10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(MARK ONE)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to _____________

001-13106 (Essex Property Trust, Inc.)

333-44467-01 (Essex Portfolio, L.P.)

(Commission File Number)

ESSEX PROPERTY TRUST, INC.

ESSEX PORTFOLIO, L.P.

(Exact name of Registrant as Specified in its Charter)

Maryland	77-0369576
(Essex Property Trust, Inc.)	(Essex Property Trust, Inc.)
California	77-0369575
(Essex Portfolio, L.P.)	(Essex Portfolio, L.P.)
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

1100 Park Place, Suite 200

San Mateo, California 94403

(Address of Principal Executive Offices including Zip Code)

(650) 655-7800

(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act: 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.0001 par value (Essex Property Trust, Inc.)	ESS	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Essex Property Trust, Inc. Yes ☒ No ☐ Essex Portfolio, L.P. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Essex Property Trust, Inc. Yes ☐ No ☒ Essex Portfolio, L.P. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Essex Property Trust, Inc. Yes ☒ No ☐ Essex Portfolio, L.P. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Essex Property Trust, Inc. Yes ☒ No ☐ Essex Portfolio, L.P. Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. 

Essex Property Trust, Inc.:

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐
						Emerging growth company	☐

Essex Portfolio, L.P.:

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒	Smaller reporting company	☐
						Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Essex Property Trust, Inc. ☐ Essex Portfolio, L.P. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Essex Property Trust, Inc. ☒ Essex Portfolio, L.P. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Essex Property Trust, Inc. Yes ☐ No ☒ Essex Portfolio, L.P. Yes ☐ No ☒

As of June 30, 2020, the aggregate market value of the voting stock held by non-affiliates of Essex Property Trust, Inc. was $14,874,979,309. The aggregate market value was computed with reference to the closing price on the New York Stock Exchange on the last trading day preceding such date. Shares of common stock held by executive officers, directors and holders of more than ten percent of the outstanding common stock have been excluded from this calculation because such persons may be deemed to be affiliates. This exclusion does not reflect a determination that such persons are affiliates for any other purposes. There is no public trading market for the common units of Essex Portfolio, L.P. As a result, the aggregate market value of the common units held by non-affiliates of Essex Portfolio, L.P. cannot be determined.

As of February 17, 2021, 64,994,503 shares of common stock ($.0001 par value) of Essex Property Trust, Inc. were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

Portions of the definitive Proxy Statement to be filed with the Securities and Exchange Commission (the "SEC") pursuant to Regulation 14A in connection with the 2021 annual meeting of stockholders of Essex Property Trust, Inc. are incorporated by reference in Part III of this Annual Report on Form 10-K. Such Proxy Statement will be filed with the SEC within 120 days of December 31, 2020.

EXPLANATORY NOTE

This report combines the annual reports on Form 10-K for the year ended December 31, 2020 of Essex Property Trust, Inc., a Maryland corporation, and Essex Portfolio, L.P., a Delaware limited partnership of which Essex Property Trust, Inc. is the sole general partner.

Unless stated otherwise or the context otherwise requires, references to the "Company," "we," "us," or "our" mean collectively Essex Property Trust, Inc. and those entities/subsidiaries owned or controlled by Essex Property Trust, Inc., including Essex Portfolio, L.P., and references to the "Operating Partnership," or "EPLP" mean Essex Portfolio, L.P. and those entities/subsidiaries owned or controlled by Essex Portfolio, L.P. Unless stated otherwise or the context otherwise requires, references to "Essex" mean Essex Property Trust, Inc., not including any of its subsidiaries.

Essex operates as a self-administered and self-managed real estate investment trust ("REIT"), and is the sole general partner of the Operating Partnership. As of December 31, 2020, Essex owned approximately 96.6% of the ownership interest in the Operating Partnership with the remaining 3.4% interest owned by limited partners. As the sole general partner of the Operating Partnership, Essex has exclusive control of the Operating Partnership's day-to-day management.

The Company is structured as an umbrella partnership REIT ("UPREIT") and Essex contributes all net proceeds from its various equity offerings to the Operating Partnership. In return for those contributions, Essex receives a number of Operating Partnership limited partnership units ("OP Units," and the holders of such OP Units, "Unitholders") equal to the number of shares of common stock it has issued in the equity offerings. Contributions of properties to the Company can be structured as tax-deferred transactions through the issuance of OP Units, which is one of the reasons why the Company is structured in the manner outlined above. Based on the terms of the Operating Partnership's partnership agreement, OP Units can be exchanged into Essex common stock on a one-for-one basis. The Company maintains a one-for-one relationship between the OP Units issued to Essex and shares of common stock.

The Company believes that combining the reports on Form 10-K of Essex and the Operating Partnership into this single report provides the following benefits:

•enhances investors' understanding of Essex and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

•eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both Essex and the Operating Partnership; and

•creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

Management operates Essex and the Operating Partnership as one business. The management of Essex consists of the same members as the management of the Operating Partnership.

All of the Company's property ownership, development, and related business operations are conducted through the Operating Partnership and Essex has no material assets, other than its investment in the Operating Partnership. Essex's primary function is acting as the general partner of the Operating Partnership. As general partner with control of the Operating Partnership, Essex consolidates the Operating Partnership for financial reporting purposes. Therefore, the assets and liabilities of Essex and the Operating Partnership are the same on their respective financial statements. Essex also issues equity from time to time and guarantees certain debt of the Operating Partnership, as disclosed in this report. The Operating Partnership holds substantially all of the assets of the Company, including the Company's ownership interests in its co-investments. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for the net proceeds from equity offerings by the Company, which are contributed to the capital of the Operating Partnership in exchange for OP Units (on a one-for-one share of common stock per OP Unit basis), the Operating Partnership generates all remaining capital required by the Company's business. These sources of capital include the Operating Partnership's working capital, net cash provided by operating activities, borrowings under its revolving credit facilities, the issuance of secured and unsecured debt and equity securities and proceeds received from disposition of certain properties and co-investments.

The Company believes it is important to understand the few differences between Essex and the Operating Partnership in the context of how Essex and the Operating Partnership operate as a consolidated company. Stockholders' equity, partners' capital and noncontrolling interest are the main areas of difference between the consolidated financial statements of Essex and those of the Operating Partnership. The limited partners of the Operating Partnership are accounted for as partners' capital in the Operating Partnership's consolidated financial statements and as noncontrolling interest in Essex's consolidated financial statements. The noncontrolling interest in the Operating Partnership's consolidated financial statements include the interest of unaffiliated partners in various consolidated partnerships and co-investment partners. The noncontrolling interest in Essex's

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consolidated financial statements include (i) the same noncontrolling interest as presented in the Operating Partnership’s consolidated financial statements and (ii) OP Unitholders. The differences between stockholders' equity and partners' capital result from differences in the equity issued at Essex and Operating Partnership levels.

To help investors understand the significant differences between Essex and the Operating Partnership, this report provides separate consolidated financial statements for Essex and the Operating Partnership; a single set of consolidated notes to such financial statements that includes separate discussions of stockholders' equity or partners' capital, and earnings per share/unit, as applicable; and a combined Management's Discussion and Analysis of Financial Condition and Results of Operations.

This report also includes separate Part II, Item 9A. Controls and Procedures sections and separate Exhibits 31 and 32 certifications for each of Essex and the Operating Partnership in order to establish that the requisite certifications have been made and that Essex and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 (the "Exchange Act") and 18 U.S.C. §1350.

In order to highlight the differences between Essex and the Operating Partnership, the separate sections in this report for Essex and the Operating Partnership specifically refer to Essex and the Operating Partnership. In the sections that combine disclosure of Essex and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and co-investments and holds assets and debt, reference to the Company is appropriate because the Company is one business and the Company operates that business through the Operating Partnership. The separate discussions of Essex and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the Company.

The information furnished in the accompanying consolidated balance sheets, statements of income, comprehensive income, equity, capital, and cash flows of the Company and the Operating Partnership reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the aforementioned consolidated financial statements for the periods and are normal and recurring in nature, except as otherwise noted.

The accompanying consolidated financial statements should be read in conjunction with the notes to such consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations herein.

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ESSEX PROPERTY TRUST, INC.

ESSEX PORTFOLIO, L.P.

2020 ANNUAL REPORT ON FORM 10-K

TABLE OF CONTENTS

Part I.		Page
Item 1.	Business	3
Item 1A.	Risk Factors	11
Item 1B.	Unresolved Staff Comments	32
Item 2.	Properties	33
Item 3.	Legal Proceedings	40
Item 4.	Mine Safety Disclosures	40
Part II.
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	41
Item 6.	Selected Financial Data	45
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	46
Item 7A.	Quantitative and Qualitative Disclosures About Market Risks	59
Item 8.	Financial Statements and Supplementary Data	60
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	61
Item 9A.	Controls and Procedures	61
Item 9B.	Other Information	62
Part III.
Item 10.	Directors, Executive Officers and Corporate Governance	63
Item 11.	Executive Compensation	63
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	63
Item 13.	Certain Relationships and Related Transactions, and Director Independence	63
Item 14.	Principal Accounting Fees and Services	63
Part IV.
Item 15.	Exhibits and Financial Statement Schedules	64
Item 16.	Form 10-K Summary	64
Signatures		S-1

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PART I

Forward-Looking Statements

•This Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Exchange Act.  Such forward-looking statements are described in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, "Forward-Looking Statements."  Actual results could differ materially from those set forth in each forward-looking statement.  Certain factors that might cause such a difference are discussed in this report, including in Item 1A, Risk Factors of this Form 10-K.

Risk Factors Summary

The following is a summary of the principal risks that could adversely affect our business, operating results, cash flows and financial conditions.

Risks Related to Our Real Estate Investments and Operations

•General real estate investment risks may adversely affect property income and values.

•Short-term leases expose us to the effects of declining market rents, and the Company may be unable to renew leases or relet units as leases expire.

•National and regional economic environments can negatively impact the Company’s liquidity and operating results.

Rent control, or other changes in applicable laws, or noncompliance with applicable laws, could adversely affect the Company's operations or expose us to liability.

•The current COVID-19 pandemic, or the future outbreak of other highly infectious or contagious diseases, and the timing and effectiveness of vaccine distribution, could materially and adversely affect our business, financial condition and results of operations.

•Acquisition of communities as well as development and redevelopment activities each involve various risks and may be delayed, not completed, and/or not achieve expected results.

•Our apartment communities may be subject to unknown or contingent liabilities which could cause us to incur substantial costs, including environmental liabilities or general uninsured losses.

•The geographic concentration of the Company’s communities and fluctuations in local markets may adversely impact the Company’s financial condition and operating results.

•The Company may experience various increased costs, including increased property taxes or costs associated with complying with legislation, to own and maintain its properties.

•Competition in the apartment community market and other housing alternatives may adversely affect operations and the rental demand for the Company’s communities.

•Investments in mortgages, mezzanine loans, subordinated debt, other real estate, and other marketable securities could adversely affect the Company’s cash flow from operations.

•The Company’s ownership of co-investments could limit the Company’s ability to control such communities and may restrict our ability to finance, sell or otherwise transfer our interests in these properties and expose us to loss of the properties if such agreements are breached by us or terminated.

•We may pursue acquisitions of other REITs and real estate companies, which may not yield anticipated results and could adversely affect our results of operations.

•Real estate investments are relatively illiquid and, therefore, the Company's ability to vary its portfolio promptly in response to changes in economic or other conditions may be limited.

•The Company may not be able to lease its retail/commercial space consistent with its projections or at market rates.

•Climate change may adversely affect our business.

•Accidental death or severe injuries at our communities due to fires, floods, other natural disasters or hazards could adversely affect our business and results of operations.

•Adverse changes in laws may adversely affect the Company's liabilities and/or operating costs relating to its properties and its operations.

•Failure to succeed in new markets may limit the Company’s growth.

•Our business and reputation depend on our ability to continue providing high quality housing and consistent operation of our communities, the failure of which could adversely affect our business, financial condition and results of operations.

•We rely on information technology in our operations, and any material failure, inadequacy, interruption or breach of the Company’s privacy or information security systems, or those of our vendors or other third parties, could materially adversely affect the Company’s business and financial condition.

•Reliance on third party software providers to host systems critical to our operations and to provide the Company with data.

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Risks Relating to Our Indebtedness and Financings

•Capital and credit market conditions may affect the Company’s access to sources of capital and/or the cost of capital, which could negatively affect the Company’s business, results of operations, cash flows and financial condition. Debt financing has inherent risks, and may result in insufficient cash flow to service debt and fund distributions.

•The indentures governing our notes and other financing arrangements contain restrictive covenants that limit our operating flexibility.

•A downgrade in the Company's investment grade credit rating could materially and adversely affect its business and financial condition.

•The Company could be negatively impacted by the condition of Fannie Mae or Freddie Mac and by changes in government support for multifamily housing.

Risks Related to Personnel

•The Company depends on its key personnel, whose continued service is not guaranteed.

•The Company’s Chairman is involved in other real estate activities and investments, which may lead to conflicts of interest.

•The influence of executive officers, directors and significant stockholders may be detrimental to holders of common stock.

Risks Related to Taxes and REIT Status

•Failure to generate sufficient revenue or other liquidity needs could limit cash flow available for distributions to Essex's stockholders or the Operating Partnership's unitholders.

•The Maryland Business Combination Act and the Company’s governing documents may delay, defer or prevent a transaction or change in control of the Company that might involve a premium price for the Company's stock or otherwise be in the best interest of our stockholders.

•Loss of the Company's REIT status would have significant adverse consequences to the Company and the value of the Company's common stock.

•The tax imposed on REITs engaging in "prohibited transactions" may limit the Company’s ability to engage in transactions which would be treated as sales for federal income tax purposes.

•Dividends payable by REITs may be taxed at higher rates than dividends of non-REIT corporations, which could reduce the net cash received by stockholders and may be detrimental to the Company’s ability to raise additional funds through any future sale of its stock.

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Item 1. Business

OVERVIEW

Essex Property Trust, Inc. ("Essex"), a Maryland corporation, is an S&P 500 company that operates as a self-administered and self-managed real estate investment trust ("REIT"). Essex owns all of its interest in its real estate and other investments directly or indirectly through Essex Portfolio, L.P. (the "Operating Partnership" or "EPLP"). Essex is the sole general partner of the Operating Partnership and as of December 31, 2020, had an approximately 96.6% general partnership interest in the Operating Partnership. In this report, the terms the "Company," "we," "us," and "our" also refer to Essex Property Trust, Inc., the Operating Partnership and those entities/subsidiaries owned or controlled by Essex and/or the Operating Partnership.

Essex has elected to be treated as a REIT for federal income tax purposes, commencing with the year ended December 31, 1994. Essex completed its initial public offering on June 13, 1994. In order to maintain compliance with REIT tax rules, the Company utilizes taxable REIT subsidiaries for various revenue generating or investment activities. All taxable REIT subsidiaries are consolidated by the Company for financial reporting purposes.

The Company is engaged primarily in the ownership, operation, management, acquisition, development and redevelopment of predominantly apartment communities, located along the West Coast of the United States. As of December 31, 2020, the Company owned or had ownership interests in 246 operating apartment communities, aggregating 60,272 apartment homes, excluding the Company's ownership in preferred equity co-investments, loan investments, one operating commercial building, and a development pipeline comprised of three consolidated projects and three unconsolidated joint venture projects aggregating 1,853 apartment homes (collectively, the "Portfolio").

The Company’s website address is http://www.essex.com. The Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports, and the Proxy Statement for its Annual Meeting of Stockholders are available, free of charge, on its website as soon as practicable after the Company files the reports with the U.S. Securities and Exchange Commission ("SEC"). The information contained on the Company's website shall not be deemed to be incorporated into this report.

BUSINESS STRATEGIES

The following is a discussion of the Company’s business strategies in regards to real estate investment and management.

Business Strategies

Research Driven Approach to Investments – The Company believes that successful real estate investment decisions and portfolio growth begin with extensive regional economic research and local market knowledge. The Company continually assesses markets where the Company operates, as well as markets where the Company considers future investment opportunities by evaluating markets and focusing on the following strategic criteria:

•Major metropolitan areas that have regional population in excess of one million;

•Constraints on new supply driven by: (i) low availability of developable land sites where competing housing could be economically built; (ii) political growth barriers, such as protected land, urban growth boundaries, and potential lengthy and expensive development permit processes; and (iii) natural limitations to development, such as mountains or waterways;

•Rental demand enhanced by affordability of rents relative to costs of for-sale housing; and

•Housing demand based on job growth, proximity to jobs, high median incomes and the quality of life including related commuting factors.

Recognizing that all real estate markets are cyclical, the Company regularly evaluates the results of its regional economic, and local market research, and adjusts the geographic focus of its portfolio accordingly. The Company seeks to increase its portfolio allocation in markets projected to have the strongest local economies and to decrease allocations in markets projected to have declining economic conditions. Likewise, the Company also seeks to increase its portfolio allocation in markets that have attractive property valuations and to decrease allocations in markets that have inflated valuations and low relative yields.

Property Operations – The Company manages its communities by focusing on activities that may generate above-average rental growth, tenant retention/satisfaction and long-term asset appreciation.  The Company intends to achieve this by utilizing the strategies set forth below:

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•Property Management – Oversee delivery and quality of the housing provided to our tenants and manage the properties financial performance.

•Capital Preservation – The Company's asset management services are responsible for the planning, budgeting and completion of major capital improvement projects at the Company’s communities.

•Business Planning and Control – Comprehensive business plans are implemented in conjunction with significant investment decisions. These plans include benchmarks for future financial performance based on collaborative discussions between on-site managers, the operations leadership team, and senior management.

•Development and Redevelopment – The Company focuses on acquiring and developing apartment communities in supply constrained markets, and redeveloping its existing communities to improve the financial and physical aspects of the Company’s communities.

CURRENT BUSINESS ACTIVITIES

Acquisitions of Real Estate Interests

Acquisitions are an important component of the Company’s business plan. The table below summarizes acquisition activity for the year ended December 31, 2020 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Ownership	Quarter in 2020	Purchase Price
CPPIB Portfolio(1)	Various	2,020	100	%	EPLP	Q1	$	463.4
Total 2020		2,020					$	463.4

(1)In January 2020, the Company purchased the joint venture partner's 45% membership interest in a land parcel and six communities representing 2,020 apartment homes based on a total valuation of approximately $1.0 billion.

Dispositions of Real Estate

As part of its strategic plan to own quality real estate in supply-constrained markets, the Company continually evaluates all of its communities and sells those which no longer meet its strategic criteria. The Company may use the capital generated from the dispositions to invest in higher-return communities or other real estate investments, or to repay debts. The Company believes that the sale of these communities will not have a material impact on its future results of operations or cash flows nor will their sale materially affect its ongoing operations. In general, the Company seeks to offset the dilutive impact on long-term earnings and funds from operations from these dispositions through the positive impact of reinvestment of proceeds.

In June 2020, the Company completed a portfolio sale which consisted of two apartment communities with 429 apartment homes, One South Market and Museum Park, both located in San Jose, CA, for a total contract price of $232.0 million, resulting in a gain of $16.6 million for the Company.

In July 2020, the Company sold Delano, a 126 apartment home community located in Redmond, WA, for a total contract price of $51.5 million. The Company recognized a $22.7 million gain on sale.

In October 2020, the Company sold 416 on Broadway, a 115 apartment home community located in Glendale, CA, for a total contract price of $60.0 million. The Company recognized a $25.7 million gain on sale.

Development Pipeline

The Company defines development projects as new communities that are being constructed, or are newly constructed and are in a phase of lease-up and have not yet reached stabilized operations. As of December 31, 2020, the Company's development pipeline was comprised of three consolidated projects under development and three unconsolidated joint venture projects under development aggregating 1,853 apartment homes, with total incurred costs of $948.0 million, and estimated remaining project costs of approximately $174.0 million, $118.0 million of which represents the Company's estimated remaining costs, for total estimated project costs of $1.1 billion.

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The Company defines predevelopment projects as proposed communities in negotiation or in the entitlement process with an expected high likelihood of becoming entitled development projects. As of December 31, 2020, the Company had various consolidated predevelopment projects. The Company may also acquire land for future development purposes or sale.

The following table sets forth information regarding the Company’s development pipeline ($ in millions):

				As of
				12/31/2020
		Essex	Estimated	Incurred		Estimated
Development Pipeline	Location	Ownership%	Apartment Homes	Project Cost (1)		Project Cost(1)
Development Projects - Consolidated
Station Park Green - Phase IV	San Mateo, CA	100%	107	66		94
Mylo	Santa Clara, CA	100%	476	213		226
Wallace on Sunset (2)	Hollywood, CA	100%	200	97		116
Total Development Projects - Consolidated			783	376		436
Development Projects - Joint Venture
Patina at Midtown	San Jose, CA	50%	269	135		148
500 Folsom (3)	San Francisco, CA	50%	537	400		415
Scripps Mesa Apartments (3)	San Diego, CA	51%	264	16		102
Total Development Projects - Joint Venture			1,070	551		665
Predevelopment Projects - Consolidated
Other Projects	Various	100%	—	21		21
Total - Consolidated Predevelopment Projects			—	21		21
Grand Total - Development and Predevelopment Pipeline			1,853	$	948	$	1,122

(1)Includes costs related to the entire project, including both the Company's and joint venture partners' costs. Includes incurred costs and estimated costs to complete these development projects. For predevelopment projects, only incurred costs are included in estimated costs.

(2)Incurred and estimated project costs for this development is net of cost incurred on the adjacent theatre at the property.

(3)Estimated project cost for this development is net of a projected value for low-income housing tax credit proceeds and the value of the tax exempt bond structure.

Redevelopment Pipeline

The Company defines redevelopment communities as existing properties owned or recently acquired, which have been targeted for additional investment by the Company with the expectation of increased financial returns through property improvement.  During redevelopment, apartment homes may not be available for rent and, as a result, the related apartment community may have less than stabilized operations. As of December 31, 2020, the Company had ownership interests in three major redevelopment communities aggregating 1,112 apartment homes with estimated redevelopment costs of $109.1 million, of which approximately $4.5 million remains to be expended.

Long Term Debt

During 2020, the Company made regularly scheduled principal payments and loan payoffs of $316.2 million to its secured mortgage notes payable at an average interest rate of 4.4%.

In February 2020, the Operating Partnership issued $500.0 million of senior unsecured notes due on March 15, 2032, with a coupon rate of 2.650% (the "2032 Notes"), which are payable on March 15 and September 15 of each year, beginning on September 15, 2020. The 2032 Notes were offered to investors at a price of 99.628% of par value. The 2032 Notes are general

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unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay indebtedness under its unsecured lines of credit, which had been used to fund the buyout of the Canada Pension Plan Investment Board's ("CPPIB" or "CPP") 45.0% joint venture interests, as well as repay $100.3 million of secured debt during the quarter that ended March 31, 2020. In June 2020, the Operating Partnership issued an additional $150.0 million of the 2032 Notes at a price of 105.660% of par value, plus accrued interest from February 2020 up to, but not including, the date of delivery of the additional notes, with an effective yield of 2.093%. These additional notes have substantially identical terms as the 2032 Notes issued in February 2020. The proceeds were used to repay indebtedness under the Company's unsecured credit facilities and for other general corporate and working capital purposes.

In April 2020, the Company obtained a $200.0 million unsecured term loan with a one-year maturity and two 12-month extension options, exercisable at the Company’s option. The unsecured term loan bears a variable interest rate of the London Interbank Offered Rate ("LIBOR") plus 1.20% and the proceeds were used to repay all remaining consolidated debt maturing in 2020.

In August 2020, the Operating Partnership issued $600.0 million of senior unsecured notes, consisting of $300.0 million aggregate principal amount due on January 15, 2031 with a coupon rate of 1.650% (the “2031 Notes”) and $300.0 million aggregate principal amount due on September 1, 2050 with a coupon rate of 2.650% (the “2050 Notes” and together with the 2031 Notes, the “Notes”). The 2031 Notes were offered to investors at a price of 99.035% of par value and the 2050 Notes at 99.691% of par value. Interest is payable on the 2031 Notes semiannually on January 15 and July 15 of each year, beginning on January 15, 2021. Interest is payable on the 2050 Notes semiannually on March 1 and September 1 of each year, beginning on March 1, 2021. The Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay debt maturities, including certain unsecured private placement notes, secured mortgage notes, and to fund the redemption of $300.0 million aggregate principal amount of

its outstanding 3.625% senior unsecured notes due August 2022, and for other general corporate and working capital purposes.

Bank Debt

As of December 31, 2020, Moody’s Investor Service and Standard and Poor's ("S&P") credit agencies rated Essex Property Trust, Inc. and Essex Portfolio, L.P. Baa1/Stable and BBB+/Stable, respectively.

At December 31, 2020, the Company had two unsecured lines of credit aggregating $1.24 billion. The Company's $1.2 billion credit facility had an interest rate of LIBOR plus 0.825%, with a scheduled maturity date in December 2023 with one 18-month extension, exercisable at the Company's option. The Company's $35.0 million working capital unsecured line of credit had an interest rate of LIBOR plus 0.825%, with a scheduled maturity date in February 2023.

Equity Transactions

During the year ended December 31, 2020, the Company did not issue any shares of common stock through its equity distribution program. As of December 31, 2020, there were no outstanding forward sale agreements, and $826.6 million of shares remain available to be sold under this program.

During the year ended December 31, 2020, the Company repurchased and retired 1,197,190 shares totaling $269.3 million, including commissions. In each of May and December 2020, the board of directors approved the replenishment of the stock repurchase plan such that, as of each of those dates, the Company had $250.0 million of purchase authority remaining under the replenished plan. As a result, as of December 31, 2020, the Company had $223.6 million of purchase authority remaining under its $250.0 million stock repurchase plan.

