 86,316,139 $ 124,236,098 LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ 9,931,055 $ — $ 9,149,766 $ — $ 5,910,322 $ 16,837,132 $ 124,504,557 $ 166,332,832 Accounts Payable & Accrued Expense 53,569 2,400 101,651 15,038 64,341 168,318 762,288 1,167,605 Advance Rental Pmts & Security Deposits 202,659 — 217,832 — 157,932 435,679 2,053,602 3,067,704 Total Liabilities 10,187,283 2,400 9,469,249 15,038 6,132,595 17,441,129 127,320,447 170,568,141 Partners’ Capital (2,541,155) 2,793,551 (3,694,352) 85,842 (786,559) (1,185,062) (41,004,308) (46,332,043) Total Liabilities and Capital $ 7,646,128 $ 2,795,951 $ 5,774,897 $ 100,880 $ 5,346,036 $ 16,256,067 $ 86,316,139 $ 124,236,098 Partners’ Capital %—NERA 50 % 50 % 50 % 50 % 50 % 50 % 40 % Investment in Unconsolidated Joint Ventures $ 1,396,776 $ 42,921 1,439,697 Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ (1,270,578) $ — $ (1,847,175) $ — $ (393,280) $ (592,531) $ (16,401,724) (20,505,288) Total Investment in Unconsolidated Joint Ventures (Net) $ (19,065,591) Total units/condominiums Apartments 48 — 40 175 42 148 409 862 Commercial 1 1 — 1 — — — 3 Total 49 1 40 176 42 148 409 865 Units to be retained 49 1 40 1 42 148 409 690 Units to be sold — — — — — — — — Units sold through November 1, 2020 — — — 175 — — — 175 Unsold units — — — — — — — — Unsold units with deposits for future sale as of November 1, 2020 — — — — — — — — Financial information for the nine months ended September 30, 2020 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Apts Apts Park Total Revenues Rental Income $ 940,486 $ 68,726 $ 1,182,050 $ 65,486 $ 883,075 $ 2,648,277 11,676,769 $ 17,464,869 Laundry and Sundry Income 9,288 — 498 — 1,915 26,135 60,266 98,102 949,774 68,726 1,182,548 65,486 884,990 2,674,412 11,737,035 17,562,971 Expenses Administrative 15,451 3,044 23,860 11,769 10,281 43,466 136,437 244,308 Depreciation and Amortization 365,779 15,223 253,716 2,448 260,994 788,181 2,764,842 4,451,183 Management Fees 37,803 2,203 45,548 2,587 35,212 100,654 234,155 458,162 Operating 64,247 — 51,077 147 69,487 255,794 778,020 1,218,772 Renting 6,430 — 29,776 — 7,440 52,202 211,830 307,678 Repairs and Maintenance 94,415 3,180 79,254 — 71,112 388,818 1,094,213 1,730,992 Taxes and Insurance 192,490 45,784 120,056 12,701 108,214 346,997 1,716,234 2,542,476 776,615 69,434 603,287 29,652 562,740 1,976,112 6,935,731 10,953,571 Income Before Other Income 173,159 (708) 579,261 35,834 322,250 698,300 4,801,304 6,609,400 Other Income (Loss) Interest Expense (236,053) — (278,456) — (178,402) (574,239) (3,804,746) (5,071,896) (236,053) — (278,456) — (178,402) (574,239) (3,804,746) (5,071,896) Net Income (Loss) $ (62,894) $ (708) $ 300,805 $ 35,834 $ 143,848 $ 124,061 $ 996,558 $ 1,537,504 Net Income (Loss)—NERA 50% $ (31,447) $ (354) $ 150,403 $ 17,917 $ 71,924 $ 62,031 270,473 Net Income —NERA 40% $ 398,625 398,625 $ 669,098 Financial information for the three months ended September 30, 2020 Hamilton Hamilton Hamilton Hamilton Essex 345 Hamilton Minuteman on Main Dexter Essex 81 Development Franklin 1025 Apts Apts Park Total Revenues Rental Income $ 120,398 $ 2,864 $ 334,431 $ 24,369 $ 301,865 $ 844,963 $ 3,446,320 $ 5,075,210 Laundry and Sundry Income 2,605 — — — 1,289 8,780 14,559 27,233 123,003 2,864 334,431 24,369 303,154 853,743 3,460,879 5,102,443 Expenses Administrative 3,971 844 7,531 713 3,631 13,991 43,664 74,345 Depreciation and Amortization 122,210 5,074 84,680 816 87,214 264,047 925,922 1,489,963 Management Fees 9,751 — 13,253 942 12,209 32,925 67,909 136,989 Operating 17,948 — 22,313 51 18,832 78,199 248,176 385,519 Renting 3,026 — 20,094 — 1,690 36,709 180,947 242,466 Repairs and Maintenance 27,206 134 35,879 — 32,161 154,828 582,965 833,173 Taxes and Insurance 63,090 15,328 40,342 4,021 36,038 114,523 577,282 850,624 247,202 21,380 224,092 6,543 191,775 695,222 2,626,865 4,013,079 Income Before Other Income (124,199) (18,516) 110,339 17,826 111,379 158,521 834,014 1,089,364 Other Income (Loss) Interest Expense (63,961) — (92,048) — (59,900) (191,453) (1,267,960) (1,675,322) Interest Income — — — — — — — — Gain on sale of real estate — — — — — — — — (63,961) — (92,048) — (59,900) (191,453) (1,267,960) (1,675,322) Net Income (Loss) $ (188,160) $ (18,516) $ 18,291 $ 17,826 $ 51,479 $ (32,932) $ (433,946) $ (585,958) Net Income (Loss)—NERA 50% $ (94,080) $ (9,257) $ 9,146 $ 8,913 $ 25,740 $ (16,466) (76,005) Net Income (Loss)—NERA 40% $ (173,578) (173,578) $ (249,583) |
2019 | |
Summary of financial position and income statements relating to investment in unconsolidated joint ventures | Summary financial information at September 30, 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 $ 6,966,539 $ 2,593,771 $ 5,748,520 $ 86,850 $ — $ 5,413,076 $ 16,075,655 $ 84,722,545 $ 121,606,956 Cash & Cash Equivalents 342,346 44,020 156,545 24,496 10,775 120,874 172,829 1,449,013 2,320,898 Rent Receivable 243,635 28,041 5,426 — — 2,202 13,651 48,495 341,450 Real Estate Tax Escrow 72,146 — 53,249 — — 28,147 92,138 — 245,680 Prepaid Expenses & Other Assets 309,502 102,546 86,574 1,761 2,951 26,661 174,851 1,435,797 2,140,643 Total Assets $ 7,934,168 $ 2,768,378 $ 6,050,314 $ 113,107 $ 13,726 $ 5,590,960 $ 16,529,124 $ 87,655,850 $ 126,655,627 LIABILITIES AND PARTNERS’ CAPITAL Mortgage Notes Payable $ 9,917,266 $ — $ 9,346,663 $ — $ — $ 5,902,139 $ 16,821,081 $ 124,439,934 $ 166,427,083 Accounts Payable & Accrued Expense 85,115 1,964 103,905 7,976 4,411 57,338 181,510 818,027 1,260,246 Advance Rental Pmts& Security Deposits 286,274 — 293,858 1,310 101 141,128 443,274 2,519,816 3,685,761 Total Liabilities 10,288,655 1,964 9,744,426 9,286 4,512 6,100,605 17,445,865 127,777,777 171,373,090 Partners’ Capital (2,354,487) 2,766,414 (3,694,112) 103,821 9,214 (509,645) (916,741) (40,121,927) (44,717,463) Total Liabilities and Capital $ 7,934,168 $ 2,768,378 $ 6,050,314 $ 113,107 $ 13,726 $ 5,590,960 $ 16,529,124 $ 87,655,850 $ 126,655,627 Partners’ Capital %—NERA 50 % 50 % 50 % 50 % 50 % 50 % 50 % 40 % Investment in Unconsolidated Joint Ventures $ — $ 1,383,207 $ — $ 51,910 $ 4,607 $ — $ — $ — 1,439,724 Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures $ (1,177,243) $ — $ (1,847,056) $ — $ — $ (254,823) $ (458,371) $ (16,048,771) (19,786,262) Total Investment in Unconsolidated Joint Ventures (Net) $ (18,346,539) Total units/condominiums Apartments 48 — 40 175 48 42 148 409 910 Commercial 1 1 — 1 — — — — 3 Total 49 1 40 176 48 42 148 409 913 Units to be retained 49 1 40 1 — 42 148 409 690 Units to be sold — — — 175 48 — — — 223 Units sold through November 1, 2019 — — — 175 48 — — — 223 Unsold units — — — — — — — — — Unsold units with deposits for future sale as of November 1, 2019 — — — — — — — — — Financial information for the nine months ended September 30, 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 $ 1,339,583 $ 161,712 $ 1,207,094 $ 72,558 $ 3,541 $ 850,523 $ 2,553,301 $ 12,164,375 $ 18,352,687 Laundry and Sundry Income 10,680 — 2,390 — — 2,560 30,517 79,398 125,545 1,350,263 161,712 1,209,484 72,558 3,541 853,083 2,583,818 12,243,773 18,478,232 Expenses Administrative 22,968 21,162 17,366 5,834 5,576 7,283 51,020 152,119 283,328 Depreciation and Amortization 360,417 15,223 258,722 9,580 5,420 267,546 781,400 2,720,532 4,418,840 Management Fees 51,454 6,494 46,506 2,786 145 33,995 98,381 253,132 492,893 Operating 53,817 8 54,291 925 (8) 70,695 284,679 834,181 1,298,588 Renting 32,092 — 21,210 64 — 2,674 39,532 306,092 401,664 Repairs and Maintenance 101,995 3,180 86,964 28,399 10,266 104,727 495,863 1,088,349 1,919,743 Taxes and Insurance 184,210 46,176 111,239 18,402 5,206 98,389 313,906 1,543,795 2,321,323 806,953 92,243 596,298 65,990 26,605 585,309 2,064,781 6,898,200 11,136,379 Income Before Other Income 543,310 69,469 613,186 6,568 (23,064) 267,774 519,037 5,345,573 7,341,853 Other Income (Loss) Interest Expense (360,122) — (283,531) — (6) (176,056) (575,093) (3,802,783) (5,197,591) Gain on Sale of Real Estate — — — 306,075 432,908 — — — 738,983 (360,122) — (283,531) 306,075 432,902 (176,056) (575,093) (3,802,783) (4,458,608) Net Income (Loss) $ 183,188 $ 69,469 $ 329,655 $ 312,643 $ 409,838 $ 91,718 $ (56,056) $ 1,542,790 $ 2,883,245 Net Income (Loss)—NERA 50% $ 91,593 $ 34,734 $ 164,827 $ 156,321 $ 204,918 $ 45,859 $ (28,028) 670,223 Net Income (Loss)—NERA 40% $ 617,116 617,116 $ 1,287,339 Financial information for the three months ended September 30, 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 $ 429,472 $ 60,471 $ 404,000 $ 25,497 $ (88) $ 294,454 $ 865,299 $ 4,103,409 $ 6,182,514 Laundry and Sundry Income 3,810 — 1,806 — — 425 10,437 30,678 47,156 433,282 60,471 405,806 25,497 (88) 294,879 875,736 4,134,087 6,229,670 Expenses Administrative 7,713 11,488 7,324 1,432 1,291 1,533 16,108 56,202 103,091 Depreciation and Amortization 120,986 5,074 86,269 3,190 — 90,045 262,294 913,318 1,481,176 Management Fees 17,228 2,174 16,063 887 — 11,695 33,378 84,479 165,904 Operating 16,773 — 13,766 62 64 19,116 92,863 234,842 377,486 Renting 23,575 — 9,217 64 — 100 6,043 251,543 290,542 Repairs and Maintenance 37,324 — 44,687 — — 22,406 178,777 524,406 807,600 Taxes and Insurance 60,904 15,316 35,630 3,957 — 33,620 106,568 508,026 764,021 284,503 34,052 212,956 9,592 1,355 178,515 696,031 2,572,816 3,989,820 Income Before Other Income 148,779 26,419 192,850 15,905 (1,443) 116,364 179,705 1,561,271 2,239,850 Other Income (Loss) Interest Expense (117,103) — (94,449) — — (59,451) (194,554) (1,265,048) (1,730,605) Interest Income — — — — — — — — — (117,103) — (94,449) — — (59,451) (194,554) (1,265,048) (1,730,605) Net Income (Loss) $ 31,676 $ 26,419 $ 98,401 $ 15,905 $ (1,443) $ 56,913 $ (14,849) $ 296,222 $ 509,245 Net Income (Loss)—NERA 50% $ 15,837 $ 13,209 $ 49,200 $ 7,952 $ (723) $ 28,456 $ (7,426) 106,504 Net Income (Loss)—NERA 40% $ 118,489 118,489 $ 224,993 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Business) (Details) | Sep. 30, 2020ft²propertyitem | Sep. 30, 2019USD ($) |
