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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

9 Months Ended

Sep. 30, 2012

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

Since November 2001, the Partnership has invested in nine limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three partnerships investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management Company. Harold Brown’s ownership interest is between 43.2% and 57%, 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, referred to as Dexter Park, is a 409 unit residential complex. The purchase price was $129,500,000. The total mortgage was $89,914,000 with an interest rate of 5.57% and it matures in 2019. The mortgage calls for interest only payments for the first two years of the loan and amortized over 30 years thereafter. The balance of this mortgage is approximately $88,891,000 at September 30, 2012. In order to fund this investment, the Partnership used approximately $8,757,000 of its cash reserves and borrowed approximately $7,168,000 with an interest rate of 6% from HBC Holdings, LLC, an entity owned by Harold Brown and his affiliates (“HBC”). The term of the loan was four years with a provision requiring payment in whole or in part upon demand by HBC with six months notice. On August 17, 2010, HBC gave six months written notice to the Partnership requesting a principal pay down of $2,500,000. During the fourth quarter of 2010, the Partnership paid HBC $2,500,000 as requested. During 2011, the Partnership elected to make principal payments of $1,000,000 on August 1, 2011, $1,000,000 on October 1, 2011, and an additional $1,000,000 on December 15, 2011 reducing the loan balance to $1,668,600 at December 31, 2011. In February 2012, the Partnership elected to make an additional principal payment of $750,000 to HBC Holdings and the balance of $918,600 was paid in April 2012. The interest paid during the nine months ended September 30, 2012 and 2011 was approximately $18,960 and $202,000, respectively. A majority of the apartments were leased at the time of the acquisition. As a result, the Partnership amortized the intangible assets associated with the “in place” leases over a 12 month period which began in November 2009. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On October 3, 2005, the Partnership invested $2,500,000 for a 50% ownership interest in a 168-unit apartment complex in Quincy, Massachusetts. The purchase price was $30,875,000. The Partnership plans to sell the majority of units as condominium and retain 48 units for long-term investment. Gains from the sales of units were taxed at ordinary income rates. In February 2007, the Partnership refinanced the 48 units which will be retained with a new mortgage in the amount of $4,750,000 with an interest rate of 5.57%, interest only for five years. As of September 30, 2012, the balance of the mortgage is approximately $ 4,717,000. This investment is referred to as Hamilton Bay Apartments, LLC. The loan will be amortized over 30 years thereafter and matures in March 2017. In April 2008, the Partnership refinanced an additional 20 units and obtained a new mortgage in the amount of $2,368,000 with interest at 5.75%, interest only, which matures in 2013. As of November 1, 2012, 105 units have been sold, the proceeds of which went to pay down the mortgage on the property. The balance on the new mortgage is approximately $1,668,000 at September 30, 2012. This investment is referred to as Hamilton Bay, LLC.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 49 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 Partnership plans to operate the building and initiate development of the parking lot. In June 2007, the Partnership 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 Partnership restructured the mortgages on both parcels at Essex 81 and transferred the residential apartments to Hamilton Essex 81, LLC. The mortgage on Hamilton Essex 81, LLC is approximately $8,380,000 amortizing over 30 years at 5.79% due in August 2016. The mortgage on Essex Development, LLC, or the parking lot is approximately $2,106,000 with a variable interest rate of 2.25% over the daily Libor rate (0.22% at September 30, 2012). This loan was extended to August 2013 with the same conditions except for the addition of fixed principal payments in the amount of $4,301 per month. The cost associated with the extension was approximately $6,000. Harold Brown has issued a personal guaranty up to $1,000,000 of this mortgage. In the event that he is obligated to make payments to the lender as a result of this guaranty, the Partnership and other investors have, in turn, agreed to indemnify him for their proportionate share of any such payments. 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.