Co-investments

The Company has entered into, and may continue in the future to enter into, joint ventures or partnerships (including limited liability companies) through which we own an indirect economic interest in less than 100% of the community or land or other investments owned directly by the joint venture or partnership. For each joint venture the Company holds a non-controlling interest in the venture and earns customary management fees and may earn development fees, asset property management fees, and a promote interest.

The Company has also made, and may continue in the future to make, preferred equity investments in various multifamily development projects. The Company earns a preferred rate of return on these investments.

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HUMAN CAPITAL MANAGEMENT

Company Overview and Values

The Company is headquartered in San Mateo, CA, and has regional offices in Woodland Hills, CA; Irvine, CA; San Diego, CA and Bellevue, WA. As of December 31, 2020, the Company had 1,799 employees, ninety-eight percent (98%) of which were full-time employees, and of which 1,483 employees worked in operations and 316 were employed in the corporate offices. The Company's mission is to create quality communities in premier locations and it is critical to the Company's mission that it attracts, trains and retains a talented and diverse team by providing a better place to work and significant opportunities for professional growth. The Company's culture supports its mission and is guided by its core values: to act with integrity, to care about what matters, to do right with urgency, to lead at every level and to seek fairness. The Company seeks to reinforce those values within its workforce.

Workplace Diversity

The Company undertakes a wide spectrum of initiatives to support a diverse workforce particularly in regards to ethnic, gender and age diversity as well as fair treatment of all our associates. The Company has one of the most diverse workforces among its peers in the real estate industry. As of December 31, 2020, the Company's workforce was approximately 44% Hispanic or Latino, 29% White, 12% Asian, 7% Black or African American, 1% Native Hawaiian or other Pacific Islander, 1% American Indian or Alaska Native, and 6% two or more races. As of December 31, 2020, the Company's workforce was 42% female and 58% male, of which corporate associates were 54% female and on-site operational associates were 40% female. The Company had 365 females in positions of manager or higher, representing 67% of managerial positions. The tables below detail the gender representation by position in the Company and the age diversity of its workforce.

The Company recently implemented additional training programs as well as employee committees to strengthen and further promote diversity, equal opportunity, and fair treatment for all Company associates. In 2019, the Company formed the Diversity and Inclusion Committee, whose chairperson reports directly to the CEO on the Committee’s activities, and further expanded the initiatives and members in 2020. In 2020 the Company formed Women at Essex, an employee-led affinity group, fostering a sense of community and inclusion for a diverse mix of women and men at the Company through discussions and activities that are intended to engage, educate, enable, and empower the Company's employees. All associates are offered training aimed at preventing workplace harassment, including harassment based on age, gender or ethnicity. In 2020, the Company provided 2,850 hours of training covering the foundations of Diversity, Equity & Inclusion and awareness of unconscious bias in the workplace. Additionally, the Company implemented Diversity, Equity & Inclusion listening sessions where associates were invited to engage with one another through sharing personal and professional experiences involving diversity, equity, and inclusion, fostering a more positive and inclusive environment throughout the Company.

The Company is committed to pay equity and conducts a pay equity analysis on an annual basis. The Company's pay equity analysis for 2020 indicated a zero percent (0%) pay gap between men and women.

The Company was awarded the National Association of Real Estate Investment Trusts’ (“NAREIT"), which is the leading REIT industry association, Diversity and Inclusion Corporate Recognition Award for 2020. This annual recognition is designed to recognize strong commitments and outstanding contributions to the advancement of diversity and inclusion within our Company, our professional network, and in the REIT community

Gender Representation by Position	2020
	Male #	Female #	Male %	Female %
Corporate - Top Executives, VPs, Assistant VPs, Directors, & Managers	63	65	49%	51%
Corporate - Below manager position	82	106	44%	56%
Field - Regional Directors/Managers, Community Managers and Assistant Managers	114	299	28%	72%
Field - Leasing Specialists, Leasing Managers, Relationship Reps, Bookkeepers	109	191	36%	64%
Field - Maintenance Supervisors and Techs	562	10	98%	2%
Field - Porter, Landscaper, Painter, Security Guard, Amenities Attendant	110	88	56%	44%

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Total Workforce by Age Group	2020
	#	%
<= 25	180	10%
26-35	544	30%
36-45	426	24%
46-55	375	21%
56-65	232	13%
> 65	42	2%

Training and Development

The Company values leadership at every level and demonstrates such value with respect to its associates by providing opportunities for all associates to develop personal and professional skills and by offering programs to encourage employee retention and advancement. In 2020, over 50,000 hours of training and development programs were provided to associates, with our investment in training totaling almost $400,000. These programs include: leadership training, communication training, individual learning plans, Community Manager and Maintenance Manager training, The Berkeley Executive Leadership Program, and mentorship programs. Since its introduction in 2018, over 1,500 on-site associates have participated in our Steps to Success career development program, a learning program that supports associates with their career growth by providing the fundamental knowledge required for success in a particular specialty. Additionally, the Company provides its associates with outside educational benefits by offering an annual $3,000 tuition reimbursement to further support professional growth. To identify, retain and reward top performers, the Company offers a tenure program, which involves a cash gift for every five years of service, as well as excellence awards and a spot bonus recognition program to reward associates for good teamwork, good ideas and good service. The Company encourages internal promotions and hiring for open positions. In 2020, the Company promoted 10% of its employees to higher positions in the Company. Additionally, the Company engages in succession planning for its leadership and managerial positions and its executive team identifies and mentors the Company's top talent in order to ensure strong leadership at the Company for the future.

Employee Well-Being

The Company's compensation and benefits program and safety practices further reinforce its commitment to investing in the well-being of its associates while ensuring that its employees are fairly incentivized to ensure fulfillment of the Company’s mission. The Company offers competitive compensation and a standard suite of benefits, including health insurance, a retirement plan with a $6,000 annual matching benefit, life and disability coverage, and commuter benefits. Additionally, the Company offers a housing discount for associates that live at Company communities, and additionally offers retirement support, associate discount programs, and health benefit credits for participation in wellness programs. The Company engages in an annual compensation study to ensure that its compensation is aligned with market standards and that the Company is appropriately compensating its top performers. In 2019, the Company accomplished its goal of raising the minimum wage for all associates to $15 per hour.

Providing a safe working environment and ensuring employee safety is imperative to the Company. The Company has safety policies in place that coincide with an Injury & Illness Prevention Program, which seeks to prevent workplace accidents and protect the health and safety of the Company's associates. In 2020, the Company provided safety training to Community Managers, Maintenance Supervisors, and Maintenance Technicians on topics including Industrial Safety and Health, Confined Space Awareness, Electrical Safety and Protection, Active Shooter Event, Fire Extinguishing, Safety Data Sheets, Safe Lifting the E-Way, Ladder Safety, and Heat Stress in the Workplace.

As an essential business operating in 2020, the Company's on-site teams supported its residents by providing administrative, operational and maintenance assistance during the COVID-19 pandemic. In order to best protect and support the Company's associates working on-site, the Company spent over $4.1 million on new COVID-19 related protocols and other costs. The Company undertook various COVID-19 safety measures, including implementing work from home where possible, purchasing personal protective equipment and establishing physical distancing and other health safety procedures for its on-site employees, providing paid leave to employees affected by COVID-19, increasing cleaning protocols at its sites and offices, prohibiting all non-essential work-related travel, requiring masks to be worn at all offices and when entering resident homes, and providing regular communication about COVID-19 impacts and protocols to its associates. Keeping the Company's associates healthy and safe continues to be critical, and the Company hopes its actions contributed toward minimizing the impact of the COVID-19 pandemic.

Community and Social Impact

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The Company believes volunteering can create positive change in the communities where our associates live and work and that the Company's commitment to giving back helps it attract and retain associates. The Company's Essex Volunteer Program is aimed at supporting and encouraging eligible associates to become actively involved in their communities through the Company's support of charity initiatives and offering paid hours for volunteer time. Additionally, in 2020 the Company established the Essex Cares program for the purpose of supporting the Company’s residents and communities that are experiencing financial hardships caused by the COVID-19 pandemic

Essex raised over $400,000 through employee and director contributions and the Company committed $3,000,000, raising a total fund in 2020 of $3.4 million and began making donations to our residents in need. Additionally, in 2020, Essex established an Employee Emergency Relief Program, which is designed to provide contributions to employees and families experiencing hardships such as a death or disability.

Employee Engagement

In order to engage and promote communication with our associates and solicit meaningful feedback on our efforts to create a positive work environment, the Company has issued engagement surveys to all associates annually, and has begun transitioning to a shorter and more frequent pulse survey format in 2020. The results of the 2020 survey indicate that 93% of surveyed associates consider that their day-to-day work directly impacts the Company’s mission and vision, 91% believe that their opinions and ideas matter at Essex, and 93% feel that the Company supports diversity, equity and inclusion in the workplace.

INSURANCE

The Company purchases general liability and property insurance coverage, including loss of rent, for each of its communities. The Company also purchases limited earthquake, terrorism, environmental and flood insurance. There are certain types of losses which may not be covered or could exceed coverage limits. The insurance programs are subject to deductibles and self-insured retentions in varying amounts. The Company utilizes a wholly owned insurance subsidiary, Pacific Western Insurance LLC ("PWI") to self-insure certain earthquake and property losses. As of December 31, 2020, PWI had cash and marketable securities of approximately $152.8 million, and is consolidated in the Company's financial statements.

All of the Company's communities are located in areas that are subject to earthquake activity. The Company evaluates its financial loss exposure to seismic events by using actuarial loss models developed by the insurance industry and in most cases property vulnerability analysis based on structural evaluations by seismic consultants. The Company manages this exposure, where considered appropriate, desirable, and cost-effective, by upgrading properties to increase their resistance to forces caused by seismic events, by considering available funds and coverages provided by PWI and/or by purchasing seismic insurance. In most cases the Company also purchases limited earthquake insurance for certain properties owned by the Company's co-investments.  

In addition, the Company carries other types of insurance coverage related to a variety of risks and exposures.  

Based on market conditions, the Company may change or potentially eliminate insurance coverages, or increase levels of self-insurance. Further, the Company may incur losses, which could be material, due to uninsured risks, deductibles and self-insured retentions, and/or losses in excess of coverage limits.

COMPETITION

There are numerous housing alternatives that compete with the Company’s communities in attracting tenants. These include other apartment communities, condominiums and single-family homes. If the demand for the Company’s communities is reduced or if competitors develop and/or acquire competing housing, rental rates and occupancy may drop which may have a material adverse effect on the Company’s financial condition and results of operations.

The Company faces competition from other REITs, businesses and other entities in the acquisition, development and operation of apartment communities. Some competitors are larger and have greater financial resources than the Company. This competition may result in increased costs of apartment communities the Company acquires and/or develops.

WORKING CAPITAL

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The Company believes that cash flows generated by its operations, existing cash and cash equivalents, marketable securities balances, availability under existing lines of credit, access to capital markets and the ability to generate cash from the disposition of real estate are sufficient to meet all of its reasonably anticipated cash needs during 2021.

The timing, source and amounts of cash flows provided by financing activities and used in investing activities are sensitive to changes in interest rates, stock price, and other fluctuations in the capital markets environment, which can affect the Company’s plans for acquisitions, dispositions, development and redevelopment activities.

ENVIRONMENTAL CONSIDERATIONS

See the discussion under the caption, "Risks Related to Real Estate Investments and Our Operations - The Company’s Portfolio may have environmental liabilities" in Item 1A, Risk Factors, for information concerning the potential effect of environmental regulations on its operations, which discussion is incorporated by reference into this Item 1.

OTHER MATTERS

Certain Policies of the Company

The Company intends to continue to operate in a manner that will not subject it to regulation under the Investment Company Act of 1940. The Company may in the future (i) issue securities senior to its common stock, (ii) fund acquisition activities with borrowings under its line of credit and (iii) offer shares of common stock and/or units of limited partnership interest in the Operating Partnership or affiliated partnerships as partial consideration for property acquisitions. The Company from time to time acquires partnership interests in partnerships and joint ventures, either directly or indirectly through subsidiaries of the Company, when such entities’ underlying assets are real estate.

The Company invests primarily in apartment communities that are located in predominantly coastal markets within Southern California, Northern California, and the Seattle metropolitan area. The Company currently intends to continue to invest in apartment communities in such regions. However, these practices may be reviewed and modified periodically by management.

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ITEM 1A: RISK FACTORS

For purposes of this section, the term "stockholders" means the holders of shares of Essex Property Trust, Inc.’s common stock. Set forth below are the risks that we believe are material to Essex Property Trust, Inc.’s stockholders and Essex Portfolio, L.P.’s unitholders. You should carefully consider the following factors in evaluating our Company, our properties and our business.

Our business, operating results, cash flows and financial condition are subject to various risks and uncertainties, including, without limitation, those set forth below, any one of which could cause our actual operating results to vary materially from recent results or from our anticipated future results.

Risks Related to Our Real Estate Investments and Operations

General real estate investment risks may adversely affect property income and values. Real estate investments are subject to a variety of risks. If the communities and other real estate investments do not generate sufficient income to meet operating expenses, including debt service and capital expenditures, cash flow and the ability to make distributions to Essex's stockholders or the Operating Partnership's unitholders will be adversely affected. Income from the communities may be further adversely affected by, among other things, the following factors:

•changes in the general or local economic climate, including layoffs, plant closings, industry slowdowns, relocations of significant local employers and other events negatively impacting local employment rates and wages and the local economy;

•local economic conditions in which the communities are located, such as oversupply of housing or a reduction in demand for rental housing;

•adverse economic or market conditions due to the COVID-19 pandemic leading to a temporary or permanent move by tenants and/or prospective tenants from locations in which our communities are located;

•the attractiveness and desirability of our communities to tenants, including, without limitation, the size and amenity offerings of our units, our technology offerings and our ability to identify and cost effectively implement new, relevant technologies, and to keep up with constantly changing consumer demand for the latest innovations, including any increased requirements due to the significant increase in the number of people who continue to “work from home”;

•inflationary environments in which the costs to operate and maintain communities increase at a rate greater than our ability to increase rents, or deflationary environments where we may be exposed to declining rents more quickly under our short-term leases;

•competition from other available housing alternatives;

•changes in rent control or stabilization laws or other laws regulating housing and other increasing regulations on people and businesses in locations where our communicates are located;

•the Company’s ability to provide for adequate maintenance and insurance;

•declines in the financial condition of our tenants, which may make it more difficult for us to collect rents from some tenants;

•any decline in or tenants' perceptions of the safety, convenience and attractiveness of our communities and the neighborhoods where they are located; and

•changes in interest rates and availability of financing.

As leases at the communities expire, tenants may enter into new leases on terms that are less favorable to the Company. Income and real estate values also may be adversely affected by such factors as applicable laws, including, without limitation, the Americans with Disabilities Act of 1990 (the "Disabilities Act"), Fair Housing Amendment Act of 1988 (the "FHAA"), permanent and temporary rent control laws, rent stabilization laws, other laws regulating housing that may prevent the Company from raising rents to offset increased operating expenses, and tax laws.

Short-term leases expose us to the effects of declining market rents, and the Company may be unable to renew leases or relet units as leases expire. Substantially all of our apartment leases are for a term of one year or less. If the Company is unable to promptly renew the leases or relet the units, or if the rental rates upon renewal or reletting are significantly lower than expected rates, then the Company’s results of operations and financial condition will be adversely affected. With these short term leases, our rental revenues are impacted by declines in market rents more quickly than if our leases were for longer terms.

National and regional economic environments can negatively impact the Company’s liquidity and operating results. The Company's forecast for the national economy assumes growth of the gross domestic product of the national economy and the economies of the west coast states. In the event of a recession or other negative economic effects, including as a result of the COVID-19 pandemic, the Company could incur reductions in rental rates, occupancy levels, property valuations and increases in operating costs such as advertising and turnover expenses. Any such recession or similar event may affect consumer confidence and spending and negatively impact the volume and pricing of real estate transactions, which could negatively affect

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the Company’s liquidity and its ability to vary its portfolio promptly in response to changes to the economy. Furthermore, if residents do not experience increases in their income, they may be unable or unwilling to pay rent increases, and delinquencies in rent payments and rent defaults may increase.

Rent control, or other changes in applicable laws, or noncompliance with applicable laws, could adversely affect the Company's operations or expose us to liability. The Company must own, operate, manage, acquire, develop and redevelop its properties in compliance with numerous federal, state and local laws and regulations, some of which may conflict with one another or be subject to limited judicial or regulatory interpretations. These laws and regulations may include zoning laws, building codes, rent control or stabilization laws, laws benefiting disabled persons, federal, state and local tax laws, landlord tenant laws, environmental laws, employment laws, immigration laws and other laws regulating housing or that are generally applicable to the Company's business and operations. Noncompliance with laws could expose the Company to liability. If the Company does not comply with any or all of these requirements, it may have to pay fines to government authorities or damage awards to private litigants, and/or may have to decrease rents in order to comply with such requirements. The Company does not know whether these requirements will change or whether new requirements will be imposed. Changes in, or noncompliance with, these regulatory requirements could require the Company to make significant unanticipated expenditures to address noncompliance, which could have a material adverse effect on the Company's financial condition, results of operations or cash flows.

In addition, rent control or rent stabilization laws and other regulatory restrictions may limit our ability to increase rents and pass through new or increased operating costs to our tenants. There has been a recent increase in municipalities, including those in which we own properties, considering or being urged by advocacy groups to consider rent control or rent stabilization laws and regulations or take other actions which could limit our ability to raise rents based solely on market conditions. These initiatives and any other future enactments of rent control or rent stabilization laws or other laws regulating multifamily housing, as well as any lawsuits against the Company arising from such rent control or other laws, may reduce rental revenues or increase operating costs. Such laws and regulations limit our ability to charge market rents, increase rents, evict tenants or recover increases in our operating expenses and could reduce the value of our communities or make it more difficult for us to dispose of properties in certain circumstances. Expenses associated with our investment in these communities, such as debt service, real estate taxes, insurance and maintenance costs, are generally not reduced when circumstances cause a reduction in rental income from the community. Furthermore, such regulations may negatively impact our ability to attract higher-paying tenants to such communities.

The current COVID-19 pandemic, or the future outbreak of other highly infectious or contagious diseases, and the timing and effectiveness of vaccine distribution, could materially and adversely affect our business, financial condition and results of operations. The outbreak of COVID-19, which is present in nearly all regions around the world, including the United States and the specific regions in which our apartment communities are located, has created considerable instability and disruption in the U.S. and world economies. Considerable uncertainty still surrounds COVID-19, including when the pandemic will conclude, how quickly vaccines can be safely and widely distributed, the effectiveness of such vaccines, and the potential short-term and long-term effects, including but not limited to shifts in consumer housing demand based on geography, affordability, housing type (e.g. multi-family vs. single-family) and unit type (e.g. studio vs. multi-bedroom), mainly resulting from the paradigm shift of work culture, the decentralization of corporate headquarters and the success of “work from home” models. Moreover, local, state and national measures taken to limit the spread of COVID-19, including “social distancing” and other restrictions on travel, congregation and business operations have already resulted in significant negative economic impacts. The prolonged impact of COVID-19 on the U.S. and world economies remains uncertain, but has resulted in increased health issues and mortality rates, increased unemployment, and a world-wide economic downturn, the duration and scope of which cannot currently be predicted. The extent to which the Company’s financial condition or operating results will continue to be affected by the COVID-19 pandemic will largely depend on future demand and developments, which are highly uncertain and cannot be accurately predicted.

The Company’s operating results depend, in large part, on revenues derived from leasing space in our apartment communities to residential tenants and the ability of tenants to generate sufficient income to pay their rents in a timely manner. The market and economic challenges created by the COVID-19 pandemic, and measures implemented to prevent its spread, have, and may continue to, adversely affect our returns and profitability. As a result, our ability to make distributions to Essex’s stockholders and the Operating Partnership’s unitholders may be compromised and we could experience volatility with respect to the market value of our properties and common stock and Operating Partnership units. The spread of COVID-19 has resulted in increases in unemployment and mass layoffs, and some tenants have experienced deteriorating financial conditions and are unwilling or unable to pay all or part of their rent on a timely basis, or at all, and, the continued spread of COVID-19 as well as a sustained economic downturn may result in further increases or sustainment of these situations. In some cases, we may be legally required to or otherwise agree to restructure tenants’ rent obligations, and may not be able to do so on terms as favorable to us as those currently in place. Furthermore, various city, county and state laws restricting rent increases in times of emergency

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have come into effect in connection with the COVID-19 pandemic, and numerous state, local, federal and industry-initiated efforts have and may continue to affect our ability to collect rent or enforce remedies for the failure to pay rent, including, among others, limitations or prohibitions on evicting tenants unwilling or unable to pay rent and prohibitions on the ability to collect unpaid rent during certain timeframes. Additionally, eviction moratoriums have passed in various formats at every level of government and while the Company strives to comply, given some of the conflicting standards and unclear requirements, strict compliance might be difficult. Some residents’ views about their obligations to pay rent, even when financially capable of meeting their rent obligation, have shifted away from viewing rent as a primary and necessary financial obligation, and this shift may continue or worsen as a result of the eviction moratoriums and the various laws affecting our abilities to collect rent. In the event of tenant nonpayment, default or bankruptcy, we may incur costs in protecting our investment and re-leasing our property, and have limited ability to renew existing leases or sign new leases at projected rents.

Our properties may also incur significant costs or losses related to legislative mandates, including shelter-in-place orders, business shut-downs, quarantines, infection or other related factors, which may result in a negative impact on our occupancy levels. For example, many companies initially required, and now are continuing to allow or require, employees to “work from home” for an extended period of time, causing some tenants to move away from the urban centers temporarily or permanently. Some businesses have been ordered to temporarily shut down, such as indoor dining, and many have permanently closed due to deteriorating economic conditions, which has contributed to the shuttering of some commercial spaces in downtown areas, and the temporary, or possibly permanent, deterioration of neighborhoods in and around some of our urban communities, which may be further worsened by increases in homelessness and crime as a result of the effects of the pandemic on some individuals and communities. Moreover, we typically conduct aspects of our leasing activity on-site at our apartment communities. Reductions in the ability and willingness of prospective residents to visit our communities due to the COVID-19 pandemic could reduce rental revenue and ancillary operating revenue produced by our properties. Additionally, in connection with an outbreak that directly impacts one or more of our corporate offices or apartment communities, we may experience negative publicity and/or an unwillingness of prospective residents to visit or ultimately choose to live in our communities, which could directly affect our rental revenue. In addition, we have incurred costs associated with protecting our employees and residents, including the purchase of personal protective equipment and disinfecting our properties, and those costs may continue to increase. There may also be an increased risk of material litigation due to the effects of the COVID-19 pandemic, including litigation brought by our residents or employees. To the extent our management or personnel are impacted in significant numbers by the COVID-19 pandemic and are not available or allowed to conduct work, our business and operating results may be negatively impacted. Additionally, our corporate offices remain closed as we have instituted “work from home” measures for our corporate associates, which may impact productivity and our employees’ overall mental health.

Additionally, market fluctuations as a result of the COVID-19 pandemic may affect our ability to obtain necessary funds for our operations from current lenders or new borrowings. We may be unable to obtain financing for the acquisition of investments or re-financing for existing assets on satisfactory terms, or at all. In addition, moratoriums on construction and macro-economic factors have caused some construction delays and may cause construction contractors to be unable to perform and governmental inspections and approvals to be delayed or postponed, which may cause the delivery date of certain development projects or investments in third-party development projects to be materially extended. Market fluctuations and construction delays experienced by the Company’s third-party mezzanine loan borrowers and preferred equity investment sponsors may also negatively impact their ability to repay the Company. Further, while the Company carries general liability, pollution, and property insurance along with other insurance policies that may provide some coverage for any losses or costs incurred in connection with the COVID-19 pandemic, given the novelty of the issue and the scale of losses incurred throughout the world, there is no guarantee that we will be able to recover all or any portion of our losses and costs under these policies. We may be additionally impacted by changes in legislation relating to insurance coverages with respect to the pandemic, including, but not limited to, workers’ compensation. The occurrence of any of the foregoing events or any other related matters could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

The global impact of the COVID-19 pandemic continues to evolve rapidly, and the extent of its effect on our operational and financial performance will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration, scope and severity of the pandemic, the actions taken to contain or mitigate its impact, the timing of distribution and effectiveness of vaccines and the willingness and ability of the public to get vaccinated in a timely manner, and the direct and indirect economic effects of the pandemic and related containment measures, among others. However, the COVID-19 pandemic presents material uncertainty and risk with respect to our business, financial condition and results of operations. Moreover, to the extent any of these risks and uncertainties adversely impact us in the ways described above or otherwise, they may also have the effect of heightening many of the other risks set forth in this Annual Report on Form 10-K. In addition, if in the future there is a further outbreak of COVID-19 or a variation thereof, an outbreak of another highly infectious or contagious disease or other health concern, the Company and our properties may be subject to similar risks as posed by COVID-19.

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Acquisitions of communities involve various risks and uncertainties and may fail to meet expectations. The Company intends to continue to acquire apartment communities. However, there are risks that acquisitions will fail to meet the Company’s expectations. The Company’s estimates of future income, expenses and the costs of improvements or redevelopment that are necessary to allow the Company to market an acquired apartment community as originally intended may prove to be inaccurate. Uncertainty related to the unknown short- and long-term economic and behavioral impacts of the COVID-19 pandemic make forecasting rental rates and occupancies more difficult, and assets the Company acquires may not perform as expected. In addition, following an acquisition, the value and operational performance of an apartment community may be diminished if obsolescence or neighborhood changes occur before we are able to redevelop or sell the community. Also, in connection with such acquisitions, we may assume unknown liabilities, which could ultimately lead to material costs for us that we did not expect to incur. The Company expects to finance future acquisitions, in whole or in part, under various forms of secured or unsecured financing or through the issuance of partnership units by the Operating Partnership or related partnerships or joint ventures or additional equity by the Company. The use of equity financing, rather than debt, for future developments or acquisitions could dilute the interest of the Company’s existing stockholders. If the Company finances new acquisitions under existing lines of credit, there is a risk that, unless the Company obtains substitute financing, the Company may not be able to undertake additional borrowing for further acquisitions or developments or such borrowing may be not available on advantageous terms.