Residential and mixed-use properties | ||
Line of Business | ||
Number of Real Estate Properties | 25 | |
Number of units | 2,892 | |
Condominium | ||
Line of Business | ||
Number of units | 19 | |
Wholly owned properties | ||
Line of Business | ||
Number of Real Estate Properties | 29 | |
Wholly owned properties | Residential buildings | ||
Line of Business | ||
Number of Real Estate Properties | 21 | |
Number of units | 2,892 | |
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 | 7 | |
Number of units | 688 | |
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 | 865 | 913 |
Investment Properties | Minimum | ||
Line of Business | ||
Ownership interest (as a percent) | 40.00% | |
Investment Properties | Maximum | ||
Line of Business | ||
Ownership interest (as a percent) | 50.00% | |
Investment Properties | Residential buildings | ||
Line of Business | ||
Number of units | 862 | 910 |
Investment Properties | Commercial | ||
Line of Business | ||
Number of units | 3 | 3 |
Investment Properties | Partially owned properties | Residential and mixed-use properties | ||
Line of Business | ||
Number of units | property | 688 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | Jan. 03, 2012 | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2020USD ($)itemshares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | 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 | $ 180,000 | $ 282,000 | |||||
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 | |||||||
Single tenants | 5 | ||||||
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets | $ 16,492,000 | $ 7,407,000 | |||||
Advertising Expense | |||||||
Advertising expense | $ 257,433 | $ 211,184 | |||||
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) | 0.0001% | ||||||
Maximum | Cash and cash equivalents | |||||||
Concentration of Credit Risks and Financial Instruments | |||||||
Interest rate on interest bearing accounts (as a percent) | 0.0003% | ||||||
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 | 7 | ||||||
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) | 9 Months Ended | ||
Sep. 30, 2020USD ($)propertyitem | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
Rental properties | |||
Total fixed assets | $ 400,798,833 | $ 398,554,000 | |
Less: Accumulated depreciation | (132,893,622) | (120,190,012) | |
Total fixed assets, net | 267,905,211 | 278,363,988 | |
Land, improvements and parking lots | |||
Rental properties | |||
Total fixed assets | $ 86,864,868 | 86,693,759 | |
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 | $ 253,304,984 | 252,896,183 | |
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 | $ 17,704,969 | 17,376,841 | |
Kitchen cabinets | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Kitchen cabinets | Maximum | |||
Rental properties | |||
Useful Life | 10 years | ||
Carpets | |||
Rental properties | |||
Total fixed assets | $ 11,534,099 | 10,976,972 | |
Carpets | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Carpets | Maximum | |||
Rental properties | |||
Useful Life | 10 years | ||
Air conditioning | |||
Rental properties | |||
Total fixed assets | $ 573,389 | 573,389 | |
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 | $ 709,210 | 709,210 | |
Laundry equipment | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Laundry equipment | Maximum | |||
Rental properties | |||
Useful Life | 7 years | ||
Elevators | |||
Rental properties | |||
Total fixed assets | $ 1,885,265 | 1,885,265 | |
Elevators | Minimum | |||
Rental properties | |||
Useful Life | 20 years | ||
Elevators | Maximum | |||
Rental properties | |||
Useful Life | 40 years | ||
Swimming pools | |||
Rental properties | |||
Total fixed assets | $ 1,092,194 | 1,092,194 | |
Swimming pools | Minimum | |||
Rental properties | |||
Useful Life | 10 years | ||
Swimming pools | Maximum | |||
Rental properties | |||
Useful Life | 30 years | ||
Equipment | |||
Rental properties | |||
Total fixed assets | $ 17,709,810 | 17,391,731 | |
Equipment | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Equipment | Maximum | |||
Rental properties | |||
Useful Life | 30 years | ||
Motor vehicles | |||
Rental properties | |||
Total fixed assets | $ 211,660 | 178,847 | |
Motor vehicles | Maximum | |||
Rental properties | |||
Useful Life | 5 years | ||
Fences | |||
Rental properties | |||
Total fixed assets | $ 46,872 | 38,482 | |
Fences | Minimum | |||
Rental properties | |||
Useful Life | 5 years | ||
Fences | Maximum | |||
Rental properties | |||
Useful Life | 15 years | ||
Furniture and fixtures | |||
Rental properties | |||
Total fixed assets | $ 8,655,678 | 8,235,292 | |
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 | $ 505,835 | $ 505,835 | |
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 | 29 | ||
Investment Properties | |||
RENTAL PROPERTIES | |||
Number of units | 865 | 913 | |
Investment Properties | Minimum | |||
RENTAL PROPERTIES | |||
Ownership interest (as a percent) | 40.00% | ||
Investment Properties | Maximum | |||
RENTAL PROPERTIES | |||
Ownership interest (as a percent) | 50.00% | ||
Residential and mixed-use properties | |||
RENTAL PROPERTIES | |||
Number of units | item | 2,892 | ||
Number of properties | item | 25 | ||
Residential and mixed-use properties | Partially owned properties | |||
RENTAL PROPERTIES | |||
Number of units | item | 688 | ||
Number of properties | item | 7 | ||
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 | 688 | ||
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 (Mill Street)
RENTAL PROPERTIES (Mill Street) (Details) | Dec. 20, 2019USD ($)item |
Maximum | |
RENTAL PROPERTIES | |
Loan amount | $ 35,000,000 |
Mill Street Gardens Residential Apartments Woburn Massachusetts | |
RENTAL PROPERTIES | |
Number of units | item | 181 |
Purchase price of real estate properties | $ 59,550,000 |
Closing costs associated with financing | 237,000 |
Line of credit | 18,000,000 |
Cash from reserves | 10,550,000 |
Loan amount | 31,000,000 |
Purchase price allocated to the value of the in-place leases | 1,282,000 |
Purchase price allocated to the value of the tenant relationships | $ 136,000 |
Amortization period of value of the in-place leases | 12 months |
Amortization period of value of the tenant relationships | 36 months |
Mill Street Gardens Residential Apartments Woburn Massachusetts | Initial Advance | |
RENTAL PROPERTIES | |
Loan amount | $ 31,000,000 |
Interest rate (as a percent) | 3.586% |
Mill Street Gardens Residential Apartments Woburn Massachusetts | Subsequent Advance | |
RENTAL PROPERTIES | |
Loan amount | $ 4,000,000 |
Interest rate (as a percent) | 3.50% |
RENTAL PROPERTIES (Captain Park
RENTAL PROPERTIES (Captain Parker) (Details) | Sep. 30, 2020USD ($) |
RENTAL PROPERTIES | |
Loan balance | $ 285,333,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 24 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 20, 2019USD ($) | |
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 | $ 1,863,000 | $ 1,788,000 | ||||||
Management fee | $ 598,111 | $ 599,864 | 1,862,645 | 1,787,670 | ||||
Repairs and maintenance | 2,524,050 | 2,654,769 | 6,659,443 | 6,886,313 | ||||
Administrative expense | 511,812 | 622,459 | 1,608,664 | 1,861,397 | ||||
Employer contributions in 401K plan | $ 33,000 | |||||||
Number of limited partnerships and limited liability companies in which the entity has invested | item | 7 | |||||||
Interest expense | 3,417,348 | 3,011,347 | $ 10,291,255 | 9,145,075 | ||||
Maximum | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Loan amount | $ 35,000,000 | |||||||
Investment Properties | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Management fee | 136,989 | 165,904 | 458,162 | 492,893 | ||||
Repairs and maintenance | 833,173 | 807,600 | 1,730,992 | 1,919,743 | ||||
Administrative expense | 74,345 | 103,091 | $ 244,308 | 283,328 | ||||
Number of limited partnerships and limited liability companies in which the entity has invested | item | 7 | |||||||
Interest expense | $ 1,675,322 | $ 1,730,605 | $ 5,071,896 | 5,197,591 | ||||
Investment Properties | Minimum | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Ownership interest (as a percent) | 40.00% | 40.00% | ||||||
Investment Properties | Maximum | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||
Hamilton Company/Management Company | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Number of employees having ownership interest in the investment properties | item | 5 | |||||||
Dexter Park | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Management fee as percentage of gross receipts rental revenue | 2.00% | |||||||
