10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 001-31568

New England Realty Associates Limited Partnership

(Exact name of registrant as specified in its charter)

Massachusetts	04-2619298
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification no.)
39 Brighton Avenue, Allston, Massachusetts	02134
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 783-0039

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company☐
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

As ofNovember 3, 2015,  there were 100,434 of the registrant’s Class A units (3,013,015 Depositary Receipts) of limited partnership issued and outstanding and 23,935 Class B units issued and outstanding.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

INDEX

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014	4
	Consolidated Statements of Income for the Three Months and Nine Months Ended September 30, 2015 and 2014	5
	Consolidated Statements of Changes in Partners’ Capital for the Nine Months Ended September 30, 2015 and 2014	6
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	40
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosure	42
Item 5.	Other Information	42
Item 6.	Exhibits	42
SIGNATURES		43

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NEW ENGLAND REALTY ASSOCIATES, L.P.

PART 1 -- FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited consolidated balance sheets, statements of income, changes in partners’ capital, and cash flows and related notes thereto, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”).  Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements.  The financial statements reflect all adjustments consisting only of normal, recurring adjustments, which are, in the opinion of management, necessary for a fair presentation for the interim periods.

The consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

The aforementioned financial statements should be read in conjunction with the notes to the aforementioned financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in New England Realty Associates L.P.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

The results of operations for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year or any other period.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	September 30,		December 31,
	2015		2014
ASSETS		(Unaudited)
Rental Properties	$	177,501,683	$	149,116,084
Cash and Cash Equivalents		9,156,753		14,015,898
Rents Receivable		510,026		474,225
Insurance Recovery Receivable		412,502		—
Real Estate Tax Escrows		353,648		340,341
Prepaid Expenses and Other Assets		4,593,176		3,287,005
Investments in Unconsolidated Joint Ventures		8,299,289		8,807,868
Financing Fees		1,570,797		1,735,652
Total Assets	$	202,397,874	$	177,777,073
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable		195,972,822		196,071,540
Notes Payable		25,000,000		—
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		2,212,081		1,425,369
Accounts Payable and Accrued Expenses		4,626,872		3,099,117
Advance Rental Payments and Security Deposits		4,735,554		4,548,729
Total Liabilities		232,547,329		205,144,755
Commitments and Contingent Liabilities (Notes 3 and 9)		—		—
Partners’ Capital 125,976 and 127,653 units outstanding in 2015 and 2014 respectively		(30,149,455)		(27,367,682)
Total Liabilities and Partners’ Capital	$	202,397,874	$	177,777,073

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Revenues
Rental income	$	11,116,471	$	10,546,055	$	33,037,761	$	31,500,342
Laundry and sundry income		93,503		96,973		309,151		321,150
		11,209,974		10,643,028		33,346,912		31,821,492
Expenses
Administrative		502,177		543,704		1,528,710		1,643,185
Depreciation and amortization		2,651,515		2,463,708		7,656,072		7,935,355
Management fee		453,178		438,319		1,369,597		1,303,780
Operating		803,753		838,728		3,798,050		3,540,985
Renting		199,980		155,865		421,181		301,334
Repairs and maintenance		2,006,298		2,087,290		5,176,219		4,899,746
Taxes and insurance		1,258,025		1,388,807		4,171,930		4,180,961
		7,874,926		7,916,421		24,121,759		23,805,346
Income Before Other Income (Expense)		3,335,048		2,726,607		9,225,153		8,016,146
Other Income (Expense)
Interest income		1,055		209		1,393		592
Interest expense		(2,434,000)		(2,393,427)		(7,171,395)		(7,160,489)
Income (Loss) from investments in unconsolidated joint ventures		177,890		(151,902)		524,710		(422,535)
Other expense		(6,247)		—		—		—
		(2,261,302)		(2,545,120)		(6,645,292)		(7,582,432)
Net Income	$	1,073,746	$	181,487	$	2,579,861	$	433,714
Net Income per Unit	$	8.51	$	1.41	$	20.37	$	3.36
Weighted Average Number of Units Outstanding		126,199		128,587		126,636		129,149

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

(Unaudited)

	Units						Partners’s Capital
	Limited		General		Treasury		Limited				General
	Class A	Class B	Partnership	Subtotal	Units	Total	Class A		Class B		Partnership		Total
Balance January 1, 2014	144,180	34,243	1,802	180,225	50,738	129,487	$	(17,485,327)	$	(4,145,076)	$	(218,160)	$	(21,848,563)
Distribution to Partners	—	—	—	—	—	—		(2,319,041)		(550,772)		(28,988)		(2,898,801)
Stock Buyback	—	—	—	—	1,080	(1,080)		(1,258,399)		(290,698)		(15,300)		(1,564,397)
Net Income	—	—	—	—	—	—		346,971		82,406		4,337		433,714
Balance September 30, 2014	144,180	34,243	1,802	180,225	51,818	128,407	$	(20,715,796)		(4,904,141)		(258,111)		(25,878,048)
Balance January1,2015	144,180	34,243	1,802	180,225	52,572	127,653	$	(21,910,488)	$	(5,184,335)	$	(272,859)	$	(27,367,682)
Distribution to Partners	—	—	—	—	—	—		(2,276,458)		(540,659)		(28,456)		(2,845,573)
Stock Buyback	—	—	—	—	1,677	(1,677)		(2,018,329)		(472,845)		(24,887)		(2,516,061)
Net Income	—	—	—	—	—	—		2,063,889		490,174		25,798		2,579,861
Balance September 30, 2015	144,180	34,243	1,802	180,225	54,249	125,976	$	(24,141,386)	$	(5,707,665)	$	(300,404)	$	(30,149,455)

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30,
	2015		2014
Cash Flows from Operating Activities
Net income	$	2,579,861	$	433,714
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		7,656,072		7,935,355
(Income) Loss from investments in joint ventures		(524,710)		422,535
Change in operating assets and liabilities
(Increase)  in rents receivable		(35,801)		(72,411)
Increase (Decrease) in accounts payable and accrued expense		1,527,755		(269,825)
(Increase)  in insurance recovery receivable		(412,502)		—
(Increase) Decrease in real estate tax escrow		(13,307)		71,162
(Increase)  in prepaid expenses and other assets		(1,368,299)		(408,753)
Increase in advance rental payments and security deposits		186,825		108,237
Total Adjustments		7,016,033		7,786,300
Net cash provided by operating activities		9,595,894		8,220,014
Cash Flows From Investing Activities
Proceeds from unconsolidated joint ventures		2,074,993		2,346,690
Distribution in excess of investment in unconsolidated joint ventures		873,545		185,000
(Investment)  in unconsolidated joint ventures		(1,128,538)		(149,190)
Improvement of rental properties		(4,669,977)		(3,701,170)
Purchase of rental property		(6,144,710)		—
Net cash (used in) investing activities		(8,994,687)		(1,318,670)
Cash Flows from Financing Activities
Payment of financing costs		—		(289,561)
Proceeds of mortgage notes payable		—		1,109,555
Principal payments of mortgage notes payable		(98,718)		(3,526,869)
Stock buyback		(2,516,061)		(1,564,397)
Distributions to partners		(2,845,573)		(2,898,801)
Net cash (used in) financing activities		(5,460,352)		(7,170,073)
Net (Decrease) in Cash and Cash Equivalents		(4,859,145)		(268,729)
Cash and Cash Equivalents, at beginning of period		14,015,898		14,013,380
Cash and Cash Equivalents, at end of period	$	9,156,753	$	13,744,651

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2015

(Unaudited)

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business:  New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 25 properties which include 17 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,506 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40- 50% interest in 9 residential and mixed use properties consisting of 789 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation:  The preparation of the financial statements, in conformity with accounting principles generally accepted in the United State of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates.

Principles of Consolidation:  The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the nine limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership.” Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures).

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of  investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment:  On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying

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any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition:  Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Contingent rent for commercial properties are received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease values for acquired properties are amortized as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

Rental Properties:  Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local

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market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Financing and Leasing Fees:  Financing fees are capitalized and amortized, using the interest method, over the life of the related mortgages. Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Income Taxes:  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 2015 or 2014 other than net income as reported.

Income Per Depositary Receipt:  Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split.

Income Per Unit:  Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments:  The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2015 or 2014. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At September 30, 2015, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.35%. At September 30, 2015 and December 31, 2014, respectively approximately $10,420,000, and $15,118,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense:  Advertising is expensed as incurred. Advertising expense was $106,482 and $79,346 for the nine months ended September 30, 2015 and 2014, respectively.

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Discontinued Operations and Rental Property Held for Sale:  In April 2014, the FASB issued guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. This guidance defines a discontinued operation as a component or group of components disposed or classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and final result; the guidance states that a strategic shift could include a disposal of a major geographical area of operations, a major line of business, a major equity method investment or other major parts of an entity.  The guidance also provides for additional disclosure requirements in connection with both discontinued operations and other dispositions not qualifying as discontinued operations.  The guidance will be effective for all companies for annual and interim periods beginning on or after December 15, 2014.  The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  All entities may early adopt the guidance for new disposals (or new classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance.  The Partnership has elected to early adopt this standard effective with the interim period beginning January 1, 2014.  Prior to January 1, 2014, properties identified as held for sale and/or disposed of were presented in discontinued operations for all periods presented.

Interest Capitalized:  The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the nine months ended September 30, 2015 and 2014 there was no capitalized interest.

Extinguishment of Debt:  When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt.

Reclassifications:  Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

NOTE 2. RENTAL PROPERTIES

As of September 30, 2015, the Partnership and its Subsidiary Partnerships owned 2,506 residential apartment units in 21 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of September 30, 2015, the Partnership and Subsidiary Partnerships owned a commercial shopping center in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in nine residential and mixed use complexes (the “Investment Properties”) at September 30, 2015 with a total of 789 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

On September 18, 2015, Residences at Captain Parkers LLC, a newly formed subsidiary of the Partnership, purchased the Residence at Captain Parkers, a 94 unit apartment complex located at 125 Worthen Road and Ryder Lane in Lexington,Massachusetts. The purchase price was $31,600,000 and the closing costs were approximately $49,000. From the purchase price, the Partnership allocated approximately $474,000 for in-place leases, and approximately $31,000 to the value of tenant relationships. These amounts are being amortized over 12 and 24 months respectively. To fund the purchase, the Partnership utilized the available line of credit of $25,000,000, and the balance from the Partnership’s cash reserves.

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Rental properties consist of the following:

	September 30, 2015		December 31, 2014		Useful Life
Land, improvements and parking lots	$	51,713,843	$	44,541,471	15	-	40	years
Buildings and improvements		173,749,025		153,059,430	15	-	40	years
Kitchen cabinets		8,983,374		6,865,348	5	-	10	years
Carpets		8,437,321		6,341,227	5	-	10	years
Air conditioning		772,080		705,116	5	-	10	years
Laundry equipment		236,283		147,721	5	-	7	years
Elevators		1,139,296		1,139,296	20	-	40	years
Swimming pools		444,629		444,629	10	-	30	years
Equipment		6,265,714		5,491,992	5	-	7	years
Motor vehicles		130,859		130,563			5	years
Fences		38,635		24,670	5	-	15	years
Furniture and fixtures		8,705,137		5,910,046	5	-	7	years
Smoke alarms		220,437		220,437	5	-	7	years
Total fixed assets		260,836,633		225,021,946
Less: Accumulated depreciation		(83,334,950)		(75,905,862)
	$	177,501,683	$	149,116,084

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of gross receipts rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $1,370,000 and $1,304,000 for the nine months ended September 30, 2015 and 2014, 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, 2015 and 2014, approximately $719,000 and $630,000, was charged to NERA for legal, accounting, construction, maintenance, rental and architectural services and supervision of capital improvements. Of the 2015 expenses referred to above, approximately $336,000 consisted of repairs and maintenance, and $257,000 of administrative expense. Approximately $126,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2015, the Hamilton Company received approximately $632,000 from the Investment Properties of which approximately $507,000 was the management fee, approximately $79,000 was for maintenance services, approximately $31,000 was for administrative services and $15,000 for architectural services and supervision of capital projects. The management fee is equal to 4% of gross receipts rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the management company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $2,145,000 and $2,385,000 for the nine months ended September 30, 2015 and 2014, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. There were no employer contributions during 2015 and 2014.

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, 2015 and 2014, the Management Company charged the Partnership $93,750($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

The President of the Management Company performs asset management consulting services and receives an asset management fee from the Partnership. The Partnership does not have a written agreement with this individual. During the nine months ended September 30, 2015 and 2014 this individual received fees of $56,250.

The Partnership has invested in nine limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management

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Company. Harold Brown’s ownership interest is between 43.2% and 57%. See Note 14 for a description of the properties and their operations.

See Note 8 for information regarding the repurchase of Class B and General Partnership Units.

NOTE 4. OTHER ASSETS

Approximately $2,218,000, and $2,090,000 of security deposits are included in prepaid expenses and other assets at September 30, 2015 and December 31, 2014, respectively. The security deposits and escrow accounts are restricted cash.

Included in prepaid expenses and other assets at September 30, 2015 and December 31, 2014 is approximately $863,000 and $253,000, respectively, held in escrow to fund future capital improvements. As of September 30, 2015, approximately $551,000 of the replacement reserve was related to the fire damage at Westgate Apartments. The reserve will be refunded when the repairs are complete.

Intangible assets on the acquisitions of Hamilton Green and the Residence at Captain Parkers are included in prepaid expenses and other assets.  Intangible assets are approximately $512,000 net of accumulated amortization of approximately $1,745,000 and approximately $49,000 net of accumulated amortization of approximately $1,703,000 at September 30, 2015 and December 31, 2014, respectively.

Financing fees of approximately $1,571,000 and $1,736,000 are net of accumulated amortization of approximately $778,000 and $613,000 at September 30, 2015 and December 31, 2014 respectively.

NOTE 5. MORTGAGE NOTES PAYABLE

At September 30, 2015 and December 31, 2014, 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, 2015, the interest rates on these loans ranged from  3.76% to 5.97%, payable in monthly installments aggregating approximately $808,000 including principal, to various dates through 2029. The majority of the mortgages are subject to prepayment penalties. At September 30, 2015, the weighted average interest rate on the above mortgages was 4.81%. The effective rate of 4.92% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at September 30, 2015 are as follows:

2015—current maturities	$	726,000
2016		1,821,000
2017		7,840,000
2018		1,921,000
2019		4,337,000
Thereafter		179,328,000
	$	195,973,000

In February 2014, the Partnership paid off the mortgages on Linewt in the amount of approximately $1,466,000 and Linhart in the amount of approximately $1,926,000. There were no prepayment penalties. The Partnership’s cash reserves were used to pay off these mortgages.

On June 11, 2014, the Partnership refinanced the property owned by NERA Dean Street Associates, LLC.  The new mortgage is $5,687,000; the interest rate is 4.22%, interest only payable in 10 years. Approximately $5,077,000 of the loan proceeds were used to pay off the existing mortgage. The mortgage matures in June 2024. The costs associated with the refinancing were approximately $89,000.

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On July 11, 2014, the Partnership refinanced the property owned by Westgate Apartments Burlington, LLC.  The new mortgage is $2,500,000; the interest rate is 4.31%; interest only, payable in 10 years.  Approximately $2,010,000 of loan proceeds were used to pay off the existing mortgage. The mortgage matures in August, 2024. The costs associated with the refinancing were approximately $75,000.

Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit.  The term of the line is three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the  applicable margin of 2.5% . The costs associated with the line of credit were approximately $125,000. As of September 30, 2015, the credit line had a balance of $25,000,000. The interest rate on the line of credit at September 30, 2015 is 3.875%.

On September 15, 2015, the Partnership, in connection with the purchase of the Residence at Captain Parker Apartments, used the entire line of credit, along with cash reserve, to purchase the property. (See Note 2: Rental Properties, for the details of the transaction.)

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay distributions, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

The Partnership paid fees to secure the line of credit. Any unused balance of the line of credit is subject to a fee ranging from 15 to 20 basis points per annum. The Partnership paid approximately $36,000 for the nine months ended September 30, 2015.

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, 2015.

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, 2015, amounts received for prepaid rents of approximately $1,694,000 are included in cash and cash equivalents, and security deposits of approximately $2,218,000 are included in prepaid expenses and other assets and are restricted cash.

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.

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In 2015, the Partnership paid quarterly distributions of $7.50 per unit  ($0.25 per receipt) on March 31, June 30, and September 30, 2015.

In 2014, the Partnership paid quarterly distributions of $7.50 per unit ($0.25 per receipt) in March, June, September, and December for a total distribution of $30.00 per unit ($1.00 per receipt) each year.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Nine Months Ended
	September 30,
	2015		2014
Net Income per Depositary Receipt	$	0.68	$	0.11
Distributions per Depositary Receipt	$	0.75	$	0.75

NOTE 8. TREASURY UNITS

Treasury Units at September 30, 2015 are as follows:

Class A	43,398
Class B	10,308
General Partnership	543
	54,249

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). On January 15, 2008, the General Partner authorized an increase in the Repurchase Program from 300,000 to 600,000 Depositary Receipts. On January 30, 2008 the General Partner authorized an increase the Repurchase Program from 600,000 to 900,000 Depositary Receipts. On March 6, 2008, the General Partner authorized the increase in the total number of Depositary Receipts that could be repurchased pursuant to the Repurchase Program from 900,000 to 1,500,000. On August 8, 2008, the General Partner re- authorized and renewed the Repurchase Program for an additional 12-month period ended August 19, 2009. On March 22, 2010, the General Partner re-authorized and renewed the Repurchase Program that expired on August 19, 2009. Under the terms of the renewed Repurchase Program, the Partnership may purchase up to 1,500,000 Depositary Receipts from the start of the program in 2007 through March 31, 2015. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%,  19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restate Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through September 30, 2015, the Partnership has repurchased 1,327,153 Depositary Receipts at an average price of $26.37 per receipt (or $791.10 per underlying Class A Unit), 2,770 Class B Units and 146 General Partnership Units, both at an average price of $851.67 per Unit, totaling approximately $37,682,000 including brokerage fees paid by the Partnership.

During the nine months ended September 30, 2015, the Partnership purchased a total of 40,237 Depositary Receipts. The average price was $49.47 per receipt or $1,484.10 per unit. The total cost including commission was$2,018,329. The Partnership was required to repurchase 319 Class B Units and 17 General Partnership units at a cost of $472,845 and $24,887 respectively.

From October 1, 2015 through November3, 2015, the Partnership purchased a total of 10,420 Depositary Receipts. The average price was $49.55 per receipt or $1,486.50per unit. The total cost was $524,967. The Partnership is required to repurchase82.5 Class B Units and 4.3 General Partnership Units at a cost of $122,624 and $6,454 respectively.

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NOTE 9. COMMITMENTS AND CONTINGENCIES

From time to time, the Partnership is involved in various ordinary routine litigation incidental to its business. The Partnership either has insurance coverage or provides for any uninsured claims when appropriate. The Partnership is not involved in any material pending legal proceedings.

On June 9, 2015, a fire broke out at 12 Westgate Drive apartment complex in Woburn,MA, resulting in approximately 10 apartments being damaged which will remain unoccupied for an extended period. The Partnership has insurance coverage on both repairs and rental loss for the extended period until the apartments are available for rent, and has received approximately $591,000 from the insurance company to date, leavingan estimated insurance recovery receivable of approximately $361,000at September 30, 2015, which is included in the insurance recovery receivable of $412,502 on the balance sheet.

NOTE 10. RENTAL INCOME

During the nine months ended September 30, 2015, approximately 92% 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 8% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at September 30, 2015 as follows:

	Commercial
	Property Leases
2016	$	2,811,000
2017		2,285,000
2018		2,003,000
2019		1,574,000
2020		936,000
Thereafter		997,000
	$	10,606,000

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 $521,000 and $532,000 for the nine months ended September 30, 2015 and 2014 respectively. Staples and Trader Joes, 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
Throguh September 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2016	$	123,679	6,646	8	4	%
2017		576,040	20,023	9	20	%
2018		402,653	12,357	8	14	%
2019		650,019	23,321	10	22	%
2020		335,312	9,651	5	12	%
2021		647,765	31,274	3	23	%
2022		—	—	—	—	%
2023			—	—	—	%
2024		157,443	4,771	1	5	%
2025			—	—	—	%
Totals	$	2,892,911	108,043	44	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $524,000 and $366,000 at September 30, 2015 and December 31, 2014. Included in rents receivable at September 30, 2015 is approximately $157,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases

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on a straight-line basis. The majority of this amount is for long-term leases with Staples and Trader Joe’s at Staples Plaza in Framingham, Massachusetts.

Rents receivable at September 30, 2015 also includes approximately $111,000 representing the deferral of rental concession primarily related to the residential properties.

For the nine months ended September 30, 2015 rent at the commercial properties includes approximately $1,600 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts.

NOTE 11. CASH FLOW INFORMATION

During the nine months ended September 30, 2015 and 2014, cash paid for interest was approximately $7,214,000, and $6,444,000 respectively.  Cash paid for state income taxes was approximately $19,000and $50,000 during the ninemonths ended September 30, 2015 and 2014 respectively. At September 30, 2015, the Partnership was involved in a non-cash financing activity of $25,000,000 in connection with the purchase of the Residence at Captain Parkers.

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At September 30, 2015 and December 31, 2014, 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, 2015 and December 31, 2014 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, 2015 and December 31, 2014, 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, 2015 and December 31, 2014, 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.

At September 30, 2015, the Partnership has a line of credit outstanding in the amount of $25,000,000, which represents itsfair market value.

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.

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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, 2015	$	195,972,822	$	210,451,015
At December 31, 2014	$	196,071,540	$	210,691,170
Investment Properties
At September 30, 2015	$	136,654,784	$	145,961,955
At December 31, 2014	$	137,910,870	$	147,843,221

Disclosure about fair value of financial instruments is based on pertinent information available to management as of September 30, 2015 and December 31, 2014. 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, 2015 and current estimates of fair value may differ significantly from the amounts presented herein.

NOTE 13. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, accelerated depreciation, different tax lives, and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Taxable loss of approximately $2,100,000was approximately $3,100,000 less than statement income for the year ended December 31, 2014. The primary reason for the difference is due to accelerated depreciation, tax free exchange and other differences in the treatment of certain expenditures. The cumulative tax basis of the Partnership’s real estate at December 31, 2014 is approximately $5,000,000 less than the statement basis. The primary reasons for the lower tax basis are tax free exchanges, and accelerated depreciation. The Partnership’s tax basis in its joint venture investments is approximately $1,300,000 less than statement basis because of accelerated depreciation.

Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidates financial statements.

Allowable accelerated depreciation deductions expired in 2014. This may result in higher taxable income in future years. Future tax law changes may significantly affect taxable income.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance,The Partnership recognized no material adjustment regarding its’ tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of September 30, 2015, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2009 forward.

NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

Since November 2001, the Partnership has invested in nine limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three partnerships investing in commercial property. The Partnership has between a40%-50% ownership interest in each investment. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management Company. Harold Brown’s ownership interest is between 43.2% and 57%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, referred to as Dexter Park, is a 409 unit residential complex. The purchase price was $129,500,000. The total mortgage was $89,914,000 with an interest rate of 5.57% and it matures in 2019. The mortgage calls for interest only payments for the first two years of the loan and

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amortized over 30 years thereafter. The balance of this mortgage is approximately $85,248,000 at September 30, 2015. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On October 3, 2005, the Partnership invested $2,500,000 for a 50% ownership interest in a 168-unit apartment complex in Quincy, Massachusetts. The purchase price was $30,875,000. The Partnership sold 120 units as condominiums and retained 48 units for long-term investment. In February 2007, the Partnership refinanced the 48 units with a new mortgage in the amount of $4,750,000 with an interest rate of 5.57%, interest only for five years. The loan will be amortized over 30 years thereafter and matures in March 2017. As of September 30, 2015, the balance of the mortgage is approximately $4,522,000. This investment is referred to as Hamilton Bay Apartments, LLC. In April 2008, the Partnership refinanced an additional 20 units and obtained a new mortgage in the amount of $2,368,000 with interest at 5.75%, interest only, which matured in 2013. On October 18, 2013, the Partnership and its joint venture partner each made capital contributions to the entity of $660,000. The capital was used to pay off the outstanding mortgage. As of November 1, 2015, 6 units are still owned by the Partnership. This investment is referred to as Hamilton Bay, LLC.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Partnership planned to operate the building andinitiate development of the parking lot. In June 2007, the Partnership separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Partnership restructured the mortgages on both parcels at Essex 81 and transferred the residential apartments to Hamilton Essex 81, LLC.On September 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286.  The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction.  Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC.  On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate.  The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed.The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

.  

