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RENTAL PROPERTIES

12 Months Ended

Dec. 31, 2024

NOTE 2. RENTAL PROPERTIES

As of December 31, 2024, the Partnership and its Subsidiary Partnerships owned 2,943 residential apartment units in 27 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, 2024, the Partnership and Subsidiary Partnerships owned two commercial shopping center in Framingham, commercial buildings in Newton and Brookline and commercial space in 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 seven residential and mixed use complexes (the “Investment Properties”) at December 31, 2024 with a total of 688 units, accounted for using the equity method of consolidation. See Note 15 for summary information on these investments.

Rental properties consist of the following:


	December 31, 2024		December 31, 2023		Useful Life
Land, improvements and parking lots	$	101,397,349	$	99,162,143	15	-	40	years
Buildings and improvements		279,272,215		276,167,618	15	-	40	years
Construction in Progress		16,758,245		1,818,716
Kitchen cabinets		14,187,702		16,137,828	5	-	10	years
Carpets		14,545,300		13,127,838	5	-	10	years
Air conditioning		500,000		500,000	5	-	10	years
Laundry equipment		475,931		568,716	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,090,604		1,090,604	10	-	30	years
Equipment		21,911,223		21,348,556	5	-	30	years
Motor vehicles		236,697		232,954			5	years
Fences		101,506		91,620	5	-	15	years
Furniture and fixtures		9,047,454		8,365,039	5	-	7	years
Total fixed assets		461,409,491		440,496,897
Less: Accumulated depreciation		(182,892,842)		(170,691,951)
	$	278,516,649	$	269,804,946


