Company: NEN
Filing Date: 2025-09-03
Form Type: 8-K/A
Source: 0001104659-25-087096
Chunk: 7

Company: NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
Filing Date: 2025-09-03
Form: 8-K/A
Chunk 7
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172,000,000 for the Hill Estates Properties and three commercial buildings, and $3,000,000 for the two non-contiguous commercial properties.

Also on June 18, 2025,
Hill Estates NERA, LLC, a Delaware limited liability company, a wholly-owned subsidiary of the Partnership entered into an Interim
Loan Agreement with KeyBank National Association, a national banking association in the principal amount of $67,500,000, with the
Partnership acting as the Guarantor. Interest on the Note is payable on a monthly basis at a floating interest rate of the SOFR rate
plus 150 basis points and the principal amount of the Note is due and payable on December 17, 2025. Borrower shall have the right to
make prepayments of the Loan, in whole or in part, without prepayment penalty, upon not less than seven (7) days prior written
notice to Lender. The Partnership borrowed an additional $40,000,000 on its Master Credit Facility with an annual fixed rate of
interest of 5.99%. The balance of the purchase price was funded through cash proceeds generated from the sale of the
Partnership’s investment in U.S. Treasury bills.

2. Basis of Presentation and Significant Accounting Policies

The accompanying financial statements include the accounts of the properties purchased by the subsidiaries of the Partnership, located in Belmont, Massachusetts, on June 18, 2025. They include the property known as Hill Estates, a 396 unit mixed use property,
as well as two non-contiguous commercial properties described in the Partnership’s Form 8-K filed on June 25, 2025. The above
properties are collectively referred to as Hill Estates et al or the Purchased Property.

The accompanying statement of Revenue and Certain
Expenses of Hill Estates et al has been prepared in accordance with the rules of Regulation S-X of the Securities and Exchange Commission
for inclusion in the Partnership's Current Report on Form 8-K/A. Accordingly, the statement of revenue and certain expenses excludes certain
expenses that may not be comparable to those expected to be incurred in the future operations of the aforementioned property. Items excluded
consist of interest expense, depreciation, amortization, corporate expenses, and other costs not directly related to future property operations.

Use of Estimates

The preparation of the accompanying
statement of revenue and certain expenses in conformity with U.S. generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in the statement