Development and redevelopment activities may be delayed, not completed, and/or not achieve expected results. The Company pursues development and redevelopment projects and these projects generally require various governmental and other approvals, which have no assurance of being received and/or the timing of which may be delayed from the Company’s expectations. The Company defines development projects as new communities that are being constructed or are newly constructed and are in a phase of lease-up and have not yet reached stabilized operations, and redevelopment projects as existing properties owned or recently acquired that have been targeted for additional investment by the Company with the expectation of increased financial returns through property improvement. As of December 31, 2020, the Company had three consolidated development projects and three unconsolidated joint venture development projects comprised of 1,853 apartment homes for an estimated cost of $1.1 billion, of which $174.0 million remains to be expended, and $118.0 million is the Company's share. In addition, at December 31, 2020, the Company had ownership interests in three major redevelopment projects aggregating 1,112 apartment homes with estimated redevelopment costs of $109.1 million, of which approximately $4.5 million remains to be expended.

The Company’s development and redevelopment activities generally entail certain risks, including, among others:

•funds may be expended and management's time devoted to projects that may not be completed on time or at all;

•construction costs of a project may exceed original estimates possibly making the project economically unfeasible;

•projects may be delayed due to, without limitation, adverse weather conditions, labor or material shortage, municipal office closures and staff shortages, government recommended or mandated work stoppages due to health concerns, or environmental remediation;

•occupancy rates and rents at a completed project may be less than anticipated;

•expenses at completed development or redevelopment projects may be higher than anticipated, including, without limitation, due to costs of litigation over construction contracts by general contractors, environmental remediation or increased costs for labor, materials and leasing;

•we may be unable to obtain, or experience a delay in obtaining, necessary zoning, occupancy, or other required governmental or third party permits and authorizations, which could result in increased costs or delay or abandonment of opportunities;

•we may be unable to obtain financing with favorable terms, or at all, for the proposed development or redevelopment of a community, which may cause us to delay or abandon an opportunity; and

•we may incur liabilities to third parties during the development process, for example, in connection with managing existing improvements on the site prior to tenant terminations and demolition (such as commercial space) or in connection with providing services to third parties (such as the construction of shared infrastructure or other improvements.)

These risks may reduce the funds available for distribution to Essex’s stockholders and the Operating Partnership's unitholders. Further, the development and redevelopment of communities is also subject to the general risks associated with real estate investments. For further information regarding these risks, please see the risk factor above titled "General real estate investment risks may adversely affect property income and values."

Our apartment communities may be subject to unknown or contingent liabilities which could cause us to incur substantial costs. The properties that the Company owns or may acquire are or may be subject to unknown or contingent liabilities for which the Company may have no recourse, or only limited recourse, against the sellers. In general, the representations and

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warranties provided under the transaction agreements related to the sales of the properties may not survive the closing of the transactions. While the Company seeks to require the sellers to indemnify us with respect to breaches of representations and warranties that survive, such indemnification may be limited and subject to various materiality thresholds, a significant deductible or an aggregate cap on losses. As a result, there is no guarantee that we will recover any amounts with respect to losses due to breaches by the sellers of their representations and warranties. In addition, the total amount of costs and expenses that may be incurred with respect to liabilities associated with apartment communities may exceed our expectations, and we may experience other unanticipated adverse effects, all of which may adversely affect our business, financial condition and results of operations.

The geographic concentration of the Company’s communities and fluctuations in local markets may adversely impact the Company’s financial condition and operating results. The Company generated significant amounts of rental revenues for the year ended December 31, 2020, from the Company’s communities concentrated in Southern California (primarily Los Angeles, Orange, Santa Barbara, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area), and the Seattle metropolitan area. For the year ended December 31, 2020, 81% of the Company’s rental revenues were generated from communities located in California. This geographic concentration could present risks if local property market performance falls below expectations. In general, factors that may adversely affect local market and economic conditions include, among others, the following:

•the economic climate, which may be adversely impacted by a reduction in job growth or income levels, industry slowdowns, changing demographics and other factors;

•local conditions, such as oversupply of, or reduced demand for, apartment homes;

•rent control or stabilization laws, or other laws regulating rental housing, which could prevent the Company from raising rents to offset increases in operating costs, or the inability or unwillingness of tenants to pay rent increases;

•competition from other available apartments and other housing alternatives and changes in market rental rates;

•economic conditions that could cause an increase in our operating expenses, including increases in property taxes, utilities and routine maintenance; and

•regional specific acts of nature (e.g., earthquakes, fires, floods, etc.).

Because the Company’s communities are primarily located in Southern California, Northern California and the Seattle metropolitan area, the Company is exposed to greater economic concentration risks than if it owned a more geographically diverse portfolio. The Company is susceptible to adverse developments in California and Washington economic and regulatory environments, such as increases in real estate and other taxes, and increased costs of complying with governmental regulations. In addition, the State of California is generally regarded as more litigious and more highly regulated and taxed than many states, which may reduce demand for the Company’s communities. Recently, California has also experienced increased relocation out of the state, including as a result of the regulatory landscape and the COVID-19 pandemic. Any adverse developments in the economy or real estate markets in California or Washington, or any decrease in demand for the Company’s communities resulting from the California or Washington regulatory or business environments, could have an adverse effect on the Company’s business and results of operations.

The Company may experience various increased costs, including increased property taxes, to own and maintain its properties. Real property taxes on our properties may increase as our properties are reassessed by taxing authorities or as property tax rates change. Our real estate taxes in Washington could increase as a result of property value reassessments or increased property tax rates in that state. A current California law commonly referred to as Proposition 13 generally limits annual real estate tax increases on California properties to 2% of assessed value. However, under Proposition 13, property tax reassessment generally occurs as a result of a "change in ownership" of a property, as specially defined for purposes of those rules. Because the property taxing authorities may not determine whether there has been a "change in ownership" or the actual reassessed value of a property for a period of time after a transaction has occurred, we may not know the impact of a potential reassessment for a considerable amount of time following a particular transaction. Therefore, the amount of property taxes we are required to pay could increase substantially from the property taxes we currently pay or have paid in the past, including on a retroactive basis. In addition, from time to time voters and lawmakers have announced initiatives to repeal or amend Proposition 13 to eliminate its application to commercial and industrial property and/or introduce split tax roll legislation. Such initiatives, if successful, could increase the assessed value and/or tax rates applicable to commercial property in California, including our apartment communities. Further, changes in U.S. federal tax law could cause state and local governments to alter their taxation of real property.

The Company may experience increased costs associated with capital improvements and routine property maintenance, such as repairs to the foundation, exterior walls, and rooftops of its properties, as its properties advance through their life-cycles. In some cases, we may spend more than budgeted amounts to make necessary improvements or maintenance. Increases in the

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Company’s expenses to own and maintain its properties could adversely impact the Company’s financial condition and results of operations.

Competition in the apartment community market and other housing alternatives may adversely affect operations and the rental demand for the Company’s communities. There are numerous housing alternatives that compete with the Company’s communities in attracting tenants. These include other apartment communities, condominiums and single-family homes that are available for rent or for sale in the markets in which our communities are located. Competitive housing in a particular area and fluctuations in cost of owner-occupied single- and multifamily homes caused by a decrease in housing prices, mortgage interest rates and/or government programs to promote home ownership or create additional rental and/or other types of housing, or an increase in desire for more space due to work from home needs or increased time spent at home due to COVID-19, could adversely affect the Company’s ability to retain its tenants, lease apartment homes and increase or maintain rents. If the demand for the Company’s communities is reduced or if competitors develop and/or acquire competing apartment communities, rental rates may drop, which may have a material adverse effect on the Company’s financial condition and results of operations. The Company also faces competition from other companies, REITs, businesses and other entities in the acquisition, development and operation of apartment communities. This competition may result in an increase in prices and costs of apartment communities that the Company acquires and/or develops.

Investments in mortgages, mezzanine loans, subordinated debt, other real estate, and other marketable securities could adversely affect the Company’s cash flow from operations. The Company may purchase or otherwise invest in securities issued by entities which own real estate and/or invest in mortgages or unsecured debt obligations. Such mortgages may be first, second or third mortgages, and these mortgages and/or other investments may not be insured or otherwise guaranteed. The Company may make or acquire mezzanine loans, which take the form of subordinated loans secured by second mortgages on the underlying property or loans secured by a pledge of the ownership interests of either the entity owning the property or a pledge of the ownership interests of the entity or entities that owns the interest in the entity owning the property. In general, investments in mortgages include the following risks:

•that the value of mortgaged property may be less than the amounts owed, causing realized or unrealized losses;

•the borrower may not pay indebtedness under the mortgage when due, requiring the Company to foreclose, and the amount recovered in connection with the foreclosure may be less than the amount owed;

•that interest rates payable on the mortgages may be lower than the Company’s cost of funds;

•in the case of junior mortgages, that foreclosure of a senior mortgage could eliminate the junior mortgage;

•delays in the collection of principal and interest if a borrower claims bankruptcy; and

•unanticipated early prepayments may limit the Company’s expected return on its investment.

If any of the above were to occur, it could adversely affect the Company’s cash flows from operations.

The Company’s ownership of co-investments, including joint ventures and joint ownership of communities, its ownership of properties with shared facilities with a homeowners' association or other entity, its ownership of properties subject to a ground lease and its preferred equity investments and its other partial interests in entities that own communities, could limit the Company’s ability to control such communities and may restrict our ability to finance, sell or otherwise transfer our interests in these properties and expose us to loss of the properties if such agreements are breached by us or terminated.

The Company has entered into, and may continue in the future to enter into, certain co-investments, including joint ventures or partnerships through which it owns an indirect economic interest in less than 100% of the community or land or other investments owned directly by the joint venture or partnership. As of December 31, 2020, the Company had, through several joint ventures, an interest in 8,652 apartment homes in stabilized operating communities for a total book value of $358.3 million.

Joint venture partners often have shared control over the development and operation of the joint venture assets. Therefore, it is possible that a joint venture partner in an investment might become bankrupt, or have economic or business interests or goals that are inconsistent with the Company’s business interests or goals, or be in a position to take action contrary to the Company’s instructions or requests, or its policies or objectives. Consequently, a joint venture partner's actions might subject property owned by the joint venture to additional risk. Although the Company seeks to maintain sufficient influence over any joint venture to achieve its objectives, the Company may be unable to take action without its joint venture partners’ approval. A joint venture partner might fail to approve decisions that are in the Company’s best interests. Should a joint venture partner become bankrupt, the Company could become liable for such partner’s share of joint venture liabilities. In some instances, the Company and the joint venture partner may each have the right to trigger a buy-sell arrangement, which could cause the Company to sell its interest, or acquire a partner’s interest, at a time when the Company otherwise would not have initiated such a transaction.

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From time to time, the Company, through the Operating Partnership, invests in corporations, limited partnerships, limited liability companies or other entities that have been formed for the purpose of acquiring, developing, financing, or managing real property. The Company makes certain co-investments in the form of preferred equity investments in third party entities that own real estate. With preferred equity investments and certain other co-investments, the Operating Partnership’s interest in a particular entity is typically less than a majority of the outstanding voting interests of that entity. Therefore, the Operating Partnership’s ability to control the daily operations of such co-investment may be limited. Furthermore, the Operating Partnership may not have the power to remove a majority of the board of directors (in the case of a corporation) or the general partner or partners (in the case of a limited partnership) of such co-investment in the event that its operations conflict with the Operating Partnership’s objectives. The Operating Partnership may not be able to dispose of its interests in such co-investment. In the event that such co-investment or the partners in such co-investment become insolvent or bankrupt or fail to develop or operate the property in the manner anticipated and expected, the Operating Partnership may not receive the expected return in its expected timeframe or at all and may lose up to its entire investment in, and any advances to, the co-investment. Additionally, the preferred return negotiated on these co-investments may be lower than the Company's cost of funds. The Company may also incur losses if any guarantees or indemnifications were made by the Company.

The Company also owns properties indirectly under "DownREIT" structures. The Company has entered into, and in the future may enter into, transactions that could require the Company to pay the tax liabilities of partners that contribute assets into DownREITs, joint ventures or the Operating Partnership, in the event that certain taxable events, which are within the Company’s control, occur. Although the Company plans to hold the contributed assets or, if such assets consist of real property, defer recognition of gain on sale of such assets pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code"), the Company can provide no assurance that the Company will be able to do so and if such tax liabilities were incurred they could have a material impact on its financial position.

Also, from time to time, the Company invests in properties which may be subject to certain shared facilities agreements with homeowners' associations and other entities and/or invests in properties subject to ground leases where a subtenant may have certain similar rights to that of a party under such a shared facilities agreement. For such properties, the Company's ability to control the expenditure of capital improvements and its allocation with such other parties may adversely affect the Company's business, financial condition and results of operations.

We may pursue acquisitions of other REITs and real estate companies, which may not yield anticipated results and could adversely affect our results of operations. We may make acquisitions of and/or investments in other REITs and real estate companies that offer properties and communities to augment our market coverage or enhance our property offerings. We may also enter into strategic alliances or joint ventures to achieve these goals. There can be no assurance that we will be able to identify suitable acquisition, investment, alliance or joint venture opportunities, that we will be able to consummate any such transactions or relationships on terms and conditions acceptable to us, or that such transactions or relationships will be successful. In addition, our original estimates and assumptions used in assessing any acquisition may be inaccurate, and we may not realize the expected financial or strategic benefits of any such acquisition.

These transactions or any other acquisitions involve risks and uncertainties. For example, as a consequence of such transactions, we may assume unknown liabilities, which could ultimately lead to material costs for us. In addition, the integration of acquired businesses or other acquisitions may not be successful and could result in disruption to other parts of our business. To integrate acquired businesses or other acquisitions, we must implement our management information systems, operating systems and internal controls, and assimilate and manage the personnel of the acquired operations. The expected synergies from acquisitions may not be fully realized, which could result in increased costs or other issues and have an adverse effect on our business. There can be no assurance that all pre-acquisition property due diligence will have identified all material issues that might arise with respect to such acquired business and its properties or as to any such other acquisitions. Any future acquisitions we make may also require significant additional debt or equity financing, which, in the case of debt financing, would increase our leverage and potentially affect our credit ratings and, in the case of equity or equity-linked financing, could be dilutive to Essex's stockholders and the Operating Partnership's unitholders. Additionally, the value of these investments could decline for a variety of reasons. These and other factors could affect our ability to achieve anticipated levels of profitability at acquired operations or realize other anticipated benefits of an acquisition, and could adversely affect our business, financial condition and results of operations.

Real estate investments are relatively illiquid and, therefore, the Company's ability to vary its portfolio promptly in response to changes in economic or other conditions may be limited. Real estate investments are illiquid and, in our markets, can at times be difficult to sell at prices we find acceptable. We may be unable to consummate dispositions of properties or interests in properties in a timely manner, on attractive terms, or at all. These potential difficulties in selling real estate in our markets may limit our ability to change or reduce the apartment communities in our portfolio promptly in response to changes in economic or other conditions, which could have a material adverse effect on our financial condition and results of operations. In addition, if

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we are found to have held, acquired or developed a community as inventory or primarily for sale to customers in the ordinary course of business, federal tax laws may limit our ability to sell the community without incurring a 100% tax on the gain on the sale of the community and potentially adversely impacting our status as a REIT unless we own the community through one of our taxable REIT subsidiaries ("TRSs").

The Company may not be able to lease its retail/commercial space consistent with its projections or at market rates. The Company has retail/commercial space in its portfolio, which represents approximately 1% of our total revenue. The retail/commercial space at our properties, among other things, serves as an additional amenity for our tenants. The long term nature of our retail/commercial leases, and the characteristics of many of our retail/commercial tenants (small, local businesses), may subject us to certain risks. We may not be able to lease new space for rents that are consistent with our projections or at market rates, and the longer term leases for existing space could result in below market rents over time. Also, when leases for our existing retail/commercial space expire, the space may not be relet on a timely basis, or at all, or the terms of reletting, including the cost of allowances and concessions to tenants, may be less favorable than the current lease terms. Our properties compete with other properties with retail/commercial space. The presence of competitive alternatives may affect our ability to lease space and the level of rents we can obtain. If our retail/commercial tenants experience long term government-mandated closures of their businesses or other substantial restrictions on their operations due to the impact of COVID-19 or otherwise, financial distress or bankruptcy, they may fail to comply with their contractual obligations, seek concessions in order to continue operations or cease their operations, which could adversely impact our results of operations and financial condition.

The Company’s portfolio may have environmental liabilities. Under various federal, state and local environmental and public health laws, regulations and ordinances, we have been required, and may be required in the future, regardless of our knowledge or responsibility, to investigate and remediate the effects of hazardous or toxic substances or petroleum product releases at our properties (including in some cases naturally occurring substances such as methane and radon gas). We may be held liable under these laws or common law to a governmental entity or to third parties for response costs, property damage, personal injury or natural resources damages and for investigation and remediation costs incurred as a result of the impacts resulting from such releases. While the Company is unaware of any such response action required or damage claims associated with its existing properties which individually or in aggregate would have a material adverse effect on our business, assets, financial condition or results of operations, potential future costs and damage claims may be substantial and could exceed any insurance coverage we may have for such events or such coverage may not exist. Further, the presence of such substances, or the failure to properly remediate any such impacts, may adversely affect our ability to borrow against, develop, sell or rent the affected property. In addition, some environmental laws create or allow a government agency to impose a lien on the impacted property in favor of the government for damages and costs it incurs as a result of responding to hazardous or toxic substance or petroleum product releases.

Investments in real property create a potential for environmental liabilities on the part of the owner of such real property. The Company carries certain limited insurance coverage for this type of environmental risk as to its properties; however, such coverage is not fully available for all properties and, as to those properties for which limited coverage is fully available, it may not apply to certain claims arising from known conditions present on those properties. In general, in connection with the ownership (direct or indirect), operation, financing, management and development of its communities, the Company could be considered as the owner or operator of such properties or as having arranged for disposal or treatment of hazardous substances present there and therefore may be potentially liable for removal or clean-up costs, as well as certain other costs and environmental liabilities. The Company may also be subject to governmental fines, costs related to injuries to third parties and/or damage to a third party's property.

Properties which we plan to acquire undergo a pre-acquisition Phase I environmental site assessment, which is intended to afford the Company protection against so-called "owner liability" under the primary federal environmental law, as well as further environmental assessment, which may involve invasive techniques such as soil or ground water sampling where conditions warranting such further assessment are identified and seller’s consent is obtained. Despite these assessments, no assurance can be given that all environmental conditions present on or beneath or emanating from a given property will be discovered or that the full nature and extent of those conditions which are discovered will be adequately ascertained and quantified.

In connection with our ownership, operation and development of communities, from time to time we undertake remedial action in response to the presence of subsurface or other contaminants, including contaminants in soil, groundwater and soil vapor beneath or affecting our buildings. The Company does so pursuant to appropriate environmental regulatory requirements with the objective of obtaining regulatory closure or a no further action determination that will allow for future use, development and sale of any impacted community.

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Certain environmental laws impose liability for release of asbestos-containing materials ("ACMs") into the air or exposure to lead-based paint ("LBP"), and third parties may seek recovery from owners or operators of apartment communities for personal injury associated with ACMs or LBP.

Mold growth may occur when excessive moisture accumulates in buildings or on building materials, particularly if the moisture problem remains undiscovered or is not addressed in a timely manner. Although the occurrence of mold at multifamily and other structures, and the need to remediate such mold, is not a new phenomenon, there has been increased awareness in recent years that certain molds may in some instances lead to adverse health effects, including allergic or other reactions. The Company has adopted policies for promptly addressing and resolving reports of mold when it is detected, and to minimize any impact mold might have on tenants of the affected property. The Company believes its mold policies and proactive response to address any known mold existence reduce its risk of loss from these cases; however, no assurance can be provided that the Company has identified and responded to all mold occurrences.

California has enacted legislation, commonly referred to as "Proposition 65," requiring that covered businesses provide "clear and reasonable" warnings before knowingly exposing persons to chemicals known to the State of California to cause cancer or reproductive toxicity, including tobacco smoke. The legislation allows private persons to sue to enforce this warning requirement and recover their legal fees and costs for doing so. Although the Company has sought to comply with Proposition 65 requirements where it appears applicable, we cannot assure you that the Company will not be adversely affected by private enforcement litigation relating to Proposition 65.

Methane gas is a naturally-occurring gas that is commonly found below the surface in several areas, particularly in the Southern California coastal areas. Methane is a non-toxic gas, but is flammable and can be explosive at sufficient concentrations when in confined spaces and exposed to an ignition source. Naturally-occurring methane gas is regulated at the state and federal level as a greenhouse gas but is not otherwise regulated as a hazardous substance; however, some local governments, such as Los Angeles County, require that new buildings constructed in areas designated methane gas zones install detection and/or venting systems. Radon is also a naturally-occurring gas that is found below the surface and can pose a threat to human health requiring abatement action if present in sufficient concentration within occupied areas. The Company cannot assure you that it will not be adversely affected by costs related to its compliance with methane or radon gas related requirements or litigation costs related to methane or radon gas.

We cannot assure you that costs or liabilities incurred as a result of environmental matters will not affect our ability to make distributions to Essex's stockholders or the Operating Partnership's unitholders, or that such costs or liabilities will not have a material adverse effect on our financial condition and results of operations; however, the Company is unaware of any pending or threatened alleged claim resulting from such matters which would have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

The Company may incur general uninsured losses or may experience market conditions that impact the procurement of certain insurance policies. The Company purchases general liability and property, including loss of rent, insurance coverage for each of its communities. The Company may also purchase limited earthquake, terrorism, environmental and flood insurance for some of its communities. However, there are types of losses, generally catastrophic in nature, such as losses due to wars, acts of terrorism, earthquakes, pollution, environmental matters or extreme weather conditions such as hurricanes, fires and floods that are uninsurable or not economically insurable, or may be insured subject to limitations, such as large deductibles or co-payments. Insurance risks associated with potential terrorist acts could sharply increase the premiums the Company pays for coverage against property and casualty claims. The Company utilizes a wholly owned insurance subsidiary, Pacific Western Insurance LLC ("PWI"), to self-insure certain earthquake and property losses for some of the communities in its portfolio. As of December 31, 2020, PWI, which is consolidated in the Company's financial statements, had cash and marketable securities of approximately $152.8 million. The value of the marketable securities of PWI could decline, and if a decline in value were to occur, PWI's ability to cover all or any portion of the amount of any insured losses could be adversely affected.

All of our communities are located in areas that are subject to earthquake activity. The Company evaluates its financial loss exposure to seismic events by using actuarial loss models developed by the insurance industry and property vulnerability analyses based on structural evaluations by seismic consultants. The Company manages this exposure, where considered appropriate, desirable, and cost-effective, by upgrading properties to increase their resistance to forces caused by seismic events, by considering available funds and coverages provided by PWI and/or, in some cases, by purchasing seismic insurance. Purchasing seismic insurance coverage can be costly and such seismic insurance is in limited supply. As a result, the Company may experience a shortage in desired coverage levels if market conditions are such that insurance is not available, or the cost of the insurance makes it, in management's view, not economically practical. The Company may purchase limited earthquake insurance for certain high-density properties and, in most cases, properties owned by the Company's co-investments.

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The Company carries other types of insurance coverage related to a variety of risks and exposures, including cyber risk insurance. There has been a reduction in the number of insurance companies in the market offering certain types of insurance the Company has previously purchased and premiums have materially increased for certain types of insurance coverage. Based on market conditions, the Company may change or potentially eliminate insurance coverages, or increase levels of self-insurance. Further, we cannot assure you that the Company will not incur losses, which could be material, due to uninsured risks, deductibles and self-insured retentions, and/or losses in excess of coverage limits.

We have significant investments in large metropolitan markets, such as the metropolitan markets in Southern California, Northern California, and Seattle. These markets may in the future be the target of actual or threatened terrorist attacks. Future terrorist attacks in these markets could directly or indirectly damage our communities, both physically and financially, or cause losses that exceed our insurance coverage. Our communities could also directly or indirectly be the location or target of actual or threatened terrorist attacks, crimes, shootings, other acts of violence or other incidents beyond our control, the occurrence of which could directly impact the value of our communities through damage, destruction, loss or increased security costs, as well as operational losses due to reduction of traffic and rental demand for our communities, and the availability of insurance for such acts may be limited or may be subject to substantial costs. If such an incident were to occur at one of our communities, we may also be subject to significant liability claims. Such events and losses could significantly affect our ability to operate those communities and materially impair our ability to achieve our expected results. Additionally, we may be obligated to continue to pay any mortgage indebtedness and other obligations relating to affected properties.

Although the Company may carry insurance for potential losses associated with its communities, employees, tenants, and compliance with applicable laws, it may still incur losses due to uninsured risks, deductibles, copayments or losses in excess of applicable insurance coverage and those losses may be material. In the event of a substantial loss, insurance coverage may not be able to cover the full replacement cost of the Company’s lost investment, or the insurance carrier may become insolvent and not be able to cover the full amount of the insured losses. Changes in building codes and ordinances, environmental considerations and other factors might also affect the Company’s ability to replace or renovate an apartment community after it has been damaged or destroyed. In addition, certain causalities and/or losses incurred may expose the Company in the future to higher insurance premiums.