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 Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. The interest on the new loan is 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. The balance of this mortgage is approximately $4,950,000 at September 30, 2012. 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. In October 2004, the Partnership obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Partnership obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan is 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. At September 30, 2012, the balance of this mortgage is approximately $5,450,000. 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. As of May 2008, the Partnership sold 137 units as condominiums. Gains from these sales were taxed as ordinary income. The majority of the sales proceeds were applied to reduce the mortgage with the final payment made during the second quarter of 2007. With the sale of the units and the payments of the liabilities, the assets were combined with Hamilton on Main Apartments, LLC. An entity partially owned by the majority shareholder of the General Partner and the President of the management company, 31% and 5%, respectively, was the sales agent and received a variable commission on each sale of 3% to 5%. Hamilton on Main, LLC is known as Hamilton Place.

In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. Hamilton on Main LLC paid a fee of approximately $400,000 in connection with this early extinguishment of debt. At September 30, 2012, the remaining balance on the mortgage is approximately $15,680,000.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. This property has a 12-year mortgage, with a remaining balance at September 30, 2012 of approximately $6,894,000 at 6.9% which is amortized on a 30-year schedule, with a final payment of approximately $6,000,000 in 2014. This investment is referred to as 345 Franklin, LLC.

As required by the lender, the Treasurer of the General Partner has provided a limited repayment guaranty equal to fifty percent (50%) of the outstanding balance for the loan on the for sale units at Hamilton Bay and a limited guaranty of $1,000,000 for the loan on Hamilton Essex Development. In the event that he is obligated to make payments to the lenders as a result of these guaranties, the Partnership and other investors have, in turn, agreed to indemnify him for their proportionate share of any such payments.

Summary financial information as of September 30, 2012

			Hamilton										Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Hamilton		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Apts		Apts		Park		Total

ASSETS
Rental Properties	$	9,201,729	$	2,611,197	$	7,962,705	$	5,685,935	$	1,863,770	$	7,045,549	$	7,077,941	$	21,317,705	$	108,880,125	$	171,646,656
Cash & Cash Equivalents	3,682		12,525		57,974		66		14,203		98		42,880		159,507		782,730		1,073,665
Rent Receivable	45,283		—		905		7,924		654		2,929		4,791		5,055		50,229		117,770
Real Estate Tax Escrow	49,793		—		39,686		71,850		—		95,568		42,857		109,839		430,978		840,573
Prepaid Expenses & Other Assets	96,118		807		97,491		102,622		152,270		107,997		76,040		292,984		1,328,474		2,254,803
Financing & Leasing Fees	64,805		5,946		10,205		20,902		2,771		27,833		16,942		16,296		414,507		580,208
Total Assets	$	9,461,410	$	2,630,476	$	8,168,966	$	5,889,300	$	2,033,669	$	7,279,975	$	7,261,451	$	21,901,385	$	111,887,043	$	176,513,675
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	8,379,679	$	2,106,087	$	6,893,510	$	4,949,865	$	1,668,000	$	4,716,555	$	5,450,034	$	15,680,318	$	88,891,126	$	138,735,173
Accounts Payable & Accrued Expense	72,817		5,870		146,324		49,095		20,272		6,929		94,046		248,055		841,053		1,484,461
Advance Rental Pmts& Security Deposits	148,662		—		140,048		86,764		23,802		84,376		68,652		267,641		1,837,442		2,657,387
Total Liabilities	8,601,158		2,111,957		7,179,881		5,085,724		1,712,074		4,807,860		5,612,731		16,196,014		91,569,622		142,877,021
Partners’ Capital	860,252		518,519		989,085		803,576		321,595		2,472,115		1,648,720		5,705,372		20,317,421		33,636,654
Total Liabilities and Capital	$	9,461,410	$	2,630,476	$	8,168,966	$	5,889,300	$	2,033,669	$	7,279,975	$	7,261,451	$	21,901,385	$	111,887,043	$	176,513,675
Partners’ Capital - NERA 50%	$	430,126	$	259,259	$	494,542	$	401,788	$	160,798	$	1,236,057	$	824,360	$	2,852,686			6,659,616
Partners’ Capital - NERA 40%																	$	8,126,969	8,126,969
																			$	14,786,585