Harold Brown | Minimum | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Ownership interest (as a percent) | 47.60% | 47.60% | ||||||
Harold Brown | Maximum | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Ownership interest (as a percent) | 59.00% | 59.00% | ||||||
General Partner or Management Company [Member] | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Repairs and maintenance | $ 145,000 | |||||||
Administrative expense | 178,000 | |||||||
Expenses for construction, architectural services and supervision of capital projects | 493,000 | |||||||
Costs related to professional services | 816,000 | 852,000 | ||||||
Management Company [Member] | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Reimbursement to related party for payroll transfers | 2,571,000 | 2,478,000 | ||||||
Employer contributions in 401K plan | $ 33,000 | $ 27,000 | ||||||
Number of accounting staff of related party providing bookkeeping and accounting functions | item | 14 | |||||||
Fees for accounting and bookkeeping services | $ 93,750 | $ 93,750 | ||||||
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 | $ 458,000 | |||||||
Repairs and maintenance | 17,000 | |||||||
Administrative expense | 11,000 | |||||||
Construction, architectural services and supervision of capital projects | 240,000 | |||||||
Amount paid to related party | $ 726,000 | |||||||
Residential and mixed-use properties | Partially owned properties | Minimum | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Ownership interest (as a percent) | 40.00% | 40.00% | ||||||
Residential and mixed-use properties | Partially owned properties | Maximum | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Ownership interest (as a percent) | 50.00% | 50.00% |
PREPAID EXPENSES and OTHER AS_2
PREPAID EXPENSES and OTHER ASSETS (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
PREPAID EXPENSES and OTHER ASSETS | ||
Security deposits | $ 2,696,000 | $ 2,936,000 |
Escrow deposits to fund future capital improvements | 921,000 | 501,000 |
Deposits and escrows held for acquisitions | 503,431 | 446,781 |
Intangible assets, net of accumulated amortization | 383,000 | 1,382,000 |
Accumulated amortization on intangible assets | 1,177,000 | 178,000 |
Financing fees, net | $ 4,000 | $ 36,000 |
MORTGAGE NOTES PAYABLE (Mortgag
MORTGAGE NOTES PAYABLE (Mortgages Payable) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
MORTGAGE NOTES PAYABLE | ||
Effective interest rate (as a percent) | 3.98% | |
Financing fees, net | $ 4,000 | $ 36,000 |
Accumulated amortization on financing and leasing fees | 125,000 | 93,000 |
Annual maturities of mortgage debt | ||
2021-current maturities | 2,443,000 | |
2022 | 2,569,000 | |
2023 | 102,651,000 | |
2024 | 10,935,000 | |
2025 | 3,260,000 | |
Thereafter | 163,475,000 | |
Total | 285,333,000 | |
Less: unamortized deferred financing costs | (1,405,000) | |
Secured Debt | 283,927,890 | 281,771,246 |
Mortgages payable | ||
MORTGAGE NOTES PAYABLE | ||
Amount of monthly installments including principal | $ 1,257,000 | |
Weighted average interest rate (as a percent) | 4.43% | |
Effective interest rate (as a percent) | 4.51% | |
Financing fees, net | $ 1,405,000 | 1,449,000 |
Accumulated amortization on financing and leasing fees | $ 1,504,000 | $ 1,411,000 |
Mortgages payable | Minimum | ||
MORTGAGE NOTES PAYABLE | ||
Interest rate (as a percent) | 3.53% | |
Mortgages payable | Maximum | ||
MORTGAGE NOTES PAYABLE | ||
Interest rate (as a percent) | 5.66% |
MORTGAGE NOTES PAYABLE (Mortg_2
MORTGAGE NOTES PAYABLE (Mortgage by property) (Details) | Mar. 31, 2020USD ($) | Dec. 21, 2019 | Dec. 20, 2019USD ($)item | May 31, 2019USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Aug. 31, 2014 | Dec. 31, 2005 | Mar. 07, 2005item |
MORTGAGE NOTES PAYABLE | |||||||||
Loan balance | $ 285,333,000 | ||||||||
Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Loan amount | $ 20,750,000 | ||||||||
Interest rate (as a percent) | 4.05% | ||||||||
Loan balance | $ 20,071,000 | ||||||||
Mortgage prepayment penalties | $ 202,000 | ||||||||
57 Mill Street | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Number of units | item | 181 | ||||||||
Loan amount | $ 31,000,000 | ||||||||
Purchase price of real estate properties | 59,550,000 | ||||||||
Cash from reserves | 10,550,000 | ||||||||
Line of credit | 18,000,000 | ||||||||
Closing costs associated with financing | 237,000 | ||||||||
Purchase price allocated to the value of the in-place leases | 1,282,000 | ||||||||
Purchase price allocated to the value of the tenant relationships | $ 136,000 | ||||||||
Amortization period of value of the in-place leases | 12 months | ||||||||
Amortization period of value of the tenant relationships | 36 months | ||||||||
Hamilton Essex 81 | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Number of units | 49 | 49 | 48 | ||||||
Loan balance | $ 10,000,000 | ||||||||
Brookside Associates LLC Residential Apartments Woburn, Massachusetts | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Loan amount | $ 6,175,000 | ||||||||
Repayment of loan | 2,390,000 | ||||||||
Closing Costs | $ 136,000 | ||||||||
Interest rate (as a percent) | 3.53% | ||||||||
Initial Advance | 57 Mill Street | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Loan amount | $ 31,000,000 | ||||||||
Interest rate (as a percent) | 3.586% | ||||||||
Subsequent Advance | 57 Mill Street | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Loan amount | 4,000,000 | ||||||||
Interest rate (as a percent) | 3.50% | ||||||||
Minimum | 57 Mill Street | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Loan amount | 35,000,000 | ||||||||
Maximum | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Loan amount | $ 35,000,000 | ||||||||
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 | ||||||||
Debt Instrument, Amortization Term | 30 years | ||||||||
Mortgages payable | Minimum | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Interest rate (as a percent) | 3.53% | ||||||||
Mortgages payable | Maximum | |||||||||
MORTGAGE NOTES PAYABLE | |||||||||
Interest rate (as a percent) | 5.66% |
MORTGAGE NOTES PAYABLE (Line of
MORTGAGE NOTES PAYABLE (Line of Credit) (Details) | Jan. 22, 2020USD ($) | Dec. 20, 2019USD ($) | Sep. 30, 2015 | Jul. 31, 2014USD ($)item | Aug. 31, 2014 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2005 | Oct. 31, 2020USD ($) | Dec. 19, 2019USD ($) | May 31, 2019USD ($) | Aug. 31, 2017USD ($) | Mar. 07, 2005item |
Line of Credit | |||||||||||||||
Interest expense | $ 3,417,348 | $ 3,011,347 | $ 10,291,255 | $ 9,145,075 | |||||||||||
Payment on line of credit | 1,000,000 | 2,000,000 | |||||||||||||
Line Of Credit Facility Unused Capacity Commitment Fee | 9,000 | ||||||||||||||
Hamilton Essex 81 | |||||||||||||||
Line of Credit | |||||||||||||||
Interest expense | 63,961 | $ 117,103 | 236,053 | $ 360,122 | |||||||||||
Number of properties in which borrowing amount collateralized | item | 1 | ||||||||||||||
Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts | |||||||||||||||
Line of Credit | |||||||||||||||
Loan amount | $ 20,750,000 | ||||||||||||||
Minimum | |||||||||||||||
Line of Credit | |||||||||||||||
Tangible net worth | 150,000,000 | $ 150,000,000 | |||||||||||||
Operating income to indebtedness ratio | 9.50% | ||||||||||||||
Debt service coverage ratio | 1.6 | ||||||||||||||
Maximum | |||||||||||||||
Line of Credit | |||||||||||||||
Loan amount | $ 35,000,000 | ||||||||||||||
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 | |||||||||||||||
Variable interest rate spread | 2.18% | ||||||||||||||
Line of Credit | |||||||||||||||
Line of Credit | |||||||||||||||
Maximum borrowings | $ 25,000,000 | ||||||||||||||
Term of debt | 3 years | ||||||||||||||
Loan amount | $ 20,000,000 | ||||||||||||||
Payment on line of credit | $ 1,000,000 | $ 2,000,000 | |||||||||||||
Amount of refinancing costs | $ 128,000 | ||||||||||||||
Credit line balance | $ 17,000,000 | $ 17,000,000 | |||||||||||||
Number of properties in which borrowing amount collateralized | item | 23 | ||||||||||||||
Line of Credit | Subsequent event | |||||||||||||||
Line of Credit | |||||||||||||||
Amount of refinancing costs | $ 37,500 | ||||||||||||||
Line of Credit | Federal Funds Rate | |||||||||||||||
Line of Credit | |||||||||||||||
Variable interest rate spread | 0.50% | ||||||||||||||
Line of Credit | LIBOR | |||||||||||||||
Line of Credit | |||||||||||||||
Additional applicable margin rate | 2.50% | ||||||||||||||
Variable interest rate spread | 1.00% | ||||||||||||||
Line of Credit | Minimum | |||||||||||||||
Line of Credit | |||||||||||||||
Pledged interest ownership percentage | 49.00% | ||||||||||||||
Commitment fee for unused amount (as a percent) | 0.15% | ||||||||||||||
Line of Credit | Maximum | |||||||||||||||
Line of Credit | |||||||||||||||
Pledged interest ownership percentage | 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) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS | |
Period for advance rental payment | 1 month |
Amount received for prepaid rent | $ 1,924,000 |
Security deposits | $ 2,696,000 |
PARTNERS' CAPITAL (Details)
PARTNERS' CAPITAL (Details) | Jan. 03, 2012 | Sep. 30, 2020$ / item | Jun. 30, 2020$ / item | Jan. 31, 2020$ / item | Sep. 30, 2020item$ / item | Sep. 30, 2019$ / item | Dec. 31, 2019$ / item | Jun. 30, 2019$ / item | Mar. 31, 2019$ / 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 | 9.60 | 9.60 | |||||||
