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 $87,411,000 at December 31, 2013. 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 year ended December 31, 2012 was $18,960. 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 with a new mortgage in the amount of $4,750,000 with an interest rate of 5.57%, interest only for five years. The loan will be amortized over 30 years thereafter and matures in March 2017. As of December 31, 2013, the balance of the mortgage is approximately $4,640,000. This investment is referred to as Hamilton Bay Apartments, LLC. 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. On October 18, 2013, the Partnership and its joint venture partner each made capital contributions to the entity of $660,000. The capital was used to pay off the outstanding mortgage. As of February 1, 2014, 15 of the 20 units are still owned by the Partnership. 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 $8,235,000 amortizing over 30 years at 5.79% due in August 2016. The mortgage on Essex Development, LLC, or the parking lot is approximately $2,041,000 with a variable interest rate of 2.25% over the daily Libor rate (0.17% at December 31, 2013). 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. In September 2013, the loan was extended for an additional two years to August 2015 with the same conditions except for the increased principal payments of $4,443 per month. The costs associated with the extension were approximately $9,000. 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 $4,870,000 at December 31, 2013. This investment is referred to as Hamilton 1025, 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 Apartments LLC paid a fee of approximately $400,000 in connection with this early extinguishment of debt. At December 31, 2013, the remaining balance on the mortgage is approximately $15,318,000.

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 December 31, 2013, the balance of this mortgage is approximately $5,362,000. This investment is referred to as Hamilton Minuteman, 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 Partnership paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the property 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. This investment is referred to as 345 Franklin, LLC.

Summary financial information for the year ended December 31, 2013

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

ASSETS
Rental Properties	$	8,764,215		$	2,624,325		$	7,494,954		$	5,389,763		$	1,766,132		$	6,680,834		$	6,778,029		$	20,253,587		$	102,120,964		$	161,872,803
Cash & Cash Equivalents		30,360			35,644			78,691			9,085			36,423			17,861			33,921			189,004			961,622			1,392,611
Rent Receivable		31,426			—			1,512			7,970			1,251			2,766			—			5,697			91,701			142,324
Real Estate Tax Escrow		101,395			—			16,970			80,767			—			45,679			41,268			72,308			427,084			785,470
Prepaid Expenses & Other Assets		77,141			555			36,979			44,737			101,507			31,435			50,721			322,667			1,529,591			2,195,335
Financing & Leasing Fees		46,630			14,097			96,548			14,619			—			19,881			11,981			7,716			340,362			551,834


Total Assets	$	9,051,167		$	2,674,621		$	7,725,654		$	5,546,941		$	1,905,314		$	6,798,456		$	6,915,919		$	20,850,980		$	105,471,324		$	166,940,376




LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	$	8,234,548		$	2,041,146		$	10,000,000		$	4,869,583		$	—		$	4,639,848		$	5,362,109		$	15,317,643		$	87,410,638		$	137,875,517
Accounts Payable & Accrued Expense		44,299			6,084			60,638			50,279			16,993			7,570			73,289			290,008			944,140			1,493,299
Advance Rental Pmts& Security Deposits		167,143			—			169,709			92,057			24,687			85,413			74,615			291,825			2,121,509			3,026,957


Total Liabilities		8,445,990			2,047,230			10,230,346			5,011,919			41,680			4,732,831			5,510,013			15,899,477			90,476,287			142,395,772
Partners' Capital		605,177			627,391			(2,504,692	)		535,022			1,863,634			2,065,625			1,405,906			4,951,504			14,995,037			24,544,604


Total Liabilities and Capital	$	9,051,167		$	2,674,621		$	7,725,654		$	5,546,941		$	1,905,314		$	6,798,456		$	6,915,919		$	20,850,980		$	105,471,324		$	166,940,376




Partners' Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	302,589		$	313,695		$	—		$	267,511		$	931,817		$	1,032,812		$	702,953		$	2,475,752		$	5,998,015			12,025,144




Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	—		$	—		$	(1,252,346	)	$	—		$	—		$	—		$	—		$	—		$	—			(1,252,346	)

Total Investment in Unconsolidated Joint Ventures (Net)																												$	10,772,798




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 February 1, 2014		—			—			—			127			105			—			—			—			—			232


Unsold units		—			—			—			—			15			—			—			—			—			15
Unsold units with deposits for future sale as of February 1, 2014		—			—			—			—			—			—			—			—			—			—

Year ended December 31, 2013

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

Revenues
Rental Income	$	1,362,012		$	287,410		$	1,258,313		$	896,256		$	261,949		$	911,845		$	858,492		$	2,753,120		$	12,851,259		$	21,440,655
Laundry and Sundry Income		17,549			—			2,683			—			—			—			675			37,192			94,715			152,814


		1,379,562			287,410			1,260,996			896,256			261,949			911,845			859,167			2,790,312			12,945,974			21,593,469


Expenses
Administrative		18,330			1,370			23,813			9,552			10,134			16,291			6,206			38,144			245,444			369,284
Depreciation and Amortization		428,609			9,803			428,003			240,658			80,697			307,546			318,095			948,478			5,778,427			8,540,316
Management Fees		55,813			11,496			51,706			36,066			10,538			35,831			34,129			112,749			271,505			619,833
Operating		114,778			—			68,364			1,150			2,234			1,343			83,143			347,382			1,056,919			1,675,312
Renting		11,106			—			3,788			5,378			1,425			10,986			6,350			6,273			105,593			150,898
Repairs and Maintenance		123,702			4,950			86,844			320,348			94,640			295,144			69,057			389,671			1,051,832			2,436,188
Taxes and Insurance		216,560			49,192			114,669			151,971			42,765			146,870			121,442			342,995			1,529,605			2,716,069


		968,897			76,812			777,187			765,121			242,433			814,012			638,423			2,185,692			10,039,324			16,507,900


Income Before Other Income		410,665			210,598			483,809			131,134			19,516			97,833			220,744			604,620			2,906,650			5,085,569


Other Income (Loss)
Interest Expense		(488,369	)		(58,093	)		(453,197	)		(284,257	)		(73,819	)		(267,228	)		(312,507	)		(822,109	)		(5,016,659	)		(7,776,238	)
Interest Income		—			—			26			8			159			—			—			—			57			250
Interest Income from Note		—			—			—			—			3,258			—			—			—			—			3,258
Other Income (Expenses)		—			—			(68,588	)		—			—			—			—			—			—			(68,588	)


		(488,369	)		(58,093	)		(521,759	)		(284,249	)		(70,402	)		(267,228	)		(312,507	)		(822,109	)		(5,016,602	)		(7,841,318	)


Net Income (Loss)	$	(77,704	)	$	152,505		$	(37,950	)	$	(153,114	)	$	(50,886	)	$	(169,395	)	$	(91,763	)	$	(217,489	)	$	(2,109,952	)	$	(2,755,749	)




Net Income (Loss)—NERA 50%	$	(38,852	)	$	76,252		$	(18,975	)	$	(76,557	)	$	(25,443	)	$	(84,697	)	$	(45,882	)	$	(108,744	)					(322,898	)




Net Income (Loss)—NERA 40%																									$	(843,981	)		(843,981	)

																												$	(1,166,879	)

Future annual mortgage maturities at December 31, 2013 are as follows:

Period End	Hamilon Essex 81		Hamilton Essex 81 Development		345 Franklin		Hamilton 1025		Hamilton Bay Apts		Hamilton Minuteman		Hamilton on Main Apts		Dexter Park		Total

12/31/2014	$	139,130	$	53,316	$	—	$	69,003	$	73,015	$	75,575	$	308,998	$	1,348,742	$	2,067,779
12/31/2015		141,048		1,987,830				73,077		73,941		80,036		15,008,646		1,425,814		18,790,391
12/31/2016		7,954,370				86,413		4,727,503		78,166		77,128				1,507,291		14,430,870
12/31/2017						183,627				4,414,727		5,129,371				1,593,424		11,321,149
12/31/2018						190,861										1,684,479		1,875,340
Thereafter						9,539,099										79,850,888		89,389,987


