NH Multifamily Fund III

Our Q3 distribution will be going out next week and will be the same amount as what was distributed for Q2. Moving forward, we expect distributions to remain around this level, with any increases being incremental as we work through the business plans at our two most recent acquisitions, 20 Franklin St and 805 Central Ave.

The fund's acquisitions are complete, and we won't be making any further acquisitions. Our near-term refinancing focus is 125 N Main St, along with the properties that carry short-term debt: the Nashua 4-Pack, 75-79 Franklin St, and 805 Central Ave.

We also want to set expectations on the rest of the portfolio. For properties acquired early in the hold period, including 39 Ashland St, 16 Avon St, 6 Page Rd, and 108 & 112 Church St, we plan to hold off on refinancing until early to mid-2027. Refinancing today would mean moving into debt at a significantly higher interest rate, and into new loans with prepayment penalties that would limit our ability to refinance again. We'll continue distributions in the meantime, and our goal is to refinance several of these buildings together into a portfolio loan at a rate that isn't significantly higher than our current debt.

We'll share a more in-depth update on the fund in our quarterly update, which will go out within roughly the next 20 days.

Asset Management

39 Ashland St, Manchester

This is the property we've been managing most closely. A pest issue that started with a past tenant affected multiple units and resulted in several vacancies at once. The issue is now under control, and we're working on filling those units back up. 43-2 moved in at $1,697. The planned turnover of the month-to-month legacy tenant in 39-2 is complete; that unit is now vacant (prior rent $2,135) and will be renovated. 39-1 and 43-3 remain vacant. 3 of 6 units are occupied.

805 Central Ave, Dover

805-A and 805-C are leased at $2,050 and $1,800. 805-B and 805-Front are vacant following tenant notices. 2 of 4 units are occupied. Turning these two units was part of our business plan, and we'll renovate both and lease them up quickly.

125 N Main St, Rochester

Unit 1 moved in at $1,495, bringing the property to 100% occupied. With the property fully leased, we're moving forward with the refinance.

Manchester Portfolio: 447 Manchester St, 457 Merrimack St, 475 Manchester St, 604 Harvard St

No leasing activity here. We successfully refinanced all four properties.

75-79 Franklin St, Somersworth

100% occupied.

20 Franklin St, Derry

11 of 12 units occupied, with in-place rents ranging from $1,700 to $1,913. 22-H is vacant.

We've put the deposit down on the property's most significant CapEx project: separating the heat. The work includes electric baseboards in the bedrooms and electric mini-split systems, which both heat and cool, in the living rooms of all 12 units, at a quoted cost of roughly $75,000. We're also installing new hot water heaters in both buildings, since hot water currently runs off the boiler system. Work starts next week, and we're targeting completion by mid-October. Once it's done, we'll no longer be responsible for heat. We plan to notify month-to-month tenants by the new year that heat will become their responsibility, likely taking effect in January or February.

Nashua 4-Pack: 9 Granite St, 25 Granite St, 48 Central St, 49 Bridge St

100% occupied.

16 Avon St, Manchester

100% occupied. Nothing material to report.

6 Page Rd, Litchfield (Pagewood Oval)

29 of 30 units occupied. Unit 20 remains the only vacancy.

108 & 112 Church St, Laconia

100% occupied. Nothing material to report.