Total units/condominiums
Apartments	48		—		40		175		120		48		42		148		409		1,030
Commercial	1		1		—		1		—		—		—		—		—		3
Total	49		1		40		176		120		48		42		148		409		1,033
Units to be retained	49		1		40		49		—		48		42		148		409		786
Units to be sold	—		—		—		127		120		—		—		—		—		247
Units sold through November 1, 2012	—		—		—		127		105		—		—		—		—		232
Unsold units	—		—		—		—		15		—		—		—		—		15
Unsold units with deposits for future sale as of November 1, 2012.	—		—		—		—		—		—		—		—		—		—

Summary financial information for the nine months ended September 30, 2012

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total

Revenues
Rental Income	$	937,284		$	216,137		$	873,734		$	639,791		$	173,054		$	659,463		$	603,212		$	1,953,493		$	9,056,079		$	15,112,247
Laundry and Sundry Income	10,488			—			1,788			—			—			—			666			13,732			75,239			101,913
	947,772			216,137			875,522			639,791			173,054			659,463			603,878			1,967,225			9,131,318			15,214,160
Expenses
Administrative	10,430			1,432			23,211			4,079			6,617			29,996			6,755			37,307			169,223			289,048
Depreciation and Amortization	308,642			9,394			336,339			190,555			59,208			224,008			238,621			717,664			4,314,274			6,398,704
Management Fees	40,573			8,645			36,070			25,964			7,268			25,753			24,241			78,862			196,041			443,417
Operating	85,319			—			42,933			636			1,237			1,070			54,385			242,157			764,389			1,192,125
Renting	16,664			—			3,459			5,718			1,450			3,660			3,013			8,845			71,830			114,639
Repairs and Maintenance	94,156			5,475			61,720			235,472			53,379			205,125			45,315			283,251			707,486			1,691,378
Taxes and Insurance	149,722			37,211			75,919			109,871			34,890			121,571			77,022			253,782			1,115,971			1,975,959
	705,506			62,158			579,650			572,294			164,047			611,182			449,351			1,621,867			7,339,215			12,105,270
Income Before Other Income	242,266			153,980			295,872			67,497			9,007			48,281			154,527			345,358			1,792,103			3,108,891
Other Income (Loss)
Interest Expense	(373,357		)	(45,437		)	(366,348		)	(216,254		)	(73,609		)	(203,375		)	(238,036		)	(628,955		)	(3,818,020		)	(5,963,390		)
Interest Income	—			—			36			62			165			—			—			—			—			262
Interest Income from Note	—			—			—			—			4,901			—			—			—			—			4,901
	(373,357		)	(45,437		)	(366,311		)	(216,193		)	(68,543		)	(203,375		)	(238,036		)	(628,955		)	(3,818,020		)	(5,958,227		)
Net Income (Loss)	$	(131,091	)	$	108,543		$	(70,439	)	$	(148,696	)	$	(59,537	)	$	(155,094	)	$	(83,509	)	$	(283,597	)	$	(2,025,917	)	$	(2,849,337	)
Net Income (Loss) - NERA 50%	$	(65,546	)	$	54,271		$	(35,220	)	$	(74,348	)	$	(29,768	)	$	(77,547	)	$	(41,754	)	$	(141,798	)				(411,710		)
Net Income (Loss) - NERA 40%																									$	(810,367	)	(810,367		)
																												$	(1,222,077	)

Summary financial information for the three months ended September 30, 2012

				Hamilton															Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Hamilton			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Bay Sales			Bay Apts			Apts			Apts			Park			Total

