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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

9 Months Ended

Sep. 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 September 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. On September 30, 2025, the property was refinanced with a 10 year mortgage in the amount of $12,214,000 at a fixed rate of 5.610% interest only. The Joint Venture paid off the prior mortgage of approximately $10,000,000 with the proceeds of the new mortgage and held the remaining $2,210,000 at the property as cash reserves. The costs associated with the refinancing were approximately $170,000. 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 September 30, 2025, the balance on this mortgage before unamortized deferred financing costs is $12,214,000. 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.

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 September 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 September 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 September 30, 2025, the balance of this mortgage before unamortized deferred financing costs is approximately $8,057,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information at September 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		$	5,298,785		$	2,578,834		$	3,944,259		$	69,315		$	3,781,556		$	13,372,001		$	69,368,454		$	98,413,204
Cash & Cash Equivalents			2,957,779			64,506			100,046			14,268			618,244			287,451			4,731,097			8,773,391
Rent Receivable			153,153			62,810			10,492			895			13,286			35,349			145,272			421,257
Real Estate Tax Escrow			70,289			—			79,926			—			36,067			—			—			186,282
Prepaid Expenses & Other Assets			397,786			29,387			92,822			939			78,424			319,765			2,506,742			3,425,865
Total Assets		$	8,877,792		$	2,735,537		$	4,227,545		$	85,417		$	4,527,577		$	14,014,566		$	76,751,565		$	111,219,999
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable		$	12,044,033		$	—		$	8,038,487		$	—		$	5,951,240		$	23,372,366		$	124,827,672		$	174,233,798
Accounts Payable & Accrued Expense			222,266			7,000			105,473			2,702			70,503			222,068			772,803			1,402,815
Advance Rental Pmts & Security Deposits			349,841			—			280,627			—			159,475			476,085			3,102,500			4,368,528
Total Liabilities			12,616,140			7,000			8,424,587			2,702			6,181,218			24,070,519			128,702,975			180,005,141
Partners’ Capital			(3,738,348)			2,728,537			(4,197,042)			82,715			(1,653,641)			(10,055,953)			(51,951,410)			(68,785,142)
Total Liabilities and Capital		$	8,877,792		$	2,735,537		$	4,227,545		$	85,417		$	4,527,577		$	14,014,566		$	76,751,565		$	111,219,999
Partners’ Capital %—NERA			50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures		$	—		$	1,364,269		$	—		$	41,358		$	—		$	—		$	—			1,405,626
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures		$	(1,869,174)		$	—		$	(2,098,521)		$	—		$	(826,821)		$	(5,027,977)		$	(20,780,564)			(30,603,056)
Total Investment in Unconsolidated Joint Ventures (Net)																							$	(29,197,430)
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 nine months ended September 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		$	1,470,949		$	181,413		$	1,408,071		$	77,219		$	1,130,131		$	3,281,200		$	13,440,970		$	20,989,953
Laundry and Sundry Income			8,663			—			—			—			—			42,236			132,144			183,043
			1,479,612			181,413			1,408,071			77,219			1,130,131			3,323,436			13,573,114			21,172,996
Expenses
Administrative			21,935			16,709			51,056			3,644			19,647			61,488			207,905			382,384
Depreciation and Amortization			347,980			8,782			263,284			2,448			258,384			862,702			2,754,240			4,497,820
Management Fees			60,368			7,586			54,542			3,119			44,637			129,432			280,331			580,015
Operating			247,428			—			78,253			153			106,961			438,652			1,106,892			1,978,339
Renting			48,517			—			68,595			100			10,367			100,356			170,809			398,744
Repairs and Maintenance			153,000			—			150,284			—			103,949			484,553			1,467,823			2,359,609
Taxes and Insurance			222,225			51,806			144,757			14,405			123,509			368,068			2,093,980			3,018,750
			1,101,453			84,883			810,771			23,869			667,454			2,445,251			8,081,980			13,215,661
Income Before Other Income			378,159			96,530			597,300			53,350			462,677			878,185			5,491,134			7,957,335
Other Income (Loss)
Interest Expense			(521,484)			—			(246,058)			—			(176,777)			(997,081)			(3,851,742)			(5,793,142)
Interest Income			26,694			1,019			5,034			413			8,666			12,418			122,995			177,239
			(494,790)			1,019			(241,024)			413			(168,111)			(984,663)			(3,728,747)			(5,615,903)
Net (Loss) Income		$	(116,631)		$	97,549		$	356,276		$	53,763		$	294,566		$	(106,478)		$	1,762,389		$	2,341,432
Net (Loss) Income —NERA 50%		$	(58,315)		$	48,775		$	178,137		$	26,881		$	147,283		$	(53,239)						289,523
Net Income —NERA 40%																				$	704,956			704,956
																							$	994,478