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. The interest on the new loan is 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. The balance of this mortgage is approximately $4,752,000 at September 30,2015. 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 Partnership obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Partnership obtained a new 10- year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan is 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. At September 30, 2015, the balance of this mortgage is approximately $5,233,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000.  The Partnership sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place.

In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year

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schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage.In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only.  The Joint Venture Partnership paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership.The costs associated with the refinancing were approximately $161,000.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Partnership paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the property made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed.This investment is referred to as 345 Franklin, LLC.

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Summary financial information as of September 30, 2015

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	8,511,004		$	2,619,374		$	6,859,314		$	4,997,692		$	672,579		$	6,212,058		$	6,371,641		$	18,785,662		$	94,934,158		$	149,963,482
Cash & Cash Equivalents		73,595			81,236			79,265			1,029			8,171			3,998			60,545			216,613			1,023,237			1,547,689
Rent Receivable		40,921			—			8,582			4,272			100			2,820			692			12,320			70,167			139,874
Real Estate Tax Escrow		104,165			—			42,400			75,984			—			55,215			39,403			91,842			242,660			651,669
Prepaid Expenses & Other Assets		121,531			903			45,606			55,877			211,856			60,886			39,742			84,849			1,851,560			2,472,810
Financing & Leasing Fees		137,891			—			84,896			5,824			—			8,748			5,036			143,124			237,485			623,004
Total Assets	$	8,989,107		$	2,701,513		$	7,120,063		$	5,140,678		$	892,706		$	6,343,725		$	6,517,059		$	19,334,410		$	98,359,267		$	155,398,528
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	10,000,000		$	0		$	10,000,000		$	4,752,073		$	—		$	4,521,596		$	5,233,407		$	16,900,000		$	85,247,708		$	136,654,784
Accounts Payable & Accrued Expense		60,815			1,133			83,754			21,998			23,055			6,934			59,805			207,573			754,434			1,219,501
Advance Rental Pmts & Security Deposits		185,386			—			203,378			95,656			5,695			86,897			107,428			314,676			2,349,098			3,348,214
Total Liabilities		10,246,201			1,133			10,287,132			4,869,727			28,750			4,615,427			5,400,640			17,422,249			88,351,240			141,222,499
Partners’ Capital		(1,257,094)			2,700,380			(3,167,069)			270,951			863,956			1,728,298			1,116,419			1,912,161			10,008,027			14,176,029
Total Liabilities and Capital	$	8,989,107		$	2,701,513		$	7,120,063		$	5,140,678		$	892,706		$	6,343,725		$	6,517,059		$	19,334,410		$	98,359,267		$	155,398,528
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,350,190		$	—		$	135,475		$	431,978		$	864,149		$	558,209		$	956,081		$	4,003,209			8,299,289
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(628,547)		$	—		$	(1,583,534)		$	—		$	—		$	—		$	—		$	—		$	—			(2,212,081)
Total Investment in Unconsolidated Joint Ventures (Net)																												$	6,087,208
Total units/condominiums
Apartments		48			—			40			175			120			48			42			148			409			1,030
Commercial		1			1			—			1			—			—			—			—			—			3
Total		49			1			40			176			120			48			42			148			409			1,033
Units to be retained		49			1			40			49			—			48			42			148			409			786
Units to be sold		—			—			—			127			120			—			—			—			—			247
Units sold through November 1, 2015		—			—			—			127			114			—			—			—			—			241
Unsold units		—			—			—			—			6			—			—			—			—			6
Unsold units with deposits for future sale as of November 1, 2015		—			—			—			—			1			—			—			—			—			—

21

Financial information for the nine months ended September 30, 2015

			Hamilton										Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Hamilton		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,090,071	$	217,568	$	1,033,115	$	713,771	$	78,548	$	733,978	$	699,019	$	2,305,464	$	10,650,223	$	17,521,757
Laundry and Sundry Income		10,114		—		323		—		—		—		—		33,335		67,439		111,211
		1,100,185		217,568		1,033,438		713,771		78,548		733,978		699,019		2,338,799		10,717,662		17,632,968
Expenses
Administrative		17,087		1,434		25,912		5,500		6,537		5,507		3,724		32,349		181,425		279,475
Depreciation and Amortization		356,925		7,761		281,390		180,630		26,961		239,898		246,675		726,876		2,452,629		4,519,745
Management Fees		46,666		8,714		42,971		28,273		3,143		28,914		28,974		91,870		227,847		507,372
Operating		81,724		—		67,241		531		476		917		64,428		296,685		971,545		1,483,547
Renting		8,906		—		12,649		—		—		2,350		6,623		5,701		72,373		108,602
Repairs and Maintenance		110,815		200		45,950		235,033		34,914		273,982		56,628		297,165		930,398		1,985,085
Taxes and Insurance		161,702		39,503		89,750		126,255		16,415		115,086		92,943		253,816		1,141,731		2,037,201
		783,825		57,612		565,863		576,222		88,446		666,654		499,995		1,704,462		5,977,948		10,921,027
Income Before Other Income		316,360		159,956		467,575		137,549		(9,898)		67,324		199,024		634,337		4,739,714		6,711,941
Other Income (Loss)
Interest Expense		(337,847)		(40,644)		(293,906)		(206,872)		(268)		(194,411)		(228,380)		(563,622)		(3,656,573)		(5,522,523)
Interest Income		—		—		—		11		—		—		—		—		—		11
Interest Income from Note		—		—		—		—		—		—		—		96		—		96
Gain on Sale of Real Estate		—		—		—		—		76,523		—		—		—		—		76,523
		(337,847)		(40,644)		(293,906)		(206,861)		76,255		(194,411)		(228,380)		(563,526)		(3,656,573)		(5,445,893)
Net Income (Loss)	$	(21,487)	$	119,312	$	173,669	$	(69,312)	$	66,357	$	(127,087)	$	(29,356)	$	70,811	$	1,083,141	$	1,266,048
Net Income (Loss)—NERA 50%	$	(10,744)	$	59,656	$	86,835	$	(34,656)	$	33,179	$	(63,544)	$	(14,678)	$	35,406				91,454
Net Income (Loss)—NERA 40%																	$	433,256		433,256
																			$	524,710

22

Financial information for the three months ended September 30, 2015

													Hamilton		Hamilton
	Hamilton		Hamilton Essex		345		Hamilton		Hamilton		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	368,163	$	72,523	$	354,840	$	236,343	$	19,080	$	246,892	$	231,545	$	781,336	$	3,588,943	$	5,899,665
Laundry and Sundry Income		7,622		—		—		—		—		—		—		10,888		23,361		41,871
		375,785		72,523		354,840		236,343		19,080		246,892		231,545		792,224		3,612,304		5,941,536
Expenses
Administrative		8,781		425		11,531		2,338		1,863		1,883		1,032		12,414		76,791		117,058
Depreciation and Amortization		132,477		2,117		93,804		60,569		8,988		80,607		83,182		243,760		820,856		1,526,360
Management Fees		14,929		2,912		13,731		9,442		820		9,482		9,529		30,816		72,222		163,883
Operating		22,961		—		16,055		183		271		208		17,946		111,793		241,740		411,157
Renting		2,185		—		3,544		—		159		—		1,877		2,300		39,160		49,225
Repairs and Maintenance		44,380		200		26,888		79,646		10,879		87,765		23,864		114,683		390,221		778,526
Taxes and Insurance		54,826		12,659		29,873		40,360		5,479		38,861		30,972		87,515		407,819		708,364
		280,539		18,313		195,426		192,538		28,459		218,806		168,402		603,281		2,048,809		3,754,573
Income Before Other Income		95,246		54,210		159,414		43,805		(9,379)		28,086		63,143		188,943		1,563,495		2,186,963
Other Income (Loss)
Interest Expense		(100,585)		(13,472)		(97,968)		(69,431)		(55)		(65,172)		(76,823)		(189,919)		(1,227,139)		(1,840,564)
Interest Income		—		—		—		3		—		—		—		—		—		3
Gain on sale of real estate		—		—		—		—		76,648		—		—		—		—		76,648
		(100,585)		(13,472)		(97,968)		(69,428)		76,593		(65,172)		(76,823)		(189,919)		(1,227,139)		(1,763,913)
Net Income (Loss)	$	(5,339)	$	40,738	$	61,446	$	(25,623)	$	67,214	$	(37,086)	$	(13,680)	$	(976)	$	336,356	$	423,050
Net Income (Loss)—NERA 50%	$	(2,670)	$	20,369	$	30,723	$	(12,812)	$	33,607	$	(18,543)	$	(6,840)	$	(488)				43,347
Net Income (Loss)—NERA 40%																	$	134,543		134,543
																			$	177,890

23

Future annual mortgage maturities at September 30,  2015 are as follows:

	Hamilon		345		Hamilton		Hamilton		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		1025		Bay Apts		Minuteman		Main Apts		Park		Total
9/30/2016	$	—	$	42,990	$	75,155	$	80,330	$	82,308	$	—	$	1,479,627	$	1,760,410
9/30/2017		—		180,476		4,676,918		4,441,266		5,151,099		—		1,564,180		16,013,939
9/30/2018		—		189,026		—		—		—		—		1,653,563		1,842,589
9/30/2019		—		196,473		—		—		—		—		1,748,055		1,944,528
9/30/2020		—		204,213		—		—		—		—		78,802,283		79,006,496
Thereafter		10,000,000		9,186,822		—		—		—		16,900,000		—		36,086,822
	$	10,000,000	$	10,000,000	$	4,752,073	$	4,521,596	$	5,233,407	$	16,900,000	$	85,247,708	$	136,654,784

At September 30, 2015 the weighted average interest rate on the above mortgages was 5.07%. The effective rate was 5.16% including the amortization expense of deferred financing costs.

24

Summary financial information as of September 30,2014

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	8,619,846		$	2,622,203		$	7,230,839		$	5,215,054		$	1,011,453		$	6,473,921		$	6,628,931		$	19,644,258		$	98,343,487		$	155,789,992
Cash & Cash Equivalents		28,937			149,705			203,001			7,697			741,509			4,188			111,378			2,404,047			1,231,163			4,881,625
Rent Receivable		17,700			—			1,703			14,718			3,049			1,102			2,326			9,845			149,200			199,643
Real Estate Tax Escrow		98,555			—			41,934			71,690			—			43,591			40,212			52,130			356,155			704,267
Prepaid Expenses & Other Assets		95,311			895			50,550			44,962			27,327			44,461			44,558			96,377			1,657,149			2,061,590
Financing & Leasing Fees		33,515			7,753			91,554			10,849			—			15,110			9,005			159,175			295,874			622,835
Total Assets	$	8,893,864		$	2,780,556		$	7,619,581		$	5,364,970		$	1,783,338		$	6,582,373		$	6,836,410		$	22,365,832		$	102,033,028		$	164,259,952
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	8,140,592		$	2,001,159		$	10,000,000		$	4,823,762		$	—		$	4,590,276		$	5,311,923		$	16,900,000		$	86,566,934		$	138,334,646
Accounts Payable & Accrued Expense		150,481			55,616			172,833			27,905			724,100			16,076			123,765			2,142,549			931,507			4,344,832
Advance Rental Pmts& Security Deposits		174,103			—			197,412			103,182			13,487			88,756			95,052			301,976			2,205,078			3,179,046
Total Liabilities		8,465,176			2,056,775			10,370,245			4,954,849			737,587			4,695,108			5,530,740			19,344,525			89,703,519			145,858,524
Partners’ Capital		428,688			723,781			(2,750,664)			410,121			1,045,751			1,887,265			1,305,670			3,021,307			12,329,509			18,401,428
Total Liabilities and Capital	$	8,893,864		$	2,780,556		$	7,619,581		$	5,364,970		$	1,783,338		$	6,582,373		$	6,836,410		$	22,365,832		$	102,033,028		$	164,259,952
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	214,344		$	361,891		$	—		$	205,061		$	522,876		$	943,633		$	652,833		$	1,510,654		$	4,931,804		$	9,343,093
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	—		$	—		$	(1,375,332)		$	—		$	—		$	—		$	—		$	—		$	—			(1,375,332)
Total Investment in Unconsolidated Joint Ventures (Net)																												$	7,967,761
Total units/condominiums
Apartments		48			—			40			175			120			48			42			148			409			1,030
Commercial		1			1			—			1			—			—			—			—			—			3
Total		49			1			40			176			120			48			42			148			409			1,033
Units to be retained		49			1			40			49			0			48			42			148			409			786
Units to be sold		—			—			—			127			120			—			—			—			—			247
Units sold through November 1, 2014		—			—			—			127			111			—			—			—			—			238
Unsold units		—			—			—			—			9			—			—			—			—			9
Unsold units with deposits for future sale as of November 1, 2014		—			—			—			—			—			—			—			—			—			—

25

Financial information for the nine months ended September 30, 2014

			Hamilton						Hamilton				Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Bay		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,043,460	$	218,995	$	994,331	$	698,401	$	151,937	$	704,397	$	683,025	$	2,177,950	$	10,143,620	$	16,816,116
Laundry and Sundry Income		12,425		—		—		—		—		—		844		29,213		75,213		117,695
		1,055,885		218,995		994,331		698,401		151,937		704,397		683,869		2,207,163		10,218,833		16,933,811
Expenses
Administrative		23,376		1,180		32,580		6,784		3,388		14,493		8,104		42,799		181,661		314,365
Depreciation and Amortization		324,833		8,466		300,816		180,524		57,524		238,744		240,486		716,092		4,048,679		6,116,164
Management Fees		43,937		8,760		41,823		27,973		5,888		28,206		28,489		86,429		217,031		488,536
Operating		96,904		—		45,984		523		1,028		1,683		60,631		288,912		960,938		1,456,603
Renting		11,875		—		11,368		5,918		753		5,042		7,571		21,131		156,856		220,514
Repairs and Maintenance		125,411		3,150		56,421		246,576		74,719		223,566		58,132		292,004		927,771		2,007,750
Taxes and Insurance		172,802		40,498		87,842		119,861		30,025		120,392		89,496		279,034		1,155,775		2,095,725
		799,138		62,054		576,834		588,159		173,325		632,126		492,909		1,726,401		7,648,711		12,699,657
Income Before Other Income		256,747		156,941		417,497		110,242		(21,388)		72,271		190,960		480,762		2,570,122		4,234,154
Other Income (Loss)
Interest Expense		(361,857)		(41,932)		(293,469)		(210,158)		(485)		(197,633)		(231,196)		(610,958)		(3,710,651)		(5,658,339)
Interest Income		—		—		—		15		468		—		—		—		—		483
Gain on sale of real estate		—		—		—		—		350,523		—		—		—		—		350,523
		(361,857)		(41,932)		(293,469)		(210,143)		350,506		(197,633)		(231,196)		(610,958)		(3,710,651)		(5,307,333)
Net Income (Loss)	$	(105,110)	$	115,009	$	124,028	$	(99,901)	$	329,118	$	(125,362)	$	(40,236)	$	(130,196)	$	(1,140,529)	$	(1,073,179)
Net Income (Loss)—NERA 50%	$	(52,555)	$	57,505	$	62,014	$	(49,951)	$	164,559	$	(62,681)	$	(20,118)	$	(65,098)				33,677
Net Income (Loss)—NERA 40%																	$	(456,212)		(456,212)
																			$	(422,535)

26

Financial information for the three months ended September 30, 2014

			Hamilton						Hamilton				Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Bay		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	373,304	$	72,523	$	335,607	$	250,921	$	45,216	$	242,294	$	226,213	$	737,588	$	3,433,856	$	5,717,522
Laundry and Sundry Income		4,306		—		—		—		—		—		676		10,065		26,620		41,667
		377,610		72,523		335,607		250,921		45,216		242,294		226,889		747,653		3,460,476		5,759,189
Expenses
Administrative		6,235		350		12,719		2,624		715		3,916		2,661		12,037		64,668		105,925
Depreciation and Amortization		108,663		2,822		100,712		60,204		19,174		80,047		81,233		242,960		1,354,577		2,050,392
Management Fees		14,832		2,901		13,319		9,330		1,613		9,606		9,536		28,609		68,588		158,334
Operating		27,938		—		13,390		171		423		643		16,528		82,442		224,085		365,620
Renting		908		—		7,745		—		—		—		1,482		3,034		99,320		112,489
Repairs and Maintenance		51,584		—		25,489		81,607		27,069		79,825		19,697		101,601		413,587		800,459
Taxes and Insurance		55,807		12,859		29,643		38,487		7,360		38,387		30,264		87,450		398,451		698,708
		265,967		18,932		203,017		192,423		56,354		212,424		161,401		558,133		2,623,276		4,291,927
Income Before Other Income		111,643		53,591		132,590		58,498		(11,138)		29,870		65,488		189,520		837,200		1,467,262
Other Income (Loss)
Interest Expense		(121,659)		(14,036)		(97,895)		(70,528)		(86)		(66,300)		(77,635)		(208,944)		(1,245,694)		(1,902,777)
Interest Income		—		—		—		6		—		—		—		—		—		6
Gain on sale of Real Estate		—		—		—		—		50,001		—		—		—		—		50,001
		(121,659)		(14,036)		(97,895)		(70,522)		49,915		(66,300)		(77,635)		(208,944)		(1,245,694)		(1,852,770)
Net Income (Loss)	$	(10,016)	$	39,555	$	34,695	$	(12,024)	$	38,777	$	(36,430)	$	(12,147)	$	(19,424)	$	(408,494)	$	(385,508)
Net Income (Loss)—NERA 50%	$	(5,008)	$	19,778	$	17,348	$	(6,012)	$	19,389	$	(18,215)	$	(6,074)	$	(9,712)				11,493
Net Income (Loss)—NERA 40%																	$	(163,395)		(163,395)
																			$	(151,902)

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NOTE 15. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”), which makes certain changes to both the variable interest model and the voting model, including changes to (1) the identification of variable interests (fees paid to a decision maker or service provider), (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. ASU 2015-02 is effective for us beginning January 1, 2016. We are continuing to evaluate this guidance; however, we do not expect its adoption to have a significant impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. Upon adoption, we will apply the new guidance on a retrospective basis and adjust the balance sheet of each individual period presented to reflect the period-specific effects of applying the new guidance. This guidance is effective for us beginning January 1, 2016. We are continuing to evaluate this guidance; however, we do not expect its adoption to have a significant impact on our consolidated financial statements.

NOTE 16—SUBSEQUENT EVENTS

From October 1, 2015 through November 5, 2015, the Partnership purchased a total of 10,420 Depositary Receipts. The average price was $49.55per receipt or $1,486.50  per unit. The total cost was $524,967. The Partnership is required to repurchase 82.5 Class B Units and 4.3 General Partnership Units at a cost of $122,624and $6,454respectively.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

Certain information contained herein includes forward looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Liquidation Reform Act of 1995 (the “Act”). Forward looking statements in this report, or which management may make orally or in written form from time to time, reflect management’s good faith belief when those statements are made, and are based on information currently available to management. Caution should be exercised in interpreting and relying on such forward looking statements, the realization of which may be impacted by known and unknown risks and uncertainties, events that may occur subsequent to the forward looking statements, and other factors which may be beyond the Partnership’s control and which can materially affect the Partnership’s actual results, performance or achievements for 2015 and beyond. Should one or more of the risks or uncertainties mentioned below materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update our forward looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

Since the Partnership’s long-term goals include the acquisition of additional properties, a portion of the proceeds from the refinancing and sale of properties is reserved for this purpose.  If available acquisitions do not meet the Partnership’s investment criteria, the Partnership may purchase additional depositary receipts.  The Partnership will consider refinancing existing properties if the Partnership’s cash reserves are insufficient to repay existing mortgages or if the Partnership needs additional funds for future acquisitions.

The third quarter performance is consistent with Management’s expectations  noted in the second quarter Form 10-Q.Top line revenue growth for the third quarter came largely from the previous rental period cycle.  However, third quarter revenue gains were also achieved consistent with Management’s expectations which will  become  evident in the fourth quarter.  Both renewal and market rate increases were similar to 2014 renewal and market rate increases.  Operating expenses continue to be in check and the portfolio continues to benefit from the oil to gas conversions of four years ago with higher efficiency boilers and low natural gas costs.  Management continues to emphasize internal and external curb appeal which are part of the drivers  in the revenue gains and also serve as competitive advantage during a downturn.  Overall, Management expects the revenue and operating expense trends for same properties in service to continue for the balance of the year.

During the third  quarter, the Partnership purchased a 94 unit apartment complex in Lexington, Residences at Captain Parkers, for $31.6 million. Combined with the properties at Battle Green (48 units) and Hamilton Minuteman, Joint venture ( 42 units), the Partnership now operates 184 units in Lexington, MA.  Each of these properties appeal to high income renters working in the local area desirous of the highly rated public school system.  Management now has economies and cross selling opportunities with this presence in Lexington.  With immediate one time changes in operations and capital improvements in heating and electric systems, Management anticipates  a significant  reduction in  certain operating expenses and a higher than average rate of return on this purchase.  Both the Partnership funds and Line of Credit were drawn to effect the purchase.  Management anticipates a first  quarter, 2016 refinancing substantially paying down the line of credit.

The Stock Repurchase Program that was initiated in 2007 has purchased 1,327,153 Depositary Receipts through September 30, 2015 or 31% of the outstanding Class A Depositary Receipts.  During the third quarter, the Partnership repurchased 10,157 Class A Depositary Receipts, 80 Class B units, and 4 General Partnership Units at a cost of approximately $513,000, $118,000 and $6,000 respectively for a total cost of $637,000.  This purchase of receipts is in line with the Partnership’s trading plan.  Management anticipates a steady purchase of receipts, per its trading plan, for the balance of the year.

At November 1, 2015, Harold Brown, his brother Ronald Brown and the President of Hamilton, Carl Valeri, collectively own approximately 42% of the Depositary Receipts representing the Partnership Class A Units (including Depositary Receipts held by trusts for the benefit of such persons’ family members). Harold Brown also controls 75% of the Partnership’s Class B Units, 75% of the capital stock of NewReal, Inc. (“NewReal”), the Partnership’s sole general

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partner, and all of the outstanding stock of Hamilton. Ronald Brown also owns 25% of the Partnership’s Class B Units and 25% of NewReal’s capital stock. In addition, Ronald Brown is the President and director of NewReal and Harold Brown is NewReal’s Treasurer and a director. The 75% of the issued and outstanding Class B units of the Partnership, controlled by Harold Brown, are owned by HBC Holdings LLC, an entity of which he is the manager.

In addition to the Management Fee, the Partnership Agreement further provides for the employment of outside professionals to provide services to the Partnership and allows NewReal to charge the Partnership for the cost of employing professionals to assist with the administration of the Partnership’s properties. Additionally, from time to time, the Partnership pays Hamilton for repairs and maintenance services, legal services, construction services and accounting services. The costs charged by Hamilton for these services are at the same hourly rate charged to all entities managed by Hamilton, and management believes such rates are competitive in the marketplace.

Residential tenants sign a one year lease. During the nine months ended September 30, 2015, tenant renewals were approximately 63% with an average rental increase of approximately 4.3%, new leases accounted for approximately 37% with rental rate increases of approximately 5.7%.  During the nine months ended September 30, 2015, leasing commissions were approximately $226,000 compared to approximately $178,000 for the nine months ended September 30, 2014, an increase of approximately $48,000 (27.0%) from 2014. Tenant concessions were approximately $79,000 in for the nine months ended September 30, 2015, compared to approximately $27,000 for the nine months ended September 30, 2014, an increase of approximately $52,000 (192.6%).  Tenant improvements were approximately $2,383,000 for the nine months ended September 30, 2015, compared to approximately $2,040,000 for the nine months ended September 30, 2014, an increase of approximately $343,000 (16.8%).

Hamilton accounted for approximately 6.5% of the repair and maintenance expenses paid for by the Partnership during the nine months ended September30, 2015 and 5.2% during the nine months ended September 30, 2014. Of the funds paid to Hamilton for this purpose, the great majority was to cover the cost of services provided by the Hamilton maintenance department, including plumbing, electrical, carpentry services, and snow removal for those properties close to Hamilton’s headquarters. Several of the larger Partnership properties have their own maintenance staff. Those properties that do not have their own maintenance staff and are located more than a reasonable distance from Hamilton’s headquarters in Allston, Massachusetts are generally serviced by local, independent companies.

Hamilton’s legal department handles most of the Partnership’s eviction and collection matters. Additionally, it prepares most long-term commercial lease agreements and represents the Partnership in selected purchase and sale transactions. Overall, Hamilton provided approximately $164,000 (75.8%) and approximately $167,000 (75.8%) of the legal services paid for by the Partnership during the nine months ended September 30, 2015 and 2014, respectively.

Additionally, as described in Note 3 to the consolidated financial statements, The Hamilton Company receives similar fees from the Investment Properties.