	$	8,234,548	$	2,041,146	$	10,000,000	$	4,869,583	$	4,639,848	$	5,362,109	$	15,317,643	$	87,410,638	$	137,875,516

At December 31, 2013 the weighted average interest rate on the above mortgages was 5.38%. The effective rate was 5.52% including the amortization expense of deferred financing costs.

Summary financial information for the year ended December 31, 2012

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

ASSETS
Rental Properties	$	9,103,858		$	2,610,574		$	7,885,745		$	5,621,970		$	1,844,219		$	6,975,854		$	7,020,471		$	21,148,813		$	107,496,918		$	169,708,422
Cash & Cash Equivalents		27,848			20,214			3,533			2,706			20,695			62,473			44,170			103,990			941,391			1,227,018
Rent Receivable		44,005			—			600			7,283			2,200			2,686			2,626			11,108			35,250			105,758
Real Estate Tax Escrow		49,793			—			20,242			74,443			—			41,225			43,612			70,364			424,159			723,838
Prepaid Expenses & Other Assets		61,895			505			75,222			33,659			127,530			14,345			48,715			154,396			1,367,274			1,883,541
Financing & Leasing Fees		64,116			4,325			8,164			19,645			5,505			26,243			15,950			14,581			399,678			558,206


Total Assets	$	9,351,515		$	2,635,617		$	7,993,505		$	5,759,706		$	2,000,148		$	7,122,825		$	7,175,545		$	21,503,252		$	110,664,670		$	174,206,783




LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	$	8,352,317		$	2,093,184		$	6,850,179		$	4,934,741		$	1,668,000		$	4,702,087		$	5,433,472		$	15,611,045		$	88,611,686		$	138,256,711
Accounts Payable & Accrued Expense		34,673			6,319			93,810			49,566			7,481			49,690			58,378			204,413			843,422			1,347,752
Advance Rental Pmts& Security Deposits		175,871			—			140,759			80,264			25,147			86,028			71,025			273,302			1,919,573			2,771,968


Total Liabilities		8,562,861			2,099,503			7,084,748			5,064,570			1,700,628			4,837,806			5,562,875			16,088,760			91,374,681			142,376,432
Partners' Capital		788,654			536,114			908,757			695,135			299,520			2,285,019			1,612,669			5,414,492			19,289,989			31,830,352


Total Liabilities and Capital	$	9,351,515		$	2,635,617		$	7,993,505		$	5,759,706		$	2,000,148		$	7,122,825		$	7,175,545		$	21,503,252		$	110,664,670		$	174,206,783




Partners' Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	394,327		$	268,057		$	454,379		$	347,568		$	149,760		$	1,142,510		$	806,335		$	2,707,246		$	7,715,996			13,986,177




Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—			—




Total Investment in Unconsolidated Joint Ventures (Net)																												$	13,986,177



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 March 1, 2013	—	—	—	127	105	—	—	—	—	232


Unsold units	—	—	—	—	15	—	—	—	—	15
Unsold units with deposits for future sale as of March 1, 2013	—	—	—	—	—	—	—	—	—	—

Year ended December 31, 2012

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

Revenues
Rental Income	$	1,270,141		$	287,537		$	1,178,712		$	861,998		$	235,061		$	886,122		$	809,707		$	2,623,994		$	12,202,615		$	20,355,887
Laundry and Sundry Income		15,363			—			1,206			—			—			—			2,435			20,952			98,042			137,999


		1,285,504			287,537			1,179,918			861,998			235,061			886,122			812,142			2,644,946			12,300,657			20,493,885


