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RENTAL PROPERTIES | 3 Months Ended
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Mar. 31, 2018
RENTAL PROPERTIES |
RENTAL PROPERTIES | NOTE 2. RENTAL PROPERTIES As of March 31, 2018, 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 March 31, 2018, 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 March 31, 2018 with a total of 711 units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments. Rental properties consist of the following:
|  | March 31, 2018 |  | December 31, 2017 |  | Useful Life |
Land, improvements and parking lots |  | $ | 71,906,637 |  | $ | 65,087,214 |  | 15 | - | 40 | years |
Buildings and improvements |  |  | 229,245,305 |  |  | 201,844,565 |  | 15 | - | 40 | years |
Kitchen cabinets |  |  | 12,576,357 |  |  | 12,338,627 |  | 5 | - | 10 | years |
Carpets |  |  | 8,954,788 |  |  | 8,802,831 |  | 5 | - | 10 | years |
Air conditioning |  |  | 641,079 |  |  | 641,079 |  | 5 | - | 10 | years |
Laundry equipment |  |  | 271,824 |  |  | 263,275 |  | 5 | - | 7 | years |
Elevators |  |  | 1,139,296 |  |  | 1,139,296 |  | 20 | - | 40 | years |
Swimming pools |  |  | 444,629 |  |  | 444,629 |  | 10 | - | 30 | years |
Equipment |  |  | 11,329,576 |  |  | 11,163,864 |  | 5 | - | 30 | years |
Motor vehicles |  |  | 216,260 |  |  | 216,260 |  |  |  | 5 | years |
Fences |  |  | 37,465 |  |  | 37,465 |  | 5 | - | 15 | years |
Furniture and fixtures |  |  | 9,516,987 |  |  | 9,390,021 |  | 5 | - | 7 | years |
Smoke alarms |  |  | 582,471 |  |  | 582,471 |  | 5 | - | 7 | years |
Total fixed assets |  |  | 346,862,674 |  |  | 311,951,597 |  |  |  |  |  |
Less: Accumulated depreciation |  |  | (108,141,919) |  |  | (104,797,803) |  |  |  |  |  |
|  | $ | 238,720,755 |  | $ | 207,153,794 |  |  |  |  |  |
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. On July 6, 2017, Woodland Park Partners, LLC, a newly formed subsidiary of the Partnership, purchased the Woodland Park Apartments, a 126-unit apartment complex located at 264-290 Grove Street, Newton, Massachusetts (the “Property”), for a purchase price of $45,600,000. The closing costs were approximately $64,000. To fund the purchase price, the Partnership borrowed $25,000,000 under its outstanding line of credit with KeyBank, NA, and $16,000,000 from HBC Holdings, LLC, a Massachusetts limited liability company controlled by Harold Brown. The loan from HBC Holdings will mature on July 16, 2018, with interest only at 4.75%. The balance of the purchase price was funded by the Partnership’s cash reserves. The line of credit was paid down to $17,000,000 and the loan payable to HBC Holdings was paid in full through the refinancing of Woodland Park and partnership cash reserves by December 31, 2017. From the purchase price, the Partnership allocated approximately $541,000 for in- place leases, and approximately $42,000 to the value of tenant relationships. These amounts are being amortized over 12 and 24 months respectively.

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