The Partnership requires that three bids be obtained for construction contracts in excess of $15,000. Hamilton may be one of the three bidders on a particular project and may be awarded the contract if its bid and its ability to successfully complete the project are deemed appropriate. For contracts that are not awarded to Hamilton, Hamilton charges the Partnership a construction supervision fee equal to 5% of the contract amount. Hamilton’s architectural department also provides services to the Partnership on an as-needed basis.  During the nine months ended September 30, 2015, Hamilton provided the Partnership approximately $126,000 in construction and architectural services, compared to approximately $107,000 for the nine months ended September 30, 2014.

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the nine months ended September 30, 2015 and 2014, Hamilton charged the Partnership $93,750 for bookkeeping and accounting services. For more information on related party transactions, see Note 3 to the Consolidated Financial Statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of the consolidated financial statements, in accordance with accounting principles generally accepted in the United States of America, requires the Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The Partnership regularly and continually evaluates its estimates, including those related to acquiring, developing and

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assessing the carrying values of its real estate properties and its investments in and advances to joint ventures. The Partnership bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgment. The Partnership’s critical accounting policies are those which require assumptions to be made about such matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances. See Note 1 to the Consolidated Financial Statements, Principles of Consolidation.

Revenue Recognition:  Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Concessions made on residential leases are also accounted for on the straight-line basis.

Discontinued Operations and Rental Property Held for Sale:  In April 2014, the FASB issued guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. This guidance defines a discontinued operation as a component or group of components disposed or classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and final result; the guidance states that a strategic shift could include a disposal of a major geographical area of operations, a major line of business, a major equity method investment or other major parts of an entity.  The guidance also provides for additional disclosure requirements in connection with both discontinued operations and other dispositions not qualifying as discontinued operations.  The guidance will be effective for all companies for annual and interim periods beginning on or after December 15, 2014.  The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  All entities may early adopt the guidance for new disposals (or new classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance.  The Partnership has elected to early adopt this standard effective with the interim period beginning January 1, 2014.  Prior to January 1, 2014, properties identified as held for sale and/or disposed of were presented in discontinued operations for all periods presented.

Rental Properties:  Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Intangible assets acquired include amounts for in-place lease values above and below market leases 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

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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.

Impairment:  On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties may be impaired. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved. The Partnership has not recognized an impairment loss during the first nine months of 2015.

Investments in 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 value of investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

With respect to investments in and advances to the Investment Properties, the Partnership looks to the underlying properties to assess performance and the recoverability of carrying amounts for those investments in a manner similar to direct investments in real estate properties. An impairment charge is recorded if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property.

Legal Proceedings:  The Partnership is subject to various legal proceedings and claims that arise, from time to time, in the ordinary course of business. These matters are frequently covered by insurance. If it is determined that a loss is likely to occur, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered likely can be difficult to determine.

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RESULTS OF OPERATIONS

Three Months Ended September 30, 2015 and September 30, 2014

The Partnership and its Subsidiary Partnerships earned income before interest expense, income (loss) from investments in unconsolidated joint ventures and other income and expense of approximately $3,335,000 during the three months ended September 30, 2015, compared to approximately $2,727,000 for the three months ended September 30, 2014, an increase of approximately 608,000 (22.3%).

The rental activity is summarized as follows:

	Occupancy Date
	November 1, 2015		November 1, 2014
Residential
Units	2,525		2,431
Vacancies	73		99
Vacancy rate	2.9	%	4.1	%
Commercial
Total square feet	108,043		108,043
Vacancy	0		0
Vacancy rate	0.0	%	0.0	%

	Rental Income (in thousands)
	Three Months Ended September 30,
	2015						2014
	Total			Continuing			Total			Continuing
	Operations			Operations			Operations			Operations
Total rents	$	11,116		$	11,116		$	10,546		$	10,546
Residential percentage		92	%		92	%		91	%		91	%
Commercial percentage		8	%		8	%		9	%		9	%
Contingent rentals	$	176		$	176		$	217		$	217

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Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014:

	Three Months Ended September 30,				Dollar		Percent
	2015		2014		Change		Change
Revenues
Rental income	$	11,116,471	$	10,546,055	$	570,416	5.4%
Laundry and sundry income		93,503		96,973		(3,470)	(3.6%)
		11,209,974		10,643,028		566,946	5.3%
Expenses
Administrative		502,177		543,704		(41,527)	(7.6%)
Depreciation and amortization		2,651,515		2,463,708		187,807	7.6%
Management fee		453,178		438,319		14,859	3.4%
Operating		803,753		838,728		(34,975)	(4.2%)
Renting		199,980		155,865		44,115	28.3%
Repairs and maintenance		2,006,298		2,087,290		(80,992)	(3.9%)
Taxes and insurance		1,258,025		1,388,807		(130,782)	(9.4%)
		7,874,926		7,916,421		(41,495)	(0.5%)
Income Before Other Income  (Expense)		3,335,048		2,726,607		608,441	22.3%
Other Income (Expense)
Interest income		1,055		209		846	404.8%
Interest expense		(2,434,000)		(2,393,427)		(40,573)	1.7%
Other ( Expense)		(6,247)		—		(6,247)
Income (Loss) from investments in unconsolidated joint ventures		177,890		(151,902)		329,792	(217.1%)
		(2,261,302)		(2,545,120)		283,818	(11.2%)
Net Income	$	1,073,746	$	181,487	$	892,259	491.6%

Rental income from continuing operations for the three months ended September 30, 2015 was approximately $11,116,000, compared to approximately $10,546,000 for the three months ended September 30, 2014, an increase of approximately $570,000 (5.4%).The factors that can be attributed to this increase are as follows: the acquisition of Captain Parker resulted in an increase  in rental income of approximately $99,000. In addition,rental income has increased at a number of properties due to increased demand and increases in rental rates. The Partnership Properties with the most significant increases in rental income include, 62 Boylston Street, Hamilton Oaks, 1144 Commonwealth Avenue,   Hamilton Green, School Street and Dean Street Associates Street with increases of approximately $64,000, $54,000, $51,000, $46,000, $44,000, and $37,000  respectively. Included in rental income is contingent rentals collected on commercial properties. Contingent rentals include such charges as bill backs of common area maintenance charges, real estate taxes, and utility charges.

Operating expenses from continuing operations for the three months ended September 30, 2015 were approximately $7,875,000 compared to approximately $7,916,000 for the three months ended September 30, 2014, a decrease of approximately $41,000 (0.5%).  The  factors contributing to this net decrease are a decrease in taxes and insurance of approximately $131,000 (9.4%) due to a decrease in insurance costs, a decrease in repairs and maintenance of approximately $81,000 (3.9%) primarily due to a decrease in environmental services, and a decrease in administrative expenses of approximately $42,000 (7.6%) primarily due  to a decrease in professional fees, partially  offset by an increase in depreciation and amortization of approximately $188,000 (7.6%) primarily due to amortization and depreciation costs related to the acquisition of  the Residence at Captain Parker.

Interest expense for the three months ended September 30, 2015 was approximately $2,434,000 compared to approximately $2,393,000 for the three months ended September 30, 2014, anincrease of approximately $41,000 (1.7%).  This was primarily due to the the use of the line of credit of $25,000,000 in conjunction with the purchase of the Residences At  Captain Parkers on September 18,2015.

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At September 30, 2015, the Partnership has between a 40% and 50% ownership interests in nine different Investment Properties. See a description of these properties included in the section titled Investment Properties as well as Note 14 to the Consolidated Financial Statements for a detail of the financial information of each Investment Property.

As described in Note 14 to the Consolidated Financial Statements, the Partnership’s share of the net  income  from the Investment Properties was approximately $178,000 for the three months ended September 30, 2015, compared to a loss of approximately $152,000 for the three months ended September 30, 2014, an increase in income of approximately $330,000 (217.1%). This increase is primarily due to an increase in rental revenue of approximately $181,000, a decrease in depreciation and amortization expense of approximately $524,000, and a gain of approximately $77,000 on the sale of one  unit at Hamilton Bay LLC for the three months ended September 30, 2015, compared to a gain of approximately $50,000 for the three months ended September 30, 2014.Included in the income for the three months ended September 30, 2015 is depreciation and amortization expense of approximately $1,526,000. The allocable income for the three months ended September 30, 2015 from the investment in Dexter Park is approximately $135,000.

As a result of the changes discussed above, net income for the three months ended September 30, 2015 was approximately $1,074,000 compared to income of approximately $181,000 for the three months ended September 30, 2014, an increase in income of approximately $893,000 (491.6 %).

Nine Months Ended September 30, 2015 Compared to Nine Months Ended September 30, 2014

The Partnership and its Subsidiary Partnerships earned income before interest expense, income (loss) from investments in unconsolidated joint ventures and other income and expense of approximately $9,225,000 for the nine months ended September  30, 2015, compared to approximately $8,016,000 for the nine months ended September  30, 2014, an increase of approximately $1,209,000 (15.08 %).  The following is a summary of the Partnership’s operations for the nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30,				Dollar		Percent
	2015		2014		Change		Change
Revenues
Rental income	$	33,037,761	$	31,500,342	$	1,537,419	4.9%
Laundry and sundry income		309,151		321,150		(11,999)	(3.7%)
		33,346,912		31,821,492		1,525,420	4.8%
Expenses
Administrative		1,528,710		1,643,185		(114,475)	(7.0%)
Depreciation and amortization		7,656,072		7,935,355		(279,283)	(3.5%)
Management fee		1,369,597		1,303,780		65,817	5.0%
Operating		3,798,050		3,540,985		257,065	7.3%
Renting		421,181		301,334		119,847	39.8%
Repairs and maintenance		5,176,219		4,899,746		276,473	5.6%
Taxes and insurance		4,171,930		4,180,961		(9,031)	(0.2%)
		24,121,759		23,805,346		316,413	1.3%
Income Before Other Income ( Expense)		9,225,153		8,016,146		1,209,007	15.1%
Other Income (Expense)
Interest income		1,393		592		801	135.3%
Interest expense		(7,171,395)		(7,160,489)		(10,906)	0.2%
Income (Loss) from investments in unconsolidated joint ventures		524,710		(422,535)		947,245	(224.2%)
		(6,645,292)		(7,582,432)		937,140	(12.4%)
Net Income	$	2,579,861	$	433,714	$	2,146,147	494.8%

Rental income from continuing operations for the nine months ended September 30, 2015 was approximately $33,038,000 compared to approximately $31,500,000 for the nine months ended September 30, 2014, an increase of approximately $1,538,000 (4.9%). The factors that contribute to this increase can be attributed as follows: the acquisition

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of the Residence at Captain Parkers resulted in an increase of rental income of approximately $99,000. In addition,rental income has increased at a number of properties due to increased demand and increases in rental rates. The following properties experienced rental income increases:  62 Boylston Street,1144 Commonwealth Avenue,  Westgate Apartments, 9 School Street, Hamilton Oaks and Hamilton Green,  with increases of approximately $206,000, $196,000, $126,000, $101,000, $94,000, and $88,000 respectively.

Expenses from continuing operations for the nine months ended September 30, 2015 were approximately $24,122,000 compared to approximately $23,805,000 for the nine months ended September 30, 2014, an increase of approximately $316,000 (1.3%).The factors contributing to this increase are:  an increase in repairs and maintenance of approximately $276,000 (5.6%) due to an increase in demand for repairs to the properties, an increase in operating expenses of approximately $257,000 (7.3%), due to an increase of snow removal expense of approximately $380,000 due to the severe winter snowstorms experienced in the first quarter of 2015, an increase in renting expenses of approximately $120,000 (39.8%), due to an increase in rental costs and commissions, partially offset by a decrease in depreciation  and amortization of approximately $279,000 (3.5%), primarily due to the full amortization of  in-place leases at Hamilton Green in 2014, and a decrease in administrative expenses of approximately $114,000 (7.0%), primarily due to a decrease in professional fees of approximately $106,000.

Interest expense for the nine months ended September 30, 2015 was approximately $7,171,000 compared to approximately $7,160,000 for the nine months ended September 30, 2014, anincrease of approximately $11,000 (0.2%).  This was primarily due to the Partnership utilizing the line of credit to fund the purchase of the Residence at Captain Parker apartments, partially offset by paying off two mortgages during 2014, (Linhart and Linewt), and refinancing Dean Street Associates, resulting in lower interest expense for the  nine months  ended September 30, 2015.

At September 30, 2015, the Partnership has between a 40 - 50% ownership interest in nine Investment Properties. See a description of these properties included in Note 14 to the Consolidated Financial Statements for a detail of the financial information of each Investment Property.

As described in Note 14 to the Consolidated Financial Statements, the Partnership’s share of income from these Investment Properties was approximately $525,000 for the nine months ended September 30, 2015 compared to a loss ofapproximately $423,000 for the nine months ended September 30, 2014, an increase of approximately $948,000 (224.2%).  This increase is primarily due to an increase in rental revenue of approximately $705,000, and a decrease in depreciation and amortization expense of approximately $1,596,000, partially offset by a decrease in the gain of approximately $274,000 on the sale of one rental unit at Hamilton Bay LLC for the nine months ended September 30,2015, compared to five rental units sold for the nine months ended September 30, 2014. Included in the income for the nine months ended September 30, 2015 is depreciation and amortization expense of approximately $4,520,000. The allocable income for the nine months ended September 30, 2015 from the investment in Dexter Park is approximately $433,000.

As a result of the changes discussed above,  the Partnership’s net income for the nine months ended September 30, 2015 was approximately $2,580,000 compared to net income of $434,000 an increase of approximately $2,146,000 (494.8%).

LIQUIDITY AND CAPITAL RESOURCES

The Partnership’s principal source of cash during the first nine months of 2015 was the collection of rents and the proceeds from a line of credit.  The Partnership’s principal source of cash in 2014 was the collection of rents. The majority of cash and cash equivalents of $9,156,753 at September 30, 2015 and $14,015,898  at December 31, 2014 were held in interest bearing accounts at creditworthy financial institutions.

36

The decrease in cash of $4,859,145  for the nine months ended  September 30, 2015 is summarized as follows:

	Nine Months Ended September 30,
	2015		2014
Cash provided by operating activities	$	9,595,894	$	8,220,014
Cash (used in) investing activities		(8,994,687)		(1,318,670)
Cash  (used in) financing activities		(98,718)		(2,706,875)
Repurchase of Depositary Receipts, Class B and General Partner Units		(2,516,061)		(1,564,397)
Distributions paid		(2,845,573)		(2,898,801)
Net (decrease) in cash and cash equivalents	$	(4,859,145)	$	(268,729)

The increase in cash provided by operating activities is primarily due to an increase in rent collections and a decrease in cash operating expenses. The increase in cash used in investing activities is due to an increase in the improvements to rental properties in 2015 compared to the same period in 2014, and the purchase of the Residence at Captain Parker.  The change in cash used in financing activities is due to the payment of mortgage notes payable in 2015,and the refinancing of several mortgages in 2014. During the nine months ended September 30, 2015, the Partnership purchased 40,237 Depositary Receipts for an average price of $ 49.47 for a total cost of $2,018,329;  319 Class B Units for a cost of $472,845 and 17 General Partnership Units for a cost of $ 24,887, for a total cost of $2,516,061.

During 2015, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $4,670,000. These improvements were funded from cash reserves. Cash reserves have been adequate to fully fund improvements. The most significant improvements were made at Westgate Woburn, River Drive Apartments, 62 Boylston Street,  Hamilton Oaks,Westside Colonial and Redwood Hills , at a cost of approximately  $1,046,000, $586,000, $519,000, $394,000, $370,000, and $291,000  respectively. The Partnership plans to invest approximately $500,000 in additional capital improvements in 2015.

On June 11, 2014, the Partnership refinanced the property owned by NERA Dean Street Associates, LLC.  The new mortgage was  $5,687,000; the interest rate  was 4.22%, interest only, payable in 10 years. Approximately $5,077,000 of the loan proceeds were used to pay off the existing mortgage.  The mortgage matures in June 2024. The costs associated with the refinancing were approximately $99,000. Approximately $610,000 in cash was received from this refinancing.

In February 2014, the Partnership paid off the mortgages on Linewt in the amount of approximately $1,466,000 and Linhart in the amount of approximately $1,926,000.

On September 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286.  The Partnership made a capital contribution of $978,193 to Essex Development for its share of the funds required for the transaction.  Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC.  On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate.  The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds.

During the nine months ended September 30, 2015 the Partnership received distributions of approximately $2,949,000 from the investment properties. For the nine months ended September 30, 2014, the Partnership received $2,532,000 from the investment properties.  Included in these distributions is the amount from Dexter Park of $1,070,000 and $610,000 for the nine months ended September 30, 2015 and 2014 respectively.

The Partnership anticipates that cash from operations and interest bearing accounts will be sufficient to fund its current operations, pay distributions, make required debt payments and to finance current improvements to its properties. The Partnership may also sell or refinance properties. The Partnership’s net income and cash flow may fluctuate dramatically from year to year as a result of the sale or refinancing of properties, increases or decreases in rental income or expenses, or the loss of significant tenants.

37

Off-Balance Sheet Arrangements—Joint Venture Indebtedness

As of September 30, 2015, the Partnership had a 40%-50% ownership interest in nine Joint Ventures, all of which have mortgage indebtedness. We do not have control of these partnerships and therefore we account for them using the equity method of consolidation. At September 30, 2015, our proportionate share of the non-recourse debt related to these investments was approximately $59,803,000. See Note 14 to the Consolidated Financial Statements.

Contractual Obligations

See Notes 5 and 14 to the Consolidated Financial Statements for a description of mortgage notes payable. The Partnerships has no other material contractual obligations to be disclosed.

Factors That May Affect Future Results

Along with risks detailed in Item 1A and from time to time in the Partnership’s filings with the Securities and Exchange Commission, some factors that could cause the Partnership’s actual results, performance or achievements to differ materially from those expressed or implied by forward looking statements include but are not limited to the following:

· The Partnership depends on the real estate markets where its properties are located, primarily in Eastern Massachusetts, and these markets may be adversely affected by local economic market conditions, which are beyond the Partnership’s control.

· The Partnership is subject to the general economic risks affecting the real estate industry, such as dependence on tenants’ financial condition, the need to enter into new leases or renew leases on terms favorable to tenants in order to generate rental revenues and our ability to collect rents from our tenants.

· The Partnership is also impacted by changing economic conditions making alternative housing arrangements more or less attractive to the Partnership’s tenants, such as the interest rates on single family home mortgages and the availability and purchase price of single family homes in the Greater Boston metropolitan area.

· The Partnership is subject to significant expenditures associated with each investment, such as debt service payments, real estate taxes, insurance and maintenance costs, which are generally not reduced when circumstances cause a reduction in revenues from a property.

· The Partnership is subject to increases in heating and utility costs that may arise as a result of economic and market conditions and fluctuations in seasonal weather conditions.

· Civil disturbances, earthquakes and other natural disasters may result in uninsured or underinsured losses.

· Actual or threatened terrorist attacks may adversely affect our ability to generate revenues and the value of our properties.

· Financing or refinancing of Partnership properties may not be available to the extent necessary or desirable, or may not be available on favorable terms.

· The Partnership properties face competition from similar properties in the same market. This competition may affect the Partnership’s ability to attract and retain tenants and may reduce the rents that can be charged.

· Given the nature of the real estate business, the Partnership is subject to potential environmental liabilities. These include environmental contamination in the soil at the Partnership’s or neighboring real estate, whether caused by the Partnership, previous owners of the subject property or neighbors of the subject property, and the presence of hazardous materials in the Partnership’s buildings, such as asbestos, lead, mold and radon gas. Management is not aware of any material environmental liabilities at this time.

38

· Insurance coverage for and relating to commercial properties is increasingly costly and difficult to obtain. In addition, insurance carriers have excluded certain specific items from standard insurance policies, which have resulted in increased risk exposure for the Partnership. These include insurance coverage for acts of terrorism and war, and coverage for mold and other environmental conditions. Coverage for these items is either unavailable or prohibitively expensive.

· Market interest rates could adversely affect market prices for Class A Partnership Units and Depositary Receipts as well as performance and cash flow.

· Changes in income tax laws and regulations may affect the income taxable to owners of the Partnership. These changes may affect the after-tax value of future distributions.

· The Partnership may fail to identify, acquire, construct or develop additional properties; may develop or acquire properties that do not produce a desired or expected yield on invested capital; may be unable to sell poorly- performing or otherwise undesirable properties quickly; or may fail to effectively integrate acquisitions of properties or portfolios of properties.

· Risk associated with the use of debt to fund acquisitions and developments.

· Competition for acquisitions may result in increased prices for properties.

· Any weakness identified in the Partnership’s internal controls as part of the evaluation being undertaken could have an adverse effect on the Partnership’s business.

· Ongoing compliance with Sarbanes-Oxley Act of 2002 may require additional personnel or systems changes.

The foregoing factors should not be construed as exhaustive or as an admission regarding the adequacy of disclosures made by the Partnership prior to the date hereof or the effectiveness of said Act. The Partnership expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the exposure to loss resulting from changes in interest rates and equity prices.  In pursuing its business plan, the primary market risk to which the Partnership is exposed is interest rate risk.  Changes in the general level of interest rates prevailing in the financial markets may affect the spread between the Partnership’s yield on invested assets and cost of funds and, in turn, its ability to make distributions or payments to its investors.

As of September 30, 2015, the Partnership, its Subsidiary Partnerships and the Investment Properties collectively have approximately $332,628,000 in long-term debt, substantially all of which require payment of interest at fixed rates. Accordingly, the fair value of these debt instruments is affected by changes in market interest rates. This long term debt matures through 2029. Including the line of credit, the Partnership, its Subsidiary Partnerships and the Investment Properties collectively have variable rate debt of $35,000,000 as of September 30,2015 ranged from LIBOR plus 218 basis points to LIBOR plus 350 basis points. Assuming interest- rate caps are not in effect, if market rates of interest on the Partnership’s variable rate debt increased or decreased by 100 basis points, then the increase or decrease in interest costs on the Partnership’s variable rate debt would be approximately $300,000 annually and the increase or decrease in the fair value of the Partnership’s fixed rate debt as of September 30, 2015 would be approximately $20 million. For information regarding the fair value and maturity dates of these debt obligations,  See Note 5 to the Consolidated Financial Statements — “Mortgage Notes Payable,” Note 12 to the Consolidated Financial Statements — “Fair Value Measurements” and Note 14 to the Consolidated Financial Statements — “Investment in Unconsolidated Joint Ventures.”

For additional disclosure about market risk, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors That May Affect Future Results”.

39

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures.  The Partnership’s management, with the participation of the Partnership’s principal executive officer and principal financial officer, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report.  Based on such evaluation, the Partnership’s principal executive officer and principal financial officer have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Partnership in the reports that it files or submits under the Exchange Act.

Changes in Internal Control over Financial Reporting.  There were no changes in our internal control over financial reporting during the third quarter of 2015 that materially affected or are reasonably likely to materially affect our internal control over financial reporting.

40

PART II  ——  OTHER INFORMATION

Item 1.  Legal Proceedings

There are no material legal proceedings, other than ordinary routine litigation incidental to its business, to which the Partnership is a party to or to which any of the Properties is subject.

Item 1A.  Risk Factors

There were no material changes to the risk factors disclosed in our annual report on Form 10-K for the year ended December 31, 2014.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

(a)None

(b)None

(c)Issuer Purchase of Equity Securities during the third quarter of 2015:

				Remaining number of Depositary
			Depositary Receipts	Receipts that may be purchased
Period	Average Price Paid		Purchased as Part of Publicly Announced Plan	Under the Plan (as Amended)
July 1-31, 2015	$	49.29	3,943	679,061
August 1-31, 2015	$	48.51	1,814	677,247
September 1-30, 2015	$	48.90	4,400	672,847
Total			10,157

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). On January 15, 2008, the General Partner authorized an increase in the Repurchase Program from 300,000 to 600,000 Depositary Receipts. On January 30, 2008 the General Partner authorized an increase the Repurchase Program from 600,000 to 900,000 Depositary Receipts. On March 6, 2008, the General Partner authorized the increase in the total number of Depositary Receipts that could be repurchased pursuant to the Repurchase Program from 900,000 to1, 500,000. On August 8, 2008, the General Partner re- authorized and renewed the Repurchase Program for an additional 12-month period ended August 19, 2009. On March 22, 2010, the General Partner re-authorized and renewed the Repurchase Program that expired on August 19, 2009. Under the terms of the renewed Repurchase Program, the Partnership may purchase up to 1,500,000 Depositary Receipts from the start of the program in 2007 through March 31, 2015. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020.

The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restate Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through September 30, 2015, the Partnership has repurchased 1,327,153 Depositary Receipts at an average price of $26.37 per receipt (or $791.10 per underlying Class A Unit), 2,770 Class B Units and 146 General Partnership Units, both at an average price of $851.67 per Unit, totaling approximately $37,682,000 including brokerage fees paid by the Partnership.

