INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

6 Months Ended

Jun. 30, 2025

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 15. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The

Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’s ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park, is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter.

On May 31, 2018, Hamilton Park Towers, LLC, entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. At June 30, 2025, the balance on this mortgage before unamortized deferred financing costs is $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At June 30, 2025, the balance on this mortgage before unamortized deferred financing costs is $10,000,000. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC. The Partnership is currently in the process of refinancing the Hamilton Essex 81, LLC mortgage. See Note 19, SUBSEQUENT EVENTS.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Joint Venture sold 127 of the units as condominiums and retained 49 units for long-term investment. The Joint Venture obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. In 2019, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. On September 12,

2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30 2025, the balance on this mortgage before unamortized deferred financing costs is $6,000,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000. On April 18, 2024 the Borrower and KeyBank executed amended loan documents reflecting the transfer of interest in the Borrower. In conjunction with the execution of the amended loan documents, KeyBank provided a courtesy reduction equal to 50% of the transfer fee. In August 2024, the property was refinanced with a 10 year mortgage in the amount of $23,589,000 at 5.425% interest only. The Joint Venture paid off the prior mortgage of approximately $16,900,000 with the proceeds of the new mortgage and distributed $2,000,000 to the Partnership. The costs associated with the refinancing were approximately $243,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. At June 30, 2025, the balance of the mortgage before unamortized deferred finance is $23,589,000. The investment is referred to as Hamilton on Main LLC.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At June 30, 2025, the balance of this mortgage before unamortized deferred financing costs is approximately $8,119,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information at June 30, 2025

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,065,184		$	2,579,456		$	4,010,711		$	70,131		$	3,847,684		$	13,180,990		$	69,605,017		$	98,359,173
Cash & Cash Equivalents		1,364,311			67,004			65,073			14,483			479,150			588,855			5,210,740			7,789,616
Rent Receivable		197,025			65,560			15,696			—			3,888			36,070			149,279			467,518
Real Estate Tax Escrow		68,876			—			43,268			—			32,079			—			—			144,223
Prepaid Expenses & Other Assets		306,479			29,207			61,802			7			54,603			299,310			2,941,014			3,692,422
Total Assets	$	7,001,875		$	2,741,227		$	4,196,550		$	84,621		$	4,417,404		$	14,105,225		$	77,906,050		$	110,452,952
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,996,553		$	—		$	8,099,455		$	—		$	5,949,194		$	23,366,292		$	124,811,515		$	172,223,009
Accounts Payable & Accrued Expense		282,111			6,311			64,117			1,977			55,030			240,187			793,185			1,442,918
Advance Rental Pmts & Security Deposits		369,428			—			258,189			—			179,124			483,952			4,055,646			5,346,339
Total Liabilities		10,648,092			6,311			8,421,761			1,977			6,183,348			24,090,431			129,660,346			179,012,266
Partners’ Capital		(3,646,217)			2,734,916			(4,225,211)			82,644			(1,765,944)			(9,985,206)			(51,754,296)			(68,559,314)
Total Liabilities and Capital	$	7,001,875		$	2,741,227		$	4,196,550		$	84,621		$	4,417,404		$	14,105,225		$	77,906,050		$	110,452,952
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,367,458		$	—		$	41,322		$	—		$	—		$	—			1,408,780
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,823,109)		$	—		$	(2,112,606)		$	—		$	(882,972)		$	(4,992,603)		$	(20,701,718)			(30,513,007)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(29,104,227)
Total units/condominiums
Apartments		48			—			40			—			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Financial information for the six months ended June 30, 2025

