NOTE 2. RENTAL PROPERTIES

As of June 30, 2013, the Partnership and its Subsidiary Partnerships owned 2,219 residential apartment units in 19 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of June 30, 2013, the Partnership and its Subsidiary Partnerships owned a commercial shopping center in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in nine residential and mixed use complexes (the “Investment Properties”) at June 30, 2013 with a total of 798 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

Rental properties consist of the following:

	June 30, 2013			December 31, 2012			Useful Life
Land, improvements and parking lots	$	27,799,184		$	27,743,726		15—40 years
Buildings and improvements	119,862,255			118,739,283			15—40 years
Kitchen cabinets	3,963,114			3,544,868			5—10 years
Carpets	3,499,777			3,218,975			5—10 years
Air conditioning	761,371			746,043			5—10 years
Laundry equipment	429,571			378,806			5—7 years
Elevators	1,139,296			1,139,296			20-40 years
Swimming pools	241,772			235,242			10-30 years
Equipment	1,631,336			1,529,904			5—7 years
Motor vehicles	101,657			101,657			5 years
Fences	28,295			22,445			5—15 years
Furniture and fixtures	1,143,141			1,031,348			5—7 years
Smoke alarms	199,021			193,298			5—7 years
Total fixed assets	160,799,789			158,624,893
Less: Accumulated depreciation	(66,507,720		)	(63,651,293		)
	$	94,292,069		$	94,973,600

On April 8, 2013, the Partnership entered into a purchase and sales agreement to sell the Nashoba Apartments in Acton, Massachusetts. On May 29, 2013 this agreement was successfully completed for the sale price of $4,300,000. The net proceeds of approximately $2,100,000 were transferred to Investment Property, Exchange Services, Inc. a Qualified Intermediary. These funds were held by the intermediary in order to maintain the Partnership’s ability to structure a tax free exchange in accordance with the Internal Revenue Service’s rules under Sec. 1031. The gain on the sale in accordance with GAAP is approximately $3,679,000.

On July 15, 2013, Hamilton Green Apartments, LLC, a newly formed subsidiary of the Partnership, purchased Windsor Green at Andover, a 193 unit apartment complex located at 311 and 319 Lowell Street, Andover, Massachusetts. The purchase price was $62,500,000. See Note 16 — Subsequent Events.