Item 3.  Defaults Upon Senior Securities

None.

41

Item 4.  Mine Safety Disclosure

Not applicable.

Item 5.  Other Information

None.

Item 6.  Exhibits

See the exhibit index below.

42

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
By:	/s/ NEWREAL, INC.
	Its General Partner
By:	/s/ RONALD BROWN
	Ronald Brown, President
Dated: November6, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ RONALD BROWN	President and Director of the General Partner (Principal Executive Officer)	November6, 2015
Ronald Brown
/s/ HAROLD BROWN	Treasurer and Director of the General Partner (Principal Financial Officer and Principal Accounting Officer)	November6, 2015
Harold Brown
/s/ GUILLIAEM AERTSEN	Director of the General Partner	November6, 2015
Guilliaem Aertsen
/s/ DAVID ALOISE	Director of the General Partner	November6, 2015
David Aloise
/s/ EUNICE HARPS	Director of the General Partner	November6, 2015
Eunice Harps

43

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
(31.1)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership)
(31.2)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Harold Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership)
(32.1)	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership) and Harold Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership).
(101.1)	The following financial statements from New England Realty Associates Limited Partnership Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, formatted in XBRL: (i) Consolidated Balance Sheets, (unaudited) (ii) Consolidated Statements of Income, (unaudited) (iii) Consolidated Statements of Changes in Partners’ Capital, (unaudited) (iv) Consolidated Statements of Cash Flows, (unaudited) and (v) Notes to Consolidated Financial Statements, (unaudited).

bygy

44

EX-31.1

Exhibit 31.1

New England Realty Associates Limited Partnership

CERTIFICATION

I, Ronald Brown, certify that:

1.I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ RONALD BROWN
	Principal Executive Officer (President and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: November 6, 2015

EX-31.2

Exhibit 31.2

New England Realty Associates Limited Partnership

CERTIFICATIONS

I, Harold Brown, certify that:

1.I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ HAROLD BROWN
	Principal Financial Officer
	(Treasurer and Director of thePartnership’s General Partner, NewReal, Inc.)
Date: November 6, 2015

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of New England Realty Associates Limited Partnership for the ninemonths ended  September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ronald Brown, as President and  Director of the Partnership’s General Partner, NewReal, Inc., and Harold Brown, the President and a Director of the Partnership’s General Partner, NewReal, Inc., each hereby certifies, pursuant to 18.U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

	/s/ RONALD BROWN
	Ronald Brown
	Principal Executive Officer
	(President and Director of thePartnership’s General Partner, NewReal, Inc.)
Date: November 6, 2015
	/s/ Harold Brown
	Harold Brown
	Principal Financial Officer
	(Treasurer and Director of thePartnership’s General Partner, NewReal, Inc.)
Date: November 6, 2015

This certification accompanies each Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Partnership for purposes of §18 of the Security Exchange Act of 1934, as amended.

A signed original of this written statement required by §906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

XML

TREASURY UNITS (Details)				1 Months Ended		3 Months Ended	9 Months Ended		97 Months Ended
	Mar. 10, 2015 shares	Aug. 08, 2008	Aug. 20, 2007 $ / item shares	Nov. 05, 2015 USD ($) $ / item shares	Nov. 03, 2015 USD ($) $ / item shares	Sep. 30, 2015 $ / item shares	Sep. 30, 2015 USD ($) $ / item shares	Sep. 30, 2014 USD ($) shares	Sep. 30, 2015 USD ($) $ / item shares	Jan. 03, 2012	Mar. 06, 2008 shares	Jan. 30, 2008 shares	Jan. 15, 2008 shares
Treasury units						54,249	54,249		54,249
Period for repurchase of depository receipts	5 years	12 months	12 months
Depository receipts authorized to be repurchased	2,000,000		300,000								1,500,000	900,000	600,000
Repurchase of depository receipts							40,237		1,327,153
Repurchase price of depository receipts | $ / item							49.47		26.37
Repurchase price of units | $ / item			851.67			851.67	1,484.10
Stock Buyback (in units)							1,677	1,080
Total cost of repurchase | $							$ 2,516,061	$ 1,564,397	$ 37,682,000
Repurchase of depository receipts | $							$ 2,018,329
Subsequent event
Repurchase of depository receipts				10,420	10,420
Repurchase price of depository receipts | $ / item				49.55	49.55
Repurchase price of units | $ / item				1,486.50	1,486.50
Repurchase of depository receipts | $				$ 524,967	$ 524,967
Class A
Treasury units						43,398	43,398		43,398
Number of units in each depository receipt			0.1							0.03333
Fixed distribution percentage of unit holders							80.00%
Repurchase price of units | $ / item			791.10			791.10
Total cost of repurchase | $							$ 2,018,329	1,258,399
Class B
Treasury units						10,308	10,308		10,308
Fixed distribution percentage of unit holders							19.00%
Repurchase of depository receipts			2,770			2,770
Total cost of repurchase | $							$ 472,845	290,698
Class B | Subsequent event
Stock Buyback (in units)				82.5	82.5
Total cost of repurchase | $				$ 122,624	$ 122,624
General Partnership
Treasury units						543	543		543
Fixed distribution percentage of unit holders							1.00%
Repurchase of depository receipts			146			146
Total cost of repurchase | $							$ 24,887	$ 15,300
General Partnership | Subsequent event
Stock Buyback (in units)				4.3	4.3
Total cost of repurchase | $				$ 6,454	$ 6,454

XML

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Oct. 28, 2009	Oct. 03, 2005	Mar. 02, 2005	Sep. 30, 2004	Aug. 31, 2004	Nov. 30, 2001
Hamilton Essex 81
Revenues
Rental income	$ 368,163	$ 373,304	$ 1,090,071	$ 1,043,460
Laundry and sundry income	7,622	4,306	10,114	12,425
Total Revenues	375,785	377,610	1,100,185	1,055,885
Expenses
Administrative	8,781	6,235	17,087	23,376
Depreciation and amortization	132,477	108,663	356,925	324,833
Management fee	14,929	14,832	46,666	43,937
Operating	22,961	27,938	81,724	96,904
Renting	2,185	908	8,906	11,875
Repairs and maintenance	44,380	51,584	110,815	125,411
Taxes and insurance	54,826	55,807	161,702	172,802
Total Expenses	280,539	265,967	783,825	799,138
Income Before Other Income	95,246	111,643	316,360	256,747
Other Income (loss)
Interest expense	(100,585)	(121,659)	(337,847)	(361,857)
Total Other Income (loss)	(100,585)	(121,659)	(337,847)	(361,857)
Net Income (Loss)	$ (5,339)	(10,016)	(21,487)	(105,110)
Proportionate share of net income (loss)		$ (5,008)	$ (10,744)	$ (52,555)
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%
Hamilton Essex 81 | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ (2,670)
Hamilton Essex Development
Revenues
Rental income	72,523	$ 72,523	$ 217,568	$ 218,995
Total Revenues	72,523	72,523	217,568	218,995
Expenses
Administrative	425	350	1,434	1,180
Depreciation and amortization	2,117	2,822	7,761	8,466
Management fee	2,912	2,901	8,714	8,760
Repairs and maintenance	200		200	3,150
Taxes and insurance	12,659	12,859	39,503	40,498
Total Expenses	18,313	18,932	57,612	62,054
Income Before Other Income	54,210	53,591	159,956	156,941
Other Income (loss)
Interest expense	(13,472)	(14,036)	(40,644)	(41,932)
Total Other Income (loss)	(13,472)	(14,036)	(40,644)	(41,932)
Net Income (Loss)	$ 40,738	39,555	119,312	115,009
Proportionate share of net income (loss)		$ 19,778	$ 59,656	$ 57,505
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%
Hamilton Essex Development | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ 20,369
345 Franklin
Revenues
Rental income	354,840	$ 335,607	$ 1,033,115	$ 994,331
Laundry and sundry income			323
Total Revenues	354,840	335,607	1,033,438	994,331
Expenses
Administrative	11,531	12,719	25,912	32,580
Depreciation and amortization	93,804	100,712	281,390	300,816
Management fee	13,731	13,319	42,971	41,823
Operating	16,055	13,390	67,241	45,984
Renting	3,544	7,745	12,649	11,368
Repairs and maintenance	26,888	25,489	45,950	56,421
Taxes and insurance	29,873	29,643	89,750	87,842
Total Expenses	195,426	203,017	565,863	576,834
Income Before Other Income	159,414	132,590	467,575	417,497
Other Income (loss)
Interest expense	(97,968)	(97,895)	(293,906)	(293,469)
Total Other Income (loss)	(97,968)	(97,895)	(293,906)	(293,469)
Net Income (Loss)	$ 61,446	34,695	173,669	124,028
Proportionate share of net income (loss)		$ 17,348	$ 86,835	$ 62,014
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%						50.00%
345 Franklin | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ 30,723
Hamilton 1025
Revenues
Rental income	236,343	$ 250,921	$ 713,771	$ 698,401
Total Revenues	236,343	250,921	713,771	698,401
Expenses
Administrative	2,338	2,624	5,500	6,784
Depreciation and amortization	60,569	60,204	180,630	180,524
Management fee	9,442	9,330	28,273	27,973
Operating	183	171	531	523
Renting				5,918
Repairs and maintenance	79,646	81,607	235,033	246,576
Taxes and insurance	40,360	38,487	126,255	119,861
Total Expenses	192,538	192,423	576,222	588,159
Income Before Other Income	43,805	58,498	137,549	110,242
Other Income (loss)
Interest expense	(69,431)	(70,528)	(206,872)	(210,158)
Interest Income	3	6	11	15
Total Other Income (loss)	(69,428)	(70,522)	(206,861)	(210,143)
Net Income (Loss)	$ (25,623)	(12,024)	(69,312)	(99,901)
Proportionate share of net income (loss)		$ (6,012)	$ (34,656)	$ (49,951)
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%			50.00%
Hamilton 1025 | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ (12,812)
Hamilton Bay Sales
Revenues
Rental income	19,080	$ 45,216	$ 78,548	$ 151,937
Total Revenues	19,080	45,216	78,548	151,937
Expenses
Administrative	1,863	715	6,537	3,388
Depreciation and amortization	8,988	19,174	26,961	57,524
Management fee	820	1,613	3,143	5,888
Operating	271	423	476	1,028
Renting	159			753
Repairs and maintenance	10,879	27,069	34,914	74,719
Taxes and insurance	5,479	7,360	16,415	30,025
Total Expenses	28,459	56,354	88,446	173,325
Income Before Other Income	(9,379)	(11,138)	(9,898)	(21,388)
Other Income (loss)
Interest expense	(55)	(86)	(268)	(485)
Interest Income				468
Gain on Sale of Real Estate	76,648	50,001	76,523	350,523
Total Other Income (loss)	76,593	49,915	76,255	350,506
Net Income (Loss)	$ 67,214	38,777	66,357	329,118
Proportionate share of net income (loss)		$ 19,389	$ 33,179	$ 164,559
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%
Hamilton Bay Sales | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ 33,607
Hamilton Bay Apartments
Revenues
Rental income	246,892	$ 242,294	$ 733,978	$ 704,397
Total Revenues	246,892	242,294	733,978	704,397
Expenses
Administrative	1,883	3,916	5,507	14,493
Depreciation and amortization	80,607	80,047	239,898	238,744
Management fee	9,482	9,606	28,914	28,206
Operating	208	643	917	1,683
Renting			2,350	5,042
Repairs and maintenance	87,765	79,825	273,982	223,566
Taxes and insurance	38,861	38,387	115,086	120,392
Total Expenses	218,806	212,424	666,654	632,126
Income Before Other Income	28,086	29,870	67,324	72,271
Other Income (loss)
Interest expense	(65,172)	(66,300)	(194,411)	(197,633)
Total Other Income (loss)	(65,172)	(66,300)	(194,411)	(197,633)
Net Income (Loss)	$ (37,086)	(36,430)	(127,087)	(125,362)
Proportionate share of net income (loss)		$ (18,215)	$ (63,544)	$ (62,681)
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%		50.00%
Hamilton Bay Apartments | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ (18,543)
Hamilton Minuteman
Revenues
Rental income	231,545	$ 226,213	$ 699,019	$ 683,025
Laundry and sundry income		676		844
Total Revenues	231,545	226,889	699,019	683,869
Expenses
Administrative	1,032	2,661	3,724	8,104
Depreciation and amortization	83,182	81,233	246,675	240,486
Management fee	9,529	9,536	28,974	28,489
Operating	17,946	16,528	64,428	60,631
Renting	1,877	1,482	6,623	7,571
Repairs and maintenance	23,864	19,697	56,628	58,132
Taxes and insurance	30,972	30,264	92,943	89,496
Total Expenses	168,402	161,401	499,995	492,909
Income Before Other Income	63,143	65,488	199,024	190,960
Other Income (loss)
Interest expense	(76,823)	(77,635)	(228,380)	(231,196)
Total Other Income (loss)	(76,823)	(77,635)	(228,380)	(231,196)
Net Income (Loss)	$ (13,680)	(12,147)	(29,356)	(40,236)
Proportionate share of net income (loss)		$ (6,074)	$ (14,678)	$ (20,118)
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%				50.00%
Hamilton Minuteman | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ (6,840)
Hamilton on Main Apts
Revenues
Rental income	781,336	$ 737,588	$ 2,305,464	$ 2,177,950
Laundry and sundry income	10,888	10,065	33,335	29,213
Total Revenues	792,224	747,653	2,338,799	2,207,163
Expenses
Administrative	12,414	12,037	32,349	42,799
Depreciation and amortization	243,760	242,960	726,876	716,092
Management fee	30,816	28,609	91,870	86,429
Operating	111,793	82,442	296,685	288,912
Renting	2,300	3,034	5,701	21,131
Repairs and maintenance	114,683	101,601	297,165	292,004
Taxes and insurance	87,515	87,450	253,816	279,034
Total Expenses	603,281	558,133	1,704,462	1,726,401
Income Before Other Income	188,943	189,520	634,337	480,762
Other Income (loss)
Interest expense	(189,919)	(208,944)	(563,622)	(610,958)
Interest Income from Note			96
Total Other Income (loss)	(189,919)	(208,944)	(563,526)	(610,958)
Net Income (Loss)	$ (976)	(19,424)	70,811	(130,196)
Proportionate share of net income (loss)		$ (9,712)	$ 35,406	$ (65,098)
Percentage of ownership interest	50.00%	50.00%	50.00%	50.00%					50.00%
Hamilton on Main Apts | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	$ (488)
Dexter Park
Revenues
Rental income	3,588,943	$ 3,433,856	$ 10,650,223	$ 10,143,620
Laundry and sundry income	23,361	26,620	67,439	75,213
Total Revenues	3,612,304	3,460,476	10,717,662	10,218,833
Expenses
Administrative	76,791	64,668	181,425	181,661
Depreciation and amortization	820,856	1,354,577	2,452,629	4,048,679
Management fee	72,222	68,588	227,847	217,031
Operating	241,740	224,085	971,545	960,938
Renting	39,160	99,320	72,373	156,856
Repairs and maintenance	390,221	413,587	930,398	927,771
Taxes and insurance	407,819	398,451	1,141,731	1,155,775
Total Expenses	2,048,809	2,623,276	5,977,948	7,648,711
Income Before Other Income	1,563,495	837,200	4,739,714	2,570,122
Other Income (loss)
Interest expense	(1,227,139)	(1,245,694)	(3,656,573)	(3,710,651)
Total Other Income (loss)	(1,227,139)	(1,245,694)	(3,656,573)	(3,710,651)
Net Income (Loss)	$ 336,356	(408,494)	1,083,141	(1,140,529)
Proportionate share of net income (loss)		$ (163,395)	$ 433,256	$ (456,212)
Percentage of ownership interest	40.00%	40.00%	40.00%	40.00%	40.00%
Dexter Park | NERA 40%
Other Income (loss)
Proportionate share of net income (loss)	$ 134,543
Total
Revenues
Rental income	5,899,665	$ 5,717,522	$ 17,521,757	$ 16,816,116
Laundry and sundry income	41,871	41,667	111,211	117,695
Total Revenues	5,941,536	5,759,189	17,632,968	16,933,811
Expenses
Administrative	117,058	105,925	279,475	314,365
Depreciation and amortization	1,526,360	2,050,392	4,519,745	6,116,164
Management fee	163,883	158,334	507,372	488,536
Operating	411,157	365,620	1,483,547	1,456,603
Renting	49,225	112,489	108,602	220,514
Repairs and maintenance	778,526	800,459	1,985,085	2,007,750
Taxes and insurance	708,364	698,708	2,037,201	2,095,725
Total Expenses	3,754,573	4,291,927	10,921,027	12,699,657
Income Before Other Income	2,186,963	1,467,262	6,711,941	4,234,154
Other Income (loss)
Interest expense	(1,840,564)	(1,902,777)	(5,522,523)	(5,658,339)
Interest Income	3	6	11	483
Interest Income from Note			96
Gain on Sale of Real Estate	76,648	50,001	76,523	350,523
Total Other Income (loss)	(1,763,913)	(1,852,770)	(5,445,893)	(5,307,333)
Net Income (Loss)	423,050	(385,508)	1,266,048	(1,073,179)
Proportionate share of net income (loss)	177,890	(151,902)	524,710	(422,535)
Total | NERA 50%
Other Income (loss)
Proportionate share of net income (loss)	43,347	11,493	91,454	33,677
Total | NERA 40%
Other Income (loss)
Proportionate share of net income (loss)	$ 134,543	$ (163,395)	$ 433,256	$ (456,212)

XML

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details)						1 Months Ended						9 Months Ended		12 Months Ended
	Sep. 28, 2015 USD ($)	Oct. 18, 2013 USD ($)	Oct. 28, 2009 USD ($) item	Mar. 07, 2005 USD ($) item	Mar. 02, 2005 USD ($) item	Aug. 31, 2014 USD ($)	Jun. 30, 2013 USD ($)	Apr. 30, 2008 USD ($) item	Feb. 28, 2007 USD ($)	Jan. 31, 2007 USD ($)	Oct. 31, 2004 USD ($)	Sep. 30, 2015 USD ($) item	Sep. 30, 2014 USD ($) item	Dec. 31, 2005 USD ($) item	Nov. 01, 2015 item	Dec. 31, 2014 USD ($)	May. 31, 2008 item	Dec. 31, 2006 USD ($)	Oct. 03, 2005 USD ($) item	Sep. 30, 2004 USD ($) item	Aug. 31, 2004 USD ($) item	Nov. 30, 2001 USD ($) item
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of limited partnerships and limited liability companies in which the entity has invested | item												9
Number of partnerships investing in commercial property | item												3
Investments in joint venture												$ 8,299,289				$ 8,807,868
Outstanding amount of mortgage loan												195,972,822				$ 196,071,540
Interest paid												7,214,000	$ 6,444,000
Distribution to the Partnership												2,845,573	$ 2,898,801
Carrying value of investment to discontinue applying the equity method												$ 0
Limited Partnerships
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Capital contributions		$ 660,000
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest			40.00%									40.00%	40.00%
Investments in joint venture			$ 15,925,000									$ 4,003,209	$ 4,931,804
Total | item			409									409	409
Purchase price of investments			$ 129,500,000
Number of units retained for long-term investment | item												409	409
Dexter Park | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings			$ 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
Outstanding amount of mortgage loan												$ 85,248,000
Hamilton Bay Apartments
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%	50.00%						50.00%
Investments in joint venture												$ 864,149	$ 943,633						$ 2,500,000
Total | item												48	48		6				168
Purchase price of investments																			$ 30,875,000
Borrowings									$ 4,750,000
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
Number of units retained for long-term investment | item												48	48						48
Number of units sold | item																			120
Hamilton Bay Apartments | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Outstanding amount of mortgage loan												$ 4,522,000
Hamilton Bay Sales
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%	50.00%
Investments in joint venture												$ 431,978	$ 522,876
Total | item												120	120
Capital contributions		$ 660,000
Number of units retained for long-term investment | item													0
Number of units sold | item												120	111
Number of Units in Real Estate Property to be Sold | item												114	120
Hamilton Bay Sales | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item								20
Borrowings								$ 2,368,000
Interest rate (as a percent)								5.75%
Hamilton Essex Development, LLC and Hamilton Essex 81, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest				50.00%
Investments in joint venture				$ 2,000,000
Purchase price of investments				14,300,000
Hamilton Essex Development, LLC and Hamilton Essex 81, LLC | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings				$ 10,750,000
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%	50.00%
Investments in joint venture													$ 214,344
Total | item				48								49	49
Number of properties | item				1
Number of units retained for long-term investment | item												49	49
Cash inflow for its share of excess proceeds												$ 978,193
Hamilton Essex 81 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings												$ 10,000,000
Term of debt												10 years
Debt Instrument, Loan Proceeds Utilized to Pay Off Existing Mortgage												$ 8,040,719
Hamilton Essex 81 | London Interbank Offered Rate | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Margin over basis of interest rate (as a percent)												2.18%
Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%	50.00%
Investments in joint venture												$ 1,350,190	$ 361,891
Total | item												1	1
Capital contributions	$ 978,193
Number of units retained for long-term investment | item												1	1
Capacity of real estate property (in cars per lot) | item				50
Additional Capital Contribution	100,000
Hamilton Essex Development | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Repayment of loan	$ 1,952,286
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest					50.00%							50.00%	50.00%
Investments in joint venture					$ 2,352,000							$ 135,475	$ 205,061
Total | item					176							176	176
Purchase price of investments					$ 23,750,000
Number of units retained for long-term investment | item					49							49	49
Number of units sold | item					127							127	127
Number of Units in Real Estate Property to be Sold | item												127	127
Hamilton 1025 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings					$ 5,000,000
Interest rate (as a percent)					5.67%
Period for which the entity is required to make interest only payments					5 years
Amortization period of debt					30 years
Outstanding amount of mortgage loan												$ 4,752,000
Term of debt					10 years
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%	50.00%							50.00%
Investments in joint venture												$ 558,209	$ 652,833							$ 5,075,000
Total | item												42	42							42
Purchase price of investments																				$ 10,100,000
Number of units retained for long-term investment | item												42	42
Amount returned to partnership											$ 3,775,000
Cash contribution by the entity towards loan																		$ 1,250,000
Hamilton Minuteman | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings										$ 5,500,000	$ 8,025,000
Interest rate (as a percent)										5.67%
Period for which the entity is required to make interest only payments										5 years
Amortization period of debt										30 years
Outstanding amount of mortgage loan												$ 5,233,000
Term of debt										10 years
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%	50.00%								50.00%
Investments in joint venture												$ 956,081	$ 1,510,654								$ 8,000,000
Total | item												148	148								280
Purchase price of investments																					$ 56,000,000
Number of units retained for long-term investment | item												148	148
Number of units sold | item																	137
Hamilton on Main Apartments, LLC | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of properties | item														3
Borrowings						$ 16,900,000								$ 16,825,000
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
Term of debt						10 years								10 years
Cost associated with loan extension						$ 161,000
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
Debt Instrument, Loan Proceeds Utilized to Pay Off Existing Mortgage						15,205,000
Debt Instrument, Loan Proceeds distributed to the Partnership						$ 850,000
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%	50.00%									50.00%
Investments in joint venture																						$ 1,533,000
Total | item												40	40									40
Number of units retained for long-term investment | item												40	40
Distribution to the Partnership							$ 1,610,000
Carrying value of investment to discontinue applying the equity method							0
345 Franklin | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings							$ 10,000,000
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
Term of debt							15 years
Repayment of loan							$ 6,776,000
Residential buildings | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												409	409
Residential buildings | Hamilton Bay Apartments
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												48	48
Residential buildings | Hamilton Bay Sales
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												120	120
Residential buildings | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												48	48
Residential buildings | Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												175	175
Residential buildings | Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												42	42
Residential buildings | Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												148	148
Residential buildings | 345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												40	40
Commercial | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												1	1
Commercial | Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												1	1
Commercial | Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Total | item												1	1
Management Company
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of employees having ownership interest in the investment properties | item												6
Minimum | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)												3.76%
Minimum | Limited Partnerships
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												40.00%
Minimum | Harold Brown
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												43.20%
Maximum | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)												5.97%
Maximum | Limited Partnerships
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												50.00%
Maximum | Harold Brown
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Percentage of ownership interest												57.00%