Expenses
Administrative		15,237			1,749			27,942			5,142			7,553			34,600			7,825			46,400			219,218			365,666
Depreciation and Amortization		409,488			11,638			441,704			256,696			82,287			297,737			317,231			957,452			5,733,920			8,508,153
Management Fees		55,308			11,502			48,596			34,517			9,894			34,659			32,615			104,807			261,355			593,253
Operating		112,172			—			62,277			816			1,251			1,190			73,092			341,054			1,006,570			1,598,421
Renting		18,350			—			5,326			6,815			1,894			4,053			3,538			10,974			74,705			125,655
Repairs and Maintenance		118,786			5,475			82,052			320,997			70,812			273,652			57,448			380,605			880,103			2,189,930
Taxes and Insurance		197,566			49,237			106,785			145,755			46,017			161,137			102,505			337,256			1,485,297			2,631,555


		926,908			79,600			774,681			770,738			219,707			807,027			594,254			2,178,549			9,661,169			16,012,632


Income Before Other Income		358,596			207,937			405,237			91,260			15,354			79,095			217,888			466,397			2,639,488			4,481,253


Other Income (Loss)
Interest Expense		(497,631	)		(60,451	)		(486,051	)		(288,470	)		(98,361	)		(271,283	)		(317,448	)		(840,874	)		(5,092,838	)		(7,953,407	)
Interest Income		—			—			48			74			215			—			—			—			—			337
Interest Income from Note		—			—			—			—			6,180			—			—			—			—			6,180


		(497,631	)		(60,451	)		(486,003	)		(288,395	)		(91,966	)		(271,283	)		(317,448	)		(840,874	)		(5,092,838	)		(7,946,890	)


Net Income (Loss)	$	(139,035	)	$	147,486		$	(80,766	)	$	(197,135	)	$	(76,612	)	$	(192,188	)	$	(99,560	)	$	(374,477	)	$	(2,453,350	)	$	(3,465,636	)




Net Income (Loss)—NERA 50%	$	(69,517	)	$	73,743		$	(40,383	)	$	(98,567	)	$	(38,306	)	$	(96,094	)	$	(49,780	)	$	(187,239	)					(506,143	)




Net Income (Loss)—NERA 40%																									$	(981,340	)		(981,340	)

																												$	(1,487,483	)

Summary financial information for the year ended December 31, 2011

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

ASSETS
Rental Properties	$	9,454,959		$	2,613,064		$	8,229,651		$	5,863,176		$	1,916,445		$	7,257,981		$	7,256,528		$	21,939,796		$	112,921,940		$	177,453,541
Cash & Cash Equivalents		47,526			1,529			17,027			1,848			19,416			5,026			31,125			90,940			836,347			1,050,783
Rent Receivable		73,459			—			—			15,682			—			2,512			7,457			8,593			86,722			194,425
Real Estate Tax Escrow		98,610			—			18,360			64,464			—			89,760			43,864			104,505			582,028			1,001,592
Prepaid Expenses & Other Assets		59,508			493			54,276			88,524			167,811			95,190			54,023			180,899			1,216,214			1,916,937
Financing & Leasing Fees		71,108			6,987			16,330			24,672			6,570			32,605			19,918			21,442			458,995			658,626


Total Assets	$	9,805,169		$	2,622,073		$	8,335,644		$	6,058,364		$	2,110,241		$	7,483,074		$	7,412,916		$	22,346,175		$	116,102,247		$	182,275,903




LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	$	8,462,041		$	2,144,796		$	7,019,119		$	4,995,487		$	1,668,000		$	4,750,000		$	5,500,000		$	15,887,203		$	89,733,192		$	140,159,839
Accounts Payable & Accrued Expense		32,238			6,309			15,323			48,236			12,682			28,690			58,596			212,224			820,603			1,234,900
Advance Rental Pmts & Security Deposits		152,940			—			114,179			69,970			20,027			85,575			69,592			257,780			1,800,113			2,570,176


