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RENTAL PROPERTIES
 12 Months Ended
Dec. 31, 2015
RENTAL PROPERTIES  
RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

As of December 31, 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 December 31, 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 December 31, 2015 with a total of 788  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, 2015

    

December 31, 2014

    

Useful Life

 

Land, improvements and parking lots

 

$
52,852,877

 

$
44,541,471

 

15

-

40

 

years

 

Buildings and improvements

 

 
172,277,299

 

 
153,059,430

 

15

-

40

 

years

 

Kitchen cabinets

 

 
8,493,696

 

 
6,865,348

 

 5

-

10

 

years

 

Carpets

 

 
7,361,966

 

 
6,341,227

 

 5

-

10

 

years

 

Air conditioning

 

 
718,531

 

 
705,116

 

 5

-

10

 

years

 

Laundry equipment

 

 
244,771

 

 
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

 

 
9,502,977

 

 
5,491,992

 

 5

-

 7

 

years

 

Motor vehicles

 

 
130,563

 

 
130,563

 

 

 

 5

 

years

 

Fences

 

 
38,115

 

 
24,670

 

 5

-

15

 

years

 

Furniture and fixtures

 

 
7,855,351

 

 
5,910,046

 

 5

-

 7

 

years

 

Smoke alarms

 

 
216,827

 

 
220,437

 

 5

-

 7

 

years

 

Total fixed assets

 

 
261,276,898

 

 
225,021,946

 

 

 

 

 

 

 

Less: Accumulated depreciation

 

 
(84,579,584)

 

 
(75,905,862)

 

 

 

 

 

 

 

 

 

$
176,697,314

 

$
149,116,084

 

 

 

 

 

 

 

 

 

 

Real estate and accumulated depreciation as of December 31, 2015 is:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial Cost to

 

Capitalized

 

Gross Amount at Which

 

 

 

 

 

 

 

 

Encumbrances

 

Partnerships(1)

 

Subsequent to

 

Carried at Close of Period

 

 

 

 

 

 

 

 

(First

 

 

 

 

Buildings

 

Acquisition(2)

 

 

 

 

Buildings

 

 

 

 

Accumulated

 

 

 

 

    

Mortgages)

    

Land

    

Improvements

    

Improvements

    

Land

    

Improvements

    

Totals

    

Depreciation(3)

    

Date Acquired

 

Boylston Downtown L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston, Massachusetts

 

$
40,000,000

 

$
2,112,000

 

$
8,593,109

 

$
8,192,079

 

$
2,112,000

 

$
16,785,188

 

$
18,897,188

 

$
10,755,089

 

July 1995

 

Brookside Associates LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Woburn, Massachusetts

 

$
2,598,337

 

$
684,000

 

$
3,116,000

 

$
432,302

 

$
684,000

 

$
3,548,302

 

$
4,232,302

 

$
1,945,022

 

Oct. 2000

 

Clovelly Apartments L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nashua, New Hampshire

 

$
4,160,000

 

$
177,610

 

$
1,478,359

 

$
1,689,128

 

$
177,610

 

$
3,167,487

 

$
3,345,097

 

$
2,154,856

 

Sept. 1977

 

Commonwealth 1137 L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston, Massachusetts

 

$
3,750,000

 

$
342,000

 

$
1,367,669

 

$
1,196,696

 

$
342,000

 

$
2,564,365

 

$
2,906,365

 

$
1,532,004

 

July 1995

 

Commonwealth 1144 L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston, Massachusetts

 

$
14,780,000

 

$
1,410,000

 

$
5,664,816

 

$
2,207,782

 

$
1,410,000

 

$
7,872,598

 

$
9,282,598

 

$
5,199,814

 

July 1995

 

Executive Apartments L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Framingham, Massachusetts

 

$
2,415,000

 

$
91,400

 

$
740,360

 

$
1,226,670

 

$
91,400

 

$
1,967,030

 

$
2,058,430

 

$
1,062,137

 

Sept. 1977

 

Hamilton Battle Green LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lexington, Massachusetts

 

$
4,649,132

 

$
1,341,737

 

$
8,457,497

 

$
170,445

 

