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RENTAL PROPERTIES
 12 Months Ended
Dec. 31, 2011
RENTAL PROPERTIES  
RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

        As of December 31, 2011, the Partnership and its Subsidiary Partnerships owned 2,251 residential apartment units in 20 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 December 31, 2011, 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 December 31, 2011 with a total of 799 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

        Rental properties consist of the following:

 
   December 31, 2011   December 31, 2010   Useful Life  

Land, improvements and parking lots

   $ 27,614,537   $ 26,110,238     15–40 years  

Buildings and improvements

     119,097,186     110,106,179     15–40 years  

Kitchen cabinets

     3,542,249     3,923,029     5–10 years  

Carpets

     3,307,499     3,404,951     5–10 years  

Air conditioning

     788,146     857,375     7–10 years  

Laundry equipment

     368,955     331,002     5–7 years  

Elevators

     1,139,296     1,086,140     20 years  

Swimming pools

     235,242     155,442     10 years  

Equipment

     1,744,006     1,989,645     5–7 years  

Motor vehicles

     107,788     107,792     5 years  

Fences

     22,974     33,970     5–10 years  

Furniture and fixtures

     1,039,439     924,633     5–7 years  

Smoke alarms

     116,482     97,840     5–7 years  
                 

Total fixed assets

   $ 159,123,799   $ 149,128,236        

Less: Accumulated depreciation

     (60,199,265 )   (56,976,997 )      
                 

 

   $ 98,924,534   $ 92,151,239        
                 

        Real estate and accumulated depreciation as of December 31, 2011 is:

 
    
   Initial Cost to
Partnerships(1) 		  Cost
Capitalized
Subsequent to
Acquisition(2) 		  Gross Amount at Which
Carried at Close of Period 		   
    
  
 
   Encumbrances
(First
Mortgages) 		  Land   Building
Improvements 		  Improvements   Land   Building
Improvements 		  Totals   Accumulated
Depreciation(3) 		  Date Acquired  

Avon Street Apartments L.P. Residential Apartments Malden, Massachusetts

   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ —     Sold May 2011 Sept.1977  

Boylston Downtown L.P. Residential Apartments Boston, Massachusetts

  
$
19,500,000		  
$
2,112,000		  
$
8,593,111		  
$
6,942,907		  
$
2,112,000		  
$
15,536,018		  
$
17,648,018		  
$
8,533,613		    
July 1995		  

Brookside Associates LLC Residential Apartments Woburn, Massachusetts

  
$
2,760,540		  
$
684,000		  
$
3,116,000		  
$
510,328		  
$
684,000		  
$
3,626,328		  
$
4,310,328		  
$
1,503,978		    
Oct. 2000		  

Courtyard @ Westgate Residential Units Burlington, Massachusetts

  
$
2,000,000		  
$
44,965		  
$
4,478,687		  
$
255,285		  
$
44,965		  
$
4,733,972		  
$
4,778,937		  
$
1,293,576		    
Sept. 2004		  

Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire

  
$
4,160,000		  
$
177,610		  
$
1,478,359		  
$
1,129,781		  
$
177,610		  
$
2,608,140		  
$
2,785,750		  
$
1,903,172		    
Sept.1977		  

Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts

  
$
3,750,000		  
$
342,000		  
$
1,367,669		  
$
876,412		  
$
342,000		  
$
2,244,081		  
$
2,586,081		  
$
1,171,257		    
July 1995		  

Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts

  
$
14,780,000		  
$
1,410,000		  
$
5,664,816		  
$
1,577,260		  
$
1,410,000		  
$
7,242,076		  
$
8,652,076		  
$
4,150,158		    
July 1995		  

Condominium Units—Riverside Residential Units Massachusetts

  
$
—		  
$
23,346		  
$
190,807		  
$
26,118		  
$
23,346		  
$
216,925		  
$
240,271		  
$
206,826		    
Sept.1977		  

Executive Apartments L.P. Residential Apartments Framingham,
Massachusetts

  
$
2,415,000		  
$
91,400		  
$
740,360		  
$
870,232		  
$
91,400		  
$
1,610,592		  
$
1,701,992		  
$
1,173,751		    
Sept.1977		  