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RENTAL PROPERTIES (Details)		9 Months Ended
	Sep. 18, 2015 USD ($) item	Sep. 30, 2015 USD ($) item	Dec. 31, 2014 USD ($)
RENTAL PROPERTIES
Line of credit		$ 25,000,000
Rental properties
Total fixed assets		260,836,633	$ 225,021,946
Less: Accumulated depreciation		(83,334,950)	(75,905,862)
Total fixed assets, net		177,501,683	149,116,084
Land, improvements and parking lots
Rental properties
Total fixed assets		$ 51,713,843	44,541,471
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		$ 173,749,025	153,059,430
Buildings and Improvements | Minimum
Rental properties
Useful Life		15 years
Buildings and Improvements | Maximum
Rental properties
Useful Life		40 years
Kitchen cabinets
Rental properties
Total fixed assets		$ 8,983,374	6,865,348
Kitchen cabinets | Minimum
Rental properties
Useful Life		5 years
Kitchen cabinets | Maximum
Rental properties
Useful Life		10 years
Carpets
Rental properties
Total fixed assets		$ 8,437,321	6,341,227
Carpets | Minimum
Rental properties
Useful Life		5 years
Carpets | Maximum
Rental properties
Useful Life		10 years
Air conditioning
Rental properties
Total fixed assets		$ 772,080	705,116
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		$ 236,283	147,721
Laundry equipment | Minimum
Rental properties
Useful Life		5 years
Laundry equipment | Maximum
Rental properties
Useful Life		7 years
Elevators
Rental properties
Total fixed assets		$ 1,139,296	1,139,296
Elevators | Minimum
Rental properties
Useful Life		20 years
Elevators | Maximum
Rental properties
Useful Life		40 years
Swimming pools
Rental properties
Total fixed assets		$ 444,629	444,629
Swimming pools | Minimum
Rental properties
Useful Life		10 years
Swimming pools | Maximum
Rental properties
Useful Life		30 years
Equipment
Rental properties
Total fixed assets		$ 6,265,714	5,491,992
Equipment | Minimum
Rental properties
Useful Life		5 years
Equipment | Maximum
Rental properties
Useful Life		7 years
Motor vehicles
Rental properties
Total fixed assets		$ 130,859	130,563
Motor vehicles | Maximum
Rental properties
Useful Life		5 years
Fences
Rental properties
Total fixed assets		$ 38,635	24,670
Fences | Minimum
Rental properties
Useful Life		5 years
Fences | Maximum
Rental properties
Useful Life		15 years
Furniture and fixtures
Rental properties
Total fixed assets		$ 8,705,137	5,910,046
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		$ 220,437	$ 220,437
Smoke alarms | Minimum
Rental properties
Useful Life		5 years
Smoke alarms | Maximum
Rental properties
Useful Life		7 years
Captain Parkers LLC [ Member ]
RENTAL PROPERTIES
Total | item	94
Purchase price of real estate properties	$ 31,600,000
Closing costs associated with financing	49,000
Purchase price allocated to the value of the in-place leases	$ 474,000
Amortization period of value of the in-place leases	12 months
Amortization period of value of the tenant relationships	24 months
Purchase price allocated to the value of the tenant relationships	$ 31,000
Line of credit	$ 25,000,000
Residential and mixed-use properties
RENTAL PROPERTIES
Total | item		2,506
Number of properties | item		21
Residential and mixed-use properties | Partially owned properties
RENTAL PROPERTIES
Total | item		789
Number of properties | item		9
Residential and mixed-use properties | Partially owned properties | Minimum
RENTAL PROPERTIES
Percentage of ownership interest		40.00%
Residential and mixed-use properties | Partially owned properties | Maximum
RENTAL PROPERTIES
Percentage of ownership interest		50.00%
Condominium
RENTAL PROPERTIES
Total | item		19

XML

MORTGAGE NOTES PAYABLE (Tables)

9 Months Ended

Sep. 30, 2015

MORTGAGE NOTES PAYABLE

Schedule of approximate annual maturities

Approximate annual maturities at September 30, 2015 are as follows:

2015—current maturities	$	726,000
2016		1,821,000
2017		7,840,000
2018		1,921,000
2019		4,337,000
Thereafter		179,328,000
	$	195,973,000

XML

SUBSEQUENT EVENTS (Details)		1 Months Ended		3 Months Ended	9 Months Ended		97 Months Ended
	Aug. 20, 2007 $ / item shares	Nov. 05, 2015 USD ($) $ / item shares	Nov. 03, 2015 USD ($) $ / item shares	Sep. 30, 2015 $ / item shares	Sep. 30, 2015 USD ($) $ / item shares	Sep. 30, 2014 USD ($) shares	Sep. 30, 2015 USD ($) $ / item shares
Subsequent events
Repurchase of depository receipts | shares					40,237		1,327,153
Repurchase price of depository receipts | $ / item					49.47		26.37
Repurchase price of units | $ / item	851.67			851.67	1,484.10
Repurchase of depository receipts					$ 2,018,329
Stock Buyback (in units) | shares					1,677	1,080
Total cost of repurchase					$ 2,516,061	$ 1,564,397	$ 37,682,000
Class B
Subsequent events
Repurchase of depository receipts | shares	2,770			2,770
Total cost of repurchase					472,845	290,698
General Partnership
Subsequent events
Repurchase of depository receipts | shares	146			146
Total cost of repurchase					$ 24,887	$ 15,300
Subsequent event
Subsequent events
Repurchase of depository receipts | shares		10,420	10,420
Repurchase price of depository receipts | $ / item		49.55	49.55
Repurchase price of units | $ / item		1,486.50	1,486.50
Repurchase of depository receipts		$ 524,967	$ 524,967
Subsequent event | Class B
Subsequent events
Stock Buyback (in units) | shares		82.5	82.5
Total cost of repurchase		$ 122,624	$ 122,624
Subsequent event | General Partnership
Subsequent events
Stock Buyback (in units) | shares		4.3	4.3
Total cost of repurchase		$ 6,454	$ 6,454

XML

RENTAL INCOME (Details 2)	9 Months Ended
	Sep. 30, 2015
Commercial rental income | Staples and Trader Joes
Concentration Risk [Line Items]
Concentration risk percentage	27.00%

XML

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS (Details)	9 Months Ended
	Sep. 30, 2015 USD ($)
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS
Period for advance rental payment	1 month
Amount received for prepaid rent	$ 1,694,000
Security deposits	$ 2,218,000

XML

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details 2)	Nov. 01, 2015 item	Sep. 30, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($) item	Oct. 28, 2009 USD ($) item	May. 31, 2008 item	Oct. 03, 2005 USD ($) item	Mar. 07, 2005 item	Mar. 02, 2005 USD ($) item	Sep. 30, 2004 USD ($) item	Aug. 31, 2004 USD ($) item	Nov. 30, 2001 USD ($) item
LIABILITIES AND PARTNERS' CAPITAL
Investments in Unconsolidated Joint Ventures		$ 8,299,289	$ 8,807,868
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		(2,212,081)	$ (1,425,369)
Hamilton Essex 81
ASSETS
Rental Properties		8,511,004		$ 8,619,846
Cash & Cash Equivalents		73,595		28,937
Rent Receivable		40,921		17,700
Real Estate Tax Escrow		104,165		98,555
Prepaid Expenses & Other Assets		121,531		95,311
Financing & Leasing Fees		137,891		33,515
Total Assets		8,989,107		8,893,864
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		10,000,000		8,140,592
Accounts Payable and Accrued Expenses		60,815		150,481
Advance Rental Payments and Security Deposits		185,386		174,103
Total Liabilities		10,246,201		8,465,176
Partners' Capital		(1,257,094)		428,688
Total Liabilities and Partners' Capital		$ 8,989,107		$ 8,893,864
Percentage of ownership interest		50.00%		50.00%
Investments in Unconsolidated Joint Ventures				$ 214,344
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		$ (628,547)
Total units/ condominiums
Units to be retained | item		49		49
Total | item		49		49				48
Hamilton Essex 81 | Residential buildings
Total units/ condominiums
Total | item		48		48
Hamilton Essex 81 | Commercial
Total units/ condominiums
Total | item		1		1
Hamilton Essex Development
ASSETS
Rental Properties		$ 2,619,374		$ 2,622,203
Cash & Cash Equivalents		81,236		149,705
Prepaid Expenses & Other Assets		903		895
Financing & Leasing Fees				7,753
Total Assets		2,701,513		2,780,556
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		0		2,001,159
Accounts Payable and Accrued Expenses		1,133		55,616
Total Liabilities		1,133		2,056,775
Partners' Capital		2,700,380		723,781
Total Liabilities and Partners' Capital		$ 2,701,513		$ 2,780,556
Percentage of ownership interest		50.00%		50.00%
Investments in Unconsolidated Joint Ventures		$ 1,350,190		$ 361,891
Total units/ condominiums
Units to be retained | item		1		1
Total | item		1		1
Hamilton Essex Development | Commercial
Total units/ condominiums
Total | item		1		1
345 Franklin
ASSETS
Rental Properties		$ 6,859,314		$ 7,230,839
Cash & Cash Equivalents		79,265		203,001
Rent Receivable		8,582		1,703
Real Estate Tax Escrow		42,400		41,934
Prepaid Expenses & Other Assets		45,606		50,550
Financing & Leasing Fees		84,896		91,554
Total Assets		7,120,063		7,619,581
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		10,000,000		10,000,000
Accounts Payable and Accrued Expenses		83,754		172,833
Advance Rental Payments and Security Deposits		203,378		197,412
Total Liabilities		10,287,132		10,370,245
Partners' Capital		(3,167,069)		(2,750,664)
Total Liabilities and Partners' Capital		$ 7,120,063		$ 7,619,581
Percentage of ownership interest		50.00%		50.00%								50.00%
Investments in Unconsolidated Joint Ventures												$ 1,533,000
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		$ (1,583,534)		$ (1,375,332)
Total units/ condominiums
Units to be retained | item		40		40
Total | item		40		40								40
345 Franklin | Residential buildings
Total units/ condominiums
Total | item		40		40
Hamilton 1025
ASSETS
Rental Properties		$ 4,997,692		$ 5,215,054
Cash & Cash Equivalents		1,029		7,697
Rent Receivable		4,272		14,718
Real Estate Tax Escrow		75,984		71,690
Prepaid Expenses & Other Assets		55,877		44,962
Financing & Leasing Fees		5,824		10,849
Total Assets		5,140,678		5,364,970
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		4,752,073		4,823,762
Accounts Payable and Accrued Expenses		21,998		27,905
Advance Rental Payments and Security Deposits		95,656		103,182
Total Liabilities		4,869,727		4,954,849
Partners' Capital		270,951		410,121
Total Liabilities and Partners' Capital		$ 5,140,678		$ 5,364,970
Percentage of ownership interest		50.00%		50.00%					50.00%
Investments in Unconsolidated Joint Ventures		$ 135,475		$ 205,061					$ 2,352,000
Total units/ condominiums
Units to be retained | item		49		49					49
Number of Units in Real Estate Property to be Sold | item		127		127
Units sold | item		127		127					127
Total | item		176		176					176
Hamilton 1025 | Residential buildings
Total units/ condominiums
Total | item		175		175
Hamilton 1025 | Commercial
Total units/ condominiums
Total | item		1		1
Hamilton Bay Sales
ASSETS
Rental Properties		$ 672,579		$ 1,011,453
Cash & Cash Equivalents		8,171		741,509
Rent Receivable		100		3,049
Prepaid Expenses & Other Assets		211,856		27,327
Total Assets		892,706		1,783,338
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable and Accrued Expenses		23,055		724,100
Advance Rental Payments and Security Deposits		5,695		13,487
Total Liabilities		28,750		737,587
Partners' Capital		863,956		1,045,751
Total Liabilities and Partners' Capital		$ 892,706		$ 1,783,338
Percentage of ownership interest		50.00%		50.00%
Investments in Unconsolidated Joint Ventures		$ 431,978		$ 522,876
Total units/ condominiums
Units to be retained | item				0
Number of Units in Real Estate Property to be Sold | item		114		120
Units sold | item		120		111
Unsold units | item		6		9
Units unsold with deposits for future sale | item		1
Total | item		120		120
Hamilton Bay Sales | Residential buildings
Total units/ condominiums
Total | item		120		120
Hamilton Bay Apartments
ASSETS
Rental Properties		$ 6,212,058		$ 6,473,921
Cash & Cash Equivalents		3,998		4,188
Rent Receivable		2,820		1,102
Real Estate Tax Escrow		55,215		43,591
Prepaid Expenses & Other Assets		60,886		44,461
Financing & Leasing Fees		8,748		15,110
Total Assets		6,343,725		6,582,373
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		4,521,596		4,590,276
Accounts Payable and Accrued Expenses		6,934		16,076
Advance Rental Payments and Security Deposits		86,897		88,756
Total Liabilities		4,615,427		4,695,108
Partners' Capital		1,728,298		1,887,265
Total Liabilities and Partners' Capital		$ 6,343,725		$ 6,582,373
Percentage of ownership interest		50.00%		50.00%			50.00%
Investments in Unconsolidated Joint Ventures		$ 864,149		$ 943,633			$ 2,500,000
Total units/ condominiums
Units to be retained | item		48		48			48
Units sold | item							120
Total | item	6	48		48			168
Hamilton Bay Apartments | Residential buildings
Total units/ condominiums
Total | item		48		48
Hamilton Minuteman
ASSETS
Rental Properties		$ 6,371,641		$ 6,628,931
Cash & Cash Equivalents		60,545		111,378
Rent Receivable		692		2,326
Real Estate Tax Escrow		39,403		40,212
Prepaid Expenses & Other Assets		39,742		44,558
Financing & Leasing Fees		5,036		9,005
Total Assets		6,517,059		6,836,410
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		5,233,407		5,311,923
Accounts Payable and Accrued Expenses		59,805		123,765
Advance Rental Payments and Security Deposits		107,428		95,052
Total Liabilities		5,400,640		5,530,740
Partners' Capital		1,116,419		1,305,670
Total Liabilities and Partners' Capital		$ 6,517,059		$ 6,836,410
Percentage of ownership interest		50.00%		50.00%						50.00%
Investments in Unconsolidated Joint Ventures		$ 558,209		$ 652,833						$ 5,075,000
Total units/ condominiums
Units to be retained | item		42		42
Total | item		42		42						42
Hamilton Minuteman | Residential buildings
Total units/ condominiums
Total | item		42		42
Hamilton on Main Apts
ASSETS
Rental Properties		$ 18,785,662		$ 19,644,258
Cash & Cash Equivalents		216,613		2,404,047
Rent Receivable		12,320		9,845
Real Estate Tax Escrow		91,842		52,130
Prepaid Expenses & Other Assets		84,849		96,377
Financing & Leasing Fees		143,124		159,175
Total Assets		19,334,410		22,365,832
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		16,900,000		16,900,000
Accounts Payable and Accrued Expenses		207,573		2,142,549
Advance Rental Payments and Security Deposits		314,676		301,976
Total Liabilities		17,422,249		19,344,525
Partners' Capital		1,912,161		3,021,307
Total Liabilities and Partners' Capital		$ 19,334,410		$ 22,365,832
Percentage of ownership interest		50.00%		50.00%							50.00%
Investments in Unconsolidated Joint Ventures		$ 956,081		$ 1,510,654							$ 8,000,000
Total units/ condominiums
Units to be retained | item		148		148
Units sold | item						137
Total | item		148		148							280
Hamilton on Main Apts | Residential buildings
Total units/ condominiums
Total | item		148		148
Dexter Park
ASSETS
Rental Properties		$ 94,934,158		$ 98,343,487
Cash & Cash Equivalents		1,023,237		1,231,163
Rent Receivable		70,167		149,200
Real Estate Tax Escrow		242,660		356,155
Prepaid Expenses & Other Assets		1,851,560		1,657,149
Financing & Leasing Fees		237,485		295,874
Total Assets		98,359,267		102,033,028
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		85,247,708		86,566,934
Accounts Payable and Accrued Expenses		754,434		931,507
Advance Rental Payments and Security Deposits		2,349,098		2,205,078
Total Liabilities		88,351,240		89,703,519
Partners' Capital		10,008,027		12,329,509
Total Liabilities and Partners' Capital		$ 98,359,267		$ 102,033,028
Percentage of ownership interest		40.00%		40.00%	40.00%
Investments in Unconsolidated Joint Ventures		$ 4,003,209		$ 4,931,804	$ 15,925,000
Total units/ condominiums
Units to be retained | item		409		409
Total | item		409		409	409
Dexter Park | Residential buildings
Total units/ condominiums
Total | item		409		409
Total
ASSETS
Rental Properties		$ 149,963,482		$ 155,789,992
Cash & Cash Equivalents		1,547,689		4,881,625
Rent Receivable		139,874		199,643
Real Estate Tax Escrow		651,669		704,267
Prepaid Expenses & Other Assets		2,472,810		2,061,590
Financing & Leasing Fees		623,004		622,835
Total Assets		155,398,528		164,259,952
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable		136,654,784		138,334,646
Accounts Payable and Accrued Expenses		1,219,501		4,344,832
Advance Rental Payments and Security Deposits		3,348,214		3,179,046
Total Liabilities		141,222,499		145,858,524
Partners' Capital		14,176,029		18,401,428
Total Liabilities and Partners' Capital		155,398,528		164,259,952
Investments in Unconsolidated Joint Ventures		8,299,289		9,343,093
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		(2,212,081)		(1,375,332)
Total Investment in Unconsolidated Joint Ventures (Net)		$ 6,087,208		$ 7,967,761
Total units/ condominiums
Units to be retained | item		786		786
Number of Units in Real Estate Property to be Sold | item		241		247
Units sold | item		247		238
Unsold units | item		6		9
Total | item		1,033		1,033
Total | Residential buildings
Total units/ condominiums
Total | item		1,030		1,030
Total | Commercial
Total units/ condominiums
Total | item		3		3

XML

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2015

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of gross receipts rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $1,370,000 and $1,304,000 for the nine months ended September 30, 2015 and 2014, 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, 2015 and 2014, approximately $719,000 and $630,000, was charged to NERA for legal, accounting, construction, maintenance, rental and architectural services and supervision of capital improvements. Of the 2015 expenses referred to above, approximately $336,000 consisted of repairs and maintenance, and $257,000 of administrative expense. Approximately $126,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2015, the Hamilton Company received approximately $632,000 from the Investment Properties of which approximately $507,000 was the management fee, approximately $79,000 was for maintenance services, approximately $31,000 was for administrative services and $15,000 for architectural services and supervision of capital projects. The management fee is equal to 4% of gross receipts rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the management company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $2,145,000 and $2,385,000 for the nine months ended September 30, 2015 and 2014, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. There were no employer contributions during 2015 and 2014.

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, 2015 and 2014, the Management Company charged the Partnership $93,750($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

The President of the Management Company performs asset management consulting services and receives an asset management fee from the Partnership. The Partnership does not have a written agreement with this individual. During the nine months ended September 30, 2015 and 2014 this individual received fees of $56,250.

The Partnership has invested in nine limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management Company. Harold Brown’s ownership interest is between 43.2% and 57%. See Note 14 for a description of the properties and their operations.

See Note 8 for information regarding the repurchase of Class B and General Partnership Units.

XML

CASH FLOW INFORMATION (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOW INFORMATION
Cash paid for interest	$ 7,214,000	$ 6,444,000
Cash paid for state income taxes	19,000	$ 50,000
Rental property purchased through line of credit	$ 25,000,000

XML

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2015

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, 2015	$	195,972,822	$	210,451,015
At December 31, 2014	$	196,071,540	$	210,691,170
Investment Properties
At September 30, 2015	$	136,654,784	$	145,961,955
At December 31, 2014	$	137,910,870	$	147,843,221

XML

RENTAL INCOME (Tables)

9 Months Ended

Sep. 30, 2015

RENTAL INCOME

Schedule of minimum future annual rental income on non-cancellable operating leases

Approximately 8% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at September 30, 2015 as follows:

	Commercial
	Property Leases
2016	$	2,811,000
2017		2,285,000
2018		2,003,000
2019		1,574,000
2020		936,000
Thereafter		997,000
	$	10,606,000

Schedule of information for commercial leases

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Throguh September 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2016	$	123,679	6,646	8	4	%
2017		576,040	20,023	9	20	%
2018		402,653	12,357	8	14	%
2019		650,019	23,321	10	22	%
2020		335,312	9,651	5	12	%
2021		647,765	31,274	3	23	%
2022		—	—	—	—	%
2023			—	—	—	%
2024		157,443	4,771	1	5	%
2025			—	—	—	%
Totals	$	2,892,911	108,043	44	100	%

XML

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
FAIR VALUE MEASUREMENTS
Line of credit	$ 25,000,000
Mortgage Notes Payable
Carrying Amount	195,972,822	$ 196,071,540
Wholly owned properties
Mortgage Notes Payable
Carrying Amount	195,972,822	196,071,540
Estimated Fair Value	210,451,015	210,691,170
Partially owned properties
Mortgage Notes Payable
Carrying Amount	136,654,784	137,910,870
Estimated Fair Value	$ 145,961,955	$ 147,843,221

XML

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)

9 Months Ended

Sep. 30, 2015

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

Summary of financial position relating to investment in unconsolidated joint ventures

Summary financial information as of September 30, 2015

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	8,511,004		$	2,619,374		$	6,859,314		$	4,997,692		$	672,579		$	6,212,058		$	6,371,641		$	18,785,662		$	94,934,158		$	149,963,482
Cash & Cash Equivalents		73,595			81,236			79,265			1,029			8,171			3,998			60,545			216,613			1,023,237			1,547,689
Rent Receivable		40,921			—			8,582			4,272			100			2,820			692			12,320			70,167			139,874
Real Estate Tax Escrow		104,165			—			42,400			75,984			—			55,215			39,403			91,842			242,660			651,669
Prepaid Expenses & Other Assets		121,531			903			45,606			55,877			211,856			60,886			39,742			84,849			1,851,560			2,472,810
Financing & Leasing Fees		137,891			—			84,896			5,824			—			8,748			5,036			143,124			237,485			623,004
Total Assets	$	8,989,107		$	2,701,513		$	7,120,063		$	5,140,678		$	892,706		$	6,343,725		$	6,517,059		$	19,334,410		$	98,359,267		$	155,398,528
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	10,000,000		$	0		$	10,000,000		$	4,752,073		$	—		$	4,521,596		$	5,233,407		$	16,900,000		$	85,247,708		$	136,654,784
Accounts Payable & Accrued Expense		60,815			1,133			83,754			21,998			23,055			6,934			59,805			207,573			754,434			1,219,501
Advance Rental Pmts & Security Deposits		185,386			—			203,378			95,656			5,695			86,897			107,428			314,676			2,349,098			3,348,214
Total Liabilities		10,246,201			1,133			10,287,132			4,869,727			28,750			4,615,427			5,400,640			17,422,249			88,351,240			141,222,499
Partners’ Capital		(1,257,094)			2,700,380			(3,167,069)			270,951			863,956			1,728,298			1,116,419			1,912,161			10,008,027			14,176,029
Total Liabilities and Capital	$	8,989,107		$	2,701,513		$	7,120,063		$	5,140,678		$	892,706		$	6,343,725		$	6,517,059		$	19,334,410		$	98,359,267		$	155,398,528
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,350,190		$	—		$	135,476		$	431,978		$	864,149		$	558,210		$	956,081		$	4,003,207			8,299,289
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(628,547)		$	—		$	(1,583,534)		$	—		$	—		$	—		$	—		$	—		$	—			(2,212,081)
Total Investment in Unconsolidated Joint Ventures (Net)																												$	6,087,209
Total units/condominiums
Apartments		48			—			40			175			120			48			42			148			409			1,030
Commercial		1			1			—			1			—			—			—			—			—			3
Total		49			1			40			176			120			48			42			148			409			1,033
Units to be retained		49			1			40			49			—			48			42			148			409			786
Units to be sold		—			—			—			127			120			—			—			—			—			247
Units sold through November 1, 2015		—			—			—			127			114			—			—			—			—			241
Unsold units		—			—			—			—			6			—			—			—			—			6
Unsold units with deposits for future sale as of November 1, 2015		—			—			—			—			1			—			—			—			—			—