Financial information for the three months ended September 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		$	472,600		$	60,471		$	447,773		$	27,384		$	387,047		$	1,105,154		$	4,508,796		$	7,009,225
Laundry and Sundry Income			3,572			—			—			—			—			13,025			38,160			54,757
			476,172			60,471			447,773			27,384			387,047			1,118,179			4,546,956			7,063,982
Expenses
Administrative			6,745			14,699			29,496			768			3,278			13,125			64,311			132,422
Depreciation and Amortization			116,036			2,927			88,624			816			87,438			289,528			930,368			1,515,737
Management Fees			20,677			2,529			17,850			1,060			15,059			43,402			93,941			194,518
Operating			75,015			—			11,005			94			26,475			148,150			372,844			633,583
Renting			38,300			—			32,318			31			1,100			45,879			123,593			241,221
Repairs and Maintenance			68,156			—			81,494			—			42,527			188,692			730,578			1,111,447
Taxes and Insurance			73,470			17,033			48,758			4,668			43,017			127,614			664,254			978,814
			398,399			37,188			309,545			7,437			218,894			856,390			2,979,889			4,807,742
Income Before Other Income			77,773			23,283			138,228			19,947			168,153			261,789			1,567,067			2,256,240
Other Income (Loss)
Interest Expense			(177,126)			—			(81,196)			—			(59,555)			(336,135)			(1,312,036)			(1,966,048)
Interest Income			7,222			337			1,137			125			3,706			3,597			47,857			63,981
			(169,904)			337			(80,059)			125			(55,849)			(332,538)			(1,264,179)			(1,902,067)
Net (Loss) Income		$	(92,131)		$	23,620		$	58,169		$	20,072		$	112,304		$	(70,749)		$	302,888		$	354,173
Net (Loss) Income —NERA 50%		$	(46,066)		$	11,810		$	29,085		$	10,036		$	56,152		$	(35,375)						25,643
Net Income —NERA 40%																				$	121,155			121,155
																							$	146,798

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


		Hamilton			345			Hamilton			Hamilton on			Dexter
Period End		Essex 81			Franklin			Minuteman			Main Apts			Park			Total
9/30/2026		$			$	256,664		$	—		$			$	—		$	256,664
9/30/2027			—			266,775			—			—			—			266,775
9/30/2028			—			7,533,359			—			—			125,000,000			132,533,359
9/30/2029			—			—			—			—			—			—
9/30/2030			—			—			—			—			—			—
Thereafter			12,214,000			—			6,000,000			23,589,000			—			41,803,000
			12,214,000			8,056,798			6,000,000			23,589,000			125,000,000			174,859,798
Less: unamortized deferred financing costs			(169,967)			(18,311)			(48,760)			(216,634)			(172,328)			(626,000)
		$	12,044,033		$	8,038,487		$	5,951,240		$	23,372,366		$	124,827,672		$	174,233,798

At September 30, 2025, the weighted average interest rate on the above mortgages was 4.28%. The effective rate was 4.35% including the amortization expense of deferred financing costs.