Quarterly distributions per depositary receipt (in dollars per receipt) | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | ||
Quarterly distribution per unit (in dollars per unit) | 9.60 | 9.60 | 9.60 | 9.60 | ||||||
Earnings per depository receipt | ||||||||||
Net Income per Depositary Receipt (in dollars per receipt) | 0.66 | 1.26 | ||||||||
Distributions per Depositary Receipt (in dollars per share) | 0.96 | 0.96 | 0.96 | |||||||
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 | Sep. 30, 2007$ / itemshares | Mar. 31, 2019$ / itemshares | Dec. 31, 2007$ / itemshares | Jun. 30, 2019$ / itemshares | Sep. 30, 2020USD ($)$ / itemshares | Sep. 30, 2019USD ($)shares | Dec. 31, 2018$ / itemshares | Jun. 30, 2019USD ($)$ / item | Mar. 06, 2008shares |
Treasury units | 58,469 | |||||||||||
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 | 1,428,437 | 1,428,437 | 1,428,437 | 1,428,437 | 1,428,437 | |||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 28.43 | |||||||||||
Units required to be repurchased (in shares) | 222 | 2,205 | ||||||||||
Total cost of repurchase | $ | $ 394,031 | $ 3,680,570 | $ 44,718,000 | |||||||||
General Partnership | ||||||||||||
Treasury units | 585 | |||||||||||
Fixed distribution percentage of unit holders | 1.00% | |||||||||||
Number of depository receipts repurchased | 188 | 188 | 188 | 188 | ||||||||
Total cost of repurchase | $ | $ 3,941 | $ 36,803 | ||||||||||
Value of units required to be repurchased | $ | $ 3,939 | |||||||||||
Repurchases required (in units) | 2.22 | |||||||||||
Treasury Units | ||||||||||||
Units required to be repurchased (in shares) | 222 | 2,205 | ||||||||||
Class A | ||||||||||||
Treasury units | 46,775 | |||||||||||
Fixed distribution percentage of unit holders | 80.00% | |||||||||||
Repurchase price of units (in dollars per unit) | $ / item | 852.90 | 852.90 | 852.90 | 852.90 | ||||||||
Total cost of repurchase | $ | $ 315,220 | $ 2,944,508 | ||||||||||
Class B | ||||||||||||
Treasury units | 11,109 | |||||||||||
Fixed distribution percentage of unit holders | 19.00% | |||||||||||
Number of depository receipts repurchased | 3,572 | 3,572 | 3,572 | 3,572 | ||||||||
Total cost of repurchase | $ | $ 74,870 | $ 699,259 | ||||||||||
Class B | ||||||||||||
Value of units required to be repurchased | $ | $ 74,839 | |||||||||||
Class B | General Partnership | ||||||||||||
Repurchase price of units (in dollars per unit) | $ / item | 1,033 | 1,033 | 1,033 | 1,033 | 1,033 | |||||||
Repurchases required (in units) | 42.18 | |||||||||||
Treasury Units | ||||||||||||
Repurchase price of depository receipts (in dollars per receipt) | $ / item | 59.14 | |||||||||||
Units required to be repurchased (in shares) | 5,328 | |||||||||||
Repurchase price of units (in dollars per unit) | $ / item | 1,774.20 | |||||||||||
Total cost of repurchase | $ | $ 315,216 |
RENTAL INCOME (Details)
RENTAL INCOME (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
RENTAL INCOME | ||
Percentage of rental income related to residential apartments and condominium units with leases of one year or less | 95.00% | |
Maximum period of non-cancelable operating lease | 1 year | |
Percentage of rental income related to commercial properties | 5.00% | |
Minimum future rental income | ||
2021 | $ 2,480,000 | |
2022 | 1,616,000 | |
2023 | 1,230,000 | |
2024 | 646,000 | |
2025 | 199,000 | |
Thereafter | 547,000 | |
Commercial Property Leases | 6,718,000 | |
Aggregate contingent rentals from continuing operations | $ 383,000 | $ 450,000 |
RENTAL INCOME (Concentration) (
RENTAL INCOME (Concentration) (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Commercial rental income | Major tenant | |
Concentration Risk | |
Concentration risk percentage | 27.00% |
RENTAL INCOME (Commercial Lease
RENTAL INCOME (Commercial Leases) (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)ft²item | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 2,813,955 |
Total square feet for expiring leases | ft² | 108,154 |
Total number of leases expiring | item | 49 |
Percentage of annual base rent for expiring leases | 100.00% |
2021 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 906,712 |
Total square feet for expiring leases | ft² | 48,746 |
Total number of leases expiring | item | 19 |
Percentage of annual base rent for expiring leases | 32.00% |
2022 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 538,983 |
Total square feet for expiring leases | ft² | 17,038 |
Total number of leases expiring | item | 7 |
Percentage of annual base rent for expiring leases | 19.00% |
2023 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 361,132 |
Total square feet for expiring leases | ft² | 11,156 |
Total number of leases expiring | item | 7 |
Percentage of annual base rent for expiring leases | 13.00% |
2024 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 747,762 |
Total square feet for expiring leases | ft² | 24,903 |
Total number of leases expiring | item | 11 |
Percentage of annual base rent for expiring leases | 27.00% |
2025 | |
RENTAL INCOME | |
Annual base rent for expiring leases | $ | $ 116,916 |
Total square feet for expiring leases | ft² | 2,461 |
Total number of leases expiring | item | 4 |
Percentage of annual base rent for expiring leases | 4.00% |
2029 | |
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 ($) | Sep. 30, 2020 | Dec. 31, 2019 |
RENTAL INCOME | ||
Allowance for doubtful rent receivable | $ 1,095,000 | $ 240,000 |
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis | 96,000 | |
Deferred rental concession | $ 351,000 |
CASH FLOW INFORMATION (Details)
CASH FLOW INFORMATION (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOW INFORMATION | ||
Cash paid for interest | $ 9,973,000 | $ 8,893,000 |
Cash paid for state income taxes | 82,000 | $ 77,000 |
Non-cash financing activities in connection with acquisition | $ 2,393,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Mortgage Notes Payable | ||
Carrying Amount | $ 283,927,890 | $ 281,771,246 |
Estimated Fair Value | 308,211,420 | 290,892,652 |
Partially owned properties | ||
Mortgage Notes Payable | ||
Carrying Amount | 166,332,832 | 166,404,255 |
Estimated Fair Value | $ 182,015,689 | $ 169,988,236 |
TAXABLE INCOME AND TAX BASIS (D
TAXABLE INCOME AND TAX BASIS (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
TAXABLE INCOME AND TAX BASIS | |
Taxable net income | $ 2,039,000 |
Excess amount of statement income over taxable income | 4,508,000 |
Excess amount of cumulative statement basis over cumulative taxable basis | 5,311,000 |
Excess amount of statement income from joint venture investments over taxable income | $ 1,688,000 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) | 9 Months Ended |
Sep. 30, 2020item | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of limited partnerships and limited liability companies in which the entity has invested | 7 |
Investment Properties | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of limited partnerships and limited liability companies in which the entity has invested | 7 |
Number of partnerships investing in commercial property | 3 |
Hamilton Company/Management Company | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of employees having ownership interest in the investment properties | 5 |
Management Company [Member] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Number of employees having ownership interest in the investment properties | 5 |
Minimum | Investment Properties | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Ownership interest (as a percent) | 40.00% |
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 | Investment Properties | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |
Ownership interest (as a percent) | 50.00% |
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 | Sep. 30, 2018USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 1,439,697 | $ 1,430,402 | ||||
Outstanding amount of mortgage | 283,927,890 | $ 281,771,246 | ||||
Distribution to the Partnership | $ 3,506,894 | $ 3,525,701 | ||||
Dexter Park | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Investments in joint venture | $ 15,925,000 | |||||
Ownership interest (as a percent) | 40.00% | 40.00% | ||||
Number of units | 409 | 409 | 409 | |||
Purchase price of investments | $ 129,500,000 | |||||
Outstanding amount of mortgage | $ 82,000,000 | $ 124,504,557 | $ 124,439,934 | |||
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 | $ 35,069 | $ 35,257 | ||||
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 | Dexter Park | ||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||
Number of units | 409 | 409 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Bay Apts and Sales) (Details) | Mar. 01, 2017USD ($) | Feb. 28, 2007USD ($)item | Dec. 31, 2019USD ($)item | Sep. 30, 2020USD ($) | Dec. 20, 2019USD ($) | Sep. 30, 2019USD ($) | Oct. 03, 2005USD ($)item |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ 1,430,402 | $ 1,439,697 | |||||
Outstanding amount of mortgage | $ 281,771,246 | $ 283,927,890 | |||||
Hamilton Bay Apts | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ 4,607 | $ 2,500,000 | |||||
Ownership interest (as a percent) | 50.00% | 50.00% | |||||
