NOTE 2. RENTAL PROPERTIES

As of September 30, 2013, the Partnership and its Subsidiary Partnerships owned 2,412 residential apartment units in 19 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

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

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

Rental properties consist of the following:

	September 30, 2013			December 31, 2012			Useful Life
Land, improvements and parking lots	$	43,853,519		$	27,743,726		15—40 years
Buildings and improvements	152,671,201			118,739,283			15—40 years
Kitchen cabinets	6,261,506			3,544,868			5—10 years
Carpets	6,225,566			3,218,975			5—10 years
Air conditioning	779,446			746,043			5—10 years
Laundry equipment	435,218			378,806			5—7 years
Elevators	1,139,296			1,139,296			20-40 years
Swimming pools	444,629			235,242			10-30 years
Equipment	5,234,614			1,529,904			5—7 years
Motor vehicles	101,657			101,657			5 years
Fences	32,695			22,445			5—15 years
Furniture and fixtures	5,703,942			1,031,348			5—7 years
Smoke alarms	220,014			193,298			5—7 years
Total fixed assets	223,103,303			158,624,893
Less: Accumulated depreciation	(68,838,718		)	(63,651,293		)
	$	154,264,585		$	94,973,600

In May 2013 the Partnership sold the Nashoba Apartments located in Acton, Massachusetts. The sale price was $4,300,000; the net proceeds of approximately $2,100,000 were transferred to Investment Property Exchange Services, Inc. a Qualified Intermediary. These funds were held by the intermediary in order to maintain the Partnership’s ability to structure a tax free exchange in accordance with the Internal Revenue Service’s rules under Sec. 1031. The gain on the sale in accordance with GAAP is approximately $3,679,000. The proceeds were subsequently used in the acquisition of the Hamilton Green apartments described below.

On July 15, 2013, Hamilton Green Apartments, LLC, a newly formed subsidiary of the Partnership, purchased Windsor Green at Andover, a 193 unit apartment complex located at 311 and 319 Lowell Street, Andover, Massachusetts. The purchase price was $62,500,000. From the purchase price, the Partnership has allocated approximately $1,656,000 to the value of the in-place leases and approximately $96,000 to the value of the tenant relationships. These amounts will be amortized over 12 and 36 months respectively. To fund this purchase, the Partnership obtained short term financing of approximately $40,000,000, used the funds of approximately $2,100,000 from the like kind exchange of the Nashoba Apartments, and the balance from the Partnership’s cash reserves. The closing costs associated with this short term financing were approximately $126,000. The original mortgage matures in November 2013. On September 30, 2013, the Partnership received a commitment for a new mortgage in the amount of $38,500,000, with interest at 4.67% fixed for 15 years; amortized over 30 years with interest only for two years. See Note 16 — Subsequent events.