Climate change may adversely affect our business. To the extent that climate change does occur, we may experience extreme weather and changes in precipitation and temperature, all of which may result in physical damage or a decrease in demand for our communities located in these areas or affected by these conditions. Should the impact of climate change be material in nature or occur for lengthy periods of time, our financial condition or results of operations may be adversely affected, and may negatively impact the types and pricing of insurance the Company is able to procure.

Our properties are located along the West Coast of the United States. To the extent climate change causes changes in weather patterns, the regions where our communities are located could experience increases in storm intensity, rising sea levels and/or drought frequency. Over time, such conditions could result in reduced demand for housing in areas where our communities are located and increased costs related to further developing our communities to mitigate the effects of climate change or repairing damage related to the effects of climate change that may or may not be fully covered by insurance.

In addition, changes in federal, state and local legislation and regulation on climate change could result in increased operating costs (for example, increased utility costs) and/or increased capital expenditures to improve the energy efficiency of our existing communities and could also require us to spend more on our new development communities without a corresponding increase in revenue. For example, various federal, regional and state laws and regulations have been implemented or are under consideration to mitigate the effects of climate change caused by greenhouse gas emissions, including the California energy efficiency standards, referred to as Title 24 or The Building Energy Efficiency Standards. Among other things, "green" building codes may seek to reduce emissions through the imposition of standards for design, construction materials, water and energy usage and efficiency and waste management. The imposition of such requirements in the future could increase the costs of maintaining or improving our existing properties or developing properties (for example, requiring retrofits of existing properties to improve their energy efficiency and/or resistance to inclement weather) without creating corresponding increase in revenue, resulting in adverse impacts to our operating results. Further, the impact of climate change may increase the cost of, or make unavailable, property insurance or other hazard insurance on terms we find acceptable or necessary to adequately protect our properties.

Accidental death or severe injuries at our communities due to fires, floods, other natural disasters or hazards could adversely affect our business and results of operations. The accidental death or severe injuries of persons living in our communities due to fires, floods, other natural disasters or hazards could have a material adverse effect on our business and results of operations. Our insurance coverage may not cover all losses associated with such events, and we may experience

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difficulty marketing communities where any such events have occurred, which could have a material adverse effect on our business and results of operations.

Adverse changes in laws may adversely affect the Company's liabilities and/or operating costs relating to its properties and its operations. Increases in real estate taxes and income, service and transfer taxes cannot always be passed through to tenants or users in the form of higher rents, and may adversely affect the Company's cash available for distribution and its ability to make distributions to Essex's stockholders or the Operating Partnership's unitholders and pay amounts due on its debts. Similarly, changes in laws increasing the potential liability of the Company and/or its operating costs on a range of issues, including those regarding potential liability for other environmental conditions existing on properties or increasing the restrictions on discharges or other conditions, as well as changes in laws affecting development, construction and safety requirements, may result in significant unanticipated expenditures, including without limitation, those related to structural or seismic retrofit or more costly operational safety systems and programs, which could have a material adverse effect on the Company. For example, (1) the California statute, the "Sustainable Communities and Climate Protection Act of 2008," also known as "SB375," provides that, in order to reduce greenhouse emissions, there should be regional planning to coordinate housing needs with regional transportation and such planning could lead to restrictions on, or increases in, property development that adversely affect the Company and (2) the Environmental Protection Agency has implemented a program for long-term phase out of HCFC-22 coolant (freon) by 2030, which could lead to increased capital and/or operating costs.

Failure to succeed in new markets may limit the Company’s growth. The Company may make acquisitions or commence development activity outside of its existing market areas if appropriate opportunities arise. The Company’s historical experience in its existing markets does not ensure that it will be able to operate successfully in new markets. The Company may be exposed to a variety of risks if it chooses to enter new markets. These risks include, among others:

•an inability to evaluate accurately local apartment market conditions and local economies;

•an inability to identify appropriate acquisition opportunities or to obtain land for development;

•an inability to hire and retain key personnel; and

•lack of familiarity with local governmental and permitting procedures.

Current volatility in market and economic conditions may impact the accuracy of the various estimates used in the preparation of our financial statements and footnotes to the financial statements. Various estimates are used in the preparation of our financial statements, including estimates related to the fair value of tangible and intangible assets and the carrying value of our real estate investments. Often these estimates require the use of local market knowledge and data that is difficult to assess, as well as estimates of future cash flows associated with our real estate investments that can also be difficult to accurately predict. The uncertainty surrounding the short- and long-term impacts of COVID-19 have increased the difficulty in preparing these estimates. Although our management believes it has been prudent and used reasonable judgment in making these estimates, it is possible that actual results may differ materially from these estimates.

Our business and reputation depend on our ability to continue providing high quality housing and consistent operation of our communities, the failure of which could adversely affect our business, financial condition and results of operations. Our business and reputation depend on providing tenants with quality housing with highly reliable services, including with respect to water and electric power, along with the consistent operation of our communities, including a wide variety of amenities such as covered parking, swimming pools, clubhouses with fitness facilities, playground areas, tennis courts and similar features. Public utilities, especially those that provide water and electric power, are fundamental for the consistent operation of our communities. The delayed delivery or any material reduction or prolonged interruption of these services may cause tenants to terminate their leases, or may result in a reduction of rents and/or increase in our costs or other issues. In addition, we may fail to provide quality housing and continuous access to amenities as a result of other factors, including government mandated closures due to health concerns, mechanical failure, power outage, human error, vandalism, physical or electronic security breaches, war, terrorism or similar events. Additionally, residents may choose not to use such facilities or amenities as a matter of social distancing or for other reasons, which may cause our communities to become less appealing to such residents. Such service interruptions, closures or lack of use of facilities, mechanical failures or other events may also expose us to additional liability claims and damage our reputation and brand, and could cause tenants to terminate or not renew their leases, or prospective tenants to seek housing elsewhere. Any such failures could impair our ability to continue providing quality housing and consistent operation of our communities, which could adversely affect our business, financial condition and results of operations.

The Company’s real estate assets may be subject to impairment charges. The Company continually evaluates the recoverability of the carrying value of its real estate assets under U.S. generally accepted accounting principles ("U.S. GAAP"). Factors considered in evaluating impairment of the Company’s existing multifamily real estate assets held for investment

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include significant declines in property operating profits, recurring property operating losses and other significant adverse changes in general market conditions that are considered permanent in nature. Generally, a multifamily real estate asset held for investment is not considered impaired if the undiscounted, estimated future cash flows of the asset over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. Assumptions used to estimate annual and residual cash flow and the estimated holding period of such assets require the judgment of management. There can be no assurance that the Company will not take charges in the future related to the impairment of the Company’s assets. Any future impairment charges could have a material adverse effect on the Company’s results of operations.

We face risks associated with land holdings and related activities. We hold land for future development and may in the future acquire additional land holdings. The risks inherent in purchasing, owning and developing land increase as demand for apartments, or rental rates, decrease. Real estate markets are highly uncertain and, as a result, the value of undeveloped land may fluctuate significantly. In addition, carrying costs can be significant and can result in losses or reduced profitability. As a result, we hold certain land, and may, in the future acquire additional land, in our development pipeline at a cost we may not be able to fully recover or at a cost which may preclude our developing a profitable multifamily community. If there are subsequent changes in the fair value of our land holdings which we determine is less that the carrying basis of our land holdings reflected in our financial statements plus estimated costs to sell, we may be required to take future impairment changes which could have a material adverse effect on our results of operations.

We rely on information technology in our operations, and any material failure, inadequacy, interruption or breach of the Company’s privacy or information security systems, or those of our vendors or other third parties, could materially adversely affect the Company’s business and financial condition. The protection of tenant, employee, and company data is critically important to the Company. We rely on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and to manage or support a variety of business processes, including financial transactions and records, personally identifiable information, and tenant and lease data. Our business requires us, including some of our vendors, to use and store personally identifiable and other sensitive information of our tenants and employees. The collection and use of personally identifiable information is governed by federal and state laws and regulations. Privacy and information security laws continue to evolve and may be inconsistent from one jurisdiction to another. The Company endeavors to ensure compliance with all such laws and regulations, including by providing required disclosures, promptly responding to consumer requests for data, and seeking vendor compliance with applicable privacy and information security laws. Compliance with all such laws and regulations may increase the Company’s operating costs and adversely impact the Company’s ability to market the Company’s properties and services.

Although we have taken steps to abide by privacy and security laws, and to protect the security of our information systems and maintain confidential tenant, prospective tenant and employee information, the compliance and security measures put in place by the Company, and such vendors, cannot guarantee perfect compliance or provide absolute security, and the Company and our vendors' compliance systems and/or information technology infrastructure may be vulnerable to criminal cyber-attacks or data security incidents, including, ransom of data, such as, without limitation, tenant and/or employee information, due to employee error, malfeasance, or other vulnerabilities. Any such incident could compromise the Company’s or such vendors' networks (or the networks or systems of third parties that facilitate the Company’s or such vendors’ business activities), and the information stored by the Company or such vendors could be accessed, misused, publicly disclosed, corrupted, lost, or stolen, resulting in fraud, including wire fraud related to Company assets, or other harm. Moreover, if there is a compliance failure, or if a data security incident or breach affects the Company’s systems or such vendors' systems, whether through a breach of the Company’s systems or a breach of the systems of third parties, or results in the unauthorized release of personally identifiable information, the Company’s reputation and brand could be materially damaged, which could increase our costs in attracting and retaining tenants, and other serious consequences may result. Such potential other consequences include, without limitation, that the Company and certain executive officers may be exposed to a risk of litigation and possible liability, including, without limitation, government enforcement actions and private litigation; and that the Company may be exposed to a risk of loss including, without limitation, loss related to the fact that agreements with such vendors, or such vendors' financial condition, may not allow the Company to recover all costs related to a cyber breach for which they alone or they and the Company should be jointly responsible for, which could result in a material adverse effect on the Company’s business, results of operations, and financial condition.

Privacy and information security risks have generally increased in recent years because of the proliferation of new technologies, such as ransomware, and the increased sophistication and activities of perpetrators of cyber-attacks. In light of the increased risks, we have dedicated additional Company resources to strengthening the security of the Company’s computer systems, including maintaining cyber risk insurance which may provide some coverage for certain risks arising out of cyber breaches. However, there can be no assurance that our cyber risk insurance will be sufficient in the event of a cyber incident.

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In the future, the Company may expend additional resources to continue to enhance the Company’s information security measures to investigate and remediate any information security vulnerabilities and/or to further ensure compliance with privacy and information security laws. Despite these steps, there can be no assurance that the Company will not suffer a significant data security incident in the future, that unauthorized parties will not gain access to sensitive data stored on the Company’s systems, or that any such incident will be discovered in a timely manner. Any failure in or breach of the Company's information security systems, those of third party service providers, or a breach of other third party systems that ultimately impacts the operational or information security systems of the Company as a result of cyber-attacks or information security breaches could result in a wide range of potentially serious harm to our business and results of operations. Additionally, government agencies involved in investigating any potential data security incidents may impose injunctive relief or other civil or criminal penalties on the Company and/or certain executives, which could, among other things, divert the attention of management, impact the Company's ability to collect and use tenant information, materially increase data security costs and/or otherwise require us to alter how we operate our business. Further, the techniques used by criminals to obtain unauthorized access to sensitive data, such as phishing and other forms of human engineering, are increasing in sophistication and are often novel or change frequently; accordingly, the Company may be unable to anticipate these techniques or implement adequate preventative measures.

Reliance on third party software providers to host systems critical to our operations and to provide the Company with data. We rely on certain key software vendors to support business practices critical to our operations, including the collection of rent and ancillary income and communication with our tenants, and to provide us with data, including data we use to set our rents and predict occupancies. The market is currently experiencing a consolidation of these software vendors particularly in the multi-family space, which may negatively impact the Company’s choice of vendor and pricing options. Moreover, if any of these key vendors were to terminate our relationship or access to data, or to fail, we could suffer losses while we sought to replace the services and information provided by the vendors.

Risks Related to Our Indebtedness and Financings

Capital and credit market conditions may affect the Company’s access to sources of capital and/or the cost of capital, which could negatively affect the Company’s business, results of operations, cash flows and financial condition. In periods when the capital and credit markets experience significant volatility, the amounts, sources and cost of capital available to the Company may be adversely affected. Our current balance sheet, the debt capacity available on the unsecured line of credit with a diversified bank group, access to the public and private placement debt markets and secured debt financing providers such as Fannie Mae and Freddie Mac provide some insulation from volatile capital markets. We primarily use external financing, including sales of debt and equity securities, to fund acquisitions, developments, and redevelopments and to refinance indebtedness as it matures. If sufficient sources of external financing are not available to us on cost effective terms, we could be forced to limit our acquisition, development and redevelopment activity and/or take other actions to fund our business activities and repayment of debt, such as selling assets, reducing our cash dividend or distributing less than 100% of our REIT taxable income. In general, to the extent that the Company’s access to capital and credit is at a higher cost than the Company has experienced in recent years (reflected in higher interest rates for debt financing or a lower stock price for equity financing without a corresponding change to investment cap rates) the Company’s ability to make acquisitions, develop or redevelop communities, obtain new financing, and refinance existing borrowing at competitive rates could be adversely affected, which would impact the Company's financial standing and related credit rating. In addition, if our ability to obtain financing is adversely affected, we may be unable to satisfy scheduled maturities on existing financing through other sources of our liquidity, which, in the case of secured financings, could result in lender foreclosure on the apartment communities securing such debt.

Debt financing has inherent risks. At December 31, 2020, the Company had approximately $6.3 billion of indebtedness (including $775.1 million of variable rate indebtedness, of which $175.0 million is subject to an interest rate swap effectively fixing the interest rate on $175.0 million in debt). The Company is subject to the risks normally associated with debt financing, including, among others, the following:

•cash flow may not be sufficient to meet required payments of principal and interest;

•inability to refinance maturing indebtedness on encumbered apartment communities;

•inability to comply with debt covenants could trigger cash management provisions limiting our ability to control cash flows, cause defaults, or an acceleration of maturity dates; and

•paying debt before the scheduled maturity date could result in prepayment penalties.

The Company may not be able to renew, repay or refinance its indebtedness when due or may be required to refinance its indebtedness at higher interest rates or on terms that may not be as favorable as the terms of existing indebtedness. If the

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Company is unable to refinance its indebtedness on acceptable terms, or at all, the Company might be forced to dispose of one or more of its properties on disadvantageous terms, which might result in losses. Such losses could have an adverse effect on the Company and its ability to make distributions to Essex's stockholders or the Operating Partnership's unitholders and pay amounts due on its debt.

Debt financing of communities may result in insufficient cash flow to service debt and fund distributions. Where appropriate, the Company intends to continue to use leverage to increase the rate of return on the Company’s investments and to provide for additional investments that the Company could not otherwise make. There is a risk that the cash flow from the communities will be insufficient to meet both debt payment obligations and the REIT distribution requirements of the Code. Our ability to make payments on and to refinance our indebtedness and to fund our operations, working capital and capital expenditures, depends on our ability to generate cash in the future. There is a risk that we may not be able to refinance existing indebtedness or that a refinancing will not be done on as favorable terms, which in either case could have an adverse effect on our financial condition, results of operations and cash flows.

As of December 31, 2020, the Company had 12 consolidated communities encumbered by debt. With respect to such communities, all of them are secured by deeds of trust relating solely to those communities. The holders of this indebtedness will have rights with respect to these communities and, if debt payment obligations are not met, lenders may seek foreclosure of communities, or may appoint a receiver and exercise rights under an assignment of rents and leases, or pursue other remedies which would reduce the Company’s income and net asset value, and its ability to service other debt. Foreclosures could also create taxable income without accompanying cash proceeds, thereby hindering our ability to meet REIT distribution requirements.

Compliance requirements of tax-exempt financing and below market rent requirements may limit income from certain communities. At December 31, 2020, the Company had approximately $225.1 million of variable rate tax-exempt financing. This tax-exempt financing provides for certain deed restrictions and restrictive covenants. The Company expects to engage in tax-exempt financings in the future. If the compliance requirements of the tax-exempt financing restrict our ability to increase our rental rates to low or moderate income tenants, or eligible/qualified tenants, then our income from these properties may be limited. While we generally believe that the interest rate benefit attendant to properties with tax-exempt bonds more than outweigh any loss of income due to restrictive covenants or deed restrictions, this may not always be the case. Some of these requirements are complex and our failure to comply with them may subject us to material fines or liabilities. Certain state and local authorities may impose additional rental restrictions. These restrictions may limit income from the tax-exempt financed communities if the Company is required to decrease its rental rates to attract tenants who satisfy the median income test. If the Company does not reserve the required number of apartment homes for tenants satisfying these income requirements, the tax-exempt status of the bonds may be terminated, the obligations under the bond documents may be accelerated and the Company may be subject to additional contractual liability. Notwithstanding the limitations due to tax-exempt financing requirements, the income from certain communities may be limited due to below market rent requirements imposed by local authorities in connection with the original development of the community.

The indentures governing our notes and other financing arrangements contain restrictive covenants that limit our operating flexibility. The indentures that govern our publicly registered notes contain financial and operating covenants that, among other things, restrict our ability to take specific actions, even if we believe them to be in our best interests, including restrictions on our ability to:

•consummate a merger, consolidation or sale of all or substantially all of our assets; and

•incur additional secured and unsecured indebtedness.

The instruments governing our other unsecured indebtedness require us to meet specified financial covenants, including covenants relating to net worth, fixed charge coverage, debt service coverage, the amounts of total indebtedness and secured indebtedness, leverage and certain investment limitations. These covenants may restrict our ability to expand or fully pursue our business strategies. Our ability to comply with these provisions and those contained in the indentures governing the notes, may be affected by changes in our operating and financial performance, changes in general business and economic conditions, adverse regulatory developments or other events adversely impacting us. The breach of any of these covenants, including those contained in our indentures, could result in a default under our indebtedness, which could cause those and other obligations to become due and payable. If any of our indebtedness is accelerated, we may not be able to repay it.

Uncertainty relating to the LIBOR calculation process and potential phasing out of LIBOR after 2021 may materially adversely affect us. The interest rate on certain of the Company’s secured and unsecured debt obligations, including the Company’s two unsecured lines of credit, is based on the LIBOR. In July 2017, the United Kingdom regulator that regulates

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LIBOR announced its intention to phase out LIBOR rates by the end of 2021. On November 30, 2020, the United Kingdom regulator announced its intentions, subject to confirmation following an early December consultation, to cease the publication of the one week and two month U.S. dollar LIBOR immediately following the December 31, 2021 publications, and the remaining U.S. dollar LIBOR tenors immediately following the June 30, 2023 publications. At this time, no consensus exists as to what rate or rates may become accepted alternatives to LIBOR, and it is impossible to predict whether and to what extent banks will continue to provide LIBOR submissions to the administrator of LIBOR or whether any additional reforms to LIBOR may be enacted in the United Kingdom, the United States or elsewhere. Any changes in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in LIBOR. If a published U.S. dollar LIBOR rate is unavailable after 2021, the interest rates on certain of the Company’s debt obligations could change. Uncertainty as to the nature of such potential changes, phase out, alternative reference rates or other reforms may materially adversely affect the trading market for LIBOR-based securities. Any of these proposals or consequences could have a material adverse effect on our financing costs, and as a result, our financial condition and results of operations.

Interest rate hedging arrangements may result in losses. The Company from time to time uses interest rate swaps and interest rate caps contracts to manage certain interest rate risks. Although these agreements may partially protect against rising interest rates, they also may reduce the benefits to the Company if interest rates decline. If a hedging arrangement is not indexed to the same rate as the indebtedness that is hedged, the Company may be exposed to losses to the extent that the rate governing the indebtedness and the rate governing the hedging arrangement change independently of each other. Finally, nonperformance by the other party to the hedging arrangement may subject the Company to increased credit risks. In order to minimize counterparty credit risk, the Company enters into hedging arrangements only with investment grade financial institutions.

A downgrade in the Company's investment grade credit rating could materially and adversely affect its business and financial condition. The Company plans to manage its operations to maintain its investment grade credit rating with a capital structure consistent with its current profile, but there can be no assurance that it will be able to maintain its current credit ratings. Any downgrades in terms of ratings or outlook by any of the rating agencies could have a material adverse impact on the Company’s cost and availability of capital, which could in turn have a material adverse impact on its financial condition, results of operations and liquidity.

Changes in the Company’s financing policy may lead to higher levels of indebtedness. The Company’s organizational documents do not limit the amount or percentage of indebtedness that may be incurred. The Company has adopted a policy of maintaining a limit on debt financing consistent with the existing covenants required to maintain the Company’s unsecured line of credit bank facility, unsecured debt and senior unsecured bonds. Although pursuant to this policy the Company manages its debt to be in compliance with the debt covenants, the Company may increase the amount of outstanding debt at any time without a concurrent improvement in the Company’s ability to service the additional debt. Accordingly, the Company could become more leveraged, resulting in an increased risk of default on its debt covenants or on its debt obligations and in an increase in debt service requirements. Any covenant breach or significant increase in the Company’s leverage could materially adversely affect the Company’s financial condition and ability to access debt and equity capital markets in the future.

If the Company or any of its subsidiaries defaults on an obligation to repay outstanding indebtedness when due, the default could trigger a cross-default or cross-acceleration under other indebtedness. If the Company or any of its subsidiaries defaults on its obligations to repay outstanding indebtedness, the default could cause a cross-default or cross-acceleration under other indebtedness. A default under the agreements governing the Company’s or its subsidiaries’ indebtedness, including a default under mortgage indebtedness, lines of credit, bank term loan, or the indenture for the Company’s outstanding senior notes, that is not waived by the required lenders or holders of outstanding notes, could trigger cross-default or cross-acceleration provisions under one or more agreements governing the Company’s indebtedness, which could cause an immediate default or allow the lenders to declare all funds borrowed thereunder to be due and payable.

The Company could be negatively impacted by the condition of Fannie Mae or Freddie Mac and by changes in government support for multifamily housing. Historically, the Company has utilized borrowing from Fannie Mae and Freddie Mac. There are no assurances that these entities will lend to the Company in the future. The Company primarily utilizes unsecured debt and repays secured debt at or near its respective maturity and places less reliance on agency mortgage debt financing. Potential options have been proposed for the future of agency mortgage finance in the United States that could involve the phase out of Fannie Mae and Freddie Mac. While we believe Fannie Mae and Freddie Mac will continue to provide liquidity to our sector, should they discontinue doing so, have their mandates changed or reduced or be disbanded or reorganized by the government or if there is reduced government support for multifamily housing more generally, it may adversely affect interest rates, capital availability, development of multifamily communities and the value of multifamily residential real estate and, as a result, may adversely affect the Company and its growth and operations.

Risks Related to Personnel

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The Company depends on its key personnel, whose continued service is not guaranteed. The Company’s success depends on its ability to attract, train and retain executive officers, senior officers and company managers. There is substantial competition for qualified personnel in the real estate industry and the departure of any of the Company’s key personnel could have an adverse effect on the Company. While the Company engages in regular succession planning for key positions, the Company’s plans may be impacted and therefore adjusted due to the departure of any key personnel.

The Company’s Chairman is involved in other real estate activities and investments, which may lead to conflicts of interest. The Company’s Chairman, George M. Marcus, is not an employee of the Company, and is involved in other real estate activities and investments, which may lead to conflicts of interest. Mr. Marcus owns interests in various other real estate-related businesses and investments. He is the Chairman of the Marcus & Millichap Company ("MMC"), which is a parent company of a diversified group of real estate service, investment and development firms. Mr. Marcus is also the Co-Chairman of Marcus & Millichap, Inc. ("MMI"), and Mr. Marcus owns a controlling interest in MMI. MMI is a national brokerage firm listed on the NYSE that underwent its initial public offering in 2013.

Mr. Marcus has agreed not to divulge any confidential or proprietary information that may be received by him in his capacity as Chairman of the Company to any of his affiliated companies and that he will absent himself from any and all discussions by Essex's Board of Directors regarding any proposed acquisition and/or development of an apartment community where it appears that there may be a conflict of interest with any of his affiliated companies. Notwithstanding this agreement, Mr. Marcus and his affiliated entities may potentially compete with the Company in acquiring and/or developing apartment communities, which competition may be detrimental to the Company. In addition, due to such potential competition for real estate investments, Mr. Marcus and his affiliated entities may have a conflict of interest with the Company, which may be detrimental to the interests of Essex's stockholders and the Operating Partnership's unitholders.

The influence of executive officers, directors, and significant stockholders may be detrimental to holders of common stock. As of December 31, 2020, Mr. Marcus wholly or partially owned approximately 1.9 million shares of common stock (including shares issuable upon exchange of limited partnership interests in the Operating Partnership and certain other partnerships, indirectly held shares of common stock and assuming exercise of all vested options). Mr. Marcus currently does not have majority control over the Company. However, he currently has, and likely will continue to have, significant influence with respect to the election of directors and approval or disapproval of significant corporate actions. Consequently, his influence could result in decisions that do not reflect the interests of all the Company’s stockholders.

Under the partnership agreement of the Operating Partnership, the consent of the holders of limited partnership interests is generally required for certain amendments of the agreement and for certain extraordinary actions. Through their ownership of limited partnership interests and their positions with the Company, the Company’s directors and executive officers, including Mr. Marcus, have substantial influence on the Company. Consequently, their influence could result in decisions that do not reflect the interests of all stockholders.

Our related party guidelines may not adequately address all of the issues that may arise with respect to related party transactions. The Company has adopted "Related Party Transaction Approval Process Guidelines" that provide generally that any transaction in which a director or executive officer has an interest must have the prior approval of the Audit Committee of Essex's Board of Directors. The review and approval procedures in these guidelines are intended to determine whether a particular related party transaction is fair, reasonable and serves the interests of the Company's stockholders. Pursuant to these guidelines, related party transactions have been approved from time to time. There is no assurance that this policy will be adequate for determining whether a particular related party transaction is suitable and fair for the Company. Also, the policy's procedures may not identify and address all the potential issues and conflicts of interests with a related party transaction.