Hamilton Battle Green LLC Residential Apartments Lexington,
Massachusetts

  
$
4,969,431		  
$
1,341,737		  
$
8,457,497		  
$
26,039		  
$
1,341,737		  
$
8,483,535		  
$
9,825,811		  
$
223,505		    
Jun. 2011		  

Hamilton Cypress LLC Commercial—1031Exchange Brookline, Massachusetts

  
$
3,769,927		  
$
2,362,596		  
$
4,613,985		  
$
797		  
$
2,362,596		  
$
4,614,782		  
$
6,977,378		  
$
531,592		    
Oct. 2008		  

Hamilton Linewt LLC Commercial—1031Exchange Newton, Massachusetts

  
$
1,567,232		  
$
884,042		  
$
2,652,127		  
$
49,679		  
$
884,042		  
$
2,701,806		  
$
3,585,848		  
$
284,504		    
Nov. 2007		  

Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts

  
$
11,925,000		  
$
2,175,000		  
$
12,325,000		  
$
1,622,383		  
$
2,175,000		  
$
13,947,383		  
$
16,122,383		  
$
6,828,988		    
Dec. 1999		  

Highland Street Apartment, L.P. Residential Apartments Lowell, Massachusetts

  
$
1,050,000		  
$
156,000		  
$
634,085		  
$
402,602		  
$
156,000		  
$
1,036,687		  
$
1,192,687		  
$
532,735		    
Dec. 1996		  

Linhart L.P. Residential/Commercial Newton, Massachusetts

  
$
2,000,000		  
$
385,000		  
$
1,540,000		  
$
1,134,633		  
$
385,000		  
$
2,674,633		  
$
3,059,633		  
$
1,689,246		    
Jan. 1995		  

Nashoba Apartments L.P. Residential Apartments Acton, Massachusetts

  
$
2,000,000		  
$
79,650		  
$
284,548		  
$
846,255		  
$
79,650		  
$
1,130,803		  
$
1,210,453		  
$
743,159		    
Sept.1977		  

NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts

  
$
5,308,718		  
$
1,512,000		  
$
5,701,480		  
$
437,874		  
$
1,512,000		  
$
6,139,354		  
$
7,651,354		  
$
2,278,686		    
Jun. 2002		  

North Beacon 140 L.P. Residential Units Boston, Massachusetts

  
$
6,937,000		  
$
936,000		  
$
3,762,013		  
$
1,439,611		  
$
936,000		  
$
5,201,624		  
$
6,137,624		  
$
2,947,584		    
July 1995		  

Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts

  
$
3,080,000		  
$
46,181		  
$
878,323		  
$
1,040,567		  
$
46,181		  
$
1,918,890		  
$
1,965,071		  
$
1,298,887		    
Sept.1977		  

River Drive L.P. Residential Apartments Danvers, Massachusetts

  
$
3,465,000		  
$
72,525		  
$
587,777		  
$
1,385,619		  
$
72,525		  
$
1,973,396		  
$
2,045,921		  
$
1,530,831		    
Sept.1977		  

Redwood Hills L.P. Residential Units Worcester, Massachusetts

  
$
6,743,000		  
$
1,200,000		  
$
4,810,604		  
$
2,147,766		  
$
1,200,000		  
$
6,958,370		  
$
8,158,370		  
$
3,846,100		    
July 1995		  

School St Assoc LLC Residential Apartments Framingham,
Massachusetts

  
$
15,602,731		  
$
4,686,728		  
$
18,746,911		  
$
(1,806,171
)
$
4,686,728		  
$
16,940,740		  
$
21,627,468		  
$
5,583,920		    
Apr. 2003		  

Staples Plaza Strip Mall Framingham,
Massachusetts

  
$
6,000,000		  
$
3,280,000		  
$
4,920,000		  
$
35,895		  
$
3,280,000		  
$
4,955,895		  
$
8,235,895		  
$
2,070,676		    
May 1999		  