Total Liabilities		8,647,219			2,151,105			7,148,621			5,113,694			1,700,709			4,864,265			5,628,188			16,357,207			92,353,908			143,964,915
Partners' Capital		1,157,950			470,968			1,187,023			944,670			409,532			2,618,809			1,784,728			5,988,968			23,748,339			38,310,988


Total Liabilities and Capital	$	9,805,169		$	2,622,073		$	8,335,644		$	6,058,364		$	2,110,241		$	7,483,074		$	7,412,916		$	22,346,175		$	116,102,247		$	182,275,903




Partners' Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	578,975		$	235,484		$	593,512		$	472,335		$	204,766		$	1,309,404		$	892,364		$	2,994,484		$	9,499,335			16,780,660




Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—			—

Total Investment in Unconsolidated Joint Ventures (Net)																												$	16,780,660




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 January 25, 2012		—			—			—			127			105			—			—			—			—			232


Unsold units		—			—			—			—			15			—			—			—			—			15
Unsold units with deposits for future sale as of February 1, 2012		—			—			—			—			—			—			—			—			—			—

Year ended December 31, 2011

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

Revenues
Rental Income	$	1,244,322		$	255,050		$	1,136,831		$	816,015		$	232,938		$	863,657		$	789,897		$	2,491,957		$	11,559,414		$	19,390,080
Laundry and Sundry Income		16,589			—			2,367			—			—			—			1,362			20,599			97,275			138,193


		1,260,911			255,050			1,139,198			816,015			232,938			863,657			791,258			2,512,556			11,656,690			19,528,273


Expenses
Administrative		20,839			1,339			24,424			11,258			5,396			18,625			10,249			36,155			163,511			291,796
Depreciation and Amortization		424,695			8,498			443,055			257,961			103,536			329,930			322,216			965,324			5,698,657			8,553,872
Management Fees		49,677			11,040			45,829			32,120			9,486			33,916			31,666			100,581			251,071			565,386
Operating		121,521			—			66,278			1,733			239			732			54,650			371,687			929,543			1,546,382
Renting		8,058			—			19,206			13,322			1,750			8,927			3,559			15,140			144,149			214,111
Repairs and Maintenance		127,528			3,050			71,479			300,534			78,167			316,782			98,904			371,109			935,839			2,303,393
Taxes and Insurance		184,119			47,709			97,028			143,002			45,303			155,681			92,300			325,868			1,300,995			2,392,005


		936,438			71,636			767,299			759,930			243,877			864,593			613,544			2,185,864			9,423,765			15,866,945


Income Before Other Income		324,473			183,414			371,899			56,085			(10,939	)		(936	)		177,714			326,693			2,232,924			3,661,328


Other Income (Loss)
Interest Expense		(503,102	)		(61,593	)		(494,468	)		(289,222	)		(98,010	)		(271,348	)		(317,927	)		(848,786	)		(5,113,523	)		(7,997,979	)
Interest Income		0			0			49			88			457			0			0			—			3,219			3,814
Interest Income from Note		—			—			—			—			8,904			—			—			—			—			8,904
Other Income (Expenses)		(2,331	)		—			(5,375	)		(3,621	)		—			(2,271	)		(61,589	)		(1,152	)		(3,500	)		(79,839	)


		(505,433	)		(61,593	)		(499,793	)		(292,756	)		(88,649	)		(273,619	)		(379,515	)		(849,938	)		(5,113,804	)		(8,065,100	)


Net Income (Loss)	$	(180,960	)	$	121,821		$	(127,894	)	$	(236,671	)	$	(99,588	)	$	(274,555	)	$	(201,801	)	$	(523,245	)	$	(2,880,880	)	$	(4,403,772	)




Net Income (Loss)—NERA 50%	$	(90,480	)	$	60,911		$	(63,947	)	$	(118,335	)	$	(49,794	)	$	(137,277	)	$	(100,900	)	$	(261,622	)					(761,446	)




Net Income (Loss)—NERA 40%																									$	(1,152,352	)		(1,152,352	)

																												$	(1,913,798	)