Employee theft or fraud could result in loss. Certain of our employees have access to, or signature authority with respect to, bank accounts or other Company assets, which exposes us to the risk of fraud or theft. In addition, certain employees have access to key information technology ("IT") infrastructure and to tenant and other information that is commercially valuable. Should any employee compromise our IT systems, or misappropriate tenant or other information, we could incur losses, including significant financial or reputational harm, from which full recovery cannot be assured. We also may not have insurance that covers any losses in full or that covers losses from particular criminal acts. Potential liabilities for theft or fraud are not quantifiable and an estimate of possible loss cannot be made.

Risks Related to Taxes and Status as a REIT

Failure to generate sufficient revenue or other liquidity needs and impacts of economic conditions could limit cash flow available for dividend distributions, as well as the form and timing of such distributions, to Essex's stockholders or the Operating Partnership's unitholders. A decrease in rental revenue, or liquidity needs such as the repayment of indebtedness or

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funding of our acquisition and development activities, could have an adverse effect on our ability to pay distributions to Essex's stockholders or the Operating Partnership's unitholders. Significant expenditures associated with each community such as debt service payments, if any, real estate taxes, insurance and maintenance costs are generally not reduced when circumstances cause a reduction in income from a community. The form, timing and/or amount of dividend distributions will be declared at the discretion of the Board of Directors and will depend on actual cash from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors as the Board of Directors may consider relevant. The Board of Directors may modify our dividend policy from time to time.

Essex may choose to pay dividends in its own stock, in which case stockholders may be required to pay tax in excess of the cash they receive. We may distribute taxable dividends that are payable in part in Essex's stock. Taxable stockholders receiving such dividends will be required to include the full amount of the dividend as income to the extent of our current and accumulated earnings and profits for federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of the cash received. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, the trading price of Essex's stock would experience downward pressure if a significant number of our stockholders sell shares of Essex's stock in order to pay taxes owed on dividends.

The Maryland Business Combination Act may delay, defer or prevent a transaction or change in control of the Company that might involve a premium price for the Company's stock or otherwise be in the best interest of our stockholders. Under the Maryland General Corporation Law, certain "business combinations" between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange, or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as any person (and certain affiliates of such person) who beneficially owns ten percent or more of the voting power of the then-outstanding voting stock of the corporation. The law also requires a two supermajority stockholder votes for such transactions. This means that the transaction must be approved by at least:

•80% of the votes entitled to be cast by holders of outstanding voting shares; and

•two-thirds of the votes entitled to be cast by holders of outstanding voting shares other than shares held by the interested stockholder with whom the business combination is to be effected.

The statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors prior to the time that the interested stockholder becomes an interested stockholder. These voting provisions do not apply if the stockholders receive a minimum price, as defined under the Maryland General Corporation Law. As permitted by the statute, the Board of Directors of Essex irrevocably has elected to exempt any business combination among the Company, George M. Marcus, who is the chairman of the Company, and MMC or any entity owned or controlled by Mr. Marcus and MMC. Consequently, the five-year prohibition and supermajority vote requirements described above will not apply to any business combination between the Company, Mr. Marcus, or MMC. As a result, the Company may in the future enter into business combinations with Mr. Marcus and MMC, without compliance with the supermajority vote requirements and other provisions of the Maryland Business Combination Act.

Certain provisions contained in the Operating Partnership agreement, Charter and Bylaws, and certain provisions of the Maryland General Corporation Law could delay, defer or prevent a change in control. While the Company is the sole general partner of the Operating Partnership, and generally has full and exclusive responsibility and discretion in the management and control of the Operating Partnership, certain provisions of the Operating Partnership agreement place limitations on the Company’s power to act with respect to the Operating Partnership. Such limitations could delay, defer or prevent a transaction or a change in control that might involve a premium price for the Company’s stock or otherwise be in the best interests of its stockholders or that could otherwise adversely affect their interests. The partnership agreement provides that if the limited partners own at least 5% of the outstanding units of partnership interest in the Operating Partnership, the Company may not, without first obtaining the consent of a majority in interest of the limited partners in the Operating Partnership, transfer all or any portion of the Company’s general partner interest in the Operating Partnership to another entity. Such limitations on the Company’s power to act may result in the Company’s being precluded from taking action that the Board of Directors otherwise believes is in the best interests of the Company or its stockholders.

The Company’s Charter authorizes the issuance of additional shares of common stock or preferred stock and the setting of the preferences, rights and other terms of such stock without the approval of the holders of the common stock. The Company may establish one or more classes or series of stock that could delay, defer or prevent a transaction or a change in control. Such a

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transaction might involve a premium price for the Company’s stock or otherwise be in the best interests of the holders of common stock. Also, such a class or series of stock could have dividend, voting or other rights that could adversely affect the interests of holders of common stock.

The Company’s Charter contains provisions limiting the transferability and ownership of shares of capital stock, which may delay, defer or prevent a transaction or a change in control. For example, subject to receiving an exemption from the Board of Directors, potential acquirers may not purchase more than 6% in value of the stock (other than qualified pension trusts which can acquire 9.9%). This may discourage tender offers that may be attractive to the holders of common stock and limit the opportunity for stockholders to receive a premium for their shares of common stock.

The Maryland General Corporation Law restricts the voting rights of holders of shares deemed to be "control shares." Under the Maryland General Corporation Law, "control shares" are those which, when aggregated with any other shares held by the acquirer, entitle the acquirer to exercise voting power within specified ranges. Although the Bylaws exempt the Company from the control share provisions of the Maryland General Corporation Law, the Board of Directors may amend or eliminate the provisions of the Bylaws at any time in the future. Moreover, any such amendment or elimination of such provision of the Bylaws may result in the application of the control share provisions of the Maryland General Corporation Law not only to control shares which may be acquired in the future, but also to control shares previously acquired. If the provisions of the Bylaws are amended or eliminated, the control share provisions of the Maryland General Corporation Law could delay, defer or prevent a transaction or change in control that might involve a premium price for the stock or otherwise be in the best interests of the Company’s stockholders.

The Company’s Charter and Bylaws as well as Maryland General Corporation Law also contain other provisions that may impede various actions by stockholders without approval of Essex’s Board of Directors, and that in turn may delay, defer or prevent a transaction, including a change in control that might involve a premium price for the stock or otherwise be in the best interests of the Company's stockholders. Those provisions include, among others:

•directors may be removed by stockholders, without cause, only upon the affirmative vote of at least two-thirds of the votes entitled to be cast generally in the election of the directors, and with cause, only upon the affirmative vote of a majority of the votes entitled to be cast generally in the election of the directors;

•Essex’s Board of Directors can fix the number of directors and fill vacant directorships upon the vote of a majority of the directors and Essex's Board of Directors can classify the board such that the entire board is not up for re-election annually;

•stockholders must give advance notice to nominate directors or propose business for consideration at a stockholders’ meeting; and

•for stockholders to call a special meeting, the meeting must be requested by not less than a majority of all the votes entitled to be cast at the meeting.

Loss of the Company's REIT status would have significant adverse consequences to the Company and the value of the Company's common stock. The Company has elected to be taxed as a REIT under the Code. The Company’s qualification as a REIT requires it to satisfy various annual and quarterly requirements, including income, asset and distribution tests, established under highly technical and complex Code provisions for which there are only limited judicial or administrative interpretations.

For example, in order to qualify as a REIT, at least 95% of our gross income in each year must be derived from qualifying sources, and we must pay distributions to stockholders aggregating annually at least 90% of our REIT taxable income (excluding net capital gains). Although the Company intends that its current organization and method of operation enable it to qualify as a REIT, it cannot assure you that it so qualifies or that it will be able to remain so qualified in the future. If the Company fails to qualify as a REIT in any taxable year, the Company would be subject to U.S. federal corporate income tax on the Company’s taxable income (and the Company could be subject to the federal alternative minimum tax for taxable years prior to 2018), and the Company would not be allowed to deduct dividends paid to its stockholders in computing its taxable income. The Company would also be disqualified from treatment as a REIT for the four taxable years following the year in which the Company failed to qualify, unless we are entitled to relief under statutory provisions. The additional tax liability would reduce its net earnings available for investment or distribution to Essex stockholders and Operating Partnership unitholders, and the Company would no longer be required to make distributions to its stockholders for the purpose of maintaining REIT status. As a result of all these factors, the Company’s failure to qualify as a REIT also could impair its ability to expand its business and raise capital, and could adversely affect the value and market price of the Company’s common stock.

Complying with REIT requirements may affect our profitability and may force us to liquidate or forgo otherwise attractive investments. To qualify as a REIT, we must continually satisfy tests concerning, among other things, the nature and diversification of our assets, the sources of our income and the amounts we distribute to our stockholders. We may be required to liquidate or forgo otherwise attractive investments in order to satisfy the asset and income tests or to qualify under certain

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statutory relief provisions. We also may be required to make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution. As a result, having to comply with the distribution requirement could cause us to: (1) sell assets in adverse market conditions; (2) borrow on unfavorable terms; or (3) distribute amounts that would otherwise be invested in future acquisitions, capital expenditures or repayment of debt. Accordingly, satisfying the REIT requirements could materially and adversely affect us. Moreover, if we are compelled to liquidate our investments to meet any of these asset, income or distribution tests, or to repay obligations to our lenders, we may be unable to comply with one or more of the requirements applicable to REITs or may be subject to a 100% tax on any resulting of debt. Accordingly, satisfying the REIT requirements could materially and adversely affect us. Moreover, if we are compelled to liquidate our investments to meet any of these asset, income or distribution tests, or to repay obligations to our lenders, we may be unable to comply with one or more of the requirements applicable to REITs or may be subject to a 100% tax on any resulting gain if such sales constitute prohibited transactions.

Legislative or other actions affecting REITs could have a negative effect on the Company or its stockholders. The rules dealing with federal income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Department of the Treasury. Changes to the tax laws, with or without retroactive legislation, could adversely affect the Company or its stockholders. New legislation, Treasury Regulations, administrative interpretations or court decisions could significantly and negatively affect the Company’s ability to qualify as a REIT, the federal income tax consequences of such qualification, or the federal income tax consequences of an investment in the Company. Also, the law relating to the tax treatment of other entities, or an investment in other entities, could change, making an investment in such other entities more attractive relative to an investment in a REIT.

The Company’s ownership of TRSs is subject to certain restrictions, and it will be required to pay a 100% penalty tax on certain income or deductions if transactions with the Company’s TRSs are not conducted on arm’s length terms. The Company has established several TRSs. The TRSs must pay U.S. federal income tax on their taxable income as a regular C corporation. While the Company will attempt to ensure that its dealings with its TRSs do not adversely affect its REIT qualification, it cannot provide assurances that it will successfully achieve that result. Furthermore, the Company may be subject to a 100% penalty tax, to the extent dealings between the Company and its TRSs are not deemed to be arm’s length in nature. The Company intends that its dealings with its TRSs will be on an arm’s length basis. No assurances can be given, however, that the Internal Revenue Service will not assert a contrary position.

Failure of one or more of the Company’s subsidiaries to qualify as a REIT could adversely affect the Company’s ability to qualify as a REIT. The Company owns interests in multiple subsidiary REITs that have elected to be taxed as REITs under the Code. These subsidiary REITs are subject to the various REIT qualification requirements and other limitations that are applicable to the Company. If any of the Company’s subsidiary REITs were to fail to qualify as a REIT, then (i) the subsidiary REIT would become subject to federal income tax and (ii) the Company’s ownership of shares in such subsidiary REIT would cease to be a qualifying asset for purposes of the asset tests applicable to REITs. If any of the Company’s subsidiary REITs were to fail to qualify as REITs, it is possible that the Company could also fail to qualify as a REIT.

The tax imposed on REITs engaging in "prohibited transactions" may limit the Company’s ability to engage in transactions which would be treated as sales for federal income tax purposes. From time to time, the Company may transfer or otherwise dispose of some of its properties. Under the Code, unless certain exceptions apply, any gain resulting from transfers of properties that the Company holds as inventory or primarily for sale to customers in the ordinary course of business could be treated as income from a prohibited transaction subject to a 100% penalty tax. Since the Company acquires properties for investment purposes, it does not believe that its occasional transfers or disposals of property should be treated as prohibited transactions. However, whether property is held for investment purposes depends on all the facts and circumstances surrounding the particular transaction. The Internal Revenue Service may contend that certain transfers or disposals of properties by the Company are prohibited transactions. If the Internal Revenue Service were to argue successfully that a transfer or disposition of property constituted a prohibited transaction, then the Company would be required to pay a 100% penalty tax on any gain allocable to it from the prohibited transaction, and the Company’s ability to retain proceeds from real property sales may be jeopardized.

Dividends payable by REITs may be taxed at higher rates than dividends of non-REIT corporations, which could reduce the net cash received by stockholders and may be detrimental to the Company’s ability to raise additional funds through any future sale of its stock. Dividends paid by REITs to U.S. stockholders that are individuals, trusts or estates are generally not eligible for the reduced tax rate applicable to qualified dividends received from non-REIT corporations. U.S. stockholders that are individuals, trusts and estates generally may deduct 20% of ordinary dividends from a REIT for taxable years beginning after December 31, 2017 and before January 1, 2026. Although this deduction reduces the effective tax rate applicable to certain dividends paid by REITs, such tax rate is still higher than the tax rate applicable to regular corporate qualified dividends. This

29

may cause investors to view REIT investments as less attractive than investments in non-REIT corporations, which in turn may adversely affect the value of stock in REITs, including the Company's stock.

We may face risks in connection with Section 1031 exchanges. From time to time we dispose of real properties in transactions intended to qualify as "like-kind exchanges" under Section 1031 of the Code. If a transaction intended to qualify as a Section 1031 exchange is later determined to be taxable, we may face adverse consequences, and if the laws applicable to such transactions are amended or repealed, we may not be able to dispose of real properties on a tax deferred basis.

If the Operating Partnership failed to qualify as a partnership for federal income tax purposes, the Company could cease to qualify as a REIT and suffer other adverse consequences. The Company believes that the Operating Partnership will continue to be treated as a partnership for U.S. federal income tax purposes. As a partnership, the Operating Partnership is not subject to U.S. federal income tax on its income. Instead, each of its partners is required to pay tax on the partner’s allocable share of the income of the Operating Partnership. No assurances can be given, however, that the Internal Revenue Service will not challenge the Operating Partnership’s status as a partnership for U.S. federal income tax purposes, or that a court would not sustain such a challenge. If the Internal Revenue Service were successful in treating the Operating Partnership as a corporation for U.S. federal income tax purposes, the Company could fail to meet the income tests and/or the asset tests applicable to REITs and, accordingly, cease to qualify as a REIT. Also, the failure of the Operating Partnership to qualify as a partnership would cause it to become subject to federal and state corporate income tax, which would reduce significantly the amount of cash available for debt service and distribution to its partners, including us.

Partnership tax audit rules could have a material adverse effect on us. Under current federal partnership tax audit rules, subject to certain exceptions, any audit adjustment to items of income, gain, loss, deduction, or credit of a partnership (and a partner’s allocable share thereof) is determined, and taxes, interest, and penalties attributable thereto are assessed and collected, at the partnership level. Unless the partnership makes an election or takes certain steps to require the partners to pay their tax on their allocable shares of the adjustment, it is possible that partnerships in which we directly or indirectly invest would be required to pay additional taxes, interest, and penalties as a result of an audit adjustment. We, as a direct or indirect partner of these partnerships, could be required to bear the economic burden of those taxes, interest, and penalties even though Essex, as a REIT, may not otherwise have been required to pay additional corporate‑level taxes had we owned the assets of the partnership directly. The partnership tax audit rules apply to Essex Portfolio, L.P. and its subsidiaries that are classified as partnerships for U.S. federal income tax purposes. There can be no assurance that these rules will not have a material adverse effect on us.

General Risks

We may from time to time be subject to litigation, which could have a material adverse effect on our business, financial condition and results of operations. We may be a party to various claims and routine litigation arising in the ordinary course of business. Some of these claims may result in defense costs, settlements, fines or judgments against us, some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have an adverse impact on our financial position and results of operations. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, or adversely impact our ability to attract officers and directors.

Rising interest rates may affect the Company’s costs of capital and financing activities and results of operation and otherwise adversely affect the market price of our common stock. Interest rates could increase, which could result in higher interest expense on the Company’s variable rate indebtedness or increase interest rates when refinancing maturing fixed rate debt. Prolonged interest rate increases could negatively impact the Company’s ability to make acquisitions and develop apartment communities with positive economic returns on investment and the Company’s ability to refinance existing borrowings. In addition, an increase in market interest rates may lead purchasers of our common stock to demand a greater annual dividend yield, which could adversely affect the market price of our common stock.

The soundness of financial institutions could adversely affect us. We maintain cash and cash equivalent balances, including significant cash amounts at our wholly owned insurance subsidiary, PWI, as well as 401(k) plan assets in a limited number of financial institutions. Our cash balances are generally in excess of federally insured limits. The failure or collapse of one or more of these financial institutions may materially adversely affect our ability to recover our cash balances or the 401(k) assets. Certain financial institutions are lenders under our credit facilities, and, from time to time, we execute transactions with counterparties in the financial services industry. In the event that the volatility of the financial markets adversely affects these financial institutions or counterparties, we or other parties to the transactions with us may be unable to complete transactions as intended, which could adversely affect our business and results of operations. Additionally, certain of our tax-exempt bond

30

financing documents require us to obtain a guarantee from a financial institution of payment of the principal and interest on the bonds. The guarantee may take the form of a letter of credit, surety bond, guarantee agreement or other additional collateral. If the financial institution defaults in its guarantee obligations, or if we are unable to renew the applicable guarantee or otherwise post satisfactory collateral, a default will occur under the applicable tax-exempt bonds and the community could be foreclosed upon if we do not redeem the bonds.

The price per share of the Company’s stock may fluctuate significantly. The market price per share of the Company’s common stock may fluctuate significantly in response to many factors, including without limitation:

•regional, national and global economic conditions;

•actual or anticipated variations in the Company’s quarterly operating results or dividends;

•changes in the Company’s funds from operations or earnings estimates;

•issuances of common stock, preferred stock or convertible debt securities, or the perception that such issuances might occur;

•publication of research reports about the Company or the real estate industry;

•the general reputation of REITs and the attractiveness of their equity securities in comparison to other equity securities (including securities issued by other real estate based companies);

•general stock and bond market conditions, including changes in interest rates on fixed income securities, that may lead prospective purchasers of the Company’s stock to demand a higher annual yield from dividends;

•shifts in our investor base to a higher concentration of passive investors such as exchange traded fund and index funds, which may adversely affect our ability to communicate effectively with our investors;

•the resale of substantial amounts of the Company's stock, or the anticipation of such resale, by large holders of our securities;

•availability of capital markets and cost of capital;

•a change in analyst ratings or the Company’s credit ratings;

•terrorist activity adversely affecting the markets in which the Company’s securities trade, possibly increasing market volatility and causing erosion of business and consumer confidence and spending;

•hazards such as natural disasters like earthquakes, wildfires, landslides or flooding; terrorism; an active shooter at a property or corporate office; an incident involving multiple key members of the executive team; or an epidemic or pandemic;

•changes in public policy and tax law; and

•the issuance of ratings and scores related to corporate social responsibility ("CSR") and environmental, social and governance ("ESG") reports and disclosures.

Many of the factors listed above are beyond the Company’s control. These factors may cause the market price of shares of the Company’s common stock to decline, regardless of the Company’s financial condition, results of operations, or business prospects.

The Company’s future issuances of common stock, preferred stock or convertible debt securities could be dilutive to current stockholders and adversely affect the market price of the Company’s common stock. In order to finance the Company’s acquisition and development activities, the Company could issue and sell common stock, preferred stock and convertible debt securities. The Company may in the future sell further shares of common stock, including pursuant to its equity distribution program with Citigroup Global Markets Inc., Barclays Capital Inc., BNP Paribas Securities Corp., BTIG, LLC, Capital One Securities, Inc., Jefferies LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., and Scotia Capital (USA) Inc.

In 2018, the Company filed a new shelf registration statement with the SEC, allowing the Company to sell an undetermined number of equity and debt securities as defined in the prospectus. Future sales of common stock, preferred stock or convertible debt securities may dilute stockholder ownership in the Company and could adversely affect the market price of the common stock.

Stockholders have limited control over changes in our policies and operations. Essex’s Board of Directors determines our major policies, including our policies regarding investments, financing, growth, debt capitalization, REIT qualification and distributions. Essex’s Board of Directors may amend or revise these and other policies without a vote of the stockholders. In addition, pursuant to Maryland law, all matters other than the election or removal of a director must be declared advisable by Essex’s Board of Directors prior to a stockholder vote.

Our score or rating by proxy advisory firms or other corporate governance consultants advising institutional investors could have an adverse effect on the perception of our corporate governance, and thereby negatively impact the market price of our common stock. Various proxy advisory firms and other corporate governance consultants advising institutional investors

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provide scores or ratings of our governance measures, nominees for election as directors, executive compensation practices, ESG or sustainability matters, and other matters that may be submitted to stockholders for consideration at our annual meetings. From time to time certain matters that we propose for approval may not receive a favorable score or rating, or may result in a negative score or rating or recommendation against the nominee or matter proposed. These unfavorable scores or ratings may lead to rejected proposals or a loss of stockholder confidence in our corporate governance measures, which could adversely affect the market price of our common stock.

We periodically review our corporate governance measures, including our ESG business practices, and consider implementing changes that we believe are responsive to concerns that have been raised, but there may be times where we decide not to implement changes or other measures recommended by proxy advisors or other corporate governance consultants that we believe are contrary to the best interests of our stockholders, notwithstanding the adverse effect this decision may have on our scores or ratings or the perception of our corporate governance, thereby negatively impacting the market price of our common stock.

Corporate responsibility, specifically related to ESG factors, may impose additional costs and expose us to new risks. The Company and many of its investors and potential investors are focused on corporate responsibility, specifically related to ESG factors. Some investors may use ESG factors to guide their investment strategies. Many investment funds focus on positive ESG business practices and sustainability scores when making investments and may consider a company’s sustainability efforts and/or score when making an investment decision. In addition, investors, particularly institutional investors, may use ESG or sustainability scores to benchmark companies against their peers. Although the Company makes ESG disclosures and undertakes sustainability and diversity initiatives, there can be no assurance that the Company will score highly on ESG matters in the future. In addition, the criteria by which companies are rated may change, which could cause the Company to perform differently or worse than it has in the past. The Company may face reputational damage in the event its corporate responsibility procedures or standards do not meet the standards set by various constituencies. The occurrence of any of the foregoing could have an adverse effect on the price of the Company’s stock and the Company’s business, financial condition and results of operations, including increased development costs, capital expenditures and operating expenses.

We could face adverse consequences as a result of actions of activist investors. Campaigns by stockholders to effect changes at publicly traded companies are sometimes led by investors seeking to increase short-term stockholder value through actions such as financial restructuring, increased debt, special dividends, stock repurchases or sales of assets or the entire company. Responding to stockholder activism or engaging in a process or proxy contest may be costly and time-consuming, disrupt our operations and divert the attention of our management team and our employees from executing our business plan, which could adversely affect our business and results of operations.

Expanding social media vehicles present new risks. The use of social media could cause us to suffer brand damage or information leakage. Negative posts or comments about us on any social networking website could damage our reputation. In addition, employees or others might disclose non-public sensitive information relating to our business through external media channels. The continuing evolution of social media will present us with new challenges and risks.

Any material weaknesses identified in the Company's internal control over financial reporting could have an adverse effect on the Company’s stock price. Section 404 of the Sarbanes-Oxley Act of 2002 requires the Company to evaluate and report on its internal control over financial reporting. If the Company identifies one or more material weaknesses in its internal control over financial reporting, the Company could lose investor confidence in the accuracy and completeness of its financial reports, which in turn could have an adverse effect on the Company’s stock price.

Item 1B. Unresolved Staff Comments

None.

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Item 2. Properties

The Company’s portfolio as of December 31, 2020 (including communities owned by unconsolidated joint ventures, but excluding communities underlying preferred equity investments) was comprised of 246 stabilized operating apartment communities (comprising 60,272 apartment homes), of which 26,581 apartment homes are located in Southern California, 21,584 apartment homes are located in Northern California, and 12,107 apartment homes are located in the Seattle metropolitan area. The Company’s apartment communities accounted for 99.4% of the Company’s revenues for the year ended December 31, 2020.

Occupancy Rates

Financial occupancy is defined as the percentage resulting from dividing actual rental income by total potential rental income. Total potential rental income represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. When calculating actual rents for occupied apartment homes and market rents for vacant apartment homes, delinquencies and concessions are not taken into account. The Company believes that financial occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Financial occupancy may not completely reflect short-term trends in physical occupancy and financial occupancy rates, and the Company's calculation of financial occupancy may not be comparable to financial occupancy as disclosed by other REITs. Market rates are determined using the recently signed effective rates on new leases at the property and are used as the starting point in the determination of the market rates of vacant apartment homes. The Company may increase or decrease these rates based on a variety of factors, including overall supply and demand for housing, concentration of new apartment deliveries within the same submarket which can cause periodic disruption due to greater rental concessions to increase leasing velocity, and rental affordability.

For communities that are development properties in lease-up without stabilized occupancy figures, the Company believes the physical occupancy rate is the appropriate performance metric. While a community is in the lease-up phase, the Company’s primary motivation is to stabilize the property, which may entail the use of rent concessions and other incentives, and thus financial occupancy which is based on contractual income is not considered the best metric to quantify occupancy.