Summary financial information at September 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		$	5,156,533		$	2,581,323		$	4,234,113		$	72,579		$	3,977,260		$	13,619,389		$	71,377,601		$	101,018,798
Cash & Cash Equivalents			1,325,418			62,274			103,930			17,234			81,885			2,796,390			1,621,908			6,009,039
Rent Receivable			189,026			74,223			2,057			2,482			7,656			36,654			42,643			354,741
Real Estate Tax Escrow			78,201			—			71,866			—			29,531			—			—			179,598
Prepaid Expenses & Other Assets			335,724			38,022			100,024			769			67,481			280,877			2,672,293			3,495,190
Total Assets		$	7,084,902		$	2,755,842		$	4,511,990		$	93,064		$	4,163,813		$	16,733,310		$	75,714,445		$	111,057,366
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable		$	9,986,211		$	—		$	8,278,765		$	—		$	5,943,056		$	23,348,070		$	124,763,049		$	172,319,151
Accounts Payable & Accrued Expense			330,733			3,000			126,680			2,604			62,619			257,732			709,139			1,492,507
Advance Rental Pmts& Security Deposits			366,000			—			262,862			—			165,213			492,520			3,212,838			4,499,433
Total Liabilities			10,682,944			3,000			8,668,307			2,604			6,170,888			24,098,322			128,685,026			178,311,091
Partners’ Capital			(3,598,042)			2,752,842			(4,156,317)			90,460			(2,007,075)			(7,365,012)			(52,970,581)			(67,253,725)
Total Liabilities and Capital		$	7,084,902		$	2,755,842		$	4,511,990		$	93,064			4,163,813		$	16,733,310		$	75,714,445		$	111,057,366
Partners’ Capital %—NERA			50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures		$	—		$	1,376,421		$	—		$	45,230		$			$			$			$	1,421,651
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures		$	(1,799,020)		$	—		$	(2,078,158)		$	—		$	(1,003,538)		$	(3,682,506)		$	(21,188,233)			(29,751,455)
Total Investment in Unconsolidated Joint Ventures (Net)																							$	(28,329,804)
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 nine months ended September 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		$	1,417,322		$	181,413		$	1,346,589		$	77,243		$	1,076,051		$	3,094,579		$	12,738,225		$	19,931,422
Laundry and Sundry Income			9,399			—			(236)			—			—			36,929			132,418			178,510
			1,426,721			181,413			1,346,353			77,243			1,076,051			3,131,508			12,870,643			20,109,932
Expenses
Administrative			16,359			4,000			22,547			2,101			14,383			57,765			148,131			265,286
Depreciation and Amortization			350,002			8,782			259,392			2,448			250,158			807,037			2,772,916			4,450,735
Management Fees			57,488			6,611			52,909			3,126			42,829			130,703			269,853			563,519
Operating			319,903			—			59,664			86			84,517			347,123			1,022,506			1,833,799
Renting			33,103			—			22,016			93			13,556			87,951			104,549			261,268
Repairs and Maintenance			168,259			—			99,452			1,650			103,900			530,985			1,618,100			2,522,346
Taxes and Insurance			213,584			51,471			149,378			14,677			118,953			330,930			1,977,123			2,856,116
			1,158,698			70,864			665,358			24,181			628,296			2,292,494			7,913,178			12,753,069
Income Before Other Income			268,023			110,549			680,995			53,062			447,755			839,014			4,957,465			7,356,863
Other Income (Loss)
Interest Expense			(593,920)			—			(252,874)			—			(178,044)			(633,432)			(3,859,011)			(5,517,281)
Interest Income			32,532			1,480			7,035			629			7,454			44,590			77,327			171,047
Other income (Expense)			—			—						—			—			42,938			—			42,938
			(561,388)			1,480			(245,839)			629			(170,590)			(545,904)			(3,781,684)			(5,303,296)
Net (Loss) Income		$	(293,365)		$	112,029		$	435,156		$	53,691		$	277,165		$	293,110		$	1,175,781		$	2,053,567
Net (Loss) Income —NERA 50%		$	(146,682)		$	56,015		$	217,578		$	26,846		$	138,583		$	146,555						438,894
Net Income —NERA 40%																				$	470,313			470,313
																							$	909,207

Financial information for the three months ended September 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		$	498,469		$	60,471		$	455,505		$	25,610		$	364,435		$	1,037,278		$	4,208,926		$	6,650,694
Laundry and Sundry Income			3,054			—			—			—			—			11,685			36,881			51,620
			501,523			60,471			455,505			25,610			364,435			1,048,963			4,245,807			6,702,314
Expenses
Administrative			5,816			1,000			7,568			700			4,065			35,429			47,983			102,561
Depreciation and Amortization			118,091			2,927			86,596			816			84,153			273,712			935,756			1,502,051
Management Fees			20,302			2,479			17,955			1,057			14,520			48,469			89,561			194,343
Operating			142,906			—			18,280			123			19,741			102,651			272,000			555,701
Renting			25,469			—			12,241			30			3,865			31,214			51,733			124,552
Repairs and Maintenance			73,640			—			54,569			—			42,734			200,707			734,698			1,106,348
Taxes and Insurance			49,619			16,279			49,898			4,503			40,197			123,938			692,982			977,416
			435,843			22,685			247,107			7,229			209,275			816,120			2,824,713			4,562,972
Income Before Other Income			65,680			37,786			208,398			18,381			155,160			232,843			1,421,094			2,139,342
Other Income (Loss)
Interest Expense			(199,679)			—			(83,768)			—			(59,749)			(248,334)			(1,292,563)			(1,884,093)
Interest Income			11,282			290			2,406			211			1,991			21,940			32,037			70,157
Other income (Expense)			—			—			—			—			—			—			—			—
			(188,397)			290			(81,362)			211			(57,758)			(226,394)			(1,260,526)			(1,813,936)
Net (Loss) Income		$	(122,717)		$	38,076		$	127,036		$	18,592		$	97,402		$	6,449		$	160,568		$	325,406
Net (Loss) Income —NERA 50%		$	(61,359)		$	19,038		$	63,518		$	9,296		$	48,701		$	3,226						82,420
Net Income —NERA 40%																				$	64,227			64,227
																							$	146,647