Summary financial information as of September 30, 2014

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	8,619,846		$	2,622,203		$	7,230,839		$	5,215,054		$	1,011,453		$	6,473,921		$	6,628,931		$	19,644,258		$	98,343,487		$	155,789,992
Cash & Cash Equivalents		28,937			149,705			203,001			7,697			741,509			4,188			111,378			2,404,047			1,231,163			4,881,625
Rent Receivable		17,700			—			1,703			14,718			3,049			1,102			2,326			9,845			149,200			199,643
Real Estate Tax Escrow		98,555			—			41,934			71,690			—			43,591			40,212			52,130			356,155			704,267
Prepaid Expenses & Other Assets		95,311			895			50,550			44,962			27,327			44,461			44,558			96,377			1,657,149			2,061,590
Financing & Leasing Fees		33,515			7,753			91,554			10,849			—			15,110			9,005			159,175			295,874			622,835
Total Assets	$	8,893,864		$	2,780,556		$	7,619,581		$	5,364,970		$	1,783,338		$	6,582,373		$	6,836,410		$	22,365,832		$	102,033,028		$	164,259,952
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	8,140,592		$	2,001,159		$	10,000,000		$	4,823,762		$	—		$	4,590,276		$	5,311,923		$	16,900,000		$	86,566,934		$	138,334,646
Accounts Payable & Accrued Expense		150,481			55,616			172,833			27,905			724,100			16,076			123,765			2,142,549			931,507			4,344,832
Advance Rental Pmts& Security Deposits		174,103			—			197,412			103,182			13,487			88,756			95,052			301,976			2,205,078			3,179,046
Total Liabilities		8,465,176			2,056,775			10,370,245			4,954,849			737,587			4,695,108			5,530,740			19,344,525			89,703,519			145,858,524
Partners’ Capital		428,688			723,781			(2,750,664)			410,121			1,045,751			1,887,265			1,305,670			3,021,307			12,329,509			18,401,428
Total Liabilities and Capital	$	8,893,864		$	2,780,556		$	7,619,581		$	5,364,970		$	1,783,338		$	6,582,373		$	6,836,410		$	22,365,832		$	102,033,028		$	164,259,952
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	214,344		$	361,891		$	—		$	205,061		$	522,876		$	943,633		$	652,833		$	1,510,654		$	4,931,804		$	9,343,093
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	—		$	—		$	(1,375,332)		$	—		$	—		$	—		$	—		$	—		$	—			(1,375,332)
Total Investment in Unconsolidated Joint Ventures (Net)																												$	7,967,761
Total units/condominiums
Apartments		48			—			40			175			120			48			42			148			409			1,030
Commercial		1			1			—			1			—			—			—			—			—			3
Total		49			1			40			176			120			48			42			148			409			1,033
Units to be retained		49			1			40			49			0			48			42			148			409			786
Units to be sold		—			—			—			127			120			—			—			—			—			247
Units sold through November 1, 2014		—			—			—			127			111			—			—			—			—			238
Unsold units		—			—			—			—			9			—			—			—			—			9
Unsold units with deposits for future sale as of November 1, 2014		—			—			—			—			—			—			—			—			—			—

Summary of income statement relating to investment in unconsolidated joint ventures

Financial information for the nine months ended September 30, 2015

			Hamilton										Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Hamilton		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,090,071	$	217,568	$	1,033,115	$	713,771	$	78,548	$	733,978	$	699,019	$	2,305,464	$	10,650,223	$	17,521,757
Laundry and Sundry Income		10,114		—		323		—		—		—		—		33,335		67,439		111,211
		1,100,185		217,568		1,033,438		713,771		78,548		733,978		699,019		2,338,799		10,717,662		17,632,968
Expenses
Administrative		17,087		1,434		25,912		5,500		6,537		5,507		3,724		32,349		181,425		279,475
Depreciation and Amortization		356,925		7,761		281,390		180,630		26,961		239,898		246,675		726,876		2,452,629		4,519,745
Management Fees		46,666		8,714		42,971		28,273		3,143		28,914		28,974		91,870		227,847		507,372
Operating		81,724		—		67,241		531		476		917		64,428		296,685		971,545		1,483,547
Renting		8,906		—		12,649		—		—		2,350		6,623		5,701		72,373		108,602
Repairs and Maintenance		110,815		200		45,950		235,033		34,914		273,982		56,628		297,165		930,398		1,985,085
Taxes and Insurance		161,702		39,503		89,750		126,255		16,415		115,086		92,943		253,816		1,141,731		2,037,201
		783,825		57,612		565,863		576,222		88,446		666,654		499,995		1,704,462		5,977,948		10,921,027
Income Before Other Income		316,360		159,956		467,575		137,549		(9,898)		67,324		199,024		634,337		4,739,714		6,711,941
Other Income (Loss)
Interest Expense		(337,847)		(40,644)		(293,906)		(206,872)		(268)		(194,411)		(228,380)		(563,622)		(3,656,573)		(5,522,523)
Interest Income		—		—		—		11		—		—		—		—		—		11
Interest Income from Note		—		—		—		—		—		—		—		96		—		96
Gain on Sale of Real Estate		—		—		—		—		76,523		—		—		—		—		76,523
		(337,847)		(40,644)		(293,906)		(206,861)		76,255		(194,411)		(228,380)		(563,526)		(3,656,573)		(5,445,893)
Net Income (Loss)	$	(21,487)	$	119,312	$	173,669	$	(69,312)	$	66,357	$	(127,087)	$	(29,356)	$	70,811	$	1,083,141	$	1,266,048
Net Income (Loss)—NERA 50%	$	(10,744)	$	59,656	$	86,835	$	(34,656)	$	33,179	$	(63,544)	$	(14,678)	$	35,406				91,454
Net Income (Loss)—NERA 40%																	$	433,256		433,256
																			$	524,710

Financial information for the three months ended September 30, 2015

													Hamilton		Hamilton
	Hamilton		Hamilton Essex		345		Hamilton		Hamilton		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	368,163	$	72,523	$	354,840	$	236,343	$	19,080	$	246,892	$	231,545	$	781,336	$	3,588,943	$	5,899,665
Laundry and Sundry Income		7,622		—		—		—		—		—		—		10,888		23,361		41,871
		375,785		72,523		354,840		236,343		19,080		246,892		231,545		792,224		3,612,304		5,941,536
Expenses
Administrative		8,781		425		11,531		2,338		1,863		1,883		1,032		12,414		76,791		117,058
Depreciation and Amortization		132,477		2,117		93,804		60,569		8,988		80,607		83,182		243,760		820,856		1,526,360
Management Fees		14,929		2,912		13,731		9,442		820		9,482		9,529		30,816		72,222		163,883
Operating		22,961		—		16,055		183		271		208		17,946		111,793		241,740		411,157
Renting		2,185		—		3,544		—		159		—		1,877		2,300		39,160		49,225
Repairs and Maintenance		44,380		200		26,888		79,646		10,879		87,765		23,864		114,683		390,221		778,526
Taxes and Insurance		54,826		12,659		29,873		40,360		5,479		38,861		30,972		87,515		407,819		708,364
		280,539		18,313		195,426		192,538		28,459		218,806		168,402		603,281		2,048,809		3,754,573
Income Before Other Income		95,246		54,210		159,414		43,805		(9,379)		28,086		63,143		188,943		1,563,495		2,186,963
Other Income (Loss)
Interest Expense		(100,585)		(13,472)		(97,968)		(69,431)		(55)		(65,172)		(76,823)		(189,919)		(1,227,139)		(1,840,564)
Interest Income		—		—		—		3		—		—		—		—		—		3
Gain on sale of real estate		—		—		—		—		76,648		—		—		—		—		76,648
		(100,585)		(13,472)		(97,968)		(69,428)		76,593		(65,172)		(76,823)		(189,919)		(1,227,139)		(1,763,913)
Net Income (Loss)	$	(5,339)	$	40,738	$	61,446	$	(25,623)	$	67,214	$	(37,086)	$	(13,680)	$	(976)	$	336,356	$	423,050
Net Income (Loss)—NERA 50%	$	(2,670)	$	20,369	$	30,723	$	(12,812)	$	33,607	$	(18,543)	$	(6,840)	$	(488)				43,347
Net Income (Loss)—NERA 40%																	$	134,543		134,543
																			$	177,890

Financial information for the nine months ended September 30, 2014

			Hamilton						Hamilton				Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Bay		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,043,460	$	218,995	$	994,331	$	698,401	$	151,937	$	704,397	$	683,025	$	2,177,950	$	10,143,620	$	16,816,116
Laundry and Sundry Income		12,425		—		—		—		—		—		844		29,213		75,213		117,695
		1,055,885		218,995		994,331		698,401		151,937		704,397		683,869		2,207,163		10,218,833		16,933,811
Expenses
Administrative		23,376		1,180		32,580		6,784		3,388		14,493		8,104		42,799		181,661		314,365
Depreciation and Amortization		324,833		8,466		300,816		180,524		57,524		238,744		240,486		716,092		4,048,679		6,116,164
Management Fees		43,937		8,760		41,823		27,973		5,888		28,206		28,489		86,429		217,031		488,536
Operating		96,904		—		45,984		523		1,028		1,683		60,631		288,912		960,938		1,456,603
Renting		11,875		—		11,368		5,918		753		5,042		7,571		21,131		156,856		220,514
Repairs and Maintenance		125,411		3,150		56,421		246,576		74,719		223,566		58,132		292,004		927,771		2,007,750
Taxes and Insurance		172,802		40,498		87,842		119,861		30,025		120,392		89,496		279,034		1,155,775		2,095,725
		799,138		62,054		576,834		588,159		173,325		632,126		492,909		1,726,401		7,648,711		12,699,657
Income Before Other Income		256,747		156,941		417,497		110,242		(21,388)		72,271		190,960		480,762		2,570,122		4,234,154
Other Income (Loss)
Interest Expense		(361,857)		(41,932)		(293,469)		(210,158)		(485)		(197,633)		(231,196)		(610,958)		(3,710,651)		(5,658,339)
Interest Income		—		—		—		15		468		—		—		—		—		483
Gain on sale of real estate		—		—		—		—		350,523		—		—		—		—		350,523
		(361,857)		(41,932)		(293,469)		(210,143)		350,506		(197,633)		(231,196)		(610,958)		(3,710,651)		(5,307,333)
Net Income (Loss)	$	(105,110)	$	115,009	$	124,028	$	(99,901)	$	329,118	$	(125,362)	$	(40,236)	$	(130,196)	$	(1,140,529)	$	(1,073,179)
Net Income (Loss)—NERA 50%	$	(52,555)	$	57,505	$	62,014	$	(49,951)	$	164,559	$	(62,681)	$	(20,118)	$	(65,098)				33,677
Net Income (Loss)—NERA 40%																	$	(456,212)		(456,212)
																			$	(422,535)

Financial information for the three months ended September 30, 2014

			Hamilton						Hamilton				Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Bay		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	373,304	$	72,523	$	335,607	$	250,921	$	45,216	$	242,294	$	226,213	$	737,588	$	3,433,856	$	5,717,522
Laundry and Sundry Income		4,306		—		—		—		—		—		676		10,065		26,620		41,667
		377,610		72,523		335,607		250,921		45,216		242,294		226,889		747,653		3,460,476		5,759,189
Expenses
Administrative		6,235		350		12,719		2,624		715		3,916		2,661		12,037		64,668		105,925
Depreciation and Amortization		108,663		2,822		100,712		60,204		19,174		80,047		81,233		242,960		1,354,577		2,050,392
Management Fees		14,832		2,901		13,319		9,330		1,613		9,606		9,536		28,609		68,588		158,334
Operating		27,938		—		13,390		171		423		643		16,528		82,442		224,085		365,620
Renting		908		—		7,745		—		—		—		1,482		3,034		99,320		112,489
Repairs and Maintenance		51,584		—		25,489		81,607		27,069		79,825		19,697		101,601		413,587		800,459
Taxes and Insurance		55,807		12,859		29,643		38,487		7,360		38,387		30,264		87,450		398,451		698,708
		265,967		18,932		203,017		192,423		56,354		212,424		161,401		558,133		2,623,276		4,291,927
Income Before Other Income		111,643		53,591		132,590		58,498		(11,138)		29,870		65,488		189,520		837,200		1,467,262
Other Income (Loss)
Interest Expense		(121,659)		(14,036)		(97,895)		(70,528)		(86)		(66,300)		(77,635)		(208,944)		(1,245,694)		(1,902,777)
Interest Income		—		—		—		6		—		—		—		—		—		6
Gain on sale of Real Estate		—		—		—		—		50,001		—		—		—		—		50,001
		(121,659)		(14,036)		(97,895)		(70,522)		49,915		(66,300)		(77,635)		(208,944)		(1,245,694)		(1,852,770)
Net Income (Loss)	$	(10,016)	$	39,555	$	34,695	$	(12,024)	$	38,777	$	(36,430)	$	(12,147)	$	(19,424)	$	(408,494)	$	(385,508)
Net Income (Loss)—NERA 50%	$	(5,008)	$	19,778	$	17,348	$	(6,012)	$	19,389	$	(18,215)	$	(6,074)	$	(9,712)				11,493
Net Income (Loss)—NERA 40%																	$	(163,395)		(163,395)
																			$	(151,902)

Schedule of future annual mortgage maturities

Future annual mortgage maturities at September 30, 2015 are as follows:

	Hamilon		345		Hamilton		Hamilton		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		1025		Bay Apts		Minuteman		Main Apts		Park		Total
9/30/2016	$	—	$	42,990	$	75,155	$	80,330	$	82,308	$	—	$	1,479,627	$	1,760,410
9/30/2017		—		180,476		4,676,918		4,441,266		5,151,099		—		1,564,180		16,013,939
9/30/2018		—		189,026		—		—		—		—		1,653,563		1,842,589
9/30/2019		—		196,473		—		—		—		—		1,748,055		1,944,528
9/30/2020		—		204,213		—		—		—		—		78,802,283		79,006,496
Thereafter		10,000,000		9,186,822		—		—		—		16,900,000		—		36,086,822
	$	10,000,000	$	10,000,000	$	4,752,073	$	4,521,596	$	5,233,407	$	16,900,000	$	85,247,708	$	136,654,784

XML

SIGNIFICANT ACCOUNTING POLICIES (Details)	Sep. 30, 2015 ft² item
Residential and mixed-use properties
Line of Business
Number of properties	21
Total	2,506
Condominium
Line of Business
Total	19
Wholly owned properties
Line of Business
Number of properties	25
Wholly owned properties | Residential buildings
Line of Business
Number of properties	17
Total	2,506
Wholly owned properties | Mixed use residential, retail and office buildings
Line of Business
Number of properties	4
Wholly owned properties | Commercial
Line of Business
Number of properties	3
Area of property (in square feet) | ft²	108,043
Wholly owned properties | Condominium
Line of Business
Number of properties	1
Total	19
Partially owned properties | Residential and mixed-use properties
Line of Business
Number of properties	9
Total	789
Area of property (in square feet) | ft²	12,500
Partially owned properties | Residential and mixed-use properties | Minimum
Line of Business
Percentage of ownership interest	40.00%
Partially owned properties | Residential and mixed-use properties | Maximum
Line of Business
Percentage of ownership interest	50.00%
Partially owned properties | Car parking lot
Line of Business
Capacity of real estate property (in cars per lot)	50

XML

RENTAL PROPERTIES

9 Months Ended

Sep. 30, 2015

RENTAL PROPERTIES

RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

As of September 30, 2015, the Partnership and its Subsidiary Partnerships owned 2,506 residential apartment units in 21 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of September 30, 2015, the Partnership and Subsidiary Partnerships owned a commercial shopping center in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in nine residential and mixed use complexes (the “Investment Properties”) at September 30, 2015 with a total of 789 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

On September 18, 2015, Residences at Captain Parkers LLC, a newly formed subsidiary of the Partnership, purchased the Residence at Captain Parkers, a 94 unit apartment complex located at 125 Worthen Road  and Ryder Lane in Lexington, Massachusetts. The purchase price was $31,600,000 and the closing costs were approximately $49,000. From the purchase price, the Partnership allocated approximately $474,000 for in-place leases, and approximately $31,000 to the value of tenant relationships. These amounts are being amortized over 12 and 24 months respectively. To fund the purchase, the Partnership utilized the available line of credit of $25,000,000, and the balance from the Partnership’s cash reserves.

Rental properties consist of the following:

	September 30, 2015		December 31, 2014		Useful Life
Land, improvements and parking lots	$	51,713,843	$	44,541,471	15	-	40	years
Buildings and improvements		173,749,025		153,059,430	15	-	40	years
Kitchen cabinets		8,983,374		6,865,348	5	-	10	years
Carpets		8,437,321		6,341,227	5	-	10	years
Air conditioning		772,080		705,116	5	-	10	years
Laundry equipment		236,283		147,721	5	-	7	years
Elevators		1,139,296		1,139,296	20	-	40	years
Swimming pools		444,629		444,629	10	-	30	years
Equipment		6,265,714		5,491,992	5	-	7	years
Motor vehicles		130,859		130,563			5	years
Fences		38,635		24,670	5	-	15	years
Furniture and fixtures		8,705,137		5,910,046	5	-	7	years
Smoke alarms		220,437		220,437	5	-	7	years
Total fixed assets		260,836,633		225,021,946
Less: Accumulated depreciation		(83,334,950)		(75,905,862)
	$	177,501,683	$	149,116,084

XML

SIGNIFICANT ACCOUNTING POLICIES (Details 2)		9 Months Ended
	Jan. 03, 2012	Sep. 30, 2015 USD ($) item shares	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)	Aug. 20, 2007
Principles of Consolidation
Value of equity method investment to discontinued partnership		$ 0
Revenue Recognition
Period for which arrears are charged against income		60 days
Income Taxes
Provision for income taxes		$ 0
Segment Reporting
Number of segments | item		1
Income Per Unit
Dilutive units | shares		0
Concentration of Credit Risks and Financial Instruments
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets		$ 10,420,000		$ 15,118,000
Advertising Expense
Advertising expense		106,482	$ 79,346
Interest Capitalized
Capitalized interest		$ 0	$ 0
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
Minimum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		99.67%
Interest Capitalized
Criteria of capitalization of interest on property based on specified period of construction		1 year
Minimum | Cash and cash equivalents
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		0.01%
Maximum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		100.00%
Maximum | Cash and cash equivalents
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		0.35%
Total
Principles of Consolidation
Number of limited liability companies | item		9
Total | Minimum
Principles of Consolidation
Percentage of ownership in Joint Ventures		40.00%
Total | Maximum
Principles of Consolidation
Percentage of ownership in Joint Ventures		50.00%

XML

COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
	Sep. 30, 2015 USD ($)	Jun. 09, 2015 property
Loss Contingencies [Line Items]
Insurance recovery receivable	$ 412,502
Westgate Apartments LLC
Loss Contingencies [Line Items]
Number of properties | property		12
Number of apartments damaged | property		10
Proceeds from Insurance	591,000
Insurance recovery receivable	$ 361,000

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Rental Properties	$ 177,501,683	$ 149,116,084
Cash and Cash Equivalents	9,156,753	14,015,898
Rents Receivable	510,026	474,225
Insurance Recovery Receivable	412,502
Real Estate Tax Escrows	353,648	340,341
Prepaid Expenses and Other Assets	4,593,176	3,287,005
Investments in Unconsolidated Joint Ventures	8,299,289	8,807,868
Financing Fees	1,570,797	1,735,652
Total Assets	202,397,874	177,777,073
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	195,972,822	196,071,540
Note Payable	25,000,000
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture	2,212,081	1,425,369
Accounts Payable and Accrued Expenses	4,626,872	3,099,117
Advance Rental Payments and Security Deposits	4,735,554	4,548,729
Total Liabilities	232,547,329	205,144,755
Partners' Capital 125,976 and 127,653 units outstanding in 2015 and 2014 respectively	(30,149,455)	(27,367,682)
Total Liabilities and Partners' Capital	$ 202,397,874	$ 177,777,073

XML

TAXABLE INCOME AND TAX BASIS (Details)	12 Months Ended
	Dec. 31, 2014 USD ($)
TAXABLE INCOME AND TAX BASIS
Excess amount of statement income over taxable income	$ 3,100,000
Excess amount of cumulative statement basis over cumulative taxable basis	5,000,000
Excess amount of statement income from joint venture investments over taxable income	1,300,000
Reconciliation of GAAP net income to taxable income
Taxable loss	$ 2,100,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities
Net income	$ 2,579,861	$ 433,714
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	7,656,072	7,935,355
(Income) Loss from investments in joint venture	(524,710)	422,535
Change in operating assets and liabilities
(Increase) in rents receivable	(35,801)	(72,411)
Increase (Decrease) in accounts payable and accrued expense	1,527,755	(269,825)
(Increase) in insurance recovery receivable	(412,502)
(Increase) Decrease in real estate tax escrow	(13,307)	71,162
(Increase) in prepaid expenses and other assets	(1,368,299)	(408,753)
Increase in advance rental payments and security deposits	186,825	108,237
Total Adjustments	7,016,033	7,786,300
Net cash provided by operating activities	9,595,894	8,220,014
Cash Flows From Investing Activities
Proceeds from unconsolidated joint ventures	2,074,993	2,346,690
Distribution in excess of investment in unconsolidated joint ventures	873,545	185,000
(Investment) in unconsolidated joint ventures	(1,128,538)	(149,190)
Improvement of rental properties	(4,669,977)	(3,701,170)
Purchase of rental property	(6,144,710)
Net cash (used in) investing activities	(8,994,687)	(1,318,670)
Cash Flows from Financing Activities
Payment of financing costs		(289,561)
Proceeds of mortgage notes payable		1,109,555
Principal payments of mortgage notes payable	(98,718)	(3,526,869)
Stock buyback	(2,516,061)	(1,564,397)
Distributions to partners	(2,845,573)	(2,898,801)
Net cash provided by (used in) financing activities	(5,460,352)	(7,170,073)
Net (Decrease) in Cash and Cash Equivalents	(4,859,145)	(268,729)
Cash and Cash Equivalents, at beginning of period	14,015,898	14,013,380
Cash and Cash Equivalents, at end of period	9,156,753	$ 13,744,651
Supplemental non-cash disclosure
Rental property purchased through line of credit	$ 25,000,000

XML

OTHER ASSETS (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
OTHER ASSETS
Security deposits	$ 2,218,000	$ 2,090,000
Escrow deposits to fund future capital improvements	863,000	253,000
Replacement Reserve Escrow	551,000
Replacement reserve	551,000
Intangible assets, net of accumulated amortization	512,000	49,000
Accumulated amortization on intangible assets in connection with the acquisition of Windsor Green	1,745,000	1,703,000
Financing fees, net	1,571,000	1,736,000
Accumulated amortization on financing and leasing fees	$ 778,000	$ 613,000

XML

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2015

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 16—SUBSEQUENT EVENTS

From October 1, 2015 through November 5, 2015, the Partnership purchased a total of 10,420 Depositary Receipts. The average price was $49.55per receipt or $1,486.50  per unit. The total cost was $524,967. The Partnership is required to repurchase 82.5 Class B Units and 4.3 General Partnership Units at a cost of $122,624and $6,454respectively.