Communities

The Company’s communities are primarily urban and suburban high density wood frame communities comprising of three to seven stories above grade construction with structured parking situated on 1-10 acres of land with densities averaging between 30-80+ units per acre. As of December 31, 2020, the Company’s communities include 103 garden-style, 134 mid-rise, and 9 high-rise communities. Garden-style communities are generally defined as on-grade properties with two and/or three-story buildings with no structured parking while mid-rise communities are generally defined as properties with three to seven story buildings and some structured parking. High-rise communities are typically defined as properties with buildings that are greater than seven stories, are steel or concrete framed, and frequently have structured parking. The communities have an average of approximately 245 apartment homes, with a mix of studio, one-, two- and some three-bedroom apartment homes. A wide variety of amenities are available at the Company’s communities, including covered parking, fireplaces, swimming pools, clubhouses with fitness facilities, playground areas and dog parks.

The Company hires, trains and supervises on-site service and maintenance personnel.  The Company believes that the following primary factors enhance the Company’s ability to retain tenants:

•located near employment centers;

•attractive communities that are well maintained; and

•proactive customer service.

Commercial Buildings

The Company owns an office building with approximately 107,000 square feet located in Irvine, CA, of which the Company occupied approximately 14,000 square feet as of December 31, 2020. Furthermore, as of December 31, 2020, the office building's physical occupancy rate was 100% consisting of 7 tenants, including the Company.

Operating Portfolio

The table below describes the Company’s operating portfolio as of December 31, 2020. (See Note 8, "Mortgage Notes Payable" to the Company’s consolidated financial statements included in Part IV, Item 15 of this Annual Report on Form 10-K for more

33

information about the Company’s secured mortgage debt and Schedule III thereto for a list of secured mortgage loans related to the Company’s portfolio.)

			Apartment	Year	Year
Communities (1)	Location	Type	Homes	Built	Acquired	Occupancy(2)
Southern California
Alpine Village	Alpine, CA	Garden	301	1971	2002	98%
Anavia	Anaheim, CA	Mid-rise	250	2009	2010	97%
Barkley, The (3)(4)	Anaheim, CA	Garden	161	1984	2000	98%
Park Viridian	Anaheim, CA	Mid-rise	320	2008	2014	97%
Bonita Cedars	Bonita, CA	Garden	120	1983	2002	97%
Village at Toluca Lake (5)	Burbank, CA	Mid-rise	145	1974	2017	95%
Camarillo Oaks	Camarillo, CA	Garden	564	1985	1996	97%
Camino Ruiz Square	Camarillo, CA	Garden	159	1990	2006	98%
Pinnacle at Otay Ranch I & II	Chula Vista, CA	Mid-rise	364	2001	2014	98%
Mesa Village	Clairemont, CA	Garden	133	1963	2002	96%
Villa Siena	Costa Mesa, CA	Garden	272	1974	2014	96%
Emerald Pointe	Diamond Bar, CA	Garden	160	1989	2014	98%
Regency at Encino	Encino, CA	Mid-rise	75	1989	2009	94%
The Havens (6)	Fountain Valley, CA	Garden	440	1969	2014	96%
Valley Park	Fountain Valley, CA	Garden	160	1969	2001	98%
Capri at Sunny Hills (4)	Fullerton, CA	Garden	102	1961	2001	97%
Haver Hill (7)	Fullerton, CA	Garden	264	1973	2012	97%
Pinnacle at Fullerton	Fullerton, CA	Mid-rise	192	2004	2014	96%
Wilshire Promenade	Fullerton, CA	Mid-rise	149	1992	1997	95%
Montejo Apartments	Garden Grove, CA	Garden	124	1974	2001	98%
The Henley I	Glendale, CA	Mid-rise	83	1974	1999	95%
The Henley II	Glendale, CA	Mid-rise	132	1970	1999	95%
CBC and The Sweeps	Goleta, CA	Garden	239	1962	2006	92%
Devonshire	Hemet, CA	Garden	276	1988	2002	98%
Huntington Breakers	Huntington Beach, CA	Mid-rise	342	1984	1997	97%
The Huntington	Huntington Beach, CA	Garden	276	1975	2012	96%
Axis 2300	Irvine, CA	Mid-rise	115	2010	2010	96%
Hillsborough Park (8)	La Habra, CA	Garden	235	1999	1999	98%
Village Green	La Habra, CA	Garden	272	1971	2014	97%
The Palms at Laguna Niguel	Laguna Niguel, CA	Garden	460	1988	2014	97%
Trabuco Villas	Lake Forest, CA	Mid-rise	132	1985	1997	98%
Marbrisa	Long Beach, CA	Mid-rise	202	1987	2002	96%
Pathways at Bixby Village	Long Beach, CA	Garden	296	1975	1991	96%
5600 Wilshire	Los Angeles, CA	Mid-rise	284	2008	2014	95%
Alessio	Los Angeles, CA	Mid-rise	624	2001	2014	94%
Ashton Sherman Village	Los Angeles, CA	Mid-rise	264	2014	2016	96%
Avant	Los Angeles, CA	Mid-rise	440	2014	2015	97%
The Avery	Los Angeles, CA	Mid-rise	121	2014	2014	97%
Bellerive	Los Angeles, CA	Mid-rise	63	2011	2011	96%
Belmont Station	Los Angeles, CA	Mid-rise	275	2009	2009	95%
Bunker Hill	Los Angeles, CA	High-rise	456	1968	1998	94%
Catalina Gardens	Los Angeles, CA	Mid-rise	128	1987	2014	95%
Cochran Apartments	Los Angeles, CA	Mid-rise	58	1989	1998	91%
Emerson Valley Village	Los Angeles, CA	Mid-rise	144	2012	2016	96%

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			Apartment	Year	Year
Communities (1)	Location	Type	Homes	Built	Acquired	Occupancy(2)
Gas Company Lofts (7)	Los Angeles, CA	High-rise	251	2004	2013	95%
The Blake LA	Los Angeles, CA	Mid-rise	196	1979	1997	96%
Marbella	Los Angeles, CA	Mid-rise	60	1991	2005	91%
Pacific Electric Lofts (9)	Los Angeles, CA	High-rise	314	2006	2012	93%
Park Catalina	Los Angeles, CA	Mid-rise	90	2002	2012	96%
Park Place	Los Angeles, CA	Mid-rise	60	1988	1997	91%
Regency Palm Court (7)	Los Angeles, CA	Mid-rise	116	1987	2014	94%
Santee Court	Los Angeles, CA	High-rise	165	2004	2010	95%
Santee Village	Los Angeles, CA	High-rise	73	2011	2011	95%
Tiffany Court	Los Angeles, CA	Mid-rise	101	1987	2014	95%
Wilshire La Brea	Los Angeles, CA	Mid-rise	478	2014	2014	94%
Windsor Court (7)	Los Angeles, CA	Mid-rise	95	1987	2014	93%
Windsor Court	Los Angeles, CA	Mid-rise	58	1988	1997	91%
Aqua Marina Del Rey	Marina Del Rey, CA	Mid-rise	500	2001	2014	94%
Marina City Club (10)	Marina Del Rey, CA	Mid-rise	101	1971	2004	95%
Mirabella	Marina Del Rey, CA	Mid-rise	188	2000	2000	94%
Mira Monte	Mira Mesa, CA	Garden	354	1982	2002	97%
Hillcrest Park	Newbury Park, CA	Garden	608	1973	1998	97%
Fairway Apartments at Big Canyon (11)	Newport Beach, CA	Mid-rise	74	1972	1999	91%
Muse	North Hollywood, CA	Mid-rise	152	2011	2011	95%
Country Villas	Oceanside, CA	Garden	180	1976	2002	98%
Mission Hills	Oceanside, CA	Garden	282	1984	2005	98%
Renaissance at Uptown Orange	Orange, CA	Mid-rise	460	2007	2014	96%
Mariner's Place	Oxnard, CA	Garden	105	1987	2000	97%
Monterey Villas	Oxnard, CA	Garden	122	1974	1997	98%
Tierra Vista	Oxnard, CA	Mid-rise	404	2001	2001	97%
Arbors at Parc Rose (9)	Oxnard, CA	Mid-rise	373	2001	2011	98%
The Hallie	Pasadena, CA	Mid-rise	292	1972	1997	95%
The Stuart	Pasadena, CA	Mid-rise	188	2007	2014	96%
Villa Angelina	Placentia, CA	Garden	256	1970	2001	97%
Fountain Park	Playa Vista, CA	Mid-rise	705	2002	2004	94%
Highridge (4)	Rancho Palos Verdes, CA	Mid-rise	255	1972	1997	96%
Cortesia	Rancho Santa Margarita, CA	Garden	308	1999	2014	97%
Pinnacle at Talega	San Clemente, CA	Mid-rise	362	2002	2014	97%
Allure at Scripps Ranch	San Diego, CA	Mid-rise	194	2002	2014	97%
Bernardo Crest	San Diego, CA	Garden	216	1988	2014	96%
Cambridge Park	San Diego, CA	Mid-rise	320	1998	2014	97%
Carmel Creek	San Diego, CA	Garden	348	2000	2014	96%
Carmel Landing	San Diego, CA	Garden	356	1989	2014	96%
Carmel Summit	San Diego, CA	Mid-rise	246	1989	2014	97%
CentrePointe	San Diego, CA	Garden	224	1974	1997	97%
Esplanade (6)	San Diego, CA	Garden	616	1986	2014	95%
Form 15	San Diego, CA	Mid-rise	242	2014	2016	93%
Montanosa	San Diego, CA	Garden	472	1990	2014	96%
Summit Park	San Diego, CA	Garden	300	1972	2002	98%
Essex Skyline (12)	Santa Ana, CA	High-rise	350	2008	2010	94%
Fairhaven Apartments (4)	Santa Ana, CA	Garden	164	1970	2001	97%

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			Apartment	Year	Year
Communities (1)	Location	Type	Homes	Built	Acquired	Occupancy(2)
Parkside Court (6)	Santa Ana, CA	Mid-rise	210	1986	2014	97%
Pinnacle at MacArthur Place	Santa Ana, CA	Mid-rise	253	2002	2014	97%
Hope Ranch	Santa Barbara, CA	Garden	108	1965	2007	96%
Bridgeport Coast (13)	Santa Clarita, CA	Mid-rise	188	2006	2014	97%
Hidden Valley	Simi Valley, CA	Garden	324	2004	2004	97%
Meadowood (8)	Simi Valley, CA	Garden	320	1986	1996	97%
Shadow Point	Spring Valley, CA	Garden	172	1983	2002	97%
The Fairways at Westridge (13)	Valencia, CA	Mid-rise	234	2004	2014	97%
The Vistas of West Hills (13)	Valencia, CA	Mid-rise	220	2009	2014	97%
Allegro	Valley Village, CA	Mid-rise	97	2010	2010	95%
Lofts at Pinehurst, The	Ventura, CA	Garden	118	1971	1997	97%
Pinehurst (14)	Ventura, CA	Garden	28	1973	2004	99%
Woodside Village	Ventura, CA	Garden	145	1987	2004	98%
Walnut Heights	Walnut, CA	Garden	163	1964	2003	97%
The Dylan	West Hollywood, CA	Mid-rise	184	2014	2014	94%
The Huxley	West Hollywood, CA	Mid-rise	187	2014	2014	93%
Reveal	Woodland Hills, CA	Mid-rise	438	2010	2011	97%
Avondale at Warner Center	Woodland Hills, CA	Mid-rise	446	1970	1999	97%
			26,581			96%
Northern California
Belmont Terrace	Belmont, CA	Mid-rise	71	1974	2006	96%
Fourth & U	Berkeley, CA	Mid-rise	171	2010	2010	95%
The Commons	Campbell, CA	Garden	264	1973	2010	96%
Pointe at Cupertino	Cupertino, CA	Garden	116	1963	1998	98%
Connolly Station	Dublin, CA	Mid-rise	309	2014	2014	97%
Avenue 64	Emeryville, CA	Mid-rise	224	2007	2014	94%
The Courtyards at 65th Street (15)	Emeryville, CA	Mid-rise	331	2004	2019	94%
Emme	Emeryville, CA	Mid-rise	190	2015	2015	94%
Foster's Landing	Foster City, CA	Garden	490	1987	2014	96%
Stevenson Place	Fremont, CA	Garden	200	1975	2000	95%
Mission Peaks	Fremont, CA	Mid-rise	453	1995	2014	96%
Mission Peaks II	Fremont, CA	Garden	336	1989	2014	96%
Paragon Apartments	Fremont, CA	Mid-rise	301	2013	2014	96%
Boulevard	Fremont, CA	Garden	172	1978	1996	97%
Briarwood (9)	Fremont, CA	Garden	160	1978	2011	97%
The Woods (9)	Fremont, CA	Garden	160	1978	2011	96%
City Centre (13)	Hayward, CA	Mid-rise	192	2000	2014	97%
City View	Hayward, CA	Garden	572	1975	1998	96%
Lafayette Highlands	Lafayette, CA	Garden	150	1973	2014	96%
777 Hamilton (16)	Menlo Park, CA	Mid-rise	195	2017	2019	97%
Apex	Milpitas, CA	Mid-rise	366	2014	2014	96%
Regency at Mountain View (7)	Mountain View, CA	Mid-rise	142	1970	2013	95%
Bridgeport (8)	Newark, CA	Garden	184	1987	1987	97%
The Landing at Jack London Square	Oakland, CA	Mid-rise	282	2001	2014	95%
The Grand	Oakland, CA	High-rise	243	2009	2009	96%
The Galloway	Pleasanton, CA	Mid-rise	506	2016	2016	97%
Radius	Redwood City, CA	Mid-rise	264	2015	2015	96%

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			Apartment	Year	Year
Communities (1)	Location	Type	Homes	Built	Acquired	Occupancy(2)
Township	Redwood City, CA	Mid-rise	132	2014	2019	96%
San Marcos	Richmond, CA	Mid-rise	432	2003	2003	97%
Bennett Lofts	San Francisco, CA	Mid-rise	165	2004	2012	93%
Fox Plaza	San Francisco, CA	High-rise	445	1968	2013	90%
MB 360	San Francisco, CA	Mid-rise	360	2014	2014	96%
Park West	San Francisco, CA	Mid-rise	126	1958	2012	96%
101 San Fernando	San Jose, CA	Mid-rise	323	2001	2010	95%
360 Residences (15)	San Jose, CA	Mid-rise	213	2010	2017	95%
Bella Villagio	San Jose, CA	Mid-rise	231	2004	2010	97%
Century Towers (17)	San Jose, CA	High-rise	376	2017	2017	95%
Enso	San Jose, CA	Mid-rise	183	2014	2015	97%
Epic	San Jose, CA	Mid-rise	769	2013	2013	97%
Esplanade	San Jose, CA	Mid-rise	278	2002	2004	97%
Fountains at River Oaks	San Jose, CA	Mid-rise	226	1990	2014	96%
Marquis	San Jose, CA	Mid-rise	166	2015	2016	97%
Meridian at Midtown (15)	San Jose, CA	Mid-rise	218	2015	2018	95%
Mio	San Jose, CA	Mid-rise	103	2015	2016	97%
Palm Valley	San Jose, CA	Mid-rise	1,099	2008	2014	97%
Sage at Cupertino (4)	San Jose, CA	Garden	230	1971	2017	96%
The Carlyle (8)	San Jose, CA	Garden	132	2000	2000	96%
The Waterford	San Jose, CA	Mid-rise	238	2000	2000	97%
Willow Lake	San Jose, CA	Mid-rise	508	1989	2012	96%
Lakeshore Landing	San Mateo, CA	Mid-rise	308	1988	2014	96%
Hillsdale Garden	San Mateo, CA	Garden	697	1948	2006	96%
Park 20	San Mateo, CA	Mid-rise	197	2015	2015	97%
Station Park Green - Phases I, II, and III	San Mateo, CA	Mid-rise	492	2018	2018	95%
Deer Valley	San Rafael, CA	Garden	171	1996	2014	95%
Bel Air	San Ramon, CA	Garden	462	1988	1995	97%
Canyon Oaks	San Ramon, CA	Mid-rise	250	2005	2007	97%
Crow Canyon	San Ramon, CA	Mid-rise	400	1992	2014	98%
Foothill Gardens	San Ramon, CA	Garden	132	1985	1997	98%
Mill Creek at Windermere	San Ramon, CA	Mid-rise	400	2005	2007	97%
Twin Creeks	San Ramon, CA	Garden	44	1985	1997	98%
1000 Kiely	Santa Clara, CA	Garden	121	1971	2011	97%
Le Parc	Santa Clara, CA	Garden	140	1975	1994	97%
Marina Cove (18)	Santa Clara, CA	Garden	292	1974	1994	96%
Riley Square (9)	Santa Clara, CA	Garden	156	1972	2012	96%
Villa Granada	Santa Clara, CA	Mid-rise	270	2010	2014	96%
Chestnut Street Apartments	Santa Cruz, CA	Garden	96	2002	2008	95%
Bristol Commons	Sunnyvale, CA	Garden	188	1989	1995	96%
Brookside Oaks (4)	Sunnyvale, CA	Garden	170	1973	2000	96%
Lawrence Station	Sunnyvale, CA	Mid-rise	336	2012	2014	97%
Magnolia Lane (19)	Sunnyvale, CA	Garden	32	2001	2007	96%
Magnolia Square (4)	Sunnyvale, CA	Garden	156	1963	2007	96%
Montclaire	Sunnyvale, CA	Mid-rise	390	1973	1988	96%
Reed Square	Sunnyvale, CA	Garden	100	1970	2011	97%
Solstice	Sunnyvale, CA	Mid-rise	280	2014	2014	96%

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			Apartment	Year	Year
Communities (1)	Location	Type	Homes	Built	Acquired	Occupancy(2)
Summerhill Park	Sunnyvale, CA	Garden	100	1988	1988	97%
Via	Sunnyvale, CA	Mid-rise	284	2011	2011	96%
Windsor Ridge	Sunnyvale, CA	Mid-rise	216	1989	1989	95%
Vista Belvedere	Tiburon, CA	Mid-rise	76	1963	2004	98%
Verandas (13)	Union City, CA	Mid-rise	282	1989	2014	98%
Agora	Walnut Creek, CA	Mid-rise	49	2016	2016	97%
Brio (4)	Walnut Creek, CA	Mid-rise	300	2015	2019	96%
			21,584			96%
Seattle, Washington Metropolitan Area
Belcarra	Bellevue, WA	Mid-rise	296	2009	2014	95%
BellCentre	Bellevue, WA	Mid-rise	248	2001	2014	96%
Cedar Terrace	Bellevue, WA	Garden	180	1984	2005	95%
Courtyard off Main	Bellevue, WA	Mid-rise	110	2000	2010	97%
Ellington	Bellevue, WA	Mid-rise	220	1994	2014	95%
Emerald Ridge	Bellevue, WA	Garden	180	1987	1994	97%
Foothill Commons	Bellevue, WA	Mid-rise	394	1978	1990	96%
Palisades, The	Bellevue, WA	Garden	192	1977	1990	96%
Park Highland	Bellevue, WA	Mid-rise	250	1993	2014	96%
Piedmont	Bellevue, WA	Garden	396	1969	2014	96%
Sammamish View	Bellevue, WA	Garden	153	1986	1994	97%
Woodland Commons	Bellevue, WA	Garden	302	1978	1990	96%
Bothell Ridge (6)	Bothell, WA	Garden	214	1988	2014	97%
Canyon Pointe	Bothell, WA	Garden	250	1990	2003	97%
Inglenook Court	Bothell, WA	Garden	224	1985	1994	95%
Pinnacle Sonata	Bothell, WA	Mid-rise	268	2000	2014	96%
Salmon Run at Perry Creek	Bothell, WA	Garden	132	2000	2000	97%
Stonehedge Village	Bothell, WA	Garden	196	1986	1997	97%
Highlands at Wynhaven	Issaquah, WA	Mid-rise	333	2000	2008	97%
Park Hill at Issaquah	Issaquah, WA	Garden	245	1999	1999	97%
Wandering Creek	Kent, WA	Garden	156	1986	1995	98%
Ascent	Kirkland, WA	Garden	90	1988	2012	97%
Bridle Trails	Kirkland, WA	Garden	108	1986	1997	97%
Corbella at Juanita Bay	Kirkland, WA	Garden	169	1978	2010	96%
Evergreen Heights	Kirkland, WA	Garden	200	1990	1997	96%
Slater 116	Kirkland, WA	Mid-rise	108	2013	2013	97%
Montebello	Kirkland, WA	Garden	248	1996	2012	97%
Aviara (20)	Mercer Island, WA	Mid-rise	166	2013	2014	96%
Laurels at Mill Creek	Mill Creek, WA	Garden	164	1981	1996	97%
Parkwood at Mill Creek	Mill Creek, WA	Garden	240	1989	2014	97%
The Elliot at Mukilteo (4)	Mukilteo, WA	Garden	301	1981	1997	96%
Castle Creek	Newcastle, WA	Garden	216	1998	1998	97%
Elevation	Redmond, WA	Garden	158	1986	2010	96%
Pure Redmond	Redmond, WA	Mid-rise	105	2016	2019	94%
Redmond Hill (9)	Redmond, WA	Garden	442	1985	2011	96%
Shadowbrook	Redmond, WA	Garden	418	1986	2014	95%
The Trails of Redmond	Redmond, WA	Garden	423	1985	2014	96%
Vesta (9)	Redmond, WA	Garden	440	1998	2011	96%

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			Apartment	Year	Year
Communities (1)	Location	Type	Homes	Built	Acquired	Occupancy(2)
Brighton Ridge	Renton, WA	Garden	264	1986	1996	96%
Fairwood Pond	Renton, WA	Garden	194	1997	2004	98%
Forest View	Renton, WA	Garden	192	1998	2003	97%
Pinnacle on Lake Washington	Renton, WA	Mid-rise	180	2001	2014	97%
8th & Republican (15)	Seattle, WA	Mid-rise	211	2016	2017	95%
Annaliese	Seattle, WA	Mid-rise	56	2009	2013	96%
The Audrey at Belltown	Seattle, WA	Mid-rise	137	1992	2014	95%
The Bernard	Seattle, WA	Mid-rise	63	2008	2011	95%
Cairns, The	Seattle, WA	Mid-rise	99	2006	2007	93%
Collins on Pine	Seattle, WA	Mid-rise	76	2013	2014	95%
Domaine	Seattle, WA	Mid-rise	92	2009	2012	96%
Expo (17)	Seattle, WA	Mid-rise	275	2012	2012	93%
Fountain Court	Seattle, WA	Mid-rise	320	2000	2000	93%
Patent 523	Seattle, WA	Mid-rise	295	2010	2010	95%
Taylor 28	Seattle, WA	Mid-rise	197	2008	2014	95%
Velo and Ray (15)	Seattle, WA	Mid-rise	308	2014	2019	94%
Vox Apartments	Seattle, WA	Mid-rise	58	2013	2013	96%
Wharfside Pointe	Seattle, WA	Mid-rise	155	1990	1994	96%
			12,107			96%
Total/Weighted Average			60,272			96%

Footnotes to the Company’s Portfolio Listing as of December 31, 2020

(1)Unless otherwise specified, the Company consolidates each community in accordance with U.S. GAAP.

(2)For communities, occupancy rates are based on financial occupancy for the year ended December 31, 2020. For an explanation of how financial occupancy is calculated, see "Occupancy Rates" in this Item 2.

(3)The community is subject to a ground lease, which, unless extended, will expire in 2082.

(4)Each of these communities is part of a DownREIT structure in which the Company is the general partner or manager and the other limited partners or members are granted rights of redemption for their interests.

(5)This community is owned by BEX III, LLC ("BEX III"). The Company has a 50% interest in BEX III, which is accounted for using the equity method of accounting.

(6)This community is owned by BEXAEW. The Company has a 50% interest in BEXAEW, which is accounted for using the equity method of accounting.

(7)This community is owned by Wesco III, LLC ("Wesco III"). The Company has a 50% interest in Wesco III, which is accounted for using the equity method of accounting.

(8)This community is owned by BEX II, LLC ("BEX II"). The Company has a 50% interest in BEX II, which is accounted for using the equity method of accounting.

(9)This community is owned by Wesco I, LLC ("Wesco I"). The Company has a 58% interest in Wesco I, which is accounted for using the equity method of accounting.

(10)This community is subject to a ground lease, which, unless extended, will expire in 2067.

(11)This community is subject to a ground lease, which, unless extended, will expire in 2027.

(12)The Company has a 97% interest and a former Executive Vice President of the Company has a 3% interest in this community.

(13)This community is owned by Wesco IV, LLC ("Wesco IV") The Company has a 50% interest in Wesco IV, which is accounted for using the equity method of accounting.

(14)This community is subject to a ground lease, which, unless extended, will expire in 2028.

(15)This community is owned by Wesco V, LLC ("Wesco V"). The Company has a 50% interest in Wesco V, which is accounted for using the equity method of accounting.

(16)This community is owned by BEX IV, LLC ("BEX IV"). The Company has a 50.1% interest in BEX IV, which is accounted for using the equity method of accounting.

(17)The Company has 50% ownership in this community, which is accounted for using the equity method of accounting.

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(18)A portion of this community on which 84 apartment homes are presently located is subject to a ground lease, which, unless extended, will expire in 2028.

(19)The community is subject to a ground lease, which, unless extended, will expire in 2070.

(20)This community is subject to a ground lease, which, unless extended, will expire in 2070.

Item 3. Legal Proceedings

The information regarding lawsuits, other proceedings and claims, set forth in Note 17, "Commitments and Contingencies", to our consolidated financial statements included in Part IV, Item 15 of this Annual Report on Form 10-K is incorporated by reference into this Item 3. In addition to such matters referred to in Note 17, the Company is subject to various other legal and/or regulatory proceedings arising in the course of its business operations. We believe that, with respect to such matters that we are currently a party to, the ultimate disposition of any such matter will not result in a material adverse effect on the Company’s financial condition, results of operations or cash flows.

