Item 1.01 Entry Into a Material Definitive Agreement.

On September 1, 2009, The Hamilton Company, Inc. ("Hamilton"), a full service real estate management company that performs management services for the New England Realty Associates Limited Partnership (the "Partnership"), entered into a purchase and sale and escrow agreement (the "Purchase Agreement") with 175 Freeman Street Investors LLC (the "Seller") to acquire the Dexter Park Apartments, a 409 unit apartment building located at 175 Freeman Street, Brookline, Massachusetts, for a purchase price of $129.5 million in cash. In connection with the execution of the Purchase Agreement, Hamilton paid a non-refundable deposit in the amount of $5 million, including $2.5 million funded by the Partnership.

The closing of the acquisition of the Dexter Park Apartments is subject to numerous customary undertakings, covenants, obligations and conditions and is expected to be completed on or before October 28, 2009. Title of the Dexter Park Apartments will be vested in a joint venture (the "Joint Venture") to be formed between the Partnership and an entity controlled by Harold Brown, the treasurer and a director of NewReal, Inc., the general partner of the Partnership. The Partnership will own up to a 50 percent non-controlling equity interest in the Joint Venture.

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