XML

MORTGAGE NOTES PAYABLE AND LINE OF CREDIT (Details)				1 Months Ended	9 Months Ended
	Jul. 31, 2014 USD ($) item	Jul. 11, 2014 USD ($)	Jun. 11, 2014 USD ($)	Feb. 28, 2014 USD ($)	Sep. 30, 2015 USD ($) shares	Sep. 30, 2014 shares
Annual maturities of mortgage debt
2015-current maturities					$ 726,000
2016					1,821,000
2017					7,840,000
2018					1,921,000
2019					4,337,000
Thereafter					179,328,000
Total					195,973,000
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months					726,000
Additional disclosures related to mortgages
Repurchase of depository receipts					$ 2,018,329
Repurchase of units | shares					1,677	1,080
Commitment fee for unused line of credit					$ 36,000
Line of Credit
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)					3.875%
Additional disclosures related to mortgages
Term of debt	3 years
Maximum borrowings	$ 25,000,000
Funds drawn by the company					$ 25,000,000
Number of properties in which borrowing amount collateralized | item	23
Amount of refinancing costs	$ 125,000
Base Rate [Member] | Line of Credit
Additional disclosures related to mortgages
Reference rate used in calculation of Base Rate	base
Prime Rate [Member] | Line of Credit
Additional disclosures related to mortgages
Reference rate used in calculation of Base Rate	Prime
Federal Funds Rate [Member] | Line of Credit
Additional disclosures related to mortgages
Basis of effective interest rate used in calculation of Base Rate (as a percent)	0.50%
Reference rate used in calculation of Base Rate	Federal Funds
London Interbank Offered Rate | Line of Credit
Additional disclosures related to mortgages
Basis of effective interest rate used in calculation of Base Rate (as a percent)	1.00%
Reference rate used in calculation of Base Rate	one month LIBOR
Minimum
Additional disclosures related to mortgages
Tangible net worth					$ 150,000,000
Ratio of net operating income to total indebtedness					9.50%
Debt service coverage ratio					1.6
Minimum | Line of Credit
Additional disclosures related to mortgages
Commitment fee for unused amount (as a percent)	0.15%
Pledged interests rate of the Partnership's ownership interest (as a percent)	49.00%
Minimum | Base Rate [Member] | Line of Credit
Additional disclosures related to mortgages
Margin over basis of interest rate (as a percent)	2.50%
Maximum
Additional disclosures related to mortgages
Leverage ratio					65.00%
Aggregate increase in indebtedness					$ 15,000,000
Maximum | Line of Credit
Additional disclosures related to mortgages
Commitment fee for unused amount (as a percent)	0.20%
Pledged interests rate of the Partnership's ownership interest (as a percent)	100.00%
Mortgages payable
MORTGAGE NOTES PAYABLE
Amount of monthly installments including principal					$ 808,000
Weighted average interest rate (as a percent)					4.81%
Effective interest rate (as a percent)					4.92%
Additional disclosures related to mortgages
Mortgage prepayment penalties				$ 0
Mortgages payable | NERA Dean Street Associates, LLC
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)			4.22%
Additional disclosures related to mortgages
Amount of new loan			$ 5,687,000
Period of interest only payments on loans			10 years
Amount of loan proceeds utilized for pay off the existing mortgage			$ 5,077,000
Refinancing cost			$ 89,000
Mortgages payable | Hamilton Linewt LLC Commercial-1031Exchange Newton, Massachusetts
Additional disclosures related to mortgages
Amount of mortgage paid off				1,466,000
Mortgages payable | Linhart L.P. Residential/Commercial Newton, Massachusetts
Additional disclosures related to mortgages
Amount of mortgage paid off				$ 1,926,000
Mortgages payable | Courtyard At Westgate Residential Units Burlington Massachusetts Member
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)		4.31%
Additional disclosures related to mortgages
Period of interest only payments on loans		10 years
Amount of loan proceeds utilized for pay off the existing mortgage		$ 2,010,000
Amount of new loan		2,500,000
Amount of refinancing costs		$ 75,000
Mortgages payable | Minimum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)					3.76%
Mortgages payable | Maximum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)					5.97%

XML

RENTAL PROPERTIES (Tables)

9 Months Ended

Sep. 30, 2015

RENTAL PROPERTIES

Schedule of rental properties

	September 30, 2015		December 31, 2014		Useful Life
Land, improvements and parking lots	$	51,713,843	$	44,541,471	15	-	40	years
Buildings and improvements		173,749,025		153,059,430	15	-	40	years
Kitchen cabinets		8,983,374		6,865,348	5	-	10	years
Carpets		8,437,321		6,341,227	5	-	10	years
Air conditioning		772,080		705,116	5	-	10	years
Laundry equipment		236,283		147,721	5	-	7	years
Elevators		1,139,296		1,139,296	20	-	40	years
Swimming pools		444,629		444,629	10	-	30	years
Equipment		6,265,714		5,491,992	5	-	7	years
Motor vehicles		130,859		130,563			5	years
Fences		38,635		24,670	5	-	15	years
Furniture and fixtures		8,705,137		5,910,046	5	-	7	years
Smoke alarms		220,437		220,437	5	-	7	years
Total fixed assets		260,836,633		225,021,946
Less: Accumulated depreciation		(83,334,950)		(75,905,862)
	$	177,501,683	$	149,116,084

XML

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2015

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business:  New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 25 properties which include 17 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,506 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40- 50% interest in 9 residential and mixed use properties consisting of 789 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation:  The preparation of the financial statements, in conformity with accounting principles generally accepted in the United State of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates.

Principles of Consolidation:  The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the nine limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership.” Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures).

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of  investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment:  On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition:  Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Contingent rent for commercial properties are received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease values for acquired properties are amortized as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

Rental Properties:  Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Financing and Leasing Fees:  Financing fees are capitalized and amortized, using the interest method, over the life of the related mortgages. Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Income Taxes:  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 2015 or 2014 other than net income as reported.

Income Per Depositary Receipt:  Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split.

Income Per Unit:  Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments:  The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2015 or 2014. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At September 30, 2015, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.35%. At September 30, 2015 and December 31, 2014, respectively approximately $10,420,000, and $15,118,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense:  Advertising is expensed as incurred. Advertising expense was $106,482 and $79,346 for the nine months ended September 30, 2015 and 2014, respectively.

Discontinued Operations and Rental Property Held for Sale:  In April 2014, the FASB issued guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. This guidance defines a discontinued operation as a component or group of components disposed or classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and final result; the guidance states that a strategic shift could include a disposal of a major geographical area of operations, a major line of business, a major equity method investment or other major parts of an entity.  The guidance also provides for additional disclosure requirements in connection with both discontinued operations and other dispositions not qualifying as discontinued operations.  The guidance will be effective for all companies for annual and interim periods beginning on or after December 15, 2014.  The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  All entities may early adopt the guidance for new disposals (or new classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance.  The Partnership has elected to early adopt this standard effective with the interim period beginning January 1, 2014.  Prior to January 1, 2014, properties identified as held for sale and/or disposed of were presented in discontinued operations for all periods presented.

Interest Capitalized:  The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the nine months ended September 30, 2015 and 2014 there was no capitalized interest.

Extinguishment of Debt:  When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt.

Reclassifications:  Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS
Partners' Capital, units outstanding	125,976	127,653	128,407	129,487

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CASH FLOW INFORMATION

9 Months Ended

Sep. 30, 2015

CASH FLOW INFORMATION

CASH FLOW INFORMATION

NOTE 11. CASH FLOW INFORMATION

During the nine months ended September 30, 2015 and 2014, cash paid for interest was approximately $7,214,000, and $6,444,000 respectively.  Cash paid for state income taxes was approximately $19,000 and $50,000 during the nine months ended September 30, 2015 and 2014 respectively. At September 30, 2015, the Partnership was involved in a non-cash financing activity of $25,000,000 in connection with the purchase of the Residence at Captain Parkers.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Entity Registrant Name	NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
Entity Central Index Key	0000746514
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Class A
Entity Common Stock, Shares Outstanding		100,434
Class B
Entity Common Stock, Shares Outstanding		23,935

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2015

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At September 30, 2015 and December 31, 2014, 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, 2015 and December 31, 2014 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, 2015 and December 31, 2014, 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, 2015 and December 31, 2014, 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.

At September 30, 2015, the Partnership has a line of credit outstanding in the amount of $25,000,000, which represents its  fair market value.

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, 2015	$	195,972,822	$	210,451,015
At December 31, 2014	$	196,071,540	$	210,691,170
Investment Properties
At September 30, 2015	$	136,654,784	$	145,961,955
At December 31, 2014	$	137,910,870	$	147,843,221

Disclosure about fair value of financial instruments is based on pertinent information available to management as of September 30, 2015 and December 31, 2014. 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, 2015 and current estimates of fair value may differ significantly from the amounts presented herein.

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CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Rental income	$ 11,116,471	$ 10,546,055	$ 33,037,761	$ 31,500,342
Laundry and sundry income	93,503	96,973	309,151	321,150
Total Revenues	11,209,974	10,643,028	33,346,912	31,821,492
Expenses
Administrative	502,177	543,704	1,528,710	1,643,185
Depreciation and amortization	2,651,515	2,463,708	7,656,072	7,935,355
Management fee	453,178	438,319	1,369,597	1,303,780
Operating	803,753	838,728	3,798,050	3,540,985
Renting	199,980	155,865	421,181	301,334
Repairs and maintenance	2,006,298	2,087,290	5,176,219	4,899,746
Taxes and insurance	1,258,025	1,388,807	4,171,930	4,180,961
Total Expenses	7,874,926	7,916,421	24,121,759	23,805,346
Income Before Other Income (Expense)	3,335,048	2,726,607	9,225,153	8,016,146
Other Income (Expense)
Interest income	1,055	209	1,393	592
Interest expense	(2,434,000)	(2,393,427)	(7,171,395)	(7,160,489)
Income (Loss) from investments in joint ventures	177,890	(151,902)	524,710	(422,535)
Other expenses	(6,247)
Total Other Income (loss)	(2,261,302)	(2,545,120)	(6,645,292)	(7,582,432)
Net Income	$ 1,073,746	$ 181,487	$ 2,579,861	$ 433,714
Income (loss) per Unit
Net income per unit	$ 8.51	$ 1.41	$ 20.37	$ 3.36
Weighted Average Number of Units Outstanding (in units)	126,199	128,587	126,636	129,149

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ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

9 Months Ended

Sep. 30, 2015

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, 2015, amounts received for prepaid rents of approximately $1,694,000 are included in cash and cash equivalents, and security deposits of approximately $2,218,000 are included in prepaid expenses and other assets and are restricted cash.

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MORTGAGE NOTES PAYABLE

9 Months Ended

Sep. 30, 2015

MORTGAGE NOTES PAYABLE

MORTGAGE NOTES PAYABLE

NOTE 5. MORTGAGE NOTES PAYABLE

At September 30, 2015 and December 31, 2014, 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, 2015, the interest rates on these loans ranged from  3.76% to 5.97%, payable in monthly installments aggregating approximately $808,000 including principal, to various dates through 2029. The majority of the mortgages are subject to prepayment penalties. At September 30, 2015, the weighted average interest rate on the above mortgages was 4.81%. The effective rate of 4.92% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at September 30, 2015 are as follows:

2015—current maturities	$	726,000
2016		1,821,000
2017		7,840,000
2018		1,921,000
2019		4,337,000
Thereafter		179,328,000
	$	195,973,000

In February 2014, the Partnership paid off the mortgages on Linewt in the amount of approximately $1,466,000 and Linhart in the amount of approximately $1,926,000. There were no prepayment penalties. The Partnership’s cash reserves were used to pay off these mortgages.

On June 11, 2014, the Partnership refinanced the property owned by NERA Dean Street Associates, LLC.  The new mortgage is $5,687,000; the interest rate is 4.22%, interest only payable in 10 years. Approximately $5,077,000 of the loan proceeds were used to pay off the existing mortgage. The mortgage matures in June 2024. The costs associated with the refinancing were approximately $89,000.

On July 11, 2014, the Partnership refinanced the property owned by Westgate Apartments Burlington, LLC.  The new mortgage is $2,500,000; the interest rate is 4.31%; interest only, payable in 10 years.  Approximately $2,010,000 of loan proceeds were used to pay off the existing mortgage. The mortgage matures in August, 2024. The costs associated with the refinancing were approximately $75,000.

Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit.  The term of the line is three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the  applicable margin of 2.5% . The costs associated with the line of credit were approximately $125,000. As of September 30, 2015, the credit line had a balance of $25,000,000. The interest rate on the line of credit at September 30, 2015 is 3.875%.

On September 15, 2015, the Partnership, in connection with the purchase of the Residence at Captain Parker Apartments, used the entire line of credit, along with cash reserve, to purchase the property. (See Note 2: Rental Properties, for the details of the transaction.)

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay distributions, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

The Partnership paid fees to secure the line of credit. Any unused balance of the line of credit is subject to a fee ranging from 15 to 20 basis points per annum. The Partnership paid approximately $36,000 for the nine months ended September 30, 2015.

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, 2015.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2015

SIGNIFICANT ACCOUNTING POLICIES

Line of Business

Line of Business:  New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 25 properties which include 17 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,506 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40- 50% interest in 9 residential and mixed use properties consisting of 789 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation

Basis of Presentation:  The preparation of the financial statements, in conformity with accounting principles generally accepted in the United State of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Accordingly, actual results could differ from those estimates.

Principles of Consolidation

Principles of Consolidation:  The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the nine limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership.” Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures).

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of  investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment

Impairment:  On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition

Revenue Recognition:  Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Contingent rent for commercial properties are received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease values for acquired properties are amortized as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

Rental Properties

Rental Properties:  Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Financing and Leasing Fees

Financing and Leasing Fees:  Financing fees are capitalized and amortized, using the interest method, over the life of the related mortgages. Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Income Taxes

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 2015 or 2014 other than net income as reported.

Income Per Depositary Receipt

Income Per Depositary Receipt:  Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split.

Income Per Unit

Income Per Unit:  Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments

Concentration of Credit Risks and Financial Instruments:  The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more than 5% of the Partnership’s revenues in 2015 or 2014. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At September 30, 2015, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.35%. At September 30, 2015 and December 31, 2014, respectively approximately $10,420,000, and $15,118,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense

Advertising Expense:  Advertising is expensed as incurred. Advertising expense was $106,482 and $79,346 for the nine months ended September 30, 2015 and 2014, respectively.

Discontinued Operations and Rental Property Held for Sale

Discontinued Operations and Rental Property Held for Sale:  In April 2014, the FASB issued guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. This guidance defines a discontinued operation as a component or group of components disposed or classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and final result; the guidance states that a strategic shift could include a disposal of a major geographical area of operations, a major line of business, a major equity method investment or other major parts of an entity.  The guidance also provides for additional disclosure requirements in connection with both discontinued operations and other dispositions not qualifying as discontinued operations.  The guidance will be effective for all companies for annual and interim periods beginning on or after December 15, 2014.  The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date.  All entities may early adopt the guidance for new disposals (or new classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance.  The Partnership has elected to early adopt this standard effective with the interim period beginning January 1, 2014.  Prior to January 1, 2014, properties identified as held for sale and/or disposed of were presented in discontinued operations for all periods presented.

Interest Capitalized

Interest Capitalized:  The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the nine months ended September 30, 2015 and 2014 there was no capitalized interest.

Extinguishment of Debt

Extinguishment of Debt:  When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt.

Reclassifications

Reclassifications:  Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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TAXABLE INCOME AND TAX BASIS

9 Months Ended

Sep. 30, 2015

TAXABLE INCOME AND TAX BASIS

TAXABLE INCOME AND TAX BASIS

NOTE 13. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, accelerated depreciation, different tax lives, and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Taxable loss of approximately $2,100,000 was approximately $3,100,000 less than statement income for the year ended December 31, 2014. The primary reason for the difference is due to accelerated depreciation, tax free exchange and other differences in the treatment of certain expenditures. The cumulative tax basis of the Partnership’s real estate at December 31, 2014 is approximately $5,000,000 less than the statement basis. The primary reasons for the lower tax basis are tax free exchanges, and accelerated depreciation. The Partnership’s tax basis in its joint venture investments is approximately $1,300,000 less than statement basis because of accelerated depreciation.

Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidates financial statements.

Allowable accelerated depreciation deductions expired in 2014. This may result in higher taxable income in future years. Future tax law changes may significantly affect taxable income.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, The Partnership recognized no material adjustment regarding its’ tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of September 30, 2015, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2009 forward.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2015

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

From time to time, the Partnership is involved in various ordinary routine litigation incidental to its business. The Partnership either has insurance coverage or provides for any uninsured claims when appropriate. The Partnership is not involved in any material pending legal proceedings.

On June 9, 2015, a fire broke out at 12 Westgate Drive apartment complex in Woburn,MA, resulting in approximately 10 apartments being damaged which will remain unoccupied for an extended period. The Partnership has insurance coverage on both repairs and rental loss for the extended period until the apartments are available for rent, and has received approximately $591,000 from the insurance company to date, leavingan estimated insurance recovery receivable of approximately $361,000at September 30, 2015, which is included in the insurance recovery receivable of $412,502 on the balance sheet.

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PARTNERS' CAPITAL

9 Months Ended

Sep. 30, 2015

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 2015, the Partnership paid quarterly distributions of $7.50 per unit  ($0.25 per receipt) on March 31, June 30, and September 30, 2015.

In 2014, the Partnership paid quarterly distributions of $7.50 per unit ($0.25 per receipt) in March, June, September, and December for a total distribution of $30.00 per unit ($1.00 per receipt) each year.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Nine Months Ended
	September 30,
	2015		2014
Net Income per Depositary Receipt	$	0.68	$	0.11
Distributions per Depositary Receipt	$	0.75	$	0.75

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TREASURY UNITS

9 Months Ended

Sep. 30, 2015

TREASURY UNITS

TREASURY UNITS

NOTE 8. TREASURY UNITS

Treasury Units at September 30, 2015 are as follows:

Class A	43,398
Class B	10,308
General Partnership	543
	54,249

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). On January 15, 2008, the General Partner authorized an increase in the Repurchase Program from 300,000 to 600,000 Depositary Receipts. On January 30, 2008 the General Partner authorized an increase the Repurchase Program from 600,000 to 900,000 Depositary Receipts. On March 6, 2008, the General Partner authorized the increase in the total number of Depositary Receipts that could be repurchased pursuant to the Repurchase Program from 900,000 to 1,500,000. On August 8, 2008, the General Partner re- authorized and renewed the Repurchase Program for an additional 12-month period ended August 19, 2009. On March 22, 2010, the General Partner re-authorized and renewed the Repurchase Program that expired on August 19, 2009. Under the terms of the renewed Repurchase Program, the Partnership may purchase up to 1,500,000 Depositary Receipts from the start of the program in 2007 through March 31, 2015. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%,  19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restate Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through September 30, 2015, the Partnership has repurchased 1,327,153 Depositary Receipts at an average price of $26.37 per receipt (or $791.10 per underlying Class A Unit), 2,770 Class B Units and 146 General Partnership Units, both at an average price of $851.67 per Unit, totaling approximately $37,682,000 including brokerage fees paid by the Partnership.

During the nine months ended September 30, 2015, the Partnership purchased a total of 40,237 Depositary Receipts. The average price was $49.47 per receipt or $1,484.10 per unit. The total cost including commission was$2,018,329. The Partnership was required to repurchase 319 Class B Units and 17 General Partnership units at a cost of $472,845 and $24,887 respectively.

From October 1, 2015 through November3, 2015, the Partnership purchased a total of 10,420 Depositary Receipts. The average price was $49.55 per receipt or $1,486.50per unit. The total cost was $524,967. The Partnership is required to repurchase82.5 Class B Units and 4.3 General Partnership Units at a cost of $122,624 and $6,454 respectively.

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RENTAL INCOME

9 Months Ended

Sep. 30, 2015

RENTAL INCOME

RENTAL INCOME

NOTE 10. RENTAL INCOME

During the nine months ended September 30, 2015, approximately 92% 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 8% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at September 30, 2015 as follows:

	Commercial
	Property Leases
2016	$	2,811,000
2017		2,285,000
2018		2,003,000
2019		1,574,000
2020		936,000
Thereafter		997,000
	$	10,606,000

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 $521,000 and $532,000 for the nine months ended September 30, 2015 and 2014 respectively. Staples and Trader Joes, 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
Throguh September 30,	expiring leases		for expiring leases	leases expiring	expiring leases
2016	$	123,679	6,646	8	4	%
2017		576,040	20,023	9	20	%
2018		402,653	12,357	8	14	%
2019		650,019	23,321	10	22	%
2020		335,312	9,651	5	12	%
2021		647,765	31,274	3	23	%
2022		—	—	—	—	%
2023			—	—	—	%
2024		157,443	4,771	1	5	%
2025			—	—	—	%
Totals	$	2,892,911	108,043	44	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $524,000 and $366,000 at September 30, 2015 and December 31, 2014. Included in rents receivable at September 30, 2015 is approximately $157,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis. The majority of this amount is for long-term leases with Staples and Trader Joe’s at Staples Plaza in Framingham, Massachusetts.

Rents receivable at September 30, 2015 also includes approximately $111,000 representing the deferral of rental concession primarily related to the residential properties.

For the nine months ended September 30, 2015 rent at the commercial properties includes approximately $1,600 of amortization of deferred rents arising from the fair values assigned to in-place leases upon the purchase of Cypress Street in Brookline, Massachusetts.

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RELATED PARTY TRANSACTIONS (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) item	Sep. 30, 2014 USD ($)
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			$ 1,370,000	$ 1,304,000
Repairs and maintenance	$ 2,006,298	$ 2,087,290	5,176,219	4,899,746
Administrative expense	502,177	543,704	1,528,710	1,643,185
Management fee	$ 453,178	$ 438,319	$ 1,369,597	1,303,780
Number of limited partnerships and limited liability companies in which the entity has invested | item			9
Limited Partnerships | Minimum
RELATED PARTY TRANSACTIONS
Percentage of ownership interest	40.00%		40.00%
Limited Partnerships | Maximum
RELATED PARTY TRANSACTIONS
Percentage of ownership interest	50.00%		50.00%
General Partner or Management Company
RELATED PARTY TRANSACTIONS
Costs related to professional services			$ 719,000	630,000
Repairs and maintenance			336,000
Administrative expense			257,000
Expenses for construction, architectural services and supervision of capital projects			126,000
Management Company
RELATED PARTY TRANSACTIONS
Reimbursement to related party for payroll transfers			2,145,000	2,385,000
Employer contributions in 401K plan			$ 0	0
Number of accounting staff of related party providing bookkeeping and accounting functions | item			14
Fees for accounting and bookkeeping services			$ 93,750	93,750
Fees for accounting and bookkeeping services per year			$ 125,000
Number of employees having ownership interest in the investment properties | item			6
Dexter Park
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue			2.00%
President of Management Company
RELATED PARTY TRANSACTIONS
Quarterly fee for asset management consulting services			$ 56,250	$ 56,250
Harold Brown | Minimum
RELATED PARTY TRANSACTIONS
Percentage of ownership interest	43.20%		43.20%
Harold Brown | Maximum
RELATED PARTY TRANSACTIONS
Percentage of ownership interest	57.00%		57.00%
Partially owned properties
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue			4.00%
Repairs and maintenance			$ 79,000
Administrative expense			31,000
Architectural services and Supervision of capital projects			15,000
Amount paid to related party			632,000
Management fee			$ 507,000

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IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

9 Months Ended

Sep. 30, 2015

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

NOTE 15. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”), which makes certain changes to both the variable interest model and the voting model, including changes to (1) the identification of variable interests (fees paid to a decision maker or service provider), (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. ASU 2015-02 is effective for us beginning January 1, 2016. We are continuing to evaluate this guidance; however, we do not expect its adoption to have a significant impact on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. Upon adoption, we will apply the new guidance on a retrospective basis and adjust the balance sheet of each individual period presented to reflect the period-specific effects of applying the new guidance. This guidance is effective for us beginning January 1, 2016. We are continuing to evaluate this guidance; however, we do not expect its adoption to have a significant impact on our consolidated financial statements.

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PARTNERS' CAPITAL (Tables)

9 Months Ended

Sep. 30, 2015

PARTNERS' CAPITAL

Schedule of information per depositary receipt

	Nine Months Ended
	September 30,
	2015		2014
Net Income per Depositary Receipt	$	0.68	$	0.11
Distributions per Depositary Receipt	$	0.75	$	0.75

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details 4)	Sep. 30, 2015 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
09/30/2016	$ 726,000
09/30/2017	1,821,000
09/30/2018	7,840,000
09/30/2019	1,921,000
09/30/2020	4,337,000
Thereafter	179,328,000
Total	195,973,000
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Thereafter	10,000,000
Total	10,000,000
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
09/30/2016	42,990
09/30/2017	180,476
09/30/2018	189,026
09/30/2019	196,473
09/30/2020	204,213
Thereafter	9,186,822
Total	10,000,000
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
09/30/2016	75,155
09/30/2017	4,676,918
Total	4,752,073
Hamilton Bay Apartments
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
09/30/2016	80,330
09/30/2017	4,441,266
Total	4,521,596
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
09/30/2016	82,308
09/30/2017	5,151,099
Total	5,233,407
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Thereafter	16,900,000
Total	16,900,000
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
09/30/2016	1,479,627
09/30/2017	1,564,180
09/30/2018	1,653,563
09/30/2019	1,748,055
09/30/2020	78,802,283
Total	85,247,708
Total
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
09/30/2016	1,760,410
09/30/2017	16,013,939
09/30/2018	1,842,589
09/30/2019	1,944,528
09/30/2020	79,006,496
Thereafter	36,086,822
Total	$ 136,654,784

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RENTAL INCOME (Details)	9 Months Ended
	Sep. 30, 2015 USD ($) ft² item	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Minimum future rental income
2016	$ 2,811,000
2017	2,285,000
2018	2,003,000
2019	1,574,000
2020	936,000
Thereafter	997,000
Commercial Property Leases	10,606,000
Annual base rent for expiring leases	$ 2,892,911
Total square feet for expiring leases | ft²	108,043
Total number of leases expiring | item	44
Percentage of annual base rent for expiring leases	100.00%
Allowance for doubtful rent receivable	$ 524,000		$ 366,000
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis	157,000
Deferred rental concession	111,000
Amortization of deferred rents	$ 1,600
Percentage of rental income related to residential apartments and condominium units with leases of one year or less	92.00%
Maximum period of non-cancelable operating lease	1 year
Percentage of rental income related to commercial properties	8.00%
Aggregate contingent rentals from continuing operations	$ 521,000	$ 532,000
Through September 30 2016
Minimum future rental income
Annual base rent for expiring leases	$ 123,679
Total square feet for expiring leases | ft²	6,646
Total number of leases expiring | item	8
Percentage of annual base rent for expiring leases	4.00%
Through September 30, 2017
Minimum future rental income
Annual base rent for expiring leases	$ 576,040
Total square feet for expiring leases | ft²	20,023
Total number of leases expiring | item	9
Percentage of annual base rent for expiring leases	20.00%
Through September 30, 2018
Minimum future rental income
Annual base rent for expiring leases	$ 402,653
Total square feet for expiring leases | ft²	12,357
Total number of leases expiring | item	8
Percentage of annual base rent for expiring leases	14.00%
Through September 30 2019
Minimum future rental income
Annual base rent for expiring leases	$ 650,019
Total square feet for expiring leases | ft²	23,321
Total number of leases expiring | item	10
Percentage of annual base rent for expiring leases	22.00%
Through September 30, 2020
Minimum future rental income
Annual base rent for expiring leases	$ 335,312
Total square feet for expiring leases | ft²	9,651
Total number of leases expiring | item	5
Percentage of annual base rent for expiring leases	12.00%
Through September 30, 2021
Minimum future rental income
Annual base rent for expiring leases	$ 647,765
Total square feet for expiring leases | ft²	31,274
Total number of leases expiring | item	3
Percentage of annual base rent for expiring leases	23.00%
Through September 30, 2024
Minimum future rental income
Annual base rent for expiring leases	$ 157,443
Total square feet for expiring leases | ft²	4,771
Total number of leases expiring | item	1
Percentage of annual base rent for expiring leases	5.00%

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CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($)	Subtotal	Class A	Class B	General Partnership	Treasury Units	Total
Balance at Dec. 31, 2013		$ (17,485,327)	$ (4,145,076)	$ (218,160)		$ (21,848,563)
Balance (in units) at Dec. 31, 2013	180,225	144,180	34,243	1,802	50,738	129,487
Increase (Decrease) in Partners' Capital
Distribution to Partners		$ (2,319,041)	$ (550,772)	$ (28,988)		$ (2,898,801)
Stock Buyback		(1,258,399)	(290,698)	(15,300)		$ (1,564,397)
Stock Buyback (in units)					1,080	1,080
Net income		346,971	82,406	4,337		$ 433,714
Balance at Sep. 30, 2014		$ (20,715,796)	$ (4,904,141)	$ (258,111)		$ (25,878,048)
Balance (in units) at Sep. 30, 2014	180,225	144,180	34,243	1,802	51,818	128,407
Balance at Dec. 31, 2014		$ (21,910,488)	$ (5,184,335)	$ (272,859)		$ (27,367,682)
Balance (in units) at Dec. 31, 2014	180,225	144,180	34,243	1,802	52,572	127,653
Increase (Decrease) in Partners' Capital
Distribution to Partners		$ (2,276,458)	$ (540,659)	$ (28,456)		$ (2,845,573)
Stock Buyback		(2,018,329)	(472,845)	(24,887)		$ (2,516,061)
Stock Buyback (in units)					1,677	1,677
Net income		2,063,889	490,174	25,798		$ 2,579,861
Balance at Sep. 30, 2015		$ (24,141,386)	$ (5,707,665)	$ (300,404)		$ (30,149,455)
Balance (in units) at Sep. 30, 2015	180,225	144,180	34,243	1,802	54,249	125,976

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OTHER ASSETS

9 Months Ended

Sep. 30, 2015

OTHER ASSETS

OTHER ASSETS

NOTE 4. OTHER ASSETS

Approximately $2,218,000, and $2,090,000 of security deposits are included in prepaid expenses and other assets at September 30, 2015 and December 31, 2014, respectively. The security deposits and escrow accounts are restricted cash.

