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RENTAL PROPERTIES
 12 Months Ended
Dec. 31, 2016
RENTAL PROPERTIES  
RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

As of December 31, 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 December 31, 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 December 31, 2016 with a total of 774 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, 2016

    

December 31, 2015

    

Useful Life

 

Land, improvements and parking lots

 

$
52,612,929

 

$
52,852,877

 
15

-

40

years

 

Buildings and improvements

 

 
173,536,288

 

 
172,277,299

 
15

-

40

years

 

Kitchen cabinets

 

 
8,738,323

 

 
8,493,696

 
5

-

10

years

 

Carpets

 

 
7,621,292

 

 
7,361,966

 
5

-

10

years

 

Air conditioning

 

 
690,535

 

 
718,531

 
5

-

10

years

 

Laundry equipment

 

 
269,784

 

 
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

 

 
10,029,639

 

 
9,502,977

 
5

-

30

years

 

Motor vehicles

 

 
237,954

 

 
130,563

 

 

 

 5

years

 

Fences

 

 
37,465

 

 
38,115

 
5

-

15

years

 

Furniture and fixtures

 

 
8,127,100

 

 
7,855,351

 
5

-

 7

years

 

Smoke alarms

 

 
174,059

 

 
216,827

 
5

-

 7

years

 

Total fixed assets

 

 
263,659,293

 

 
261,276,898

 

 

 

 

 

 

Less: Accumulated depreciation

 

 
(94,196,482)

 

 
(84,579,584)

 

 

 

 

 

 

 

 

$
169,462,811

 

$
176,697,314

 

 

 

 

 

 

 

 

Real estate and accumulated depreciation as of December 31, 2016 is:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial Cost to

 

Capitalized

 

Gross Amount at Which

 

 

 

 

Years

 

 

Property Name

 

Encumbrances

 

Partnerships(1)

 

Subsequent to

 

Carried at Close of Period

 

 

 

 

Built/

 

Depreciable

Type

 

(First

 

 

 

 

Buildings

 

Acquisition(2)

 

 

 

 

Buildings

 

 

 

 

Accumulated

 

Redecorated

 

Lives

Location

 

Mortgages)

 

Land

 

Improvements

 

Improvements

 

Land

 

Improvements

 

Totals

 

Depreciation

 

Date Acquired

 

Years

Boylston Downtown L.P. Residential Apartments Boston, Massachusetts

  

$
39,767,081

  

$
2,112,000

  

$
8,593,109

  

$
8,465,020

  

$
2,112,000

  

$
17,058,129

  

$
19,170,129

  

$
11,367,310

  

July 1995

  

(3)

Brookside Associates LLC Residential Apartments Woburn, Massachusetts

 

$
2,551,784

 

$
684,000

 

$
3,116,000

 

$
422,736

 

$
684,000

 

$
3,538,736

 

$
4,222,736

 

$
2,051,187

 

Oct. 2000

 

(3)

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

 

$
4,160,000

 

$
177,610

 

$
1,478,359

 

$
1,644,670

 

$
177,610

 

$
3,123,029

 

$
3,300,639

 

$
2,211,354

 

Sept. 1977

 

(3)

Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts

 

$
3,750,000

 

$
342,000

 

$
1,367,669

 

$
1,185,432

 

$
342,000

 

$
2,553,101

 

$
2,895,101

 

$
1,639,400

 

July 1995

 

(3)

Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts

 

$
14,780,000

 

$
1,410,000

 

$
5,664,816

 

$
3,053,498

 

$
1,410,000

 

$
8,718,314

 

$
10,128,314

 

$
5,548,937

 

July 1995

 

(3)

Executive Apartments L.P. Residential Apartments Framingham, Massachusetts

 

$
2,415,000

 

$
91,400

 

$
740,360

 

$
1,241,254

 

$
91,400

 

$
1,981,614

 

$
2,073,014

 

$
1,133,390

 

Sept. 1977

 

(3)

Hamilton Battle Green LLC Residential Apartments Lexington, Massachusetts

 

$
4,556,929

 

$
1,341,737

 

$
8,457,497

 

$
(31,186)

 

$
1,341,737

 

$
8,426,311

 

$
9,768,048

 

$
1,950,071

 

Jun. 2011

 

(3)

Hamilton Cypress LLC Commercial - 1031 Exchange Brookline, Massachusetts

 

$

 —

 

$
2,362,596

 

$
4,613,985

 

$
267,785

 

$
2,362,596

 

$
4,881,770

 

$
7,244,366

 

$
1,290,268

 

Oct. 2008

 

(3)

Hamilton Green Apartments, LLC Residential Apartments Andover, Massachusetts

 

$
37,171,505

 

$
16,054,336

 

$
44,794,438

 

$
314,568

 

$
15,385,792

 

$
45,777,550

 

$
61,163,342

 

$
11,906,360

 

Jul. 2013

 

(3)

Hamilton Linewt LLC Commercial - 1031 Exchange Newton, Massachusetts

 

$

 —

 

$
884,042

 

$
2,652,127

 

$
62,608

 

$
884,042

 

$
2,714,735

 

$
3,598,777

 

$
635,673

 

Nov. 2007

 

(3)

Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts

 

$
11,925,000

 

$
2,175,000

 

$
12,325,000

 

$
3,066,647

 

$
2,175,000

 

$
15,391,647

 

$
17,566,647

 

$
9,225,149

 

Dec. 1999

 

(3)

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

 

$
1,050,000

 

$
156,000

 

$
634,085

 

$
296,725

 

$
156,000

 

$
930,810

 

$
1,086,810

 

$
630,619

 

Dec. 1996

 