NEED 12/31/24 F/A SCHEDULE ADDNS / DELETIONS							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	$	33,145,648	$	2,112,000	$	8,593,109	$	10,131,924	$	2,268,528	$	18,725,033	$	20,993,561	$	16,208,085	July 1995	(3)
Brookside Associates LLC Residential Apartments Woburn, Massachusetts	$	6,175,000	$	684,000	$	3,116,000	$	992,711	$	684,000	$	4,108,711	$	4,792,711	$	3,123,514	Oct. 2000	(3)
Clovelly Apartments L.P. Residential Apartments Nashua, New Hampshire	$	11,214,000	$	177,610	$	1,478,359	$	1,706,318	$	177,610	$	3,184,677	$	3,362,287	$	2,570,878	Sept. 1977	(3)
Commonwealth 1137 L.P. Residential Apartments Boston, Massachusetts	$	5,440,000	$	342,000	$	1,367,669	$	966,750	$	342,000	$	2,334,419	$	2,676,419	$	2,040,060	July 1995	(3)
Commonwealth 1144 L.P. Residential Apartments Boston, Massachusetts	$	32,325,000	$	1,410,000	$	5,664,816	$	7,376,561	$	1,410,000	$	13,041,377	$	14,451,377	$	8,213,836	July 1995	(3)
Executive Apartments L.P. Residential Apartments Framingham, Massachusetts	$	8,190,000	$	91,400	$	740,360	$	3,160,364	$	91,400	$	3,900,724	$	3,992,124	$	1,780,436	Sept. 1977	(3)
Hamilton Battle Green LLC Residential Apartments Lexington, Massachusetts	$	3,629,770	$	1,341,737	$	8,457,497	$	214,659	$	1,341,737	$	8,672,156	$	10,013,893	$	4,722,614	Jun. 2011	(3)
Hamilton Cypress LLC Commercial- 1031 Exchange Brookline,Massachusetts	$	—	$	2,362,795	$	4,613,786	$	396,087	$	2,362,795	$	5,009,873	$	7,372,668	$	2,114,943	Oct. 2008	(3)
Hamilton Green Apartments, LLC Residential Apartments Andover, Massachusetts	$	31,336,828	$	15,413,457	$	45,435,317	$	(7,956,599)	$	15,413,457	$	37,478,718	$	52,892,174	$	18,445,291	Jul. 2013	(3)
Hamilton Highlands, LLC Residential Apartments Needham,Massachsetts	$	18,970,055	$	7,973,547	$	26,104,062	$	(2,314,505)		7,973,547	$	23,789,557	$	31,763,105		7,184,396	Mar. 2018	(3)
Hamilton Linewt LLC Commercial 1031 Exchange Newton,Massachusetts	$	—	$	984,522	$	2,551,647	$	225,807	$	984,522	$	2,777,454	$	3,761,976	$	1,205,077	Nov. 2007	(3)
Hamilton Oaks Associates LLC Residential Apartments Brockton, Massachusetts	$	26,666,000	$	2,245,236	$	12,254,764	$	7,290,908	$	2,245,236	$	19,545,672	$	21,790,908	$	14,856,258	Dec. 1999	(3)
Highland Street Apartments, L.P. Residential Apartments Lowell, Massachusetts	$	3,960,000	$	156,000	$	634,085	$	470,131	$	156,000	$	1,104,216	$	1,260,216	$	901,683	Dec. 1996	(3)
Linhart L.P. Residential / Commercial, Newton, Massachusetts	$	—	$	385,000	$	1,540,000	$	1,916,402	$	385,000	$	3,456,402	$	3,841,402	$	2,814,097	Jan. 1995	(3)
Mill Street Gardens, LLC Residential Apartments Woburn, Massachusetts	$	31,000,000	$	12,689,705	$	40,677,685	$	3,132,843		12,689,705	$	43,810,528	$	56,500,232		14,596,138	Dec. 2019	(3)
Mill Street Development,Woburn, Massachusetts	$	—	$	1,376,031	$	1,123,969	$	14,631,473		1,376,031	$	15,755,442	$	17,131,474		—	Dec. 2019	(3)
NERA Dean St. Associates LLC Residential Apartments Norwood, Massachusetts	$	10,322,000	$	1,516,015	$	5,697,465	$	1,929,626	$	1,516,015	$	7,627,091	$	9,143,105	$	5,738,167	Jun. 2002	(3)
North Beacon 140 L.P. Residential Apartments Boston, Massachusetts	$	12,683,000	$	1,200,620	$	3,497,393	$	2,379,430	$	1,200,620	$	5,876,823	$	7,077,444	$	5,732,234	July 1995	(3)
Olde English Apartments L.P. Residential Apartments Lowell, Massachusetts	$	9,608,000	$	77,454	$	847,050	$	1,320,693	$	77,454	$	2,167,743	$	2,245,198	$	1,616,847	Sept. 1977	(3)
Redwood Hills L.P. Residential Apartments Worcester,Massachusetts	$	17,105,000	$	1,278,412	$	4,732,192	$	6,620,483	$	1,278,412	$	11,352,675	$	12,631,087	$	8,539,907	July 1995	(3)
Residences at Captain Parkers LLC Residential Apartments Lexington, Massachusetts	$	20,750,000	$	7,755,055	$	23,446,875	$	401,218	$	7,755,055	$	23,848,093	$	31,603,148	$	8,855,972	Sept. 2015	(3)
River Drive L.P Residential Apartments Danvers, Massachusetts	$	9,543,000	$	109,697	$	550,605	$	2,563,250	$	109,697	$	3,113,855	$	3,223,552	$	1,299,071	Sept. 1977	(3)
Riverside Apartments Condominium Units Watertown Massachustts	$	—	$	23,346	$	190,807	$	164,214	$	23,346	$	355,021	$	378,368	$	315,084	Sept. 1977	(3)
School St Assoc LLC Residential Apartments Framingham, Massachusetts	$	26,993,000	$	4,686,728	$	18,746,911	$	686,148	$	4,686,728	$	19,433,059	$	24,119,787	$	14,213,187	Apr. 2003	(3)
WRF Associates LLC Strip Mall Framingham, Massachusetts	$	5,935,643	$	3,280,000	$	4,920,000	$	521,762	$	3,280,000	$	5,441,762	$	8,721,762	$	4,322,108	May 1999	(3)
WCB Associates LLC Residential Apartments Brockton, Massachusetts	$	19,266,000	$	1,719,517	$	7,180,984	$	3,588,269	$	1,719,517	$	10,769,253	$	12,488,769	$	8,900,504	Dec. 1999	(3)
Westgate Apartments Burlington LLC Residential Apartments Burlington, Massachusetts	$	4,494,000	$	191,275	$	4,332,377	$	335,604	$	191,275	$	4,667,981	$	4,859,256	$	3,582,655	Sept. 2004	(3)
Westgate Apartments LLC Residential Apartments Woburn, Massachusetts	$	38,475,000	$	521,495	$	2,364,441	$	7,264,671	$	521,495	$	9,629,112	$	10,150,607	$	6,686,894	Sept. 1977	(3)
Woodland Park Apartments LLC Residential Apartments Newton Massachusetts	$	21,378,432	$	11,754,450	$	33,234,878	$	(3,242,049)	$	11,754,450	$	29,992,829	$	41,747,280	$	9,638,270	July 2017	(3)
653 Worcester Rd, Framingham,Massachusetts	$	—		3,415,051		4,496,849		1,218,488		3,415,051		5,715,337		9,130,389		883,250	Jan.2023	(3)
Shawmut Place LLC Boston, Massachuseyys	$	—		7,297,401		12,249,725		7,746,086		7,297,401		19,995,811		27,293,212		1,791,386	July.2023	(3)
	$	408,605,376	$	94,571,556	$	290,841,677	$	75,839,727	$	94,728,084	$	366,681,404	$	461,409,491	$	182,892,842

(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 2024, rental properties were depreciated over the following estimated useful lives.

