Company: NEN
Filing Date: 2025-06-25
Form Type: 8-K
Source: 0001104659-25-062493
Chunk: 0

Company: NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
Filing Date: 2025-06-25
Form: 8-K
Item: Item 1.01
Chunk 0
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Item 1.01 Entry Into a Material Definitive Agreement.

On June 18, 2025, Hill Estates NERA,
LLC, a Delaware limited liability company (the “ Hill Estates” or “ Borrower”), a wholly-owned subsidiary of
New England Realty Associates Limited Partnership, a Massachusetts limited partnership (the “ Partnership”),
entered into an Interim Loan Agreement (the “ Loan Agreement”) with KeyBank National Association, a national banking
association (“ Lender”). Pursuant to the Loan Agreement, the Lender agreed to provide a loan in the principal amount of
$67,500,000 (the “ Loan”), with the Partnership acting as the Guarantor (as defined in the Loan Agreement).

The purpose of the Loan is to fund the
acquisition of the Hill Estates properties (as defined in the Loan Agreement), specifically for the purchase of land located in the
City of Belmont, County of Middlesex, Commonwealth of Massachusetts, together with the improvements located thereon, consisting of
twenty-eight (28) building(s), containing a total of three hundred ninety-six (396) residential units, four (4) commercial
units, parking areas containing five hundred eighty-nine (589) parking spaces, and other improvements. (See item 2.01 of this
Current Report.)

Commencing on July 10, 2025, and on the tenth
(10th) day of every calendar month thereafter during the term of the Loan, Borrower shall pay to Lender all interest accrued
and unpaid through the end of the previous month. Interest on the Note is payable on a monthly basis at a floating interest rate of the
SOFR rate plus 150 basis points. 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. No
prepayment of all or part of the Loan shall be permitted unless same is made together with the payment of all interest accrued on the
Loan through the date of prepayment and an amount equal to all Breakage Costs (as defined in the Loan Agreement) and attorneys’
fees and disbursements incurred by Lender as a result of the prepayment.

On June 18, 2025, in connection with the Loan Agreement, the Borrower
and the Lender entered into a promiss