WCB Associates LLC Residential Apartments Brockton, Massachusetts

  
$
7,000,000		  
$
1,335,000		  
$
7,565,501		  
$
1,109,711		  
$
1,335,000		  
$
8,675,212		  
$
10,010,212		  
$
4,283,214		    
Dec. 1999		  

Westgate Apartments LLC Residential Apartments Woburn, Massachusetts

  
$
8,378,033		  
$
461,300		  
$
2,424,636		  
$
5,772,495		  
$
417,107		  
$
8,197,131		  
$
8,614,238		  
$
5,569,307		    
Sept.1977		  
                                         

 

  
$
139,161,613		  
$
25,799,080		  
$
105,534,296		  
$
27,834,077		  
$
25,754,888		  
$
133,368,372		  
$
159,123,799		  
$
60,199,265		        
                                         
(1)
The initial cost to the Partnerships represents both the balance of mortgages assumed in September 1977, including subsequent adjustments to such amounts, and subsequent acquisitions at cost.

(2)
Net of retirements

(3)
In 2011, rental properties were depreciated over the following estimated useful lives:

Assets
  Life  

Buildings and Improvements

     15–39 years  

Other Categories of Assets

     5–20 years  

        A reconciliation of rental properties and accumulated depreciation is as follows:

 
   December 31,  
 
   2011   2010   2009  

Rental Properties

                    

Balance, Beginning

   $ 150,818,648   $ 150,411,555   $ 150,344,799  

Additions:

                    

Buildings, improvements and other assets

     12,444,604     2,268,039     3,136,296  
               

 

     163,263,252     152,679,594     153,481,095  

Deduct:

                    

Write-off of retired or disposed assets

     2,437,555     1,860,946     3,016,297  

Rental properties held for sale and/or sold

     1,701,898     —     53,243  
               

Balance, Ending

   $ 159,123,799   $ 150,818,648   $ 150,411,555  
               

Accumulated Depreciation

                    

Balance, Beginning

   $ 58,074,391   $ 54,439,618   $ 51,784,346  

Add:

                    

Depreciation for the year

     5,750,989     5,495,719     5,711,778  
               

 

     63,825,380     59,935,337     57,496,124  

Deduct:

                    

Accumulated depreciation of retired or disposed assets

     2,437,555     1,860,946     3,016,297  

Accumulated depreciation of rental properties held for sale and/or sold

     1,188,560     —     40,209  
               

Balance, Ending

   $ 60,199,265   $ 58,074,391   $ 54,439,618  
               

        On May 18, 2011, the Partnership sold Avon Street Apartments, a 66 unit residential apartment complex located at 130 Avon Street, Malden, Massachusetts. The sales price was $8,750,000, which resulted in a gain of approximately $7,700,000. The net proceeds of the sale, of approximately $5,444,000 were held by a qualified intermediary in order for the Partnership to structure a tax free exchange in accordance with Section 1031 of the IRS code. This tax free exchange was completed with the purchase of Battle Green Apartments described below.

        On June 1, 2011, the Partnership purchased the Battle Green Apartments, a 48 unit residential apartment complex located at 34-42 Worthen Road, Lexington, Massachusetts. The purchase price was $10,000,000. The Partnership used cash reserves, the proceeds from the sale of Avon Street and borrowed $3,998,573 from Harold Brown, Treasurer of the General Partner to make this purchase. This loan had an interest rate of 6% and was secured by the Partnership's ownership interest in Battle Green Apartments, LLC. The term of the loan is four years with a provision requiring payment in whole or in part upon demand within six months of notice or prepay without penalty. On July 27, 2011, the Partnership financed the Battle Green Apartments with a new $5,000,000 mortgage at 4.95% which matures in August 2026. Principal payments will be made using a 30 year amortization schedule. Deferred financing costs associated with this mortgage totaled approximately $100,000 and accordingly the effective interest rate is 5.07%. After paying off the existing loan of $3,998,573, approximately $1,000,000 was received by the Partnership. The interest paid on this loan to Harold Brown was $38,123.