$
1,341,737

 

$
8,627,942

 

$
9,969,679

 

$
1,823,135

 

Jun. 2011

 

Hamilton Cypress LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1031Exchange Brookline,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts

 

$

 —

 

$
2,362,596

 

$
4,613,985

 

$
259,375

 

$
2,362,596

 

$
4,873,360

 

$
7,235,956

 

$
1,085,242

 

Oct. 2008

 

Hamilton Green

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apartments, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Andover, Massachusetts

 

$
38,500,000

 

$
16,054,336

 

$
44,794,438

 

$
748,572

 

$
16,054,336

 

$
45,543,010

 

$
61,597,346

 

$
8,395,786

 

Jul. 2013

 

Hamilton Linewt LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1031Exchange Newton,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts

 

$

 —

 

$
884,042

 

$
2,652,127

 

$
62,608

 

$
884,042

 

$
2,714,735

 

$
3,598,777

 

$
564,048

 

Nov. 2007

 

Hamilton Oaks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Associates LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brockton, Massachusetts

 

$
11,925,000

 

$
2,175,000

 

$
12,325,000

 

$
2,574,848

 

$
2,175,000

 

$
14,899,848

 

$
17,074,848

 

$
8,580,806

 

Dec. 1999

 

Highland Street

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apartments, L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lowell, Massachusetts

 

$
1,050,000

 

$
156,000

 

$
634,085

 

$
338,724

 

$
156,000

 

$
972,809

 

$
1,128,809

 

$
635,675

 

Dec. 1996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial Cost to

 

Capitalized

 

Gross Amount at Which

 

 

 

 

 

 

 

 

Encumbrances

 

Partnerships(1)

 

Subsequent to

 

Carried at Close of Period

 

 

 

 

 

 

 

 

(First

 

 

 

 

Buildings

 

Acquisition(2)

 

 

 

 

Buildings

 

 

 

 

Accumulated

 

 

 

 

    

Mortgages)

    

Land

    

Improvements

    

Improvements

    

Land

    

Improvements

    

Totals

    

Depreciation(3)

    

Date Acquired

 

Linhart L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential/Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Newton, Massachusetts

 

$

 —

 

$
385,000

 

$
1,540,000

 

$
1,331,870

 

$
385,000

 

$
2,871,870

 

$
3,256,870

 

$
2,047,890

 

Jan. 1995

 

NERA Dean

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

St. Associates LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norwood, Massachusetts

 

$
5,687,000

 

$
1,512,000

 

$
5,701,480

 

$
961,065

 

$
1,512,000

 

$
6,662,545

 

$
8,174,545

 

$
3,143,032

 

Jun. 2002

 

North Beacon 140 L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston, Massachusetts

 

$
6,937,000

 

$
936,000

 

$
3,762,013

 

$
2,158,122

 

$
936,000

 

$
5,920,135

 

$
6,856,135

 

$
3,743,872

 

July 1995

 

Olde English

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apartments L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lowell, Massachusetts

 

$
3,080,000

 

$
46,181

 

$
878,323

 

$
1,262,126

 

$
46,181

 

$
2,140,449

 

$
2,186,630

 

$
1,386,246

 

Sept. 1977

 

Redwood Hills L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Worcester, Massachusetts

 

$
6,743,000

 

$
1,200,000

 

$
4,810,604

 

$
3,171,266

 

$
1,200,000

 

$
7,981,870

 

$
9,181,870

 

$
4,753,632

 

July 1995

 

Residences at Captain Parkers LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lexington, Massachusetts

 

$

 —

 

$
6,247,153

 

$
24,954,777

 

$
31,201,930

 

$
6,247,153

 

$
24,954,777

 

$
31,201,930

 

$
385,301

 

Sept. 2015

 

River Drive L.P. Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apartments Danvers,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts

 

$
3,465,000

 

$
72,525

 

$
587,777

 

$
1,130,773

 

$
72,525

 

$
1,718,550

 

$
1,791,075

 

$
847,593

 

Sept. 1977

 

Riverside Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condominium Units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts

 

$

 —

 

$
23,346

 

$
190,807

 

$
54,973

 

