INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

12 Months Ended

Dec. 31, 2025

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 15. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Hamilton Company. The Brown Family related entities ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

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

On May 31, 2018, Hamilton Park Towers, LLC entered into a mortgage note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts, pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its’ owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. At December 31, 2025, the balance on this mortgage before unamortized deferred financing costs is $125,000,000.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 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. On September 30, 2025, the property was refinanced with a 10 year mortgage in the amount of $12,214,000 at a fixed rate of 5.61% interest only. The Joint Venture paid off the prior mortgage of approximately $10,000,000 with the proceeds of the new mortgage and held the remaining $2,210,000 at the property as cash reserves. In December 2025, $1,000,000 of those reserves were distributed to their partners with the Partnership receiving $500,000.The costs associated with the refinancing were approximately $170,000. 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. At December 31, 2025, the balance on this mortgage before unamortized deferred financing costs is $12,214,000. 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 was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. All residential units have been sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. In October 2004, the Joint Venture obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Joint Venture obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan was 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. At December 31, 2025, the balance on this mortgage before unamortized deferred financing costs is $6,000,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $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. On April 18, 2024 the Borrower and KeyBank executed amended loan documents reflecting the transfer of interest in the Borrower. In conjunction with the execution of the amended loan documents, KeyBank provided a courtesy reduction equal to 50% of the transfer fee. In August 2024, the property was refinanced with a 10 year mortgage in the amount of $23,589,000 at 5.425% interest only. The Joint Venture paid off the prior mortgage of approximately $16,900,000 with the proceeds of the new mortgage and distributed $2,000,000 to the Partnership. The costs associated with the refinancing were approximately $243,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At December 31, 2025, the balance of the mortgage before unamortized deferred finance is $23,589,000. The investment is referred to as Hamilton on Main LLC.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At December 31, 2025, the balance of this mortgage before unamortized deferred financing costs is approximately $7,994,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information as of December 31, 2025

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,596,804		$	2,578,212		$	3,869,751		$	68,499		$	3,772,734		$	13,177,814		$	69,200,668		$	98,264,482
Cash & Cash Equivalents		2,085,124			72,873			151,036			14,895			747,591			716,523			6,032,464			9,820,506
Rent Receivable		158,092			58,384			25,080			1,791			11,907			35,164			167,820			458,238
Real Estate Tax Escrow		21,194			—			36,864			—			36,870			—			—			94,928
Prepaid Expenses & Other Assets		182,810			27,252			86,783			703			71,290			251,947			2,445,022			3,065,807
Total Assets	$	8,044,024		$	2,736,721		$	4,169,514		$	85,888		$	4,640,392		$	14,181,448		$	77,845,974		$	111,703,961
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	12,048,282		$	—		$	7,976,912		$	—		$	5,953,286		$	23,378,440		$	124,843,828		$	174,200,748
Accounts Payable & Accrued Expense		238,195			4,792			84,572			3,475			78,098			350,264			1,128,028			1,887,424
Advance Rental Pmts & Security Deposits		358,067			—			282,173			—			192,246			508,859			3,344,390			4,685,735
Total Liabilities		12,644,544			4,792			8,343,657			3,475			6,223,630			24,237,563			129,316,246			180,773,907
Partners’ Capital		(4,600,520)			2,731,929			(4,174,143)			82,413			(1,583,238)			(10,056,115)			(51,470,272)			(69,069,946)
Total Liabilities and Capital	$	8,044,024		$	2,736,721		$	4,169,514		$	85,888		$	4,640,392		$	14,181,448		$	77,845,974		$	111,703,961
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,365,965		$	—		$	41,207		$	—		$	—		$	—			1,407,171
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(2,300,260)		$	—		$	(2,087,072)		$	—		$	(791,619)		$	(5,028,058)		$	(20,588,109)			(30,795,117)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(29,387,946)
Total units/condominiums
Apartments		48			—			40			—			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Summary financial information for the year ended December 31, 2025

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,991,909	$	241,884	$	1,865,827	$	104,352	$	1,496,400	$	4,386,095	$	18,040,274	$	28,126,741
Laundry and Sundry Income		12,498		—		—		—		—		55,603		191,690		259,791
		2,004,407		241,884		1,865,827		104,352		1,496,400		4,441,698		18,231,964		28,386,532
Expenses
Administrative		41,889		31,908		61,205		4,630		24,770		88,711		314,670		567,783
Depreciation and Amortization		464,313		11,709		352,956		3,264		347,005		1,155,838		3,690,178		6,025,263
Management Fees		81,124		10,182		71,706		4,169		59,328		172,729		360,963		760,201
Operating		335,939		—		111,114		218		149,936		564,824		1,552,981		2,715,012
Renting		54,642		—		84,032		131		14,168		120,008		214,248		487,229
Repairs and Maintenance		211,384		—		189,582		—		148,306		635,585		1,809,833		2,994,690
Taxes and Insurance		134,681		68,455		195,631		19,007		164,629		493,377		2,833,938		3,909,718
		1,323,972		122,254		1,066,226		31,419		908,142		3,231,072		10,776,811		17,459,896
Income Before Other Income		680,435		119,630		799,601		72,933		588,258		1,210,626		7,455,153		10,926,636
Other Income (Loss)
Interest Expense		(702,268)		—		(326,703)		—		(236,350)		(1,333,423)		(5,120,334)		(7,719,078)
Interest income		43,030		1,312		6,278		526		13,060		16,156		158,705		239,067
		(659,238)		1,312		(320,425)		526		(223,290)		(1,317,267)		(4,961,629)		(7,480,011)
Net (Loss) Income	$	21,197	$	120,942	$	479,176	$	73,459	$	364,968	$	(106,641)	$	2,493,524	$	3,446,625
Net (Loss) Income —NERA 50%	$	10,599	$	60,471	$	239,588	$	36,730	$	182,484	$	(53,321)				476,551
Net Income —NERA 40%													$	997,410		997,410
															$	1,473,960