Item 4. Mine Safety Disclosures

Not Applicable.

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Part II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

The shares of the Company’s common stock are traded on the New York Stock Exchange under the symbol ESS. 

There is no established public trading market for the Operating Partnership's limited partnership units ("OP Units").

Holders

The approximate number of holders of record of the shares of Essex's common stock was 1,191 as of February 17, 2021. This number does not include stockholders whose shares are held in investment accounts by other entities. Essex believes the actual number of stockholders is greater than the number of holders of record.

As of February 17, 2021, there were 67 holders of record of OP Units, including Essex.

Return of Capital

Under provisions of the Code, the portion of the cash dividend, if any, that exceeds earnings and profits is considered a return of capital. The return of capital is generated due to a variety of factors, including the deduction of non-cash expenses, primarily depreciation, in the determination of earnings and profits.

The status of the cash dividends distributed for the years ended December 31, 2020, 2019, and 2018 related to common stock are as follows:

	2020		2019		2018
Common Stock
Ordinary income	85.23	%	83.81	%	79.72	%
Capital gain	10.68	%	13.78	%	15.35	%
Unrecaptured section 1250 capital gain	4.09	%	2.41	%	4.93	%
	100.00	%	100.00	%	100.00	%

Dividends and Distributions

Future dividends/distributions by Essex and the Operating Partnership will be at the discretion of the Board of Directors of Essex and will depend on the actual cash flows from operations of the Company, its financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code, applicable legal restrictions and such other factors as the Board of Directors deems relevant. There are currently no contractual restrictions on Essex's and the Operating Partnership's present or future ability to pay dividends and distributions, and we do not anticipate that our ability to pay dividends/distributions will be impaired; however, there can be no assurances in that regard.

The Board of Directors declared a dividend/distribution for the fourth quarter of 2020 of $2.0775 per share. The dividend/distribution was paid on January 15, 2021 to stockholders/unitholders of record as of January 4, 2021.

Dividend Reinvestment and Share Purchase Plan

Essex has adopted a dividend reinvestment and share purchase plan designed to provide holders of common stock with a convenient and economical means to reinvest all or a portion of their cash dividends in shares of common stock and to acquire additional shares of common stock through voluntary purchases. Computershare, LLC, which serves as Essex's transfer agent, administers the dividend reinvestment and share purchase plan. For a copy of the plan, contact Computershare, LLC at (312) 360-5354.

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Securities Authorized for Issuance under Equity Compensation Plans

The information required by this section is incorporated herein by reference from our Proxy Statement, relating to our 2021 Annual Meeting of Shareholders, under the headings "Equity Compensation Plan Information," to be filed with the SEC within 120 days of December 31, 2020.

Issuance of Registered Equity Securities

During the year ended December 31, 2020, the Company did not issue any shares of common stock through its equity distribution program. As of December 31, 2020, there were no outstanding forward sale agreements, and $826.6 million of shares remains available to be sold under this program.

Issuer Purchases of Equity Securities

In December 2015, Essex's Board of Directors authorized a stock repurchase plan to allow Essex to acquire shares in an aggregate of up to $250.0 million. In February 2019, the Board of Directors approved the replenishment of the stock repurchase plan such that, as of such date, the Company had $250.0 million of purchase authority remaining under the stock repurchase plan. During the year ended December 31, 2020, the Company repurchased and retired 1,197,190 shares of its common stock totaling $269.3 million, including commissions, at an average price of $224.96 per share. In each of May and December 2020, the Board of Directors approved the replenishment of the stock repurchase plan such that, as of each such date, Essex had $250.0 million of purchase authority remaining under the replenished plan. As of December 31, 2020, the Company had $223.6 million of purchase authority remaining under the stock repurchase plan.

Performance Graph

The line graph below compares the cumulative total stockholder return on Essex's common stock for the last five years with the cumulative total return on the S&P 500 and the NAREIT All Equity REIT index over the same period.  This comparison assumes that the value of the investment in the common stock and each index was $100 on December 31, 2015 and that all dividends were reinvested.

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	Period Ending
Index	12/31/2015	12/31/2016	12/31/2017	12/31/2018	12/31/2019	12/31/2020
Essex Property Trust, Inc.	100.00	99.87	106.66	111.75	140.70	115.26
NAREIT All Equity REIT Index	100.00	108.63	118.05	113.28	145.75	138.28
S&P 500 Index	100.00	111.96	136.40	130.42	171.49	203.04

(1)Common stock performance data is provided by S&P Global Market Intelligence.

The graph and other information furnished under the above caption "Performance Graph" in this Part II Item 5 of this Form 10-K shall not deemed to be "soliciting material" or to be "filed" with the SEC or subject to Regulation 14A or 14C, or to the liabilities of the Exchange Act.

Unregistered Sales of Equity Securities

During the years ended December 31, 2020 and 2019, the Operating Partnership issued OP Units in private placements in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act, in the amounts and for the consideration set forth below:

During the years ended December 31, 2020 and 2019, Essex issued an aggregate of 70,802 and 178,675 shares of its common stock upon the exercise of stock options, respectively. Essex contributed the proceeds from the option exercises of $14.9 million and $37.5 million to the Operating Partnership in exchange for an aggregate of 70,802 and 178,675 OP Units, as required by the Operating Partnership’s partnership agreement, during the years ended December 31, 2020 and 2019, respectively.

During the years ended December 31, 2020 and 2019, Essex issued an aggregate of 24,666 and 16,114 shares of its common stock in connection with restricted stock awards for no cash consideration, respectively. For each share of common stock issued by Essex in connection with such awards, the Operating Partnership issued OP Units to Essex as required by the Operating

43

Partnership's partnership agreement, for an aggregate of 24,666 and 16,114 OP Units during the years ended December 31, 2020 and 2019, respectively.

During the years ended December 31, 2020 and 2019, Essex issued an aggregate of 8,783 and 12,633 shares of its common stock in connection with the exchange of OP Units and DownREIT units by limited partners or members into shares of common stock, respectively. For each share of common stock issued by Essex in connection with such exchange, the Operating Partnership issued OP Units to Essex as required by the Operating Partnership's partnership agreement, for an aggregate of 8,783 and 12,633 OP Units during the year ended December 31, 2020 and 2019, respectively.

Essex may sell shares through its equity distribution program, then contribute the net proceeds from these share issuances to the Operating Partnership in exchange for OP Units as required by the Operating Partnership's partnership agreement. During the year ended December 31, 2020, the Company did not issue any shares of common stock through its equity distribution program. As of December 31, 2020, there were no outstanding forward purchase agreements. During the year ended December 31, 2019, 228,271 shares of the Company's common stock were issued or sold by Essex pursuant to its equity distribution programs.

Stock Repurchases

The following table summarizes the Company's purchase of its common stock during the three months ended December 31, 2020:

	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program(1)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)(1)
October 1, 2020 - October 31, 2020	56,600	$	191.05	56,600	$	192.5
November 1, 2020 - November 30, 2020	33,182	196.59		33,182	186.0
December 1, 2020 - December 31, 2020	121,899	237.80		121,899	223.6
Total	211,681	$	218.84	211,681	$	223.6

(1) In December 2020, the Board of Directors approved the replenishment of the stock repurchase plan such that, as of such date, the Company had $250.0 million of purchase authority remaining under the replenished plan.

44

Item 6. Selected Financial Data

Not applicable.

45

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and notes thereto. These consolidated financial statements include all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results and all such adjustments are of a normal recurring nature.

OVERVIEW

Essex is a self-administered and self-managed REIT that acquires, develops, redevelops, and manages apartment communities in selected residential areas located on the West Coast of the United States. Essex owns all of its interests in its real estate investments, directly or indirectly, through the Operating Partnership. Essex is the sole general partner of the Operating Partnership and, as of December 31, 2020, had an approximately 96.6% general partner interest in the Operating Partnership.

The Company’s investment strategy has two components: constant monitoring of existing markets, and evaluation of new markets to identify areas with the characteristics that underlie rental growth. The Company’s strong financial condition supports its investment strategy by enhancing its ability to quickly shift acquisition, development, redevelopment, and disposition activities to markets that will optimize the performance of the Company's portfolio.

As of December 31, 2020, the Company owned or had ownership interests in 246 operating apartment communities, comprising 60,272 apartment homes, excluding the Company's ownership in preferred equity co-investments, loan investments, one operating commercial building and a development pipeline comprised of three consolidated projects and three unconsolidated joint venture projects.

The Company’s apartment communities are predominately located in the following major regions:

Southern California (primarily Los Angeles, Orange, San Diego, and Ventura counties)

Northern California (the San Francisco Bay Area)

Seattle Metro (Seattle metropolitan area)

As of December 31, 2020, the Company’s development pipeline was comprised of three consolidated projects under development, three unconsolidated joint venture projects under development, and various predevelopment projects aggregating 1,853 apartment homes, with total incurred costs of $948.0 million, and estimated remaining project costs of approximately $174.0 million, $118.0 million of which represents the Company's estimated remaining costs, for total estimated project costs of $1.1 billion. 

As of December 31, 2020, the Company also had an ownership interest in one operating commercial building (totaling approximately 107,000 square feet).

By region, the Company's operating results for 2020 and 2019 and projection for 2021 new housing supply (defined as new multifamily apartment homes and single family homes, excluding developments with fewer than 50 apartment homes as well as student, senior and 100% affordable housing), projection for 2021 job growth, and 2021 estimated Same-Property revenue decline are as follows:

Southern California Region:  As of December 31, 2020, this region represented 43% of the Company’s consolidated operating apartment homes. Revenues for "2020 Same-Properties" (as defined below), or "Same-Property revenues," decreased 4.4% in 2020 as compared to 2019. In 2021, the Company projects new residential supply of 26,500 apartment homes and single family homes, which represents 0.4% of the total housing stock. The Company projects an increase of 231,000 jobs or 3.1% in the Southern California region.

Northern California Region:  As of December 31, 2020, this region represented 37% of the Company’s consolidated operating apartment homes. Same-Property revenues decreased 4.9% in 2020 as compared to 2019. In 2021, the Company projects new residential supply of 16,800 apartment homes and single family homes, which represents 0.7% of the total housing stock. The Company projects an increase of 110,500 jobs or 3.4% in the Northern California region.

Seattle Metro Region: As of December 31, 2020, this region represented 20% of the Company’s consolidated operating apartment homes. Same-Property revenues decreased 0.6% in 2020 as compared to 2019. In 2021, the Company projects new residential supply of 13,800 apartment homes and single family homes, which represents 1.1% of the total housing stock. The Company projects an increase of 55,000 jobs or 3.3% in the Seattle Metro region.

46

In total, the Company projects a decrease in 2021 Same-Property revenues of between 1.5% to 3.5%. Same-Property operating expenses are projected to increase in 2021 by 2.0% to 3.0%.

The Company’s consolidated operating communities are as follows:

	As of			As of
	December 31, 2020			December 31, 2019
	Apartment Homes	%		Apartment Homes	%
Southern California	22,560	43	%	22,674	45	%
Northern California	19,319	37	%	17,556	35	%
Seattle Metro	10,217	20	%	10,343	20	%
Total	52,096	100	%	50,573	100	%

Co-investments, including Wesco I, Wesco III, Wesco IV, Wesco V, BEXAEW, BEX II, BEX III, and BEX IV communities, developments under construction, and preferred equity interest co-investment communities are not included in the table presented above for both periods.

Current Material Development – the COVID-19 Pandemic

The United States and other countries around the world are continuing to experience an unprecedented health pandemic related to COVID-19, which has created considerable instability, disruption, and uncertainty. Governmental authorities in impacted regions are taking dramatic and unpredictable actions in an effort to slow COVID-19’s spread. Federal, state and local jurisdictions have issued and revised varying forms of "Shelter-in-Place" orders, halted or restricted public gatherings and restricted business to only those that are considered "essential" or requiring businesses to make changes to their operations in a manner that negatively affects profitability, resulting in extraordinary job losses and related financial impacts that will affect future operations to an unknown extent. Moreover, eviction moratoriums and, laws that limit rent increases during times of emergency and prohibit the ability to collect unpaid rent during certain timeframes, have been enacted in various formats at various levels of government, including regions in which Essex's communities are located, impacting Essex properties. The Company is working to comply with the stated intent of local, county, state and federal laws. In that regard, the Company has implemented a wide range of practices to protect and support its employees and residents. Such measures include:

•closing the Company's corporate offices and instituting “work from home” measures for corporate associates;

•closing leasing offices to non-Essex personnel, reducing on-site staff so that hygiene and “social distancing” standards can be effectively managed and applied, and requiring face coverings to be worn;

•transitioning most public interactions with leasing staff to on-line and telephonic communications;

•increasing cleaning practices for common areas and community amenities and temporarily closing common areas and community amenities or opening with limited hours, limited capacity or by reservation only, depending in part on jurisdictional requirements; and

•delaying the response to maintenance orders in certain circumstances in order to promote the protection of the Company's employees and residents.

Due to the COVID-19 pandemic, some of the Company's residents, their health, their employment, and, thus, their ability to pay rent, have been and may continue to be impacted. To support residents, the Company has implemented the following steps, including, but not limited to:

•assembling a Resident Response Team to effectively and efficiently respond to resident needs and concerns with respect to the pandemic;

•structuring payment plans for residents who are unable to pay their rent as a result of the outbreak and waiving late fees for those residents; and

•establishing the Essex Cares fund for the purpose of supporting the Company’s residents and communities that are experiencing financial hardships caused by the COVID-19 pandemic.

The impact of the COVID-19 pandemic on the U.S. and world economies generally, and on the Company's results in particular, has been, and may continue to be significant. The long-term impact will largely depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, when a vaccine can be safely and widely distributed and whether employees and employers will continue to promote remote work if and when the pandemic concludes. This includes new information which may emerge concerning the severity of COVID-19, the success of actions taken to contain or treat

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COVID-19, future laws that may be enacted, the impact on job growth and the broader economy, and reactions by consumers, companies, governmental entities and capital markets.

Primarily as a result of the impact of the COVID-19 pandemic, the Company's cash delinquencies as a percentage of scheduled rental income for the Company’s stabilized apartment communities or "Same-Property" (stabilized properties consolidated by the Company for the years ended December 31, 2020 and 2019) increased from 0.3% for 2019 to 2.5% for 2020. The Company has executed some payment plans and will continue to work with residents to execute payment plans related to such cash delinquencies. As part of this process, the Company assessed the collectability reserve attributable to those deferred payments and the anticipated execution of payment plans in the future, which partially mitigated the delinquencies resulting in actual delinquencies as a percentage of scheduled rent for the Company's Same-Property portfolio of 2.1% for the year ended December 31, 2020. As of December 31, 2020, the increase in delinquencies has not had a material adverse impact to the Company's liquidity position.

The COVID-19 pandemic has not negatively impacted the Company's ability to access traditional funding sources on the same or reasonably similar terms as were available in recent periods prior to the pandemic, as demonstrated by the Company's financing activity during the year ended December 31, 2020 discussed in the “Liquidity and Capital Resources" section below. The Company is not at material risk of not meeting the covenants in its credit agreements and is able to timely service its debt and other obligations.

RESULTS OF OPERATIONS

Comparison of Year Ended December 31, 2020 to the Year Ended December 31, 2019

The Company’s average financial occupancy for the Company’s stabilized apartment communities or "2020 Same-Property" (stabilized properties consolidated by the Company for the years ended December 31, 2020 and 2019) decreased 60 basis points to 96.0% in 2020 from 96.6% in 2019. Financial occupancy is defined as the percentage resulting from dividing actual rental income by total scheduled rental income. Actual rental income represents contractual rental income pursuant to leases without considering delinquency and concessions. Total scheduled rental income represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes valued at estimated market rents. The Company believes that financial occupancy is a meaningful measure of occupancy because it considers the value of each vacant apartment home at its estimated market rate.

Market rates are determined using the recently signed effective rates on new leases at the property and are used as the starting point in the determination of the market rates of vacant apartment homes. The Company may increase or decrease these rates based on a variety of factors, including overall supply and demand for housing, concentration of new apartment deliveries within the same submarket which can cause periodic disruption due to greater rental concessions to increase leasing velocity, and rental affordability. Financial occupancy may not completely reflect short-term trends in physical occupancy and financial occupancy rates, and the Company's calculation of financial occupancy may not be comparable to financial occupancy disclosed by other REITs.

The Company does not take into account delinquency and concessions to calculate actual rent for occupied apartment homes and market rents for vacant apartment homes. The calculation of financial occupancy compares contractual rates for occupied apartment homes to estimated market rents for unoccupied apartment homes, and thus the calculation compares the gross value of all apartment homes excluding delinquency and concessions. For apartment communities that are development properties in lease-up without stabilized occupancy figures, the Company believes the physical occupancy rate is the appropriate performance metric. While an apartment community is in the lease-up phase, the Company’s primary motivation is to stabilize the property, which may entail the use of rent concessions and other incentives, and thus financial occupancy, which is based on contractual income is not considered the best metric to quantify occupancy.

The regional breakdown of the Company’s 2020 Same-Property portfolio for financial occupancy for the years ended December 31, 2020 and 2019 is as follows:

	Years ended December 31,
	2020		2019
Southern California	96.0	%	96.6	%
Northern California	96.1	%	96.7	%
Seattle Metro	96.0	%	96.6	%

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The following table provides a breakdown of revenue amounts, including the revenues attributable to 2020 Same-Properties.

	Number of Apartment	Years Ended December 31,				Dollar		Percentage
Property Revenues ($ in thousands)	Homes	2020		2019		Change		Change
2020 Same-Properties:
Southern California	20,800	$	540,771	$	565,594	$	(24,823)	(4.4)	%
Northern California	15,638	504,300		530,114		(25,814)		(4.9)	%
Seattle Metro	10,112	241,615		242,982		(1,367)		(0.6)	%
Total 2020 Same-Property Revenues	46,550	1,286,686		1,338,690		(52,004)		(3.9)	%
2020 Non-Same Property Revenues		199,464		111,938		87,526		78.2	%
Total Property Revenues		$	1,486,150	$	1,450,628	$	35,522	2.4	%

2020 Same-Property Revenues decreased by $52.0 million or 3.9% to $1.3 billion for 2020 compared to $1.3 billion in 2019. The decrease was primarily attributable to an additional $31.8 million of cash concessions and $23.5 million in delinquencies compared to the prior year and a decrease of 0.6% in financial occupancy from 96.6% in 2019 to 96.0% in 2020. 

2020 Non-Same Property Revenues increased by $87.5 million or 78.2% to $199.5 million in 2020 compared to $111.9 million in 2019. The increase was primarily due to revenues generated from the six communities that were consolidated as part of the Company's purchase of CPPIB's 45.0% co-investment interests in the first quarter of 2020, offset by the sale of One South Market, Delano, and 416 on Broadway during 2020.

Management and other fees from affiliates increased by $0.1 million or 1.1% to $9.6 million in 2020 from $9.5 million in 2019.

Property operating expenses, excluding real estate taxes increased by $22.0 million or 9.1% to $263.4 million in 2020 compared to $241.4 million in 2019, primarily due to an increase of $10.2 million in maintenance and repairs expenses, an increase of $7.2 million in utilities expenses, and an increase of $4.7 million in administrative expenses. 2020 Same-Property operating expenses, excluding real estate taxes, increased by $7.8 million or 3.5% to $233.1 million in 2020 compared to $225.3 million in 2019, primarily due to increases of $5.5 million in maintenance and repairs expenses driven by COVID-19 related expenses and $3.2 million in utilities expenses, offset by a decrease of $1.4 million in administrative expenses.

Real estate taxes increased by $21.8 million or 14.0% to $177.0 million in 2020 compared to $155.2 million in 2019, primarily due to the additions of six communities that were consolidated in the first quarter of 2020 as part of the Company's purchase of CPPIB's 45.0% co-investment interests. 2020 Same-Property real estate taxes increased by $6.7 million or 4.7% to $148.6 million in 2020 compared to $141.9 million in 2019 primarily due to an increase in property valuations and tax rates in Seattle Metro region.

Corporate-level property management expenses increased by $0.5 million or 1.5% to $34.6 million in 2020 compared to $34.1 million in 2019, primarily due to an increase in corporate-level property management and staffing costs supporting the communities.

Depreciation and amortization expense increased by $41.7 million or 8.6% to $525.5 million in 2020 compared to $483.8 million in 2019, primarily due to the additions of six communities that were consolidated in the first quarter of 2020 as part of the Company's purchase of CPPIB's 45.0% co-investment interests offset by the sale of One South Market, Delano, and 416 on Broadway during 2020.

Impairment loss of $1.8 million in 2020 was related to one of the Company's consolidated properties as a result of a change in the Company's intent to hold the property for its remaining useful life.

Gain on sale of real estate and land of $65.0 million in 2020 was primarily attributable to the portfolio sale of One South Market and Museum Park in the second quarter of 2020, the sale of Delano in the third quarter of 2020, and the sale of 416 on Broadway in the fourth quarter of 2020. The Company's $3.2 million loss on sale of real estate and land in 2019 was attributable to the sale of land in San Mateo, CA that had been held for future development.

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Interest expense increased by $3.3 million or 1.5% to $220.6 million in 2020 compared to $217.3 million in 2019, primarily due to an increase in average outstanding debt primarily as a result of the issuance of $500.0 million of senior unsecured notes due March 1, 2029 in February and March 2019, $550.0 million of senior unsecured notes due January 15, 2030 in August and October 2019, $650 million of senior unsecured notes due March 15, 2032 in February and June 2020, and $600 million of senior unsecured notes due January 15, 2031 and September 1, 2050 in August 2020, which resulted in an increase of $37.6 million interest expense for 2020 as compared to 2019. Additionally, there was a $9.6 million decrease in capitalized interest in 2020, due to a decrease in development activity as compared to the same period in 2019. These increases to interest expense were partially offset by debt that was paid off, matured, or regular principal amortization during and after 2019, and lower average interest rates, which resulted in a decrease in interest expense of $43.9 million for 2020.

Total return swap income of $10.7 million in 2020 consists of monthly settlements related to the Company's four total return swap contracts with an aggregate notional amount of $254.8 million.

Interest and other income decreased $5.3 million or 11.4% to $41.0 million in 2020 compared to $46.3 million in 2019, primarily due to a decrease of $16.8 million in marketable securities and other income, offset by an increase in unrealized gains on marketable securities of $6.8 million and an increase in interest income of $4.7 million from the maturity of a mortgage backed security investment recognized in 2020 which resulted in the reversal of the estimated credit loss on the investment.

Equity income from co-investments decreased by $45.6 million or 40.7% to $66.5 million in 2020 compared to $112.1 million in 2019, primarily due to a decrease of $48.9 million in gains from the sale of co-investment communities, and a decrease of $16.5 million in equity income from co-investments of which, $9.1 million was as a result of the Company's purchase of CPPIB's 45.0% co-investment interests. These decreases were offset by a decrease of $11.5 million in impairment loss from unconsolidated co-investment, an increase of $5.6 million in promote income, and an increase of $2.0 million in income from preferred equity investments including income from early redemptions.

Deferred tax expense on unrealized gain on unconsolidated co-investment of $1.5 million in 2020 resulted from a net unrealized gain of $5.3 million from an unconsolidated co-investment.

Loss on early retirement of debt, net of $22.9 million in 2020 was primarily due to early repayment of a $297.7 million secured mortgage note payable in the first and second quarters of 2020, and the early repayment of $600.0 million of senior unsecured notes during the third and fourth quarters of 2020.

Gain on remeasurement of co-investment of $234.7 million in 2020 resulted from the Company's purchase of CPPIB's 45.0% co-investment interests. Gain on remeasurement of $31.5 million in 2019 resulted from the purchase of the Company's joint venture partner's 45.0% membership interest in the One South Market co-investment in March 2019.

Comparison of Year Ended December 31, 2019 to the Year Ended December 31, 2018

For the comparison of the years ended December 31, 2019 and December 31, 2018, refer to Part II, Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations" on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 20, 2020 under the subheading "Comparison of Year Ended December 31, 2019 to the Year Ended December 31, 2018."

Liquidity and Capital Resources

The United States and other countries around the world are experiencing an unprecedented health pandemic related to COVID-19, which has created considerable instability and disruption in the U.S. and world economies. Governmental authorities in affected regions are taking extraordinary steps in an effort to slow down the spread of the virus and mitigate its impact on affected populations.

The following table sets forth the Company’s cash flows for 2020, 2019 and 2018 ($ in thousands):

	For the year ended December 31,
	2020		2019		2018
Cash flow provided by (used in):
Operating activities	$	803,108	$	919,079	$	826,554
Investing activities	$	(416,900)	$	(527,691)	$	(59,893)
Financing activities	$	(383,261)	$	(461,689)	$	(676,392)

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Essex’s business is operated primarily through the Operating Partnership. Essex issues public equity from time to time, but does not otherwise generate any capital itself or conduct any business itself, other than incurring certain expenses from operating as a public company which are fully reimbursed by the Operating Partnership. Essex itself does not hold any indebtedness, and its only material asset is its ownership of partnership interests of the Operating Partnership. Essex’s principal funding requirement is the payment of dividends on its common stock and preferred stock. Essex’s sole source of funding for its dividend payments is distributions it receives from the Operating Partnership.

As of December 31, 2020, Essex owned a 96.6% general partner interest and the limited partners owned the remaining 3.4% interest in the Operating Partnership.

The liquidity of Essex is dependent on the Operating Partnership’s ability to make sufficient distributions to Essex. The primary cash requirement of Essex is its payment of dividends to its stockholders. Essex also guarantees some of the Operating Partnership’s debt, as discussed further in Notes 7 and 8 to our consolidated financial statements included in Part IV, Item 15 of this Annual Report on Form 10-K. If the Operating Partnership fails to fulfill certain of its debt requirements, which trigger Essex’s guarantee obligations, then Essex will be required to fulfill its cash payment commitments under such guarantees. However, Essex’s only significant asset is its investment in the Operating Partnership.