Included in prepaid expenses and other assets at September 30, 2015 and December 31, 2014 is approximately $863,000 and $253,000, respectively, held in escrow to fund future capital improvements. As of September 30, 2015, approximately $551,000 of the replacement reserve was related to the fire damage at Westgate Apartments. The reserve will be refunded when the repairs are complete.

Intangible assets on the acquisitions of Hamilton Green and the Residence at Captain Parkers are included in prepaid expenses and other assets.  Intangible assets are approximately $512,000 net of accumulated amortization of approximately $1,745,000 and approximately $49,000 net of accumulated amortization of approximately $1,703,000 at September 30, 2015 and December 31, 2014, respectively.

Financing fees of approximately $1,571,000 and $1,736,000 are net of accumulated amortization of approximately $778,000 and $613,000 at September 30, 2015 and December 31, 2014 respectively.

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TREASURY UNITS (Tables)

9 Months Ended

Sep. 30, 2015

TREASURY UNITS

Schedule of treasury units

Treasury Units at September 30, 2015 are as follows:

Class A	43,398
Class B	10,308
General Partnership	543
	54,249

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PARTNERS' CAPITAL (Details)		9 Months Ended
	Jan. 03, 2012	Sep. 30, 2015 item $ / shares $ / item	Sep. 30, 2014 $ / shares $ / item	Jun. 30, 2015 $ / shares $ / item	Mar. 31, 2015 $ / shares $ / item	Dec. 31, 2014 $ / shares $ / item	Jun. 30, 2014 $ / shares $ / item	Mar. 31, 2014 $ / shares $ / item	Aug. 20, 2007
Quarterly distribution per unit (in dollars per unit)		7.50	7.50	7.50	7.50	7.50	7.50	7.50
Quarterly distributions per depositary receipt (in dollars per share) | $ / shares		$ (0.25)	$ 0.25	$ (0.25)	$ (0.25)	$ 0.25	$ 0.25	$ 0.25
Distribution per unit (in dollars per unit) | $ / shares						$ 30.00
Earnings per depository receipt
Net Income per Depositary Receipt		0.68	0.11
Distributions per Depositary Receipt (in dollars per share)		0.75	0.75			1.00
Limited Partner
Number of classes of partners | item		2
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%
General Partnership
Number of classes of partners | item		1
Fixed distribution percentage of unit holders		1.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

9 Months Ended

Sep. 30, 2015

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

Since November 2001, the Partnership has invested in nine limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three partnerships investing in commercial property. The Partnership has between a40%-50% ownership interest in each investment. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management Company. Harold Brown’s ownership interest is between 43.2% and 57%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, referred to as Dexter Park, is a 409 unit residential complex. The purchase price was $129,500,000. The total mortgage was $89,914,000 with an interest rate of 5.57% and it matures in 2019. The mortgage calls for interest only payments for the first two years of the loan and amortized over 30 years thereafter. The balance of this mortgage is approximately $85,248,000 at September 30, 2015. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On October 3, 2005, the Partnership invested $2,500,000 for a 50% ownership interest in a 168-unit apartment complex in Quincy, Massachusetts. The purchase price was $30,875,000. The Partnership sold 120 units as condominiums and retained 48 units for long-term investment. In February 2007, the Partnership refinanced the 48 units with a new mortgage in the amount of $4,750,000 with an interest rate of 5.57%, interest only for five years. The loan will be amortized over 30 years thereafter and matures in March 2017. As of September 30, 2015, the balance of the mortgage is approximately $4,522,000. This investment is referred to as Hamilton Bay Apartments, LLC. In April 2008, the Partnership refinanced an additional 20 units and obtained a new mortgage in the amount of $2,368,000 with interest at 5.75%, interest only, which matured in 2013. On October 18, 2013, the Partnership and its joint venture partner each made capital contributions to the entity of $660,000. The capital was used to pay off the outstanding mortgage. As of November 1, 2015, 6 units are still owned by the Partnership. This investment is referred to as Hamilton Bay, LLC.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Partnership planned to operate the building and initiate development of the parking lot. In June 2007, the Partnership separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Partnership restructured the mortgages on both parcels at Essex 81 and transferred the residential apartments to Hamilton Essex 81, LLC.On September 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286.  The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction.  Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC.  On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate.  The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed.The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

.  

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. The interest on the new loan is 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. The balance of this mortgage is approximately $4,752,000 at September 30, 2015. 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 Partnership obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Partnership obtained a new 10- year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan is 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. At September 30, 2015, the balance of this mortgage is approximately $5,233,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Partnership sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place.

In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000at 4.34% interest only.  The Joint Venture Partnership paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership.The costs associated with the refinancing were approximately $161,000.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Partnership paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the property made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed.This investment is referred to as 345 Franklin, LLC.

Summary financial information as of September 30, 2015

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	8,511,004		$	2,619,374		$	6,859,314		$	4,997,692		$	672,579		$	6,212,058		$	6,371,641		$	18,785,662		$	94,934,158		$	149,963,482
Cash & Cash Equivalents		73,595			81,236			79,265			1,029			8,171			3,998			60,545			216,613			1,023,237			1,547,689
Rent Receivable		40,921			—			8,582			4,272			100			2,820			692			12,320			70,167			139,874
Real Estate Tax Escrow		104,165			—			42,400			75,984			—			55,215			39,403			91,842			242,660			651,669
Prepaid Expenses & Other Assets		121,531			903			45,606			55,877			211,856			60,886			39,742			84,849			1,851,560			2,472,810
Financing & Leasing Fees		137,891			—			84,896			5,824			—			8,748			5,036			143,124			237,485			623,004
Total Assets	$	8,989,107		$	2,701,513		$	7,120,063		$	5,140,678		$	892,706		$	6,343,725		$	6,517,059		$	19,334,410		$	98,359,267		$	155,398,528
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	10,000,000		$	0		$	10,000,000		$	4,752,073		$	—		$	4,521,596		$	5,233,407		$	16,900,000		$	85,247,708		$	136,654,784
Accounts Payable & Accrued Expense		60,815			1,133			83,754			21,998			23,055			6,934			59,805			207,573			754,434			1,219,501
Advance Rental Pmts & Security Deposits		185,386			—			203,378			95,656			5,695			86,897			107,428			314,676			2,349,098			3,348,214
Total Liabilities		10,246,201			1,133			10,287,132			4,869,727			28,750			4,615,427			5,400,640			17,422,249			88,351,240			141,222,499
Partners’ Capital		(1,257,094)			2,700,380			(3,167,069)			270,951			863,956			1,728,298			1,116,419			1,912,161			10,008,027			14,176,029
Total Liabilities and Capital	$	8,989,107		$	2,701,513		$	7,120,063		$	5,140,678		$	892,706		$	6,343,725		$	6,517,059		$	19,334,410		$	98,359,267		$	155,398,528
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,350,190		$	—		$	135,475		$	431,978		$	864,149		$	558,209		$	956,081		$	4,003,209			8,299,289
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(628,547)		$	—		$	(1,583,534)		$	—		$	—		$	—		$	—		$	—		$	—			(2,212,081)
Total Investment in Unconsolidated Joint Ventures (Net)																												$	6,087,208
Total units/condominiums
Apartments		48			—			40			175			120			48			42			148			409			1,030
Commercial		1			1			—			1			—			—			—			—			—			3
Total		49			1			40			176			120			48			42			148			409			1,033
Units to be retained		49			1			40			49			—			48			42			148			409			786
Units to be sold		—			—			—			127			120			—			—			—			—			247
Units sold through November 1, 2015		—			—			—			127			114			—			—			—			—			241
Unsold units		—			—			—			—			6			—			—			—			—			6
Unsold units with deposits for future sale as of November 1, 2015		—			—			—			—			1			—			—			—			—			—

Financial information for the nine months ended September 30, 2015

			Hamilton										Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Hamilton		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,090,071	$	217,568	$	1,033,115	$	713,771	$	78,548	$	733,978	$	699,019	$	2,305,464	$	10,650,223	$	17,521,757
Laundry and Sundry Income		10,114		—		323		—		—		—		—		33,335		67,439		111,211
		1,100,185		217,568		1,033,438		713,771		78,548		733,978		699,019		2,338,799		10,717,662		17,632,968
Expenses
Administrative		17,087		1,434		25,912		5,500		6,537		5,507		3,724		32,349		181,425		279,475
Depreciation and Amortization		356,925		7,761		281,390		180,630		26,961		239,898		246,675		726,876		2,452,629		4,519,745
Management Fees		46,666		8,714		42,971		28,273		3,143		28,914		28,974		91,870		227,847		507,372
Operating		81,724		—		67,241		531		476		917		64,428		296,685		971,545		1,483,547
Renting		8,906		—		12,649		—		—		2,350		6,623		5,701		72,373		108,602
Repairs and Maintenance		110,815		200		45,950		235,033		34,914		273,982		56,628		297,165		930,398		1,985,085
Taxes and Insurance		161,702		39,503		89,750		126,255		16,415		115,086		92,943		253,816		1,141,731		2,037,201
		783,825		57,612		565,863		576,222		88,446		666,654		499,995		1,704,462		5,977,948		10,921,027
Income Before Other Income		316,360		159,956		467,575		137,549		(9,898)		67,324		199,024		634,337		4,739,714		6,711,941
Other Income (Loss)
Interest Expense		(337,847)		(40,644)		(293,906)		(206,872)		(268)		(194,411)		(228,380)		(563,622)		(3,656,573)		(5,522,523)
Interest Income		—		—		—		11		—		—		—		—		—		11
Interest Income from Note		—		—		—		—		—		—		—		96		—		96
Gain on Sale of Real Estate		—		—		—		—		76,523		—		—		—		—		76,523
		(337,847)		(40,644)		(293,906)		(206,861)		76,255		(194,411)		(228,380)		(563,526)		(3,656,573)		(5,445,893)
Net Income (Loss)	$	(21,487)	$	119,312	$	173,669	$	(69,312)	$	66,357	$	(127,087)	$	(29,356)	$	70,811	$	1,083,141	$	1,266,048
Net Income (Loss)—NERA 50%	$	(10,744)	$	59,656	$	86,835	$	(34,656)	$	33,179	$	(63,544)	$	(14,678)	$	35,406				91,454
Net Income (Loss)—NERA 40%																	$	433,256		433,256
																			$	524,710

Financial information for the three months ended September 30, 2015

													Hamilton		Hamilton
	Hamilton		Hamilton Essex		345		Hamilton		Hamilton		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	368,163	$	72,523	$	354,840	$	236,343	$	19,080	$	246,892	$	231,545	$	781,336	$	3,588,943	$	5,899,665
Laundry and Sundry Income		7,622		—		—		—		—		—		—		10,888		23,361		41,871
		375,785		72,523		354,840		236,343		19,080		246,892		231,545		792,224		3,612,304		5,941,536
Expenses
Administrative		8,781		425		11,531		2,338		1,863		1,883		1,032		12,414		76,791		117,058
Depreciation and Amortization		132,477		2,117		93,804		60,569		8,988		80,607		83,182		243,760		820,856		1,526,360
Management Fees		14,929		2,912		13,731		9,442		820		9,482		9,529		30,816		72,222		163,883
Operating		22,961		—		16,055		183		271		208		17,946		111,793		241,740		411,157
Renting		2,185		—		3,544		—		159		—		1,877		2,300		39,160		49,225
Repairs and Maintenance		44,380		200		26,888		79,646		10,879		87,765		23,864		114,683		390,221		778,526
Taxes and Insurance		54,826		12,659		29,873		40,360		5,479		38,861		30,972		87,515		407,819		708,364
		280,539		18,313		195,426		192,538		28,459		218,806		168,402		603,281		2,048,809		3,754,573
Income Before Other Income		95,246		54,210		159,414		43,805		(9,379)		28,086		63,143		188,943		1,563,495		2,186,963
Other Income (Loss)
Interest Expense		(100,585)		(13,472)		(97,968)		(69,431)		(55)		(65,172)		(76,823)		(189,919)		(1,227,139)		(1,840,564)
Interest Income		—		—		—		3		—		—		—		—		—		3
Gain on sale of real estate		—		—		—		—		76,648		—		—		—		—		76,648
		(100,585)		(13,472)		(97,968)		(69,428)		76,593		(65,172)		(76,823)		(189,919)		(1,227,139)		(1,763,913)
Net Income (Loss)	$	(5,339)	$	40,738	$	61,446	$	(25,623)	$	67,214	$	(37,086)	$	(13,680)	$	(976)	$	336,356	$	423,050
Net Income (Loss)—NERA 50%	$	(2,670)	$	20,369	$	30,723	$	(12,812)	$	33,607	$	(18,543)	$	(6,840)	$	(488)				43,347
Net Income (Loss)—NERA 40%																	$	134,543		134,543
																			$	177,890

Future annual mortgage maturities at September 30, 2015 are as follows:

	Hamilon		345		Hamilton		Hamilton		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		1025		Bay Apts		Minuteman		Main Apts		Park		Total
9/30/2016	$	—	$	42,990	$	75,155	$	80,330	$	82,308	$	—	$	1,479,627	$	1,760,410
9/30/2017		—		180,476		4,676,918		4,441,266		5,151,099		—		1,564,180		16,013,939
9/30/2018		—		189,026		—		—		—		—		1,653,563		1,842,589
9/30/2019		—		196,473		—		—		—		—		1,748,055		1,944,528
9/30/2020		—		204,213		—		—		—		—		78,802,283		79,006,496
Thereafter		10,000,000		9,186,822		—		—		—		16,900,000		—		36,086,822
	$	10,000,000	$	10,000,000	$	4,752,073	$	4,521,596	$	5,233,407	$	16,900,000	$	85,247,708	$	136,654,784

At September 30, 2015 the weighted average interest rate on the above mortgages was 5.07%. The effective rate was 5.16% including the amortization expense of deferred financing costs.

Summary financial information as of September 30, 2014

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	8,619,846		$	2,622,203		$	7,230,839		$	5,215,054		$	1,011,453		$	6,473,921		$	6,628,931		$	19,644,258		$	98,343,487		$	155,789,992
Cash & Cash Equivalents		28,937			149,705			203,001			7,697			741,509			4,188			111,378			2,404,047			1,231,163			4,881,625
Rent Receivable		17,700			—			1,703			14,718			3,049			1,102			2,326			9,845			149,200			199,643
Real Estate Tax Escrow		98,555			—			41,934			71,690			—			43,591			40,212			52,130			356,155			704,267
Prepaid Expenses & Other Assets		95,311			895			50,550			44,962			27,327			44,461			44,558			96,377			1,657,149			2,061,590
Financing & Leasing Fees		33,515			7,753			91,554			10,849			—			15,110			9,005			159,175			295,874			622,835
Total Assets	$	8,893,864		$	2,780,556		$	7,619,581		$	5,364,970		$	1,783,338		$	6,582,373		$	6,836,410		$	22,365,832		$	102,033,028		$	164,259,952
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	8,140,592		$	2,001,159		$	10,000,000		$	4,823,762		$	—		$	4,590,276		$	5,311,923		$	16,900,000		$	86,566,934		$	138,334,646
Accounts Payable & Accrued Expense		150,481			55,616			172,833			27,905			724,100			16,076			123,765			2,142,549			931,507			4,344,832
Advance Rental Pmts& Security Deposits		174,103			—			197,412			103,182			13,487			88,756			95,052			301,976			2,205,078			3,179,046
Total Liabilities		8,465,176			2,056,775			10,370,245			4,954,849			737,587			4,695,108			5,530,740			19,344,525			89,703,519			145,858,524
Partners’ Capital		428,688			723,781			(2,750,664)			410,121			1,045,751			1,887,265			1,305,670			3,021,307			12,329,509			18,401,428
Total Liabilities and Capital	$	8,893,864		$	2,780,556		$	7,619,581		$	5,364,970		$	1,783,338		$	6,582,373		$	6,836,410		$	22,365,832		$	102,033,028		$	164,259,952
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	214,344		$	361,891		$	—		$	205,061		$	522,876		$	943,633		$	652,833		$	1,510,654		$	4,931,804		$	9,343,093
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	—		$	—		$	(1,375,332)		$	—		$	—		$	—		$	—		$	—		$	—			(1,375,332)
Total Investment in Unconsolidated Joint Ventures (Net)																												$	7,967,761
Total units/condominiums
Apartments		48			—			40			175			120			48			42			148			409			1,030
Commercial		1			1			—			1			—			—			—			—			—			3
Total		49			1			40			176			120			48			42			148			409			1,033
Units to be retained		49			1			40			49			0			48			42			148			409			786
Units to be sold		—			—			—			127			120			—			—			—			—			247
Units sold through November 1, 2014		—			—			—			127			111			—			—			—			—			238
Unsold units		—			—			—			—			9			—			—			—			—			9
Unsold units with deposits for future sale as of November 1, 2014		—			—			—			—			—			—			—			—			—			—

Financial information for the nine months ended September 30, 2014

			Hamilton						Hamilton				Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Bay		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,043,460	$	218,995	$	994,331	$	698,401	$	151,937	$	704,397	$	683,025	$	2,177,950	$	10,143,620	$	16,816,116
Laundry and Sundry Income		12,425		—		—		—		—		—		844		29,213		75,213		117,695
		1,055,885		218,995		994,331		698,401		151,937		704,397		683,869		2,207,163		10,218,833		16,933,811
Expenses
Administrative		23,376		1,180		32,580		6,784		3,388		14,493		8,104		42,799		181,661		314,365
Depreciation and Amortization		324,833		8,466		300,816		180,524		57,524		238,744		240,486		716,092		4,048,679		6,116,164
Management Fees		43,937		8,760		41,823		27,973		5,888		28,206		28,489		86,429		217,031		488,536
Operating		96,904		—		45,984		523		1,028		1,683		60,631		288,912		960,938		1,456,603
Renting		11,875		—		11,368		5,918		753		5,042		7,571		21,131		156,856		220,514
Repairs and Maintenance		125,411		3,150		56,421		246,576		74,719		223,566		58,132		292,004		927,771		2,007,750
Taxes and Insurance		172,802		40,498		87,842		119,861		30,025		120,392		89,496		279,034		1,155,775		2,095,725
		799,138		62,054		576,834		588,159		173,325		632,126		492,909		1,726,401		7,648,711		12,699,657
Income Before Other Income		256,747		156,941		417,497		110,242		(21,388)		72,271		190,960		480,762		2,570,122		4,234,154
Other Income (Loss)
Interest Expense		(361,857)		(41,932)		(293,469)		(210,158)		(485)		(197,633)		(231,196)		(610,958)		(3,710,651)		(5,658,339)
Interest Income		—		—		—		15		468		—		—		—		—		483
Gain on sale of real estate		—		—		—		—		350,523		—		—		—		—		350,523
		(361,857)		(41,932)		(293,469)		(210,143)		350,506		(197,633)		(231,196)		(610,958)		(3,710,651)		(5,307,333)
Net Income (Loss)	$	(105,110)	$	115,009	$	124,028	$	(99,901)	$	329,118	$	(125,362)	$	(40,236)	$	(130,196)	$	(1,140,529)	$	(1,073,179)
Net Income (Loss)—NERA 50%	$	(52,555)	$	57,505	$	62,014	$	(49,951)	$	164,559	$	(62,681)	$	(20,118)	$	(65,098)				33,677
Net Income (Loss)—NERA 40%																	$	(456,212)		(456,212)
																			$	(422,535)

Financial information for the three months ended September 30, 2014

			Hamilton						Hamilton				Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Bay		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Sales		Bay Apts		Apts		Apts		Park		Total
Revenues
Rental Income	$	373,304	$	72,523	$	335,607	$	250,921	$	45,216	$	242,294	$	226,213	$	737,588	$	3,433,856	$	5,717,522
Laundry and Sundry Income		4,306		—		—		—		—		—		676		10,065		26,620		41,667
		377,610		72,523		335,607		250,921		45,216		242,294		226,889		747,653		3,460,476		5,759,189
Expenses
Administrative		6,235		350		12,719		2,624		715		3,916		2,661		12,037		64,668		105,925
Depreciation and Amortization		108,663		2,822		100,712		60,204		19,174		80,047		81,233		242,960		1,354,577		2,050,392
Management Fees		14,832		2,901		13,319		9,330		1,613		9,606		9,536		28,609		68,588		158,334
Operating		27,938		—		13,390		171		423		643		16,528		82,442		224,085		365,620
Renting		908		—		7,745		—		—		—		1,482		3,034		99,320		112,489
Repairs and Maintenance		51,584		—		25,489		81,607		27,069		79,825		19,697		101,601		413,587		800,459
Taxes and Insurance		55,807		12,859		29,643		38,487		7,360		38,387		30,264		87,450		398,451		698,708
		265,967		18,932		203,017		192,423		56,354		212,424		161,401		558,133		2,623,276		4,291,927
Income Before Other Income		111,643		53,591		132,590		58,498		(11,138)		29,870		65,488		189,520		837,200		1,467,262
Other Income (Loss)
Interest Expense		(121,659)		(14,036)		(97,895)		(70,528)		(86)		(66,300)		(77,635)		(208,944)		(1,245,694)		(1,902,777)
Interest Income		—		—		—		6		—		—		—		—		—		6
Gain on sale of Real Estate		—		—		—		—		50,001		—		—		—		—		50,001
		(121,659)		(14,036)		(97,895)		(70,522)		49,915		(66,300)		(77,635)		(208,944)		(1,245,694)		(1,852,770)
Net Income (Loss)	$	(10,016)	$	39,555	$	34,695	$	(12,024)	$	38,777	$	(36,430)	$	(12,147)	$	(19,424)	$	(408,494)	$	(385,508)
Net Income (Loss)—NERA 50%	$	(5,008)	$	19,778	$	17,348	$	(6,012)	$	19,389	$	(18,215)	$	(6,074)	$	(9,712)				11,493
Net Income (Loss)—NERA 40%																	$	(163,395)		(163,395)
																			$	(151,902)