Revenues
Rental Income	$	311,281		$	72,046		$	295,031		$	218,064		$	61,862		$	223,301		$	204,535		$	656,122		$	2,993,242		$	5,035,486
Laundry and Sundry Income	3,415			—			600			—			—			—			175			3,752			31,384			39,327
	314,697			72,046			295,631			218,064			61,862			223,301			204,711			659,875			3,024,626			5,074,812
Expenses
Administrative	2,824			317			7,845			1,599			2,514			6,285			3,823			11,209			59,789			96,206
Depreciation and Amortization	101,777			2,909			114,199			63,962			19,736			74,920			80,075			240,997			1,443,275			2,141,849
Management Fees	13,547			2,882			11,953			9,079			2,681			8,761			8,225			26,655			66,474			150,256
Operating	32,187			—			13,451			1			310			165			16,664			63,833			217,288			343,898
Renting	14,574			—			3,318			3,389			—			389			1,019			2,265			30,033			54,987
Repairs and Maintenance	39,279			950			17,401			89,279			21,202			71,906			15,818			85,358			277,534			618,728
Taxes and Insurance	48,843			12,025			25,358			36,279			11,329			39,893			26,154			85,473			371,328			656,683
	253,031			19,084			193,525			203,588			57,772			202,319			151,778			515,790			2,465,720			4,062,608
Income Before Other Income	61,665			52,962			102,106			14,476			4,090			20,982			52,933			144,085			558,906			1,012,205
Other Income (Loss)
Interest Expense	(124,806		)	(15,110		)	(120,435		)	(72,408		)	(24,738		)	(68,108		)	(79,666		)	(210,248		)	(1,277,390		)	(1,992,910		)
Interest Income	—			—			12			21			51			—			—			—			—			84
Interest Income from Note	—			—			—			—			1,458			—			—			—			—			1,458
	(124,806		)	(15,110		)	(120,423		)	(72,388		)	(23,229		)	(68,108		)	(79,666		)	(210,248		)	(1,277,390		)	(1,991,367		)
Net Income (Loss)	$	(63,141	)	$	37,852		$	(18,317	)	$	(57,912	)	$	(19,139	)	$	(47,126	)	$	(26,733	)	$	(66,164	)	$	(718,484	)	$	(979,163	)
Net Income (Loss) - NERA 50%	$	(31,571	)	$	18,926		$	(9,158	)	$	(28,956	)	$	(9,569	)	$	(23,563	)	$	(13,366	)	$	(33,082	)				(130,339		)
Net Income (Loss) - NERA 40%																									$	(287,394	)	(287,394		)
																												$	(417,733	)

Future annual mortgage maturities at September 30, 2012 are as follows:

			Hamilton
	Hamilon		Essex		345		Hamilton		Hamilton		Hamilton		Hamilton		Hamilton on		Dexter
	Essex 81		Development		Franklin		1025		Bay Sales		Bay Apts		Minuteman		Main Apts		Park
	March		March		November		March		October		October		August		August		October
Period End	2005		2005		2001		2005		2005		2005		2004		2004		2009		Total
9/30/2013	$	123,859	$	2,106,087	$	177,887	$	64,222	$	1,668,000	$	65,250	$	70,339	$	289,374	$	1,258,232	$	5,823,250
9/30/2014	131,223				6,715,623		68,013				68,979		74,491		305,121		1,330,133		8,693,582
9/30/2015	139,026						72,028				72,921		78,887		15,085,823		1,406,142		16,854,826
9/30/2016	7,985,570						75,510				77,088		82,697				1,486,495		9,707,361
9/30/2017							4,670,091				4,432,317		5,143,620				1,571,440		15,817,469
Thereafter																	81,838,683		81,838,683
	$	8,379,678	$	2,106,087	$	6,893,510	$	4,949,864	$	1,668,000	$	4,716,555	$	5,450,034	$	15,680,318	$	88,891,125	$	138,735,171

Summary financial information as of September 30, 2011

	Hamilton Essex 81		Hamilton Essex Development		345 Franklin		Hamilton 1025		Hamilton Bay Sales		Hamilton Bay Apts		Hamilton Minuteman		Hamilton on Main Apts		Dexter Park		Total