Number of units | 48 | 168 | |||||
Number of units sold | item | 3 | 120 | |||||
Number of units retained for long-term investment | item | 48 | 48 | |||||
Term of debt | 10 years | ||||||
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 | ||||||
Capital contributions | $ 2,222,000 | ||||||
Gain on sale of assets | $ 433,000 | ||||||
Purchase price of investments | $ 30,875,000 | ||||||
Mortgage amount | $ 4,750,000 | ||||||
Residential buildings | Hamilton Bay Apts | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Number of units | 48 | ||||||
Maximum | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Mortgage amount | $ 35,000,000 | ||||||
Mortgages payable | Minimum | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Interest rate (as a percent) | 3.53% | ||||||
Mortgages payable | Maximum | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Interest rate (as a percent) | 5.66% |
INVESTMENT IN UNCONSOLIDATED _6
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Essex) (Details) | Oct. 12, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 28, 2015USD ($) | Mar. 07, 2005USD ($)item | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 20, 2019USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Investments in joint venture | $ 1,439,697 | $ 1,430,402 | ||||||
Repayment of loan | $ 5,158,000 | |||||||
Distribution to the Partnership | 3,506,894 | $ 3,525,701 | ||||||
Mortgage Notes Payable | $ 283,927,890 | $ 281,771,246 | ||||||
Maximum | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Mortgage amount | $ 35,000,000 | |||||||
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 | |||||||
Mortgage Notes Payable | $ 9,931,055 | $ 9,917,266 | ||||||
Hamilton Essex Development | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Investments in joint venture | $ 1,396,776 | $ 1,383,207 | ||||||
Ownership interest (as a percent) | 50.00% | |||||||
Number of units | 1 | 1 | ||||||
Capacity of real estate property (in cars per lot) | item | 50 | |||||||
Capital contributions | 978,193 | |||||||
Residential buildings | Hamilton Essex 81 | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Number of units | 48 | 48 | ||||||
Commercial | Hamilton Essex 81 | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Number of units | 1 | 1 | ||||||
Commercial | Hamilton Essex Development | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Number of units | 1 | 1 | ||||||
Mortgages payable | Maximum | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Interest rate (as a percent) | 5.66% | |||||||
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 | Sep. 30, 2020USD ($)property | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Investments in joint venture | $ 1,439,697 | $ 1,430,402 | |||
Outstanding amount of mortgage | 283,927,890 | $ 281,771,246 | |||
Hamilton 1025 | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Investments in joint venture | $ 2,352,000 | $ 42,921 | $ 51,910 | ||
Ownership interest (as a percent) | 50.00% | 50.00% | |||
Number of units | 176 | 176 | 176 | ||
Number of units sold | 127 | 306,000 | |||
Number of units retained for long-term investment | 49 | (1) | (1) | ||
Capital contributions | $ 2,359,500 | ||||
Purchase price of investments | $ 23,750,000 | ||||
Gain on sale of assets | $ 2 | ||||
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 | Hamilton 1025 | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||
Number of units | 175 | 175 |
INVESTMENT IN UNCONSOLIDATED _8
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Minuteman) (Details) | Oct. 13, 2016USD ($) | Oct. 12, 2016USD ($) | Jan. 31, 2007USD ($) | Oct. 31, 2004USD ($) | Sep. 30, 2004USD ($)item | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Investments in joint venture | $ 1,439,697 | $ 1,430,402 | ||||||
Distribution to the Partnership | 3,506,894 | $ 3,525,701 | ||||||
Amount of mortgage paid off | $ 5,158,000 | |||||||
Refinancing costs | 1,405,000 | |||||||
Outstanding amount of mortgage | $ 283,927,890 | $ 281,771,246 | ||||||
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 | |||||
Purchase price of real estate properties | $ 10,100,000 | |||||||
Distribution to the Partnership | $ 385,000 | $ 3,775,000 | ||||||
Mortgage amount | $ 6,000,000 | $ 5,500,000 | $ 8,025,000 | $ 6,000,000 | ||||
Term of debt | 15 years | 10 years | 10 years | |||||
Refinancing costs | $ 123,000 | 89,678 | ||||||
Interest rate (as a percent) | 3.71% | 5.67% | ||||||
Period for which the entity is required to make interest only payments | 5 years | |||||||
Amortization period of debt | 30 years | |||||||
Cash contribution by the entity towards loan | $ 1,250,000 | |||||||
Outstanding amount of mortgage | $ 5,910,322 | $ 5,902,139 | ||||||
Residential buildings | Hamilton Minuteman | ||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||
Number of units | 42 | 42 |
INVESTMENT IN UNCONSOLIDATED _9
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton on Main) (Details) | Oct. 12, 2016USD ($) | Aug. 31, 2014USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Dec. 31, 2005USD ($)item | Dec. 31, 2019USD ($) | Aug. 31, 2004USD ($)item |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ 1,439,697 | $ 1,430,402 | |||||
Outstanding amount of mortgage | 283,927,890 | $ 281,771,246 | |||||
Repayment of loan | $ 5,158,000 | ||||||
Distribution to the Partnership | $ 3,506,894 | $ 3,525,701 | |||||
Hamilton on Main Apts | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ 8,000,000 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | |||||
Number of units | 148 | 148 | 280 | ||||
Number of units sold | item | 137 | ||||||
Outstanding amount of mortgage | $ 16,837,132 | $ 16,821,081 | |||||
Purchase price of investments | $ 56,000,000 | ||||||
Residential buildings | Hamilton on Main Apts | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Number of units | 148 | 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) | Oct. 12, 2016USD ($) | Jun. 30, 2013USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 20, 2019USD ($) | Nov. 30, 2001USD ($)item |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Investments in joint venture | $ 1,439,697 | $ 1,430,402 | |||||
Repayment of loan | $ 5,158,000 | ||||||
Distribution to the Partnership | 3,506,894 | $ 3,525,701 | |||||
Outstanding amount of mortgage | $ 283,927,890 | $ 281,771,246 | |||||
Maximum | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Mortgage amount | $ 35,000,000 | ||||||
Maximum | Mortgages payable | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Interest rate (as a percent) | 5.66% | ||||||
345 Franklin | Mortgages payable | |||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | |||||||
Outstanding amount of mortgage | $ 9,201,000 | ||||||
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 | ||||||
Outstanding amount of mortgage | $ 9,149,766 | $ 9,346,663 | |||||
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 | 40 | 40 |
INVESTMENT IN UNCONSOLIDATED_11
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Balance Sheet) (Details) | Sep. 30, 2020USD ($)property | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | May 31, 2018USD ($) | Oct. 28, 2009USD ($)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 | $ 267,905,211 | $ 278,363,988 | |||||||||||
Cash and Cash Equivalents | 16,847,883 | 7,546,324 | |||||||||||
Rents Receivable | 1,124,853 | 484,610 | |||||||||||
Real Estate Tax Escrows | 503,431 | 446,781 | |||||||||||
Prepaid Expenses and Other Assets | 5,265,952 | 6,021,544 | |||||||||||
Total Assets | 293,087,027 | 294,293,649 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Mortgage Notes Payable | 283,927,890 | 281,771,246 | |||||||||||
Accounts Payable and Accrued Expenses | 3,765,731 | 4,274,266 | |||||||||||
Advance Rental Payments and Security Deposits | 7,218,279 | 8,101,835 | |||||||||||
Total Liabilities | 332,417,188 | 332,117,436 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (39,330,161) | (37,823,787) | $ (38,181,542) | $ (35,624,010) | |||||||||
Total Liabilities and Partners' Capital | 293,087,027 | 294,293,649 | |||||||||||
Investment in Unconsolidated Joint Ventures | 1,439,697 | 1,430,402 | |||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | $ (20,505,288) | $ (19,970,089) | |||||||||||
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% | |||||||||||
Investment Properties | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 116,833,825 | $ 121,606,956 | |||||||||||
Cash and Cash Equivalents | 4,240,170 | 2,320,898 | |||||||||||
Rents Receivable | 830,257 | 341,450 | |||||||||||
Real Estate Tax Escrows | 246,827 | 245,680 | |||||||||||
Prepaid Expenses and Other Assets | 2,085,019 | 2,140,643 | |||||||||||
Total Assets | 124,236,098 | 126,655,627 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Mortgage Notes Payable | 166,332,832 | 166,427,083 | |||||||||||
Accounts Payable and Accrued Expenses | 1,167,605 | 1,260,246 | |||||||||||
Advance Rental Payments and Security Deposits | 3,067,704 | 3,685,761 | |||||||||||
Total Liabilities | 170,568,141 | 171,373,090 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (46,332,043) | (44,717,463) | |||||||||||
Total Liabilities and Partners' Capital | 124,236,098 | 126,655,627 | |||||||||||