(3)

Linhart L.P.  Residential / Commercial Newton, Massachusetts

 

$

 —

 

$
385,000

 

$
1,540,000

 

$
1,467,584

 

$
385,000

 

$
3,007,584

 

$
3,392,584

 

$
2,148,185

 

Jan. 1995

 

(3)

NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts

 

$
5,687,000

 

$
1,512,000

 

$
5,701,480

 

$
1,066,249

 

$
1,512,000

 

$
6,767,729

 

$
8,279,729

 

$
3,420,061

 

Jun. 2002

 

(3)

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

 

$
6,937,000

 

$
936,000

 

$
3,762,013

 

$
2,336,390

 

$
936,000

 

$
6,098,403

 

$
7,034,403

 

$
4,020,053

 

July 1995

 

(3)

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

 

$
3,080,000

 

$
46,181

 

$
878,323

 

$
1,222,733

 

$
46,181

 

$
2,101,056

 

$
2,147,237

 

$
1,391,338

 

Sept. 1977

 

(3)

Redwood Hills L.P. Residential Apartments Worcester, Massachusetts

 

$
6,743,000

 

$
1,200,000

 

$
4,810,604

 

$
3,367,174

 

$
1,200,000

 

$
8,177,778

 

$
9,377,778

 

$
5,135,322

 

July 1995

 

(3)

Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts

 

$
20,071,000

 

$
6,247,153

 

$
24,954,777

 

$
31,924,288

 

$
6,247,153

 

$
25,677,135

 

$
31,924,288

 

$
1,749,091

 

Sept. 2015

 

(3)

River Drive L.P. Residential Apartments Danvers, Massachusetts

 

$
3,465,000

 

$
72,525

 

$
587,777

 

$
1,026,791

 

$
72,525

 

$
1,614,568

 

$
1,687,093

 

$
816,449

 

Sept. 1977

 

(3)

Riverside Apartments Condominium Units Massachusetts

 

$

 —

 

$
23,346

 

$
190,807

 

$
67,767

 

$
23,346

 

$
258,574

 

$
281,920

 

$
213,902

 

Sept. 1977

 

(3)

School St Assoc LLC Residential Apartments Framingham, Massachusetts

 

$
14,823,892

 

$
4,686,728

 

$
18,746,911

 

$
(928,816)

 

$
4,686,728

 

$
17,818,095

 

$
22,504,824

 

$
8,700,765

 

Apr. 2003

 

(3)

WRF Associates LLC
Strip Mall Framingham, Massachusetts

 

$
6,000,000

 

$
3,280,000

 

$
4,920,000

 

$
86,202

 

$
3,280,000

 

$
5,006,202

 

$
8,286,202

 

$
2,903,034

 

May 1999

 

(3)

WCB Associates LLC Residential Apartments Brockton, Massachusetts

 

$
7,000,000

 

$
1,335,000

 

$
7,565,501

 

$
2,038,505

 

$
1,335,000

 

$
9,604,006

 

$
10,939,006

 

$
5,689,418

 

Dec. 1999

 

(3)

Westate Apartments Burlington LLC Residential Apartments Burlington, Massachusetts

 

$
2,500,000

 

$
44,965

 

$
4,478,687

 

$
238,184

 

$
44,965

 

$
4,716,871

 

$
4,761,836

 

$
2,155,051

 

Sept. 2004

 

(3)

Westgate Apartments LLC Residential Apartments Woburn, Massachusetts

 

$
15,700,000

 

$
461,300

 

$
2,424,636

 

$
7,982,728

 

$
417,107

 

$
10,407,364

 

$
10,824,471

 

$
6,264,096

 

Sept. 1977

 

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
214,134,191

 

$
48,020,919

 

$
174,998,961

 

$
71,885,536

 

$
47,308,182

 

$
216,351,111

 

$
263,659,293

 

$
94,196,482

 

 

 

 

(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 2016, rental properties were depreciated over the following estimated useful lives:

 

 

 

 

 

 

 

Assets

    

Life

 

Buildings and Improvements

 

10

-

40

years

 

Other Categories of Assets

 

5

-

15

years

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2016

    

2015

    

2014

 

Rental Properties

 

 

 

 

 

 

 

 

 

 

Balance, Beginning

 

$
261,276,898

 

$
225,021,946

 

$
221,454,286

 

Additions:

 

 

 

 

 

 

 

 

 

 

Buildings, improvements and other assets

 

 
5,163,081

 

 
37,895,926

 

 
5,604,791

 

 

 

 
266,439,979

 

 
262,917,872

 

 
227,059,077

 

Deduct:

 

 

 

 

 

 

 

 

 

 

Write-offs of retired or disposed assets

 

 
2,112,142

 

 
1,640,974

 

 
2,037,131

 

Rental properties held for sale and/or sold

 

 
668,544

 

 

 —

 

 

 —

 

Balance, Ending

 

$
263,659,293

 

$
261,276,898

 

$
225,021,946

 

Accumulated Depreciation

 

 

 

 

 

 

 

 

 

 

Balance, Beginning

 

$
84,579,584

 

$
75,905,862

 

$
68,549,625

 

Add:

 

 

 

 

 

 

 

 

 

 

Depreciation for the year

 

 
11,729,039

 

 
10,314,696

 

 
9,393,368

 

 

 

 
96,308,623

 

 
86,220,558

 

 
77,942,993

 

Deduct

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation of retired or disposed assets

 

 
2,112,141

 

 
1,640,974

 

 
2,037,131

 

Balance, Ending

 

$
94,196,482

 

$
84,579,584

 

$
75,905,862

 

 

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 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.