ASSETS
Rental Properties	$	9,546,059	$	2,597,309	$	8,336,008	$	5,906,387	$	1,951,075	$	7,347,113	$	7,387,465	$	22,162,035	$	114,310,012	$	179,543,463
Cash & Cash Equivalents	117		12,916		10,019		33		24,382		12,951		14,118		281		815,551		890,367
Rent Receivable	92,005		19,146		879		9,278		904		1,819		2,222		12,054		172,623		310,930
Due from Investment Properties	15,000		15,000		—		—		—		—		—		—		—
Real Estate Tax Escrow	93,721		—		38,291		60,411		—		86,578		44,193		102,117		620,090		1,045,402
Prepaid Expenses & Other Assets	98,142		789		91,158		86,663		189,773		93,298		81,180		526,254		1,178,633		2,345,890
Fin & Leasing Fees	78,711		9,607		18,371		25,928		7,836		34,195		20,911		23,158		473,908		692,624
Total Assets	$	9,923,756	$	2,639,767	$	8,494,727	$	6,088,700	$	2,173,969	$	7,575,954	$	7,550,088	$	22,825,899	$	117,570,816	$	184,843,676
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	8,487,795	$	2,157,699	$	7,059,569	$	5,000,00	$	1,668,000	$	4,750,000	$	5,500,000	$	15,952,852	$	89,914,000	$	140,489,916
Due from Investment Properties	15,000		15,000		—		—		—		—		—		—		—		—
Accts Pay & Acc Exp	50,338		5,826		71,853		48,147		17,514		6,661		83,378		200,478		750,820		1,235,011
Adv Rent Pmt & Sec Dep	149,104		—		111,782		70,319		21,446		83,709		63,134		244,407		1,764,347		2,508,248
Total Liabilities	8,687,238		2,178,525		7,243,205		5,118,466		1,706,960		4,840,370		5,646,512		16,397,734		92,429,166		144,248,175
Partners’ Capital	1,236,518		461,242		1,251,523		970,234		467,010		2,735,584		1,903,576		6,428,164		25,141,650		40,595,500
Total Liabilities & Capital	$	9,923,756	$	2,639,767	$	8,494,727	$	6,088,700	$	2,173,969	$	7,575,954	$	7,550,088	$	22,825,899	$	117,570,816	$	184,843,676
Partners’ Capital — NERA 50%	$	618,259	$	230,621	$	625,761	$	485,117	$	233,505	$	1,367,792	$	951,788	$	3,214,082			7,726,925
NERA 40%																	$	10,056,660	10,056,660
																			$	17,783,585

Total units/ condominiums
Apartments	48		—		40		175		120		48		42		148		409		1,030
Commercial	1		1		—		1		—		—		—		—		—		3
Total	49		1		40		176		120		48		42		148		409		1,033
Units to be retained	49		1		40		49		—		48		42		148		409		786
Units to be sold	—		—		—		127		120		—		—		—		—		247
Units sold through October 24, 2011	—		—		—		127		105		—		—		—		0		232
Unsold units	—		—		—		—		15		—		—		—		—		15
Unsold units with deposits for future sale as of October 24 , 2011	—		—		—		—		0		—		—		—		—		—

Summary financial information for the nine months ended September 30, 2011

	Hamilton Essex 81			Hamilton Essex Development			345 Franklin			Hamilton 1025			Hamilton Bay Sales			Hamilton Bay Apts			Hamilton Minuteman			Hamilton on Main			Dexter Park			Total
Revenues
Rental Income	$	940,881		$	214,196		$	848,631		$	607,752		$	178,514		$	643,284		$	589,360		$	1,856,189		$	8,588,891		$	14,467,697
Laundry and Sundry Income	11,870			—			921			—			—			—			579			15,698			74,713			103,782
	952,750			214,196			849,552			607,752			178,514			643,284			589,939			1,871,887			8,663,605			14,571,479
Expenses
Administrative	12,818			1,084			20,368			7,812			3,529			14,587			9,431			25,019			122,470			217,119
Depreciation and Amortization	317,669			5,048			333,321			194,986			67,248			235,595			244,550			724,597			4,276,964			6,399,978
Management Fees	36,596			8,280			34,012			24,089			7,320			25,268			23,493			74,867			188,088			422,011
Operating	91,167			—			53,705			1,148			170			378			30,360			285,510			699,466			1,161,904
Renting	7,667			—			14,979			9,338			1,750			6,755			2,676			12,791			133,066			189,022
Repairs and Maintenance	103,137			3,050			57,642			224,152			55,285			221,000			76,312			267,194			750,306			1,758,077
Taxes and Insurance	139,499			36,014			71,706			108,471			34,328			117,288			68,306			242,777			959,720			1,778,109
	708,553			53,476			585,734			569,995			169,630			620,870			455,128			1,632,755			7,130,079			11,926,220
Income Before Other Income	244,197			160,720			263,818			37,757			8,884			22,414			134,812			239,132			1,533,525			2,645,259