Investment in Unconsolidated Joint Ventures | 1,439,697 | 1,439,724 | |||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | (20,505,288) | (19,786,262) | |||||||||||
Total Investment in Unconsolidated Joint Ventures (Net) | $ (19,065,591) | $ (18,346,539) | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 865 | 913 | |||||||||||
Units to be retained | 690 | 690 | |||||||||||
Units to be sold | 223 | ||||||||||||
Total number of units sold | 175 | 223 | |||||||||||
Investment Properties | Residential buildings | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 862 | 910 | |||||||||||
Investment Properties | Commercial | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 3 | 3 | |||||||||||
Hamilton Essex 81 | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 6,758,283 | $ 6,966,539 | |||||||||||
Cash and Cash Equivalents | 281,585 | 342,346 | |||||||||||
Rents Receivable | 220,578 | 243,635 | |||||||||||
Real Estate Tax Escrows | 66,248 | 72,146 | |||||||||||
Prepaid Expenses and Other Assets | 319,434 | 309,502 | |||||||||||
Total Assets | 7,646,128 | 7,934,168 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Mortgage Notes Payable | 9,931,055 | 9,917,266 | |||||||||||
Accounts Payable and Accrued Expenses | 53,569 | 85,115 | |||||||||||
Advance Rental Payments and Security Deposits | 202,659 | 286,274 | |||||||||||
Total Liabilities | 10,187,283 | 10,288,655 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (2,541,155) | (2,354,487) | |||||||||||
Total Liabilities and Partners' Capital | 7,646,128 | $ 7,934,168 | |||||||||||
Partners' Capital % - NERA | 50.00% | ||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | $ (1,270,578) | $ (1,177,243) | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 49 | 49 | 48 | ||||||||||
Units to be retained | 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 | 48 | 48 | |||||||||||
Hamilton Essex 81 | Commercial | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 1 | 1 | |||||||||||
Hamilton Essex Development | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 2,591,281 | $ 2,593,771 | |||||||||||
Cash and Cash Equivalents | 70,894 | 44,020 | |||||||||||
Rents Receivable | 48,878 | 28,041 | |||||||||||
Prepaid Expenses and Other Assets | 84,898 | 102,546 | |||||||||||
Total Assets | 2,795,951 | 2,768,378 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Accounts Payable and Accrued Expenses | 2,400 | 1,964 | |||||||||||
Total Liabilities | 2,400 | 1,964 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | 2,793,551 | 2,766,414 | |||||||||||
Total Liabilities and Partners' Capital | 2,795,951 | $ 2,768,378 | |||||||||||
Partners' Capital % - NERA | 50.00% | ||||||||||||
Investment in Unconsolidated Joint Ventures | $ 1,396,776 | $ 1,383,207 | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 1 | 1 | |||||||||||
Units to be retained | 1 | 1 | |||||||||||
Hamilton Essex Development | NERA 50% | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Partners' Capital % - NERA | 50.00% | ||||||||||||
Hamilton Essex Development | Commercial | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 1 | 1 | |||||||||||
345 Franklin | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 5,439,844 | $ 5,748,520 | |||||||||||
Cash and Cash Equivalents | 183,638 | 156,545 | |||||||||||
Rents Receivable | 11,367 | 5,426 | |||||||||||
Real Estate Tax Escrows | 57,079 | 53,249 | |||||||||||
Prepaid Expenses and Other Assets | 82,969 | 86,574 | |||||||||||
Total Assets | 5,774,897 | 6,050,314 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Mortgage Notes Payable | 9,149,766 | 9,346,663 | |||||||||||
Accounts Payable and Accrued Expenses | 101,651 | 103,905 | |||||||||||
Advance Rental Payments and Security Deposits | 217,832 | 293,858 | |||||||||||
Total Liabilities | 9,469,249 | 9,744,426 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (3,694,352) | (3,694,112) | |||||||||||
Total Liabilities and Partners' Capital | 5,774,897 | $ 6,050,314 | |||||||||||
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 | $ (1,847,175) | $ (1,847,056) | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 40 | 40 | 40 | ||||||||||
Units to be retained | 40 | 40 | |||||||||||
345 Franklin | NERA 50% | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Partners' Capital % - NERA | 50.00% | ||||||||||||
345 Franklin | Residential buildings | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 40 | 40 | |||||||||||
Hamilton 1025 | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 85,635 | $ 86,850 | |||||||||||
Cash and Cash Equivalents | 12,305 | 24,496 | |||||||||||
Rents Receivable | 811 | ||||||||||||
Prepaid Expenses and Other Assets | 2,129 | 1,761 | |||||||||||
Total Assets | 100,880 | 113,107 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Accounts Payable and Accrued Expenses | 15,038 | 7,976 | |||||||||||
Advance Rental Payments and Security Deposits | 1,310 | ||||||||||||
Total Liabilities | 15,038 | 9,286 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | 85,842 | 103,821 | |||||||||||
Total Liabilities and Partners' Capital | 100,880 | $ 113,107 | |||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | |||||||||||
Investment in Unconsolidated Joint Ventures | $ 42,921 | $ 51,910 | $ 2,352,000 | ||||||||||
Total units/ condominiums | |||||||||||||
Total | 176 | 176 | 176 | ||||||||||
Units to be retained | 1 | 1 | (49) | ||||||||||
Units to be sold | 175 | ||||||||||||
Total number of units sold | 175 | 175 | |||||||||||
Hamilton 1025 | NERA 50% | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Partners' Capital % - NERA | 50.00% | ||||||||||||
Hamilton 1025 | Residential buildings | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 175 | 175 | |||||||||||
Hamilton 1025 | Commercial | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 1 | 1 | |||||||||||
Hamilton Bay Apts | |||||||||||||
ASSETS | |||||||||||||
Cash and Cash Equivalents | $ 10,775 | ||||||||||||
Prepaid Expenses and Other Assets | 2,951 | ||||||||||||
Total Assets | 13,726 | ||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Accounts Payable and Accrued Expenses | 4,411 | ||||||||||||
Advance Rental Payments and Security Deposits | 101 | ||||||||||||
Total Liabilities | 4,512 | ||||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | 9,214 | ||||||||||||
Total Liabilities and Partners' Capital | $ 13,726 | ||||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | |||||||||||
Investment in Unconsolidated Joint Ventures | $ 4,607 | $ 2,500,000 | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 48 | 168 | |||||||||||
Units to be retained | item | (48) | (48) | |||||||||||
Units to be sold | 48 | ||||||||||||
Total number of units sold | 48 | ||||||||||||
Hamilton Bay Apts | Residential buildings | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 48 | ||||||||||||
Hamilton Minuteman | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 5,077,525 | $ 5,413,076 | |||||||||||
Cash and Cash Equivalents | 210,705 | 120,874 | |||||||||||
Rents Receivable | 2,202 | ||||||||||||
Real Estate Tax Escrows | 31,378 | 28,147 | |||||||||||
Prepaid Expenses and Other Assets | 26,428 | 26,661 | |||||||||||
Total Assets | 5,346,036 | 5,590,960 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Mortgage Notes Payable | 5,910,322 | 5,902,139 | |||||||||||
Accounts Payable and Accrued Expenses | 64,341 | 57,338 | |||||||||||
Advance Rental Payments and Security Deposits | 157,932 | 141,128 | |||||||||||
Total Liabilities | 6,132,595 | 6,100,605 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (786,559) | (509,645) | |||||||||||
Total Liabilities and Partners' Capital | 5,346,036 | $ 5,590,960 | |||||||||||
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 | $ (393,280) | $ (254,823) | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 42 | 42 | 42 | ||||||||||
Units to be retained | 42 | 42 | |||||||||||
Hamilton Minuteman | NERA 50% | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Partners' Capital % - NERA | 50.00% | ||||||||||||
Hamilton Minuteman | Residential buildings | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 42 | 42 | |||||||||||
Hamilton on Main Apts | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 15,343,928 | $ 16,075,655 | |||||||||||
Cash and Cash Equivalents | 610,816 | 172,829 | |||||||||||
Rents Receivable | 46,780 | 13,651 | |||||||||||
Real Estate Tax Escrows | 92,122 | 92,138 | |||||||||||
Prepaid Expenses and Other Assets | 162,421 | 174,851 | |||||||||||
Total Assets | 16,256,067 | 16,529,124 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Mortgage Notes Payable | 16,837,132 | 16,821,081 | |||||||||||
Accounts Payable and Accrued Expenses | 168,318 | 181,510 | |||||||||||
Advance Rental Payments and Security Deposits | 435,679 | 443,274 | |||||||||||
Total Liabilities | 17,441,129 | 17,445,865 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (1,185,062) | (916,741) | |||||||||||
Total Liabilities and Partners' Capital | 16,256,067 | $ 16,529,124 | |||||||||||
Partners' Capital % - NERA | 50.00% | 50.00% | |||||||||||
Investment in Unconsolidated Joint Ventures | $ 8,000,000 | ||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | $ (592,531) | $ (458,371) | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 148 | 148 | 280 | ||||||||||
Units to be retained | 148 | 148 | |||||||||||