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	998,349	$	120,942	$	960,298	$	49,835	$	743,084	$	2,176,046	$	8,932,174	$	13,980,728
Laundry and Sundry Income		5,091						—		—		29,211		93,984		128,286
		1,003,440		120,942		960,298		49,835		743,084		2,205,257		9,026,158		14,109,014
Expenses
Administrative		15,191		2,011		21,560		2,876		16,369		48,363		143,595		249,965
Depreciation and Amortization		231,944		5,855		174,660		1,632		170,946		573,175		1,823,872		2,982,084
Management Fees		39,691		5,058		36,692		2,060		29,578		86,031		186,390		385,500
Operating		172,413		—		67,248		59		80,485		290,502		734,048		1,344,755
Renting		10,217		—		36,277		68		9,267		54,477		47,216		157,522
Repairs and Maintenance		84,844		—		68,790		—		61,422		295,861		737,244		1,248,161
Taxes and Insurance		148,755		34,773		95,999		9,737		80,492		240,454		1,429,725		2,039,935
		703,055		47,697		501,226		16,432		448,559		1,588,863		5,102,090		8,407,922
Income Before Other Income		300,385		73,245		459,072		33,403		294,525		616,394		3,924,068		5,701,092
Other Income (Loss)
Interest Expense		(344,358)		—		(164,862)		—		(117,222)		(660,946)		(2,539,706)		(3,827,094)
Interest Income		19,472		682		3,897		288		4,960		8,821		75,139		113,259
		(324,886)		682		(160,965)		288		(112,262)		(652,125)		(2,464,567)		(3,713,835)
Net (Loss) Income	$	(24,501)	$	73,927	$	298,107	$	33,691	$	182,263	$	(35,731)	$	1,459,503	$	1,987,257
Net (Loss) Income —NERA 50%	$	(12,250)	$	36,964	$	149,053	$	16,845	$	91,132	$	(17,866)				263,878
Net Income —NERA 40%													$	583,801		583,801
															$	847,679

Financial information for the three months ended June 30, 2025

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	493,808	$	60,471	$	457,180	$	24,918	$	375,471	$	1,070,467	$	4,484,108	$	6,966,423
Laundry and Sundry Income		2,734		—				—		—		14,146		53,836		70,716
		496,542		60,471		457,180		24,918		375,471		1,084,613		4,537,944		7,037,139
Expenses
Administrative		6,235		1,005		7,594		2,050		5,014		8,170		57,263		87,331
Depreciation and Amortization		116,036		2,928		87,631		816		86,129		287,273		918,654		1,499,467
Management Fees		19,403		2,529		17,629		1,030		15,298		43,065		93,045		191,999
Operating		74,151		—		28,420		59		23,121		102,489		294,692		522,932
Renting		9,998		—		5,537		48		3,801		22,273		22,669		64,326
Repairs and Maintenance		42,911		—		33,958		—		38,645		149,182		395,626		660,322
Taxes and Insurance		74,563		17,423		47,993		5,024		40,525		120,874		713,322		1,019,724
		343,297		23,885		228,762		9,027		212,533		733,326		2,495,271		4,046,101
Income Before Other Income		153,245		36,586		228,418		15,891		162,938		351,287		2,042,673		2,991,038
Other Income (Loss)
Interest Expense		(173,048)		—		(82,376)		—		(58,927)		(332,246)		(1,273,633)		(1,920,230)
Interest Income		9,620		341		1,867		133		2,775		3,693		43,337		61,766
		(163,428)		341		(80,509)		133		(56,152)		(328,553)		(1,230,296)		(1,858,464)
Net Income (Loss)	$	(10,183)	$	36,927	$	147,909	$	16,024	$	106,786	$	22,734	$	812,377	$	1,132,574
Net Income (Loss)—NERA 50%	$	(5,092)	$	18,464	$	73,955	$	8,012	$	53,393	$	11,368				160,100
Net Income —NERA 40%													$	324,952		324,952
															$	485,051

Future annual mortgage maturities at June 30, 2025 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
6/30/2026	$	10,000,000	$	254,197	$	—	$		$	—	$	10,254,197
6/30/2027		—		264,211		—		—		—		264,211
6/30/2028		—		274,619		—		—		—		274,619
6/30/2029		—		7,326,403		—		—		125,000,000		132,326,403
6/30/2030		—		—		—		—		—		—
Thereafter		—		—		6,000,000		23,589,000		—		29,589,000
		10,000,000		8,119,430		6,000,000		23,589,000		125,000,000		172,708,430
Less: unamortized deferred financing costs		(3,447)		(19,975)		(50,806)		(222,708)		(188,485)		(485,421)
	$	9,996,553	$	8,099,455	$	5,949,194	$	23,366,292	$	124,811,515	$	172,223,009

At June 30, 2025, the weighted average interest rate on the above mortgages was 4.32%. The effective rate was 4.39% including the amortization expense of deferred financing costs.