$
23,346

 

$
245,780

 

$
269,126

 

$
205,387

 

Sept. 1977

 

School St Assoc LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Framingham,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts

 

$
15,000,000

 

$
4,686,728

 

$
18,746,911

 

$
(1,254,212)

 

$
4,686,728

 

$
17,492,699

 

$
22,179,427

 

$
7,958,005

 

Apr. 2003

 

WRF Associates LLC Strip

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mall Framingham,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts

 

$
6,000,000

 

$
3,280,000

 

$
4,920,000

 

$
86,445

 

$
3,280,000

 

$
5,006,445

 

$
8,286,445

 

$
2,737,573

 

May 1999

 

WCB Associates LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brockton, Massachusetts

 

$
7,000,000

 

$
1,335,000

 

$
7,565,501

 

$
1,722,213

 

$
1,335,000

 

$
9,287,714

 

$
10,622,714

 

$
5,303,172

 

Dec. 1999

 

Westate Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Burlington LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Burlington, Massachusetts

 

$
2,500,000

 

$
44,965

 

$
4,478,687

 

$
244,281

 

$
44,965

 

$
4,722,968

 

$
4,767,933

 

$
1,984,655

 

Sept. 2004

 

Westgate Apartments LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Apartments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Woburn, Massachusetts

 

$
15,700,000

 

$
461,300

 

$
2,424,636

 

$
8,333,060

 

$
417,107

 

$
10,757,696

 

$
11,174,803

 

$
6,349,611

 

Sept. 1977

 

 

 

$
195,939,469

 

$
48,020,919

 

$
174,998,961

 

$
69,503,141

 

$
47,976,726

 

$
213,300,172

 

$
261,276,898

 

$
84,579,584

 

 

 

 

(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.

Net of retirements.

(2)

(3)

In 2015, rental properties were depreciated over the following estimated useful lives:

 

 

 

 

 

 

 

Assets

    

Life

 

Buildings and Improvements

 

10

-

39

years

 

Other Categories of Assets

 

5

-

15

years

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2015

    

2014

    

2013

 

Rental Properties

 

 

 

 

 

 

 

 

 

 

Balance, Beginning

 

$
225,021,946

 

$
221,454,286

 

$
158,624,893

 

Additions:

 

 

 

 

 

 

 

 

 

 

Buildings, improvements and other assets

 

 
37,895,926

 

 
5,604,791

 

 
65,349,698

 

 

 

 
262,917,872

 

 
227,059,077

 

 
223,974,591

 

Deduct:

 

 

 

 

 

 

 

 

 

 

Write-offs of retired or disposed assets

 

 
1,640,974

 

 
2,037,131

 

 
2,505,787

 

Rental properties held for sale and/or sold

 

 

 —

 

 

 —

 

 
14,518

 

Balance, Ending

 

$
261,276,898

 

$
225,021,946

 

$
221,454,286

 

Accumulated Depreciation

 

 

 

 

 

 

 

 

 

 

Balance, Beginning

 

$
75,905,862

 

$
68,549,625

 

$
63,651,293

 

Add:

 

 

 

 

 

 

 

 

 

 

Depreciation for the year

 

 
10,314,696

 

 
9,393,368

 

 
7,404,120

 

 

 

 
86,220,558

 

 
77,942,993

 

 
71,055,413

 

Deduct

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation of retired or disposed assets

 

 
1,640,974

 

 
2,037,131

 

 
2,505,788

 

Balance, Ending

 

$
84,579,584

 

$
75,905,862

 

$
68,549,625

 

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, (“Hamilton Green”) 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 sale of the Nashoba Apartments, and the balance from the Partnership’s cash reserves. The closing costs associated with this short term financing were approximately $38,000. The original mortgage matured in November 2013. On December 20, 2013, the Partnership refinanced the mortgage on Hamilton Green. The new 15 year mortgage is $38,500,000; the interest rate is 4.67%; interest only for 2 years.  After the first two years, principal is amortized on a 30 year amortization schedule through January 2029. This refinancing required additional capital of approximately $1,846,000 from the Partnership. The closing costs associated with this refinancing were approximately $346,000.

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.