NOTE 2. RENTAL PROPERTIES

As of September 30, 2016, 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, 2016, 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, 2016 with a total of 778 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

On August 3, 2016, Hamilton Green Apartments, LLC sold a single family house contiguous with its apartment complex in Andover, Massachusetts. The sale price of the property was $1,000,000 with closing costs of $227,663 and a cost basis of $668,544 resulting in a gain on the sale of $103,793. Included in the closing costs is a mortgage prepayment penalty of $187,905. The proceeds from the sale were used to reduce the principal amount on the apartment complex’s mortgage.

On September 18, 2015, Residences at Captain Parker, LLC, a Massachusetts limited liability company (“Captain Parker”) 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, 2016		December 31, 2015		Useful Life
Land, improvements and parking lots	$	52,610,465	$	52,852,877	15	-	40	years
Buildings and improvements		173,161,839		172,277,299	15	-	40	years
Kitchen cabinets		8,919,826		8,493,696	5	-	10	years
Carpets		8,039,112		7,361,966	5	-	10	years
Air conditioning		718,531		718,531	5	-	10	years
Laundry equipment		244,771		244,771	5	-	7	years
Elevators		1,139,296		1,139,296	20	-	40	years
Swimming pools		444,629		444,629	10	-	30	years
Equipment		10,125,881		9,502,977	5	-	7	years
Motor vehicles		169,076		130,563			5	years
Fences		42,565		38,115	5	-	15	years
Furniture and fixtures		8,339,939		7,855,351	5	-	7	years
Smoke alarms		216,827		216,827	5	-	7	years
Total fixed assets		264,172,757		261,276,898
Less: Accumulated depreciation		(93,320,604)		(84,579,584)
	$	170,852,153	$	176,697,314