Other Income (Loss)
Interest Income							37			66			378												3,219			3,701
Interest Expense	(376,847		)	(46,036		)	(371,875		)	(216,310		)	(73,297		)	(202,923		)	(237,765		)	(636,029		)	(3,824,313		)	(5,985,397		)
Gain on Sale of Real Estate
Interest income from Note													6,926															6,926
Other Income (Expenses)	(2,331		)	—			(5,375		)	(3,621		)				(2,271		)				(1,152		)				(14,751		)
	(379,178		)	(46,036		)	(377,213		)	(219,865		)	(65,993		)	(205,194		)	(237,765		)	(637,181		)	(3,821,094		)	(5,989,521		)

Net Income (Loss)	$	(134,981	)	$	114,684		$	(113,395	)	$	(182,108	)	$	(57,110	)	$	(182,781	)	$	(102,953	)	$	(398,049	)	$	(2,287,569	)	$	(3,344,262	)

Net Loss - NERA 50%	$	(67,491	)	$	57,342		$	(56,697	)	$	(91,054	)	$	(28,555	)	$	(91,390	)	$	(51,476	)	$	(199,024	)				(528,346		)
NERA 40%																									$	(915,028	)	(915,028		)
																												$	(1,443,374	)

Summary financial information for the three months ended September 30, 2011

	Hamilton Essex 81			Hamilton Essex Development			345 Franklin			Hamilton 1025			Hamilton Bay Sales			Hamilton Bay Apts			Hamilton Minuteman			Hamilton on Main			Dexter Park			Total
Revenues
Rental Income	$	374,433		$	73,146		$	288,169		$	206,445		$	59,375		$	217,079		$	196,335		$	625,370		$	2,848,930		$	4,889,281
Laundry and Sundry Income	4,668						(307		)										579			4,910			24,900			34,750
	379,102			73,146			287,862			206,445			59,375			217,079			196,914			630,280			2,873,830			4,924,031
Expenses
Administrative	1,548			255			11,388			2,934			1,728			7,003			1,387			9,334			55,971			91,548
Depreciation and Amortization	106,099			1,922			112,028			65,582			22,416			78,381			81,891			242,907			1,429,538			2,140,763
Management Fees	11,495			2,760			11,372			8,182			2,416			8,516			7,589			24,345			64,815			141,490
Operating	26,096						17,674			280			75			159			9,789			75,443			205,322			334,838
Renting	487						4,572			2,209			675			2,166			899			5,740			34,679			51,427
Repairs and Maintenance	47,258						21,504			74,625			17,377			65,890			32,238			99,953			306,231			665,076
Taxes and Insurance	45,262			12,195			24,438			34,912			11,548			38,775			24,754			82,541			353,478			627,903
	238,245			17,132			202,976			188,724			56,235			200,889			158,546			540,263			2,450,035			4,053,046
Income Before Other Income	140,856			56,014			84,886			17,721			3,140			16,190			38,368			90,016			423,795			870,985

Other Income (Loss)
Interest Income							12			22			108															142
Interest Expense	(126,599		)	(15,349		)	(123,353		)	(72,913		)	(24,715		)	(68,403		)	(80,190		)	(213,905		)	(1,288,240		)	(2,013,666		)
Gain on Sale of Real Estate
Interest income from Note													2,145															2,145
Other Income (Expenses)	(2,331		)				(5,375		)	(3,621		)				(2,271		)				(1,152		)				(14,751		)
	(128,930		)	(15,349		)	(128,716		)	(76,513		)	(22,462		)	(70,674		)	(80,190		)	(215,057		)	(1,288,240		)	(2,026,130		)

Net Income (Loss)	$	11,926		$	40,665		$	(43,830	)	$	(58,792	)	$	(19,322	)	$	(54,484	)	$	(41,822	)	$	(125,040	)	$	(864,445	)	$	(1,155,144	)

Net Loss - NERA 50%	$	5,963		$	20,333		$	(21,915	)	$	(29,396	)	$	(9,661	)	$	(27,242	)	$	(20,911	)	$	(62,520	)				(145,350		)
NERA 40%																									$	(345,778	)	(345,778		)
																												$	(491,128	)

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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