NOTE 2. RENTAL PROPERTIES

As of June 30, 2019, the Partnership and its Subsidiary Partnerships owned 2,711 residential apartment units in 23 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 June 30, 2019, 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 eight residential and mixed use complexes (the “Investment Properties”) at June 30, 2019 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

Rental properties consist of the following:


	June 30, 2019		December 31, 2018		Useful Life
Land, improvements and parking lots	$	72,554,622	$	72,547,547	15	-	40	years
Buildings and improvements		221,865,864		221,697,939	15	-	40	years
Kitchen cabinets		12,516,335		12,134,519	5	-	10	years
Carpets		8,022,028		7,591,591	5	-	10	years
Air conditioning		603,149		603,149	5	-	10	years
Laundry equipment		349,071		327,643	5	-	7	years
Elevators		1,885,265		1,839,590	20	-	40	years
Swimming pools		444,629		444,629	10	-	30	years
Equipment		13,110,356		12,919,389	5	-	30	years
Motor vehicles		216,260		216,260			5	years
Fences		38,213		38,213	5	-	15	years
Furniture and fixtures		7,484,510		7,013,845	5	-	7	years
Smoke alarms		528,097		528,097	5	-	7	years
Total fixed assets		339,618,399		337,902,411
Less: Accumulated depreciation		(114,480,889)		(107,391,148)
	$	225,137,510	$	230,511,263

On March 29, 2018, Hamilton Highlands, LLC (“Hamilton Highlands”), a wholly-owned subsidiary of New England Realty Associates Limited Partnership (the “Partnership”), purchased Webster Green Apartments, a 79 unit apartment complex located at 755-757 Highland Avenue, Needham, Massachusetts. The sale was consummated pursuant to the terms of a Purchase and Sale Contract by and between Webster Green Apartments, LLC, the prior owner of the Property, and The Hamilton Companies, Inc., an affiliate of the Partnership, which agreement was subsequently assigned by Hamilton to Hamilton Highlands.

In connection with the purchase, the Hamilton Highlands entered into an Assumption and Modification Agreement dated as of March 29, 2018 with Brookline Bank pursuant to which the Hamilton Highlands assumed a note dated as of January 14, 2016 in the principal amount of $21,500,000 and various agreements relating to the Note including a Mortgage, Assignment of Leases and Rents, Security Agreement, Fixture Filing dated as of January 14, 2016. The purchase price was $34,500,000, consisting of a payment of approximately $13,000,000 in cash and the assumption of the note and mortgage. Hamilton Highlands funded $5,000,000 of the cash portion of the purchase price out of cash reserves and the remaining $8,000,000 by drawing on an existing line of credit. The closing costs were approximately $141,000. From the purchase price, the Partnership allocated approximately $502,000 for in- place leases, and approximately $40,000 to the value of tenant relationships. These amounts are being amortized over 12 and 24 months respectively.