Future annual mortgage maturities at December 31, 2025 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
12/31/2026	$	—		259,155	$	—	$	—	$	—	$	259,155
12/31/2027		—		269,364		—		—		—		269,364
12/31/2028		—		7,465,039		—		—		125,000,000		132,465,039
12/31/2029		—		—		—		—		—		—
12/31/2030		—		—		—		—		—		—
Thereafter		12,214,000		—		6,000,000		23,589,000		—		41,803,000
		12,214,000		7,993,558		6,000,000		23,589,000		125,000,000		174,796,558
Less: unamortized deferred financing costs		(165,718)		(16,646)		(46,714)		(210,560)		(156,172)		(595,810)
	$	12,048,282	$	7,976,912	$	5,953,286	$	23,378,440	$	124,843,828	$	174,200,748

At December 31, 2025 the weighted average interest rate on the above mortgages was 4.28%. The effective rate was 4.35% including the amortization expense of deferred financing costs.

Summary financial information as of December 31, 2024

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,004,114		$	2,580,701		$	4,157,090		$	71,763		$	3,922,243		$	13,644,999		$	70,572,004		$	99,952,914
Cash & Cash Equivalents		1,443,698			63,207			165,608			18,352			204,938			632,190			3,217,273			5,745,266
Rent Receivable		202,234			71,060			2,679			1,655			2,278			50,479			96,173			426,558
Real Estate Tax Escrow		74,949			—			37,432			—			27,577			—			—			139,958
Prepaid Expenses & Other Assets		312,911			35,021			78,348			515			60,979			241,814			2,609,805			3,339,393
Total Assets	$	7,037,906		$	2,749,989		$	4,441,157		$	92,285		$	4,218,015		$	14,569,482		$	76,495,255		$	109,604,089
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,989,658		$	—		$	8,219,587		$	—		$	5,945,102		$	23,354,144		$	124,779,205		$	172,287,696
Accounts Payable & Accrued Expense		297,308			4,000			82,623			—			53,813			305,519			700,072			1,443,335
Advance Rental Pmts& Security Deposits		372,656			—			262,266			3,332			167,307			509,294			3,229,774			4,544,629
Total Liabilities		10,659,622			4,000			8,564,476			3,332			6,166,222			24,168,957			128,709,051			178,275,660
Partners’ Capital		(3,621,716)			2,745,989			(4,123,319)			88,953			(1,948,207)			(9,599,475)			(52,213,796)			(68,671,571)
Total Liabilities and Capital	$	7,037,906		$	2,749,989		$	4,441,157		$	92,285			4,218,015		$	14,569,482		$	76,495,255		$	109,604,089
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,372,994		$	—		$	44,477		$	—		$	—		$	—		$	1,417,470
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,810,858)		$	—		$	(2,061,661)		$	—		$	(974,105)		$	(4,799,739)		$	(20,885,518)			(30,531,880)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(29,114,410)
Total units/condominiums
Apartments		48			—			40			—			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Summary financial information for the year ended December 31, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,965,371	$	241,884	$	1,797,556	$	103,239	$	1,425,224	$	4,146,753	$	17,124,460	$	26,804,487
Laundry and Sundry Income		11,914		—		—		—		—		50,589		192,558		255,061
		1,977,285		241,884		1,797,556		103,239		1,425,224		4,197,342		17,317,018		27,059,548
Expenses
Administrative		21,123		5,002		32,052		3,438		17,615		115,474		197,474		392,178
Depreciation and Amortization		466,653		11,709		346,729		3,264		335,460		1,094,296		3,720,244		5,978,355
Management Fees		78,958		9,157		70,511		4,199		56,955		172,193		359,051		751,024
Operating		425,064		—		79,274		174		114,546		469,818		1,317,364		2,406,240
Renting		36,554		—		28,812		116		17,260		121,291		123,415		327,448
Repairs and Maintenance		244,133		—		144,504		6,478		160,089		733,621		1,985,001		3,273,826
Taxes and Insurance		283,858		67,749		195,475		19,178		158,746		453,032		2,667,779		3,845,817
		1,556,343		93,617		897,357		36,847		860,671		3,159,725		10,370,328		16,974,888
Income Before Other Income		420,942		148,267		900,199		66,392		564,553		1,037,617		6,946,690		10,084,660
Other Income (Loss)
Interest Expense		(782,293)		—		(335,778)		—		(237,599)		(968,928)		(5,123,727)		(7,448,325)
Other Expenses				—		—		—		—		75,665		—		75,665
Interest income		44,314		1,909		8,733		793		9,078		64,292		109,603		238,722
		(737,979)		1,909		(327,045)		793		(228,521)		(828,971)		(5,014,124)		(7,133,938)
Net Income (Loss)	$	(317,037)	$	150,176	$	573,154	$	67,185	$	336,032	$	208,646	$	1,932,566	$	2,950,722
Net Income (Loss)—NERA 50%	$	(158,519)	$	75,088	$	286,576	$	33,593	$	168,016	$	104,323				509,077
Net Income —NERA 40%													$	773,025		773,025
															$	1,282,102