Summary financial information at June 30, 2024

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	5,246,865		$	2,581,946		$	4,308,810		$	73,395		$	4,054,581		$	12,884,525		$	71,900,948		$	101,051,070
Cash & Cash Equivalents		1,141,309			38,045			160,348			17,673			123,723			795,809			1,601,735			3,878,642
Rent Receivable		197,191			75,733			1,293			3,309			2,211			19,042			147,332			446,111
Real Estate Tax Escrow		81,453			—			31,596			—			29,661			191,490			—			334,200
Prepaid Expenses & Other Assets		351,532			41,042			110,132			1,038			71,628			363,109			3,413,479			4,351,960
Total Assets	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415		$	4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,982,764		$	—		$	8,337,358		$	—		$	5,941,010		$	16,897,325		$	124,746,893		$	165,905,350
Accounts Payable & Accrued Expense		136,741			2,000			70,945			3,545			68,813			190,892			722,878			1,195,814
Advance Rental Pmts& Security Deposits		374,170			—			307,229			—			176,456			537,218			4,124,873			5,519,946
Total Liabilities		10,493,675			2,000			8,715,532			3,545			6,186,279			17,625,435			129,594,644			172,621,110
Partners’ Capital		(3,475,325)			2,734,766			(4,103,353)			91,870			(1,904,475)			(3,371,460)			(52,531,150)			(62,559,127)
Total Liabilities and Capital	$	7,018,350		$	2,736,766		$	4,612,179		$	95,415			4,281,804		$	14,253,975		$	77,063,494		$	110,061,983
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,367,383		$	—		$	45,935		$			$			$			$	1,413,318
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,737,662)		$	—		$	(2,051,676)		$	—		$	(952,238)		$	(1,685,730)		$	(21,012,460)			(27,439,764)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(26,026,446)
Total units/condominiums
Apartments		48			—			40			0			42			148			409			687
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			1			42			148			409			690

Financial information for the six months ended June 30, 2024

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	918,853	$	120,942	$	891,084	$	51,633	$	711,617	$	2,057,301	$	8,529,299	$	13,280,729
Laundry and Sundry Income		6,344		—		(236)		—		—		25,244		95,538		126,890
		925,197		120,942		890,848		51,633		711,617		2,082,545		8,624,837		13,407,619
Expenses
Administrative		10,543		3,000		14,979		1,401		10,318		43,143		100,148		183,532
Depreciation and Amortization		231,911		5,855		172,796		1,632		166,005		533,325		1,837,161		2,948,685
Management Fees		37,186		4,132		34,954		2,068		28,309		82,234		180,292		369,175
Operating		176,997		—		41,384		(38)		64,776		244,472		750,508		1,278,099
Renting		7,634		—		9,776		63		9,691		56,737		52,816		136,717
Repairs and Maintenance		94,619		—		44,882		1,650		61,165		330,278		883,402		1,415,996
Taxes and Insurance		163,965		35,192		99,480		10,174		78,756		206,992		1,284,141		1,878,700
		722,855		48,179		418,251		16,950		419,020		1,497,181		5,088,468		8,210,904
Income Before Other Income		202,342		72,763		472,597		34,683		292,597		585,364		3,536,369		5,196,715
Other Income (Loss)
Interest Expense		(394,241)		—		(169,105)		—		(118,295)		(385,098)		(2,566,448)		(3,633,187)
Interest Income		21,250		1,190		4,629		418		5,463		22,651		45,289		100,890
Other income (Expense)		—		—		—		—		—		63,745		—		63,745
		(372,991)		1,190		(164,476)		418		(112,832)		(298,702)		(2,521,159)		(3,468,552)
Net Income (Loss)	$	(170,649)	$	73,953	$	308,121	$	35,101	$	179,765	$	286,662	$	1,015,210	$	1,728,163
Net Income (Loss)—NERA 50%	$	(85,324)	$	36,976	$	154,060	$	17,550	$	89,883	$	143,331				356,475
Net Income —NERA 40%													$	406,085		406,085
															$	762,560