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


	December 31,
	2024		2023		2022
Rental Properties
Balance, Beginning	$	440,496,897	$	400,703,910	$	400,588,242
Additions:
Buildings, improvements and other assets		10,314,913		43,680,497		5,981,125
Construction in Progress		14,939,529		1,818,716		—
		465,751,339		446,203,123		406,569,367
Deduct:
Write-offs of retired or disposed assets		4,341,848		4,580,382		5,865,457
Impairments		—		1,125,844		—
Balance, Ending	$	461,409,491	$	440,496,897	$	400,703,910
Accumulated Depreciation
Balance, Beginning	$	170,691,951	$	159,627,479	$	149,233,040
Add:
Depreciation for the year		16,542,739		15,799,589		16,259,896
		187,234,690		175,427,068		165,492,936
Deduct
Accumulated depreciation of retired or disposed assets		4,341,848		4,580,382		5,865,457
Impairments		—		154,735		—
Balance, Ending	$	182,892,842	$	170,691,951	$	159,627,479

On June 16, 2022, the Partnership entered into an amendment to the Facility Agreement. The additional advance under the Amended Agreement is in the amount of $80,284,000, at a fixed interest rate of 4.33%, payable on a monthly basis through July 31, 2032. The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings.

The Partnership used the proceeds to pay down approximately $37,065,000 of existing debt secured by four properties, along with approximately $834,000 in prepayment penalties. The remaining balance of approximately $42,404,000 will be used for general partnership purposes.

On November 30, 2021, New England Realty Associates Limited Partnership (the “Partnership”), entered into a Master Credit Facility Agreement ( the “Facility Agreement”) with KeyBank National Association (“KeyBank”) dated as of November 30, 2021, with an initial advance in the amount of $156,000,000. Interest only on the debt at a fixed interest rate of 2.97% is payable on a monthly basis through December 31, 2031. The Partnership’s obligations under the Facility Agreement are secured by mortgages on certain properties pursuant to certain Mortgage, Assignment of Leases and Rents, and Security Agreement and Fixture Filings (“Mortgages”).

The Partnership used the proceeds to pay down approximately $65,305,000 of existing debt secured by 11 properties, along with approximately $2,700,000 in prepayment penalties, which was included in Other Loss in the

Consolidated Statements of Income. The remaining balance of approximately $89,000,000 will be used for general partnership purposes.

On October 14, 2022, the Partnership entered into a loan agreement with Brookline Bank refinancing its loan on 659-665 Worcester Road, Framingham, MA. The agreement pays down the loan on the existing debt, currently at $5,935,643 as of December 31,2024, extends the maturity until October 14, 2032, at a variable interest rate of SOFR rate, plus 1.7% interest only for 2 years and amortizing using a thirty-year schedule for the balance of the term. At closing, the Partnership entered into an interest rate swap contract with Brookline Bank with a notional amount equivalent to the underlying loan principal amortization, resulting in a fixed rate of 4.60% through the expiration of the interest rate swap contract. The agreement also allows for an earn out of up to an additional $1,495,454 once the property performance reaches a 1.35x debt service coverage ratio and the loan to value equates to at most 65%.

The Partnership purchased a commercial retail property of approximately 20,700 square feet, located at 653 Worcester Road in Framingham, Massachusetts for the sum of approximately $10,151,000 on January 18, 2023. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $59,000. From the purchase price, the Partnership allocated approximately $585,000 for in- place leases, and approximately $378,000 to the value of tenant relationships. These amounts are being amortized over 12 and 156 months respectively.

On July 14, 2023, the Partnership purchased a 52 unit mixed use property in the South End neighborhood of Boston, MA comprised of three buildings at 26-30 Rutland Street, 105-117 West Concord Street and 475 Shawmut Avenue, and approximately 3,400 square feet of commercial space for a purchase price of approximately $27,500,000. This acquisition was funded from the Partnership’s cash reserves and closing costs were approximately $81,000. From the purchase price, the Partnership allocated approximately $525,000 for in-place leases, approximately $61,000 to the value of tenant relationships and $241,000 to the value of below-market leases. These amounts are being amortized over 12 and 36 months respectively.

In December, 2023, the Partnership received approval from MassHousing to construct a 72 unit apartment building in accordance with Chapter 40B to include 17 affordable units on the Mill Street Development site. The Partnership demolished the existing building structures in order to start construction in 2024. With the vacating of tenants, and the resulting loss of future cash, Management recorded an impairment charge in 2023 of approximately $971,000, the net book value of the building for the Mill Street Development property. In order to comply with the permanent financing requirements for a 40B project, Mill Street Development signed a term sheet for a loan of up to $15 million, to be funded upon completion of the development project. In addition, Mill Street Development deposited $75,000 into escrow to comply with the 40B project requirement of a cost certification of total development costs upon completion of the project.

On December 29, 2023, the Partnership signed a contract with a general contractor, NEI General Contracting, Inc., for the construction of the Mill Street Development project for approximately $29,700,000. It is anticipated that approximately $14,769,000 will be incurred in 2025. As of December 31, 2024, the property, located at 57 Mill Street in Woburn, MA, and which will include 72 residential units comprising approximately 93,000 square feet, is estimated to be completed during the fourth quarter of 2025. Total investment to date is approximately $15,231,000 million, and the total investment upon completion is anticipated to be approximately $30 million. Project costs will initially be funded from Partnership reserves, but upon completion, the Partnership anticipates closing on a permanent loan, as required by MassHousing under the Chapter 40B program. In connection with these requirements, the Partnership received a term sheet from Brookline Bank for a $15,000,000 loan to be funded upon completion of the project.

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