Hamilton on Main Apts | NERA 50% | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Partners' Capital % - NERA | 50.00% | ||||||||||||
Hamilton on Main Apts | Residential buildings | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 148 | 148 | |||||||||||
Dexter Park | |||||||||||||
ASSETS | |||||||||||||
Rental Properties | $ 81,537,329 | $ 84,722,545 | |||||||||||
Cash and Cash Equivalents | 2,870,227 | 1,449,013 | |||||||||||
Rents Receivable | 501,843 | 48,495 | |||||||||||
Prepaid Expenses and Other Assets | 1,406,740 | 1,435,797 | |||||||||||
Total Assets | 86,316,139 | 87,655,850 | |||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Mortgage Notes Payable | 124,504,557 | 124,439,934 | $ 82,000,000 | ||||||||||
Accounts Payable and Accrued Expenses | 762,288 | 818,027 | |||||||||||
Advance Rental Payments and Security Deposits | 2,053,602 | 2,519,816 | |||||||||||
Total Liabilities | 127,320,447 | 127,777,777 | |||||||||||
Partners' Capital 121,756 and 121,978 units outstanding in 2020 and 2019 respectively | (41,004,308) | (40,121,927) | |||||||||||
Total Liabilities and Partners' Capital | 86,316,139 | $ 87,655,850 | |||||||||||
Partners' Capital % - NERA | 40.00% | 40.00% | |||||||||||
Investment in Unconsolidated Joint Ventures | $ 15,925,000 | ||||||||||||
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture | $ (16,401,724) | $ (16,048,771) | |||||||||||
Total units/ condominiums | |||||||||||||
Total | 409 | 409 | 409 | ||||||||||
Units to be retained | 409 | 409 | |||||||||||
Dexter Park | NERA 50% | |||||||||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||||
Partners' Capital % - NERA | 40.00% | ||||||||||||
Dexter Park | Residential buildings | |||||||||||||
Total units/ condominiums | |||||||||||||
Total | 409 | 409 |
INVESTMENT IN UNCONSOLIDATED_12
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Income) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 28, 2009 | Oct. 03, 2005 | Mar. 02, 2005 | Sep. 30, 2004 | Aug. 31, 2004 | Nov. 30, 2001 | |
Revenues | ||||||||||
Rental income | $ 15,046,646 | $ 15,038,675 | $ 46,946,889 | $ 44,693,574 | ||||||
Laundry and sundry income | 95,620 | 117,226 | 330,066 | 335,875 | ||||||
Total Revenues | 15,142,266 | 15,155,901 | 47,276,955 | 45,029,449 | ||||||
Expenses | ||||||||||
Administrative | 511,812 | 622,459 | 1,608,664 | 1,861,397 | ||||||
Depreciation and amortization | 4,612,713 | 3,627,142 | 13,779,797 | 10,900,060 | ||||||
Management fee | 598,111 | 599,864 | 1,862,645 | 1,787,670 | ||||||
Operating | 1,228,750 | 1,111,613 | 4,188,934 | 4,121,444 | ||||||
Renting | 332,157 | 348,896 | 657,636 | 773,470 | ||||||
Repairs and maintenance | 2,524,050 | 2,654,769 | 6,659,443 | 6,886,313 | ||||||
Taxes and insurance | 2,107,037 | 2,014,141 | 6,503,299 | 5,991,245 | ||||||
Total Expenses | 11,914,630 | 10,978,884 | 35,260,418 | 32,321,599 | ||||||
Income Before Other Income (Expense) | 3,227,636 | 4,177,017 | 12,016,537 | 12,707,850 | ||||||
Other Income (Expense) | ||||||||||
Interest expense | (3,417,348) | (3,011,347) | (10,291,255) | (9,145,075) | ||||||
Interest income | 11 | 66 | 171 | 335 | ||||||
Total Other Income (Expense) | (3,666,920) | (2,793,038) | (9,621,986) | (8,059,111) | ||||||
Net (Loss) Income | $ (439,284) | $ 1,383,979 | $ 2,394,551 | $ 4,648,739 | ||||||
NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
NERA 40% | ||||||||||
Other Income (Expense) | ||||||||||
Ownership interest (as a percent) | 40.00% | 40.00% | 40.00% | 40.00% | ||||||
Investment Properties | ||||||||||
Revenues | ||||||||||
Rental income | $ 5,075,210 | $ 6,182,514 | $ 17,464,869 | $ 18,352,687 | ||||||
Laundry and sundry income | 27,233 | 47,156 | 98,102 | 125,545 | ||||||
Total Revenues | 5,102,443 | 6,229,670 | 17,562,971 | 18,478,232 | ||||||
Expenses | ||||||||||
Administrative | 74,345 | 103,091 | 244,308 | 283,328 | ||||||
Depreciation and amortization | 1,489,963 | 1,481,176 | 4,451,183 | 4,418,840 | ||||||
Management fee | 136,989 | 165,904 | 458,162 | 492,893 | ||||||
Operating | 385,519 | 377,486 | 1,218,772 | 1,298,588 | ||||||
Renting | 242,466 | 290,542 | 307,678 | 401,664 | ||||||
Repairs and maintenance | 833,173 | 807,600 | 1,730,992 | 1,919,743 | ||||||
Taxes and insurance | 850,624 | 764,021 | 2,542,476 | 2,321,323 | ||||||
Total Expenses | 4,013,079 | 3,989,820 | 10,953,571 | 11,136,379 | ||||||
Income Before Other Income (Expense) | 1,089,364 | 2,239,850 | 6,609,400 | 7,341,853 | ||||||
Other Income (Expense) | ||||||||||
Interest expense | (1,675,322) | (1,730,605) | (5,071,896) | (5,197,591) | ||||||
Gain on sale of real estate | 738,983 | |||||||||
Total Other Income (Expense) | (1,675,322) | (1,730,605) | (5,071,896) | (4,458,608) | ||||||
Net (Loss) Income | (585,958) | 509,245 | 1,537,504 | 2,883,245 | ||||||
Proportionate share of net income (loss) | (249,583) | 224,993 | 669,098 | 1,287,339 | ||||||
Investment Properties | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | (76,005) | 106,504 | 270,473 | 670,223 | ||||||
Investment Properties | NERA 40% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | (173,578) | 118,489 | 398,625 | 617,116 | ||||||
Hamilton Essex 81 | ||||||||||
Revenues | ||||||||||
Rental income | 120,398 | 429,472 | 940,486 | 1,339,583 | ||||||
Laundry and sundry income | 2,605 | 3,810 | 9,288 | 10,680 | ||||||
Total Revenues | 123,003 | 433,282 | 949,774 | 1,350,263 | ||||||
Expenses | ||||||||||
Administrative | 3,971 | 7,713 | 15,451 | 22,968 | ||||||
Depreciation and amortization | 122,210 | 120,986 | 365,779 | 360,417 | ||||||
Management fee | 9,751 | 17,228 | 37,803 | 51,454 | ||||||
Operating | 17,948 | 16,773 | 64,247 | 53,817 | ||||||
Renting | 3,026 | 23,575 | 6,430 | 32,092 | ||||||
Repairs and maintenance | 27,206 | 37,324 | 94,415 | 101,995 | ||||||
Taxes and insurance | 63,090 | 60,904 | 192,490 | 184,210 | ||||||
Total Expenses | 247,202 | 284,503 | 776,615 | 806,953 | ||||||
Income Before Other Income (Expense) | (124,199) | 148,779 | 173,159 | 543,310 | ||||||
Other Income (Expense) | ||||||||||
Interest expense | (63,961) | (117,103) | (236,053) | (360,122) | ||||||
Total Other Income (Expense) | (63,961) | (117,103) | (236,053) | (360,122) | ||||||
Net (Loss) Income | (188,160) | $ 31,676 | (62,894) | $ 183,188 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
Hamilton Essex 81 | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ (94,080) | $ 15,837 | $ (31,447) | $ 91,593 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
Hamilton Essex Development | ||||||||||
Revenues | ||||||||||
Rental income | $ 2,864 | 60,471 | $ 68,726 | 161,712 | ||||||
Total Revenues | 2,864 | 60,471 | 68,726 | 161,712 | ||||||
Expenses | ||||||||||
Administrative | 844 | 11,488 | 3,044 | 21,162 | ||||||
Depreciation and amortization | 5,074 | 5,074 | 15,223 | 15,223 | ||||||
Management fee | 2,174 | 2,203 | 6,494 | |||||||
Operating | 8 | |||||||||
Repairs and maintenance | 134 | 3,180 | 3,180 | |||||||
Taxes and insurance | 15,328 | 15,316 | 45,784 | 46,176 | ||||||
Total Expenses | 21,380 | 34,052 | 69,434 | 92,243 | ||||||
Income Before Other Income (Expense) | (18,516) | 26,419 | (708) | 69,469 | ||||||
Other Income (Expense) | ||||||||||
Net (Loss) Income | (18,516) | $ 26,419 | (708) | $ 69,469 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
Hamilton Essex Development | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ (9,257) | $ 13,209 | $ (354) | $ 34,734 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
345 Franklin | ||||||||||
Revenues | ||||||||||
Rental income | $ 334,431 | 404,000 | $ 1,182,050 | 1,207,094 | ||||||
Laundry and sundry income | 1,806 | 498 | 2,390 | |||||||
Total Revenues | 334,431 | 405,806 | 1,182,548 | 1,209,484 | ||||||
Expenses | ||||||||||
Administrative | 7,531 | 7,324 | 23,860 | 17,366 | ||||||
Depreciation and amortization | 84,680 | 86,269 | 253,716 | 258,722 | ||||||
Management fee | 13,253 | 16,063 | 45,548 | 46,506 | ||||||
Operating | 22,313 | 13,766 | 51,077 | 54,291 | ||||||
Renting | 20,094 | 9,217 | 29,776 | 21,210 | ||||||
Repairs and maintenance | 35,879 | 44,687 | 79,254 | 86,964 | ||||||
Taxes and insurance | 40,342 | 35,630 | 120,056 | 111,239 | ||||||
Total Expenses | 224,092 | 212,956 | 603,287 | 596,298 | ||||||
Income Before Other Income (Expense) | 110,339 | 192,850 | 579,261 | 613,186 | ||||||
Other Income (Expense) | ||||||||||
Interest expense | (92,048) | (94,449) | (278,456) | (283,531) | ||||||
Total Other Income (Expense) | (92,048) | (94,449) | (278,456) | (283,531) | ||||||
Net (Loss) Income | 18,291 | $ 98,401 | 300,805 | $ 329,655 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | |||||||
345 Franklin | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ 9,146 | $ 49,200 | $ 150,403 | $ 164,827 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
Hamilton 1025 | ||||||||||
Revenues | ||||||||||
Rental income | $ 24,369 | 25,497 | $ 65,486 | 72,558 | ||||||
Total Revenues | 24,369 | 25,497 | 65,486 | 72,558 | ||||||
Expenses | ||||||||||
Administrative | 713 | 1,432 | 11,769 | 5,834 | ||||||
Depreciation and amortization | 816 | 3,190 | 2,448 | 9,580 | ||||||
Management fee | 942 | 887 | 2,587 | 2,786 | ||||||
Operating | 51 | 62 | 147 | 925 | ||||||
Renting | 64 | 64 | ||||||||
Repairs and maintenance | 28,399 | |||||||||
Taxes and insurance | 4,021 | 3,957 | 12,701 | 18,402 | ||||||