Summary financial information for the year ended December 31, 2023

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,403,706		$	2,583,190		$	4,481,606		$	75,027		$	4,190,275		$	12,493,492		$	73,179,575		$	102,406,871
Cash & Cash Equivalents		1,141,751			108,348			155,557			16,339			148,334			1,204,116			1,904,290			4,678,735
Rent Receivable		208,968			78,753			117			4,120			2,957			22,319			115,904			433,138
Real Estate Tax Escrow		75,475			—			29,290			—			34,998			136,711			—			276,474
Prepaid Expenses & Other Assets		320,627			44,182			73,604			505			50,327			227,421			2,494,734			3,211,400
Total Assets	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,975,869		$	—		$	8,452,812		$	—		$	5,936,919		$	16,889,299		$	124,714,582		$	165,969,481
Accounts Payable & Accrued Expense		141,743			3,000			64,335			3,486			50,990			352,780			742,749			1,359,083
Advance Rental Pmts& Security Deposits		337,593			20,660			304,499			735			173,222			500,103			3,033,534			4,370,346
Total Liabilities		10,455,205			23,660			8,821,646			4,221			6,161,131			17,742,182			128,490,865			171,698,910
Partners’ Capital		(3,304,678)			2,790,813			(4,081,472)			91,770			(1,734,240)			(3,658,123)			(50,796,362)			(60,692,292)
Total Liabilities and Capital	$	7,150,527		$	2,814,473		$	4,740,174		$	95,991		$	4,426,891		$	14,084,059		$	77,694,503		$	111,006,618
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,395,406		$	—		$	45,885		$	—		$	—		$	—			1,441,291
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,652,340)		$	—		$	(2,040,737)		$	—		$	(867,121)		$	(1,829,063)		$	(20,318,546)			(26,707,807)
																						$	(25,266,517)
Total units/condominiums
Apartments		48			—			40			—			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Summary financial information for the year ended December 31, 2023

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	1,831,196	$	241,884	$	1,709,429	$	98,734	$	1,334,250	$	3,879,734	$	16,461,345	$	25,556,572
Laundry and Sundry Income		3,691		—		115		—		—		23,163		137,498		164,467
		1,834,887		241,884		1,709,544		98,734		1,334,250		3,902,897		16,598,843		25,721,039
Expenses
Administrative		20,455		3,020		30,349		3,300		20,021		92,589		262,394		432,128
Depreciation and Amortization		470,253		11,709		346,856		3,264		339,605		1,065,353		3,685,524		5,922,564
Management Fees		72,806		10,489		67,116		4,011		53,347		152,943		338,355		699,067
Operating		284,173		—		89,139		807		105,254		455,086		1,279,434		2,213,893
Renting		61,559		—		52,686		13		5,801		54,856		107,250		282,165
Repairs and Maintenance		178,816		—		150,845		—		94,262		625,687		1,902,110		2,951,720
Taxes and Insurance		281,346		61,557		193,215		17,165		147,197		527,665		2,630,668		3,858,813
		1,369,408		86,775		930,206		28,560		765,487		2,974,179		10,205,735		16,360,350
Income Before Other Income		465,479		155,109		779,338		70,174		568,763		928,718		6,393,108		9,360,689
Other Income (Loss)
Interest Expense		(752,933)		—		(344,847)		—		(237,749)		(788,376)		(5,026,076)		(7,149,981)
Other Expenses		—		—		—		—		—		(213,240)		—		(213,240)
Interest Income		6,830		375		1,593		161		2,592		7,376		11,861		30,788
		(746,103)		375		(343,254)		161		(235,157)		(994,240)		(5,014,215)		(7,332,433)
Net Income (Loss)	$	(280,624)	$	155,484	$	436,084	$	70,335	$	333,606	$	(65,522)	$	1,378,893	$	2,028,256
Net Income (Loss)—NERA 50%	$	(140,312)	$	77,741	$	218,041	$	35,167	$	166,802	$	(32,762)				324,677
Net Income —NERA 40%													$	551,556		551,556
															$	876,233