Total Expenses | 6,543 | 9,592 | 29,652 | 65,990 | ||||||
Income Before Other Income (Expense) | 17,826 | 15,905 | 35,834 | 6,568 | ||||||
Other Income (Expense) | ||||||||||
Gain on sale of real estate | 306,075 | |||||||||
Total Other Income (Expense) | 306,075 | |||||||||
Net (Loss) Income | 17,826 | $ 15,905 | 35,834 | $ 312,643 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | |||||||
Hamilton 1025 | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ 8,913 | $ 7,952 | $ 17,917 | $ 156,321 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
Hamilton Bay Apts | ||||||||||
Revenues | ||||||||||
Rental income | 3,541 | |||||||||
Rental Income | (88) | |||||||||
Total Revenues | (88) | 3,541 | ||||||||
Expenses | ||||||||||
Administrative | 1,291 | 5,576 | ||||||||
Depreciation and amortization | 5,420 | |||||||||
Management fee | 145 | |||||||||
Operating | 64 | |||||||||
Operating | (8) | |||||||||
Repairs and maintenance | 10,266 | |||||||||
Taxes and insurance | 5,206 | |||||||||
Total Expenses | 1,355 | 26,605 | ||||||||
Income Before Other Income (Expense) | (1,443) | (23,064) | ||||||||
Other Income (Expense) | ||||||||||
Interest expense | (6) | |||||||||
Gain on sale of real estate | 432,908 | |||||||||
Total Other Income (Expense) | 432,902 | |||||||||
Net (Loss) Income | $ (1,443) | $ 409,838 | ||||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | |||||||
Hamilton Bay Apts | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ (723) | $ 204,918 | ||||||||
Hamilton Minuteman | ||||||||||
Revenues | ||||||||||
Rental income | $ 301,865 | 294,454 | $ 883,075 | 850,523 | ||||||
Laundry and sundry income | 1,289 | 425 | 1,915 | 2,560 | ||||||
Total Revenues | 303,154 | 294,879 | 884,990 | 853,083 | ||||||
Expenses | ||||||||||
Administrative | 3,631 | 1,533 | 10,281 | 7,283 | ||||||
Depreciation and amortization | 87,214 | 90,045 | 260,994 | 267,546 | ||||||
Management fee | 12,209 | 11,695 | 35,212 | 33,995 | ||||||
Operating | 18,832 | 19,116 | 69,487 | 70,695 | ||||||
Renting | 1,690 | 100 | 7,440 | 2,674 | ||||||
Repairs and maintenance | 32,161 | 22,406 | 71,112 | 104,727 | ||||||
Taxes and insurance | 36,038 | 33,620 | 108,214 | 98,389 | ||||||
Total Expenses | 191,775 | 178,515 | 562,740 | 585,309 | ||||||
Income Before Other Income (Expense) | 111,379 | 116,364 | 322,250 | 267,774 | ||||||
Other Income (Expense) | ||||||||||
Interest expense | (59,900) | (59,451) | (178,402) | (176,056) | ||||||
Total Other Income (Expense) | (59,900) | (59,451) | (178,402) | (176,056) | ||||||
Net (Loss) Income | 51,479 | $ 56,913 | 143,848 | $ 91,718 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | |||||||
Hamilton Minuteman | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ 25,740 | $ 28,456 | $ 71,924 | $ 45,859 | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
Hamilton on Main Apts | ||||||||||
Revenues | ||||||||||
Rental income | $ 844,963 | 865,299 | $ 2,648,277 | 2,553,301 | ||||||
Laundry and sundry income | 8,780 | 10,437 | 26,135 | 30,517 | ||||||
Total Revenues | 853,743 | 875,736 | 2,674,412 | 2,583,818 | ||||||
Expenses | ||||||||||
Administrative | 13,991 | 16,108 | 43,466 | 51,020 | ||||||
Depreciation and amortization | 264,047 | 262,294 | 788,181 | 781,400 | ||||||
Management fee | 32,925 | 33,378 | 100,654 | 98,381 | ||||||
Operating | 78,199 | 92,863 | 255,794 | 284,679 | ||||||
Renting | 36,709 | 6,043 | 52,202 | 39,532 | ||||||
Repairs and maintenance | 154,828 | 178,777 | 388,818 | 495,863 | ||||||
Taxes and insurance | 114,523 | 106,568 | 346,997 | 313,906 | ||||||
Total Expenses | 695,222 | 696,031 | 1,976,112 | 2,064,781 | ||||||
Income Before Other Income (Expense) | 158,521 | 179,705 | 698,300 | 519,037 | ||||||
Other Income (Expense) | ||||||||||
Interest expense | (191,453) | (194,554) | (574,239) | (575,093) | ||||||
Total Other Income (Expense) | (191,453) | (194,554) | (574,239) | (575,093) | ||||||
Net (Loss) Income | (32,932) | $ (14,849) | 124,061 | $ (56,056) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | |||||||
Hamilton on Main Apts | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ (16,466) | $ (7,426) | $ 62,031 | $ (28,028) | ||||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||||||||
Dexter Park | ||||||||||
Revenues | ||||||||||
Rental income | $ 3,446,320 | 4,103,409 | $ 11,676,769 | 12,164,375 | ||||||
Laundry and sundry income | 14,559 | 30,678 | 60,266 | 79,398 | ||||||
Total Revenues | 3,460,879 | 4,134,087 | 11,737,035 | 12,243,773 | ||||||
Expenses | ||||||||||
Administrative | 43,664 | 56,202 | 136,437 | 152,119 | ||||||
Depreciation and amortization | 925,922 | 913,318 | 2,764,842 | 2,720,532 | ||||||
Management fee | 67,909 | 84,479 | 234,155 | 253,132 | ||||||
Operating | 248,176 | 234,842 | 778,020 | 834,181 | ||||||
Renting | 180,947 | 251,543 | 211,830 | 306,092 | ||||||
Repairs and maintenance | 582,965 | 524,406 | 1,094,213 | 1,088,349 | ||||||
Taxes and insurance | 577,282 | 508,026 | 1,716,234 | 1,543,795 | ||||||
Total Expenses | 2,626,865 | 2,572,816 | 6,935,731 | 6,898,200 | ||||||
Income Before Other Income (Expense) | 834,014 | 1,561,271 | 4,801,304 | 5,345,573 | ||||||
Other Income (Expense) | ||||||||||
Interest expense | (1,267,960) | (1,265,048) | (3,804,746) | (3,802,783) | ||||||
Total Other Income (Expense) | (1,267,960) | (1,265,048) | (3,804,746) | (3,802,783) | ||||||
Net (Loss) Income | $ (433,946) | $ 296,222 | $ 996,558 | $ 1,542,790 | ||||||
Ownership interest (as a percent) | 40.00% | 40.00% | 40.00% | |||||||
Dexter Park | NERA 50% | ||||||||||
Other Income (Expense) | ||||||||||
Ownership interest (as a percent) | 40.00% | 40.00% | ||||||||
Dexter Park | NERA 40% | ||||||||||
Other Income (Expense) | ||||||||||
Proportionate share of net income (loss) | $ (173,578) | $ 118,489 | $ 398,625 | $ 617,116 |
INVESTMENT IN UNCONSOLIDATED_13
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Mortgage Maturities) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | May 31, 2018 | Oct. 13, 2016 |
Annual maturities of mortgage debt | |||||
2021-current maturities | $ 2,443,000 | ||||
2022 | 2,569,000 | ||||
2023 | 102,651,000 | ||||
2024 | 10,935,000 | ||||
2025 | 3,260,000 | ||||
Thereafter | 163,475,000 | ||||
Total | 285,333,000 | ||||
Less: unamortized deferred financing costs | (1,405,000) | ||||
Secured Debt | $ 283,927,890 | $ 281,771,246 | |||
Weighted average interest rate (as a percent) | 3.91% | ||||
Effective interest rate (as a percent) | 3.98% | ||||
Investment Properties | |||||
Annual maturities of mortgage debt | |||||
2021-current maturities | $ 211,575 | ||||
2022 | 219,910 | ||||
2023 | 228,573 | ||||
2024 | 17,137,577 | ||||
2025 | 10,246,936 | ||||
Thereafter | 139,056,797 | ||||
Total | 167,101,368 | ||||
Less: unamortized deferred financing costs | (768,536) | ||||
Secured Debt | 166,332,832 | $ 166,427,083 | |||
Hamilton Essex 81 | |||||
Annual maturities of mortgage debt | |||||
2025 | 10,000,000 | ||||
Total | 10,000,000 | ||||
Less: unamortized deferred financing costs | (68,945) | ||||
Secured Debt | 9,931,055 | 9,917,266 | |||
345 Franklin | |||||
Annual maturities of mortgage debt | |||||
2021-current maturities | 211,575 | ||||
2022 | 219,910 | ||||
2023 | 228,573 | ||||
2024 | 237,577 | ||||
2025 | 246,936 | ||||
Thereafter | 8,056,797 | ||||
Total | 9,201,368 | ||||
Less: unamortized deferred financing costs | (51,602) | ||||
Secured Debt | 9,149,766 | 9,346,663 | |||
Hamilton Minuteman | |||||
Annual maturities of mortgage debt | |||||
Thereafter | 6,000,000 | ||||
Total | 6,000,000 | ||||
Less: unamortized deferred financing costs | (89,678) | $ (123,000) | |||
Secured Debt | 5,910,322 | 5,902,139 | |||
Hamilton on Main Apts | |||||
Annual maturities of mortgage debt | |||||
2024 | 16,900,000 | ||||
Total | 16,900,000 | ||||
Less: unamortized deferred financing costs | (62,868) | ||||
Secured Debt | 16,837,132 | 16,821,081 | |||
Dexter Park | |||||
Annual maturities of mortgage debt | |||||
Thereafter | 125,000,000 | ||||
Total | 125,000,000 | ||||
Less: unamortized deferred financing costs | (495,443) | ||||
Secured Debt | $ 124,504,557 | $ 124,439,934 | $ 82,000,000 |
EMPLOYEE BENEFIT 401(k) PLANS (
EMPLOYEE BENEFIT 401(k) PLANS (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
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 | $ 33,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jul. 31, 2014 | Aug. 31, 2007 | Oct. 31, 2020 | Sep. 30, 2007 | Dec. 31, 2007 | Jun. 30, 2019 | Dec. 31, 2018 | Aug. 31, 2017 |
Subsequent events | ||||||||
Number of depository receipts repurchased | 1,428,437 | 1,428,437 | 1,428,437 | 1,428,437 | 1,428,437 | |||
Line of Credit | ||||||||
Subsequent events | ||||||||
Maximum borrowings | $ 25,000,000 | |||||||
Term of debt | 3 years | |||||||
Amount of refinancing costs | $ 128,000 | |||||||
Line of Credit | Subsequent event | ||||||||
Subsequent events | ||||||||
Amount of refinancing costs | $ 37,500 | |||||||
Line of credit extension term | 3 years | |||||||
Line of Credit | Federal Funds Rate | ||||||||
Subsequent events | ||||||||
Variable interest rate spread | 0.50% | |||||||
Line of Credit | LIBOR | ||||||||
Subsequent events | ||||||||
Additional applicable margin rate | 2.50% | |||||||
Variable interest rate spread | 1.00% |