For Essex to maintain its qualification as a REIT, it must pay dividends to its stockholders aggregating annually at least 90% of its REIT taxable income, excluding net capital gains. While historically Essex has satisfied this distribution requirement by making cash distributions to its stockholders, it may choose to satisfy this requirement by making distributions of other property, including, in limited circumstances, Essex’s own stock. As a result of this distribution requirement, the Operating Partnership cannot rely on retained earnings to fund its ongoing operations to the same extent that other companies whose parent companies are not REITs can. Essex may need to continue to raise capital in the equity markets to fund the Operating Partnership’s working capital needs, acquisitions and developments.

At December 31, 2020, the Company had $73.6 million of unrestricted cash and cash equivalents and $147.8 million in marketable securities. The Company believes that cash flows generated by its operations, existing cash and cash equivalents, marketable securities balances and availability under existing lines of credit are sufficient to meet all of its anticipated cash needs during 2021. Additionally, the capital markets continue to be available and the Company is able to generate cash from the disposition of real estate assets to finance additional cash flow needs, including continued development and select acquisitions. In the event that conditions become further exacerbated due to the COVID-19 pandemic and related economic disruptions, the Company may further utilize other resources such as its cash reserves, lines of credit, or decreased investment in redevelopment activities to supplement operating cash flows. The Company is carefully monitoring and managing its cash position in light of ongoing conditions and levels of operations. The timing, source and amounts of cash flows provided by financing activities and used in investing activities are sensitive to changes in interest rates and other fluctuations in the capital markets environment, which can affect the Company’s plans for acquisitions, dispositions, development and redevelopment activities.

As of December 31, 2020, the Company had $200.0 million of private placement unsecured bonds outstanding at an average interest rate of 4.4% with maturity dates ranging from April 2021 through August 2021.

As of December 31, 2020, the Company had $4.9 billion of fixed rate public bonds outstanding at an average interest rate of 3.4% with maturity dates ranging from 2023 to 2050.

As of December 31, 2020, the Company had $550.0 million outstanding on its unsecured term loan. $350.0 million of the unsecured term loan bears a variable interest rate of LIBOR plus 0.95% and matures in February 2022. $200.0 million of the unsecured term loan bears a variable interest rate of LIBOR plus 1.20% and matures in April 2021 with two 12-month extension options, exercisable at the Company's option. The Company has five interest rate swap contracts, with an aggregate notional balance of $175.0 million, which effectively converts the interest rate on $175.0 million of the unsecured term loan to a fixed rate of 2.3%.

As of December 31, 2020, the Company’s mortgage notes payable totaled $0.6 billion, net of unamortized premiums and debt issuance costs, which consisted of $0.4 billion in fixed rate debt at an average interest rate of 3.5% and maturity dates ranging from 2022 to 2028 and $224.2 million of tax-exempt variable rate demand notes with a weighted average interest rate of 1.2%. The tax-exempt variable rate demand notes have maturity dates ranging from 2027 to 2046. $254.8 million is subject to total return swaps.

As of December 31, 2020, the Company had two unsecured lines of credit aggregating $1.24 billion, including a $1.2 billion unsecured line of credit and a $35.0 million working capital unsecured line of credit. As of December 31, 2020, there was no

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amount outstanding on the $1.2 billion unsecured line of credit. The interest rate is based on a tiered rate structure tied to the Company's credit ratings and was LIBOR plus 0.825% as of December 31, 2020. There was no amount outstanding on the Company's $35.0 million working capital unsecured line of credit as of December 31, 2020. The interest rate on the amended line is based on a tiered rate structure tied to the Company's credit ratings and is currently at LIBOR plus 0.825%.

The Company’s unsecured lines of credit and unsecured debt agreements contain debt covenants related to limitations on indebtedness and liabilities and maintenance of minimum levels of consolidated earnings before depreciation, interest and amortization. The Company was in compliance with the debt covenants as of December 31, 2020 and 2019.

The Company pays quarterly dividends from cash available for distribution. Until it is distributed, cash available for distribution is invested by the Company primarily in investment grade securities held available for sale or is used by the Company to reduce balances outstanding under its lines of credit.

Derivative Activity

The Company uses interest rate swaps, interest rate caps, and total return swap contracts to manage certain interest rate risks. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps and total return swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements.

The Company has entered into interest rate swap contracts with an aggregate notional amount of $175.0 million that effectively fixed the interest rate on the $175.0 million of the $550.0 million unsecured term loan at 2.3%. These derivatives qualify for hedge accounting.

The Company has four total return swap contracts, with an aggregate notional amount of $254.8 million, that effectively converts $225.1 million of mortgage notes payable and $29.7 million of mortgage notes payable related to real estate held for sale that is included in liabilities associated with real assets held for sale on the consolidated balance sheet to a floating interest rate based on the Securities Industry and Financial Markets Association Municipal Swap Index ("SIFMA") plus a spread. The total return swaps provide fair market value protection on the mortgage notes payable to our counterparties during the initial period of the total return swap until the Company's option to call the mortgage notes at par can be exercised. The Company can currently call all four of the total return swaps, with $254.8 million of the outstanding debt at par. These derivatives do not qualify for hedge accounting.

As of December 31, 2020 and 2019, the aggregate carrying value of the interest rate swap contracts was a liability of $2.4 million and an asset of $0.8 million, respectively. As of December 31, 2020 and 2019, the swap contracts were presented in the consolidated balance sheets as an asset of zero and $1.0 million, respectively, and were included in prepaid expenses and other assets on the consolidated balance sheets, and a liability of $2.4 million and $0.2 million, respectively, and were included in other liabilities on the consolidated balance sheets. The aggregate carrying and fair value of the total return swaps was zero at both December 31, 2020 and 2019.

Hedge ineffectiveness related to cash flow hedges, which is reported in current year income as interest expense, net was a zero, a loss of $0.2 million, and a loss of $0.1 million, for the years ended December 31, 2020, 2019, and 2018, respectively.

Issuance of Common Stock

In September 2018, the Company filed a new shelf registration statement with the SEC, allowing the Company to sell an undetermined number or amount of certain equity and debt securities of the Company, as defined in the prospectus contained in the shelf registration statement.

Also in September 2018, the Company entered into an equity distribution agreement pursuant to which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $900.0 million (the "2018 ATM Program"). In connection with the 2018 ATM Program, the Company may also enter into related forward sale agreements whereby, at the Company’s discretion, it may sell shares of its common stock under the 2018 ATM Program under forward sale agreements. The use of a forward sale agreement would allow the Company to lock in a share price on the sale of shares of its common

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stock at the time the agreement is executed, but defer receiving the proceeds from the sale of shares until a later date. The Company anticipates using the net proceeds, which are contributed to the Operating Partnership, to acquire, develop, or redevelop properties, which primarily will be apartment communities, to make other investments and for working capital or general corporate purposes, which may include the repayment of indebtedness.

For the year ended December 31, 2020, the Company did not issue any shares of its common stock through the 2018 ATM Program. For the year ended December 31, 2019, the Company issued 228,271 shares of common stock through the 2018 ATM Program at an average price of $321.56 per share for proceeds of $73.4 million. For the year ended December 31, 2018, the Company did not sell any shares of its common stock through the 2018 ATM Program or through the previous equity distribution agreement. As of December 31, 2020, $826.6 million of shares remains available to be sold under the 2018 ATM Program.

Capital Expenditures

Non-revenue generating capital expenditures are improvements and upgrades that extend the useful life of the property. For the year ended December 31, 2020, non-revenue generating capital expenditures totaled approximately $1,371 per apartment home. These expenditures do not include expenditures for deferred maintenance on acquisition properties, expenditures for property renovations and improvements which are expected to generate additional revenue or cost savings, and do not include expenditures incurred due to changes in government regulations that the Company would not have incurred otherwise, costs related to the COVID-19 pandemic, retail, furniture and fixtures, or expenditures for which the Company expects to be reimbursed. The Company expects that cash from operations and/or its lines of credit will fund such expenditures. 

Development and Predevelopment Pipeline

The Company defines development projects as new communities that are being constructed, or are newly constructed and are in a phase of lease-up and have not yet reached stabilized operations. As of December 31, 2020, the Company's development pipeline was comprised of three consolidated projects under development, three unconsolidated joint venture projects under development and various consolidated predevelopment projects, aggregating 1,853 apartment homes, with total incurred costs of $948.0 million, and estimated remaining project costs of approximately $174.0 million, $118.0 million of which represents the Company's estimated remaining costs, for total estimated project costs of $1.1 billion.

The Company defines predevelopment projects as proposed communities in negotiation or in the entitlement process with an expected high likelihood of becoming entitled development projects. The Company may also acquire land for future development purposes or sale.

The Company expects to fund the development and predevelopment communities by using a combination of some or all of the following sources: its working capital, amounts available on its lines of credit, construction loans, net proceeds from public and private equity and debt issuances, and proceeds from the disposition of assets, if any.

Redevelopment Pipeline

The Company defines redevelopment communities as existing properties owned or recently acquired, which have been targeted for additional investment by the Company with the expectation of increased financial returns through property improvement.  During redevelopment, apartment homes may not be available for rent and, as a result, the related apartment community may have less than stabilized operations.  As of December 31, 2020, the Company had ownership interests in three major redevelopment communities aggregating 1,112 apartment homes with estimated redevelopment costs of $109.1 million, of which approximately $4.5 million remains to be expended.

Alternative Capital Sources

The Company utilizes co-investments as an alternative source of capital for acquisitions of both operating and development communities. As of December 31, 2020, the Company had an interest in 1,070 apartment homes in communities actively under development with joint ventures for total estimated costs of $665.0 million. Total estimated remaining costs total approximately $114.0 million, of which the Company estimates that its remaining investment in these development joint ventures will be approximately $57.9 million. In addition, the Company had an interest in 8,652 apartment homes in operating communities with joint ventures for a total book value of $0.4 billion.

Contractual Obligations and Commercial Commitments

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The following table summarizes our obligations at December 31, 2020 ($ in thousands):

	For the Fiscal Years Ending
	2021		2022 and 2023		2024 and 2025		Thereafter		Total
Mortgage notes payable	$	3,501	$	46,133	$	136,163	$	455,629	$	641,426
Unsecured debt	200,000		1,150,000		900,000		3,400,000		5,650,000
Lines of credit	—		—		—		—		—
Interest on indebtedness (1)	192,004		344,212		273,729		826,309		1,636,254
Ground leases	3,506		7,012		7,012		121,485		139,015
Operating leases	3,457		6,937		5,988		18,932		35,314
	$	402,468	$	1,554,294	$	1,322,892	$	4,822,355	$	8,102,009

(1)Interest on indebtedness for variable debt was calculated using interest rates as of December 31, 2020.

We have a commitment, which is not reflected in the table above, to make additional capital contributions to two limited partnerships in which we hold an equity interest. The capital contributions may be called by the general partner at any time until September 2022 and April 2025, after giving appropriate notice. As of December 31, 2020, we had committed to make additional capital contributions totaling up to $6.3 million and $14.9 million if and when called by the general partner of the two limited partnerships until September 2022 and April 2025, respectively.

Real Estate Commitments

The following table summarizes the Company's real estate commitment at December 31, 2020 ($ in thousands):

	Number of Properties	Investment		Remaining Commitment
Joint ventures:
Preferred equity investments	5	$	179,387	$	139,225
Real estate under development (1)	3	550,863		14,000
Consolidated:
Real estate under development (2)	3	396,571		60,000
		$	1,126,821	$	213,225

(1)Estimated project cost for development of the Company's 500 Folsom project is net of a projected value for low-income housing tax credit proceeds and the value of the tax exempt bond structure. Excludes approximately $44.0 million of the Company's share of estimated project costs for Scripps Mesa Apartments which have been fully funded.

(2)Estimated project cost for development of the Company's Wallace on Sunset project is net of cost incurred on the adjacent theatre at the property.

Variable Interest Entities

In accordance with accounting standards for consolidation of variable interest entities ("VIEs"), the Company consolidates the Operating Partnership, 17 DownREIT entities (comprising nine communities) and five co-investments as of December 31, 2020. As of December 31, 2019, the Company consolidated the Operating Partnership, 17 DownREIT entities (comprising nine communities), and six co-investments. The Company consolidates these entities because it is deemed the primary beneficiary. Essex has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT entities, net of intercompany eliminations, were approximately $898.5 million and $326.8 million, respectively, as of December 31, 2020, and $1.0 billion and $364.3 million, respectively, as of December 31, 2019. Noncontrolling interests in these entities were $120.8 million and $122.5 million as of December 31, 2020 and 2019, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE. As of December 31, 2020, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary and did not have any VIEs of which it was not deemed to be the primary beneficiary.

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Critical Accounting Policies and Estimates

The preparation of consolidated financial statements, in accordance with U.S. GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The Company defines critical accounting policies as those accounting policies that require the Company's management to exercise their most difficult, subjective and complex judgments.  The Company’s critical accounting policies and estimates relate principally to the following key areas: (i) accounting for the acquisition of investments in real estate (specifically, the allocation between land and buildings); and (ii) evaluation of events and changes in circumstances indicating whether the Company’s rental properties may be impaired. The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates made by management.

The Company accounts for its acquisitions of investments in real estate by assessing each acquisition to determine if it meets the definition of a business or if it qualifies as an asset acquisition. We expect that acquisitions of individual operating communities will generally be viewed as asset acquisitions, and result in the capitalization of acquisition costs, and the allocation of purchase price to the assets acquired and liabilities assumed based on the relative fair value of the respective assets and liabilities.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent land appraisals which consider comparable market transactions, its own analysis of recently acquired or developed comparable properties in our portfolio for land comparables and building replacement costs, and other publicly available market data. In calculating the fair value of identified intangible assets of an acquired property, the in-place leases are valued based on in-place rent rates and amortized over the average remaining term of all acquired leases.

The Company periodically assesses the carrying value of its real estate investments for indicators of impairment. The judgments regarding the existence of impairment indicators are based on monitoring investment market conditions and performance compared to budget for operating properties including the net operating income for the most recent 12 month period, monitoring estimated costs for properties under development, the Company's ability to hold and its intent with regard to each asset, and each property's remaining useful life. Whenever events or changes in circumstances indicate that the carrying amount of a property held for investment may not be fully recoverable, the carrying amount is evaluated. If the sum of the property’s expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the property, then the Company will recognize an impairment loss equal to the excess of the carrying amount over the fair value of the property. 

When the Company determines that a property is held for sale, it discontinues the periodic depreciation of that property. The criteria for determining when a property is held for sale requires judgment and has potential financial statement impact as depreciation would cease and an impairment loss could occur upon determination of held for sale status. Assets held for sale are reported at the lower of the carrying amount or estimated fair value less costs to sell.

The Company bases its accounting estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions.

Funds from Operations

Funds from Operations ("FFO") is a financial measure that is commonly used in the REIT industry. The Company presents FFO and FFO excluding non-core items (referred to as "Core FFO") as supplemental operating performance measures. FFO and Core FFO are not used by the Company as, nor should they be considered to be, alternatives to net income computed under U.S. GAAP as an indicator of the Company’s operating performance or as alternatives to cash from operating activities computed under U.S. GAAP as an indicator of the Company's ability to fund its cash needs.

FFO and Core FFO are not meant to represent a comprehensive system of financial reporting and do not present, nor do they intend to present, a complete picture of the Company's financial condition and operating performance. The Company believes that net income computed under U.S. GAAP is the primary measure of performance and that FFO and Core FFO are only meaningful when they are used in conjunction with net income. The Company considers FFO and Core FFO to be useful financial performance measurements of an equity REIT because, together with net income and cash flows, FFO and Core FFO provide investors with additional bases to evaluate operating performance and ability of a REIT to incur and service debt and to fund acquisitions and other capital expenditures and to pay dividends. By excluding gains or losses related to sales of

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depreciated operating properties and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a real estate company between periods or as compared to different companies. By further adjusting for items that are not considered part of the Company’s core business operations, Core FFO allows investors to compare the core operating performance of the Company to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual operating results. The Company believes that its consolidated financial statements, prepared in accordance with U.S. GAAP, provide the most meaningful picture of its financial condition and its operating performance.

In calculating FFO, the Company follows the definition for this measure published by NAREIT, which is the leading REIT industry association. The Company believes that, under the NAREIT FFO definition, the two most significant adjustments made to net income are (i) the exclusion of historical cost depreciation and (ii) the exclusion of gains and losses from the sale of previously depreciated properties. The Company agrees that these two NAREIT adjustments are useful to investors for the following reasons:

(a)historical cost accounting for real estate assets in accordance with U.S. GAAP assumes, through depreciation charges, that the value of real estate assets diminishes predictably over time. NAREIT stated in its White Paper on Funds from Operations “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves." Consequently, NAREIT’s definition of FFO reflects the fact that real estate, as an asset class, generally appreciates over time and depreciation charges required by U.S. GAAP do not reflect the underlying economic realities.

(b)REITs were created as a legal form of organization in order to encourage public ownership of real estate as an asset class through investment in firms that were in the business of long-term ownership and management of real estate.  The exclusion, in NAREIT’s definition of FFO, of gains and losses from the sales of previously depreciated operating real estate assets allows investors and analysts to readily identify the operating results of the long-term assets that form the core of a REIT’s activity and assists in comparing those operating results between periods.

Management believes that it has consistently applied the NAREIT definition of FFO to all periods presented. However, there is judgment involved and other REITs' calculation of FFO may vary from the NAREIT definition for this measure, and thus their disclosure of FFO may not be comparable to the Company’s calculation.

The table below is a reconciliation of net income available to common stockholders to FFO and Core FFO for the years ended December 31, 2020, 2019, and 2018.

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	As of and for the years ended December 31,
	2020		2019		2018
	($ in thousands, except per share amounts)
OTHER DATA:
Funds from operations attributable to common stockholders and unitholders:
Net income available to common stockholders	$	568,870	$	439,286	$	390,153
Adjustments:
Depreciation and amortization	525,497		483,750		479,884
Gains not included in FFO attributable to common stockholders and unitholders	(301,886)		(79,468)		(73,683)
Impairment loss	1,825		7,105		—
Impairment loss from unconsolidated co-investments	—		11,484		—
Depreciation and amortization from unconsolidated co-investments	51,594		60,655		62,954
Noncontrolling interest related to Operating Partnership units	19,912		15,343		13,452
Depreciation attributable to third party ownership and other	(539)		(1,805)		(940)
Funds from operations attributable to common stockholders and unitholders	$	865,273	$	936,350	$	871,820
Non-core items:
Expensed acquisition and investment related costs	1,591		168		194
Deferred tax expense on unrealized gain on unconsolidated co-investment (1)	1,531		1,457		—
Gain on sale of marketable securities	(2,131)		(1,271)		(737)
Unrealized (gains) losses on marketable securities	(12,515)		(5,710)		5,159
Provision for credit losses	687		—		—
Equity income from non-core co-investment (2)	(5,289)		(4,143)		—
Interest rate hedge ineffectiveness (3)	—		181		148
Loss (gain) on early retirement of debt, net	22,883		(3,717)		—
Gain on early retirement of debt from unconsolidated co-investment	(38)		—		(3,662)
Co-investment promote income	(6,455)		(809)		(20,541)
Income from early redemption of preferred equity investments	(210)		(3,562)		(1,652)
Accelerated interest income from maturity of investment in mortgage backed security	(11,753)		(7,032)		—
General and administrative and other, net	14,958		1,181		8,745
Insurance reimbursements, legal settlements, and other, net	(81)		(858)		(561)
Core funds from operations attributable to common stockholders and unitholders	$	868,451	$	912,235	$	858,913
Weighted average number of shares outstanding, diluted (FFO)(4)	67,726		68,199		68,322
Funds from operations attributable to common stockholders and unitholders per share - diluted	$	12.78	$	13.73	$	12.76
Core funds from operations attributable to common stockholders and unitholders per share - diluted	$	12.82	$	13.38	$	12.57

(1)Represents deferred tax (income) expense recorded during the year related to net unrealized gains on the Real Estate Technology Ventures, L.P. co-investment.

(2)Represents the Company's share of co-investment income from Real Estate Technology Ventures, L.P.

(3)On January 1, 2019, the Company adopted ASU No. 2017-12 "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities," which resulted in a cumulative effect adjustment of approximately $181,000 from interest expense to accumulated other comprehensive income. As a result of the adoption of this standard, the Company

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recognizes qualifying hedge ineffectiveness through accumulated other comprehensive income as opposed to current earnings.

(4)Assumes conversion of all outstanding OP Units into shares of the Company's common stock and excludes all DownREIT units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

Net Operating Income

Net operating income ("NOI") and Same-Property NOI are considered by management to be important supplemental performance measures to earnings from operations included in the Company’s consolidated statements of income. The presentation of Same-Property NOI assists with the presentation of the Company’s operations prior to the allocation of depreciation and any corporate-level or financing-related costs. NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities. In addition, because prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets. The Company defines Same-Property NOI as Same-Property revenues less Same-Property operating expenses, including property taxes. Please see the reconciliation of earnings from operations to NOI and Same-Property NOI, which in the table below is the NOI for stabilized properties consolidated by the Company for the periods presented ($ in thousands):

	2020		2019		2018
Earnings from operations	$	491,441	$	481,112	$	511,989
Adjustments:
Corporate-level property management expenses	34,573		34,067		32,055
Depreciation and amortization	525,497		483,750		479,884
Management and other fees from affiliates	(9,598)		(9,527)		(9,183)
General and administrative	65,388		54,262		53,451
Expensed acquisition and investment related costs	1,591		168		194
Impairment loss	1,825		7,105		—
(Gain) Loss on sale of real estate and land	(64,967)		3,164		(61,861)
NOI	1,045,750		1,054,101		1,006,529
Less: Non Same-Property NOI	(140,782)		(82,644)		(75,688)
Same-Property NOI	$	904,968	$	971,457	$	930,841

Forward-Looking Statements

Certain statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this Annual Report on Form 10-K which are not historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act, including statements regarding the Company's expectations, estimates, assumptions, hopes, intentions, beliefs and strategies regarding the future. Words such as "expects," "assumes," "anticipates," "may," "will," "intends," "plans," "projects," "believes," "seeks," "future," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, among other things, statements regarding the Company's expectations related to the continued impact of the COVID-19 pandemic on the Company's business, financial condition and results of operations and the impact of any additional measures taken to mitigate the impact of the pandemic, the Company's intent, beliefs or expectations with respect to the timing of completion of current development and redevelopment projects and the stabilization of such projects, the timing of lease-up and occupancy of its apartment communities, the anticipated operating performance of its apartment communities, the total projected costs of development and redevelopment projects, co-investment activities, qualification as a REIT under the Internal Revenue Code of 1986, as amended, 2021 Same-Property revenue generally and in specific regions, 2021 Same-Property operating expenses, the real estate markets in the geographies in which the Company's properties are located and in the United States in general, the adequacy of future cash flows to meet anticipated cash needs, its financing activities and the use of proceeds from such activities, the availability of debt and equity financing, general economic conditions including the potential impacts from such economic conditions, including as a result of the COVID-19 pandemic and governmental measures intended to prevent its spread, trends affecting the Company's financial condition or results of operations, changes to U.S. tax laws and regulations in general or specifically related to REITs or real estate, changes to laws

58

and regulations in jurisdictions in which communities the Company owns are located, and other information that is not historical information.

While the Company's management believes the assumptions underlying its forward-looking statements are reasonable, such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company cannot assure the future results or outcome of the matters described in these statements; rather, these statements merely reflect the Company’s current expectations of the approximate outcomes of the matters discussed. Factors that might cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, the following: the continued impact of the COVID-19 pandemic, which remains inherently uncertain as to duration and severity, and any additional governmental measures taken to limit its spread, and other potential future outbreaks of infectious diseases or other health concerns could continue to adversely affect the Company's business and its tenants, and cause a significant downturn in general economic conditions, the real estate industry, and the markets in which the Company's communities are located; the Company may fail to achieve its business objectives; the actual completion of development and redevelopment projects may be subject to delays; the stabilization dates of such projects may be delayed; the Company may abandon or defer development or redevelopment projects for a number of reasons, including changes in local market conditions which make development less desirable, increases in costs of development, increases in the cost of capital or lack of capital availability, resulting in losses; the total projected costs of current development and redevelopment projects may exceed expectations; such development and redevelopment projects may not be completed; development and redevelopment projects and acquisitions may fail to meet expectations; estimates of future income from an acquired property may prove to be inaccurate; occupancy rates and rental demand may be adversely affected by competition and local economic and market conditions; there may be increased interest rates and operating costs; the Company may be unsuccessful in the management of its relationships with its co-investment partners; future cash flows may be inadequate to meet operating requirements and/or may be insufficient to provide for dividend payments in accordance with REIT requirements; changes in laws or regulations; the terms of any refinancing may not be as favorable as the terms of existing indebtedness; unexpected difficulties in leasing of development projects; volatility in financial and securities markets; the Company’s failure to successfully operate acquired properties; unforeseen consequences from cyber-intrusion; the Company’s inability to maintain our investment grade credit rating with the rating agencies; government approvals, actions and initiatives, including the need for compliance with environmental requirements; and those further risks, special considerations, and other factors discussed in Item 1A, Risk Factors, of this Form 10-K, and those risk factors and special considerations set forth in the Company’s other filings with the SEC which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Additionally, the risks, uncertainties and other factors set forth above or otherwise referred to in this Annual Report on Form 10-K and the other reports that the Company has filed with the SEC may be further amplified by the global impact of the COVID-19 pandemic. All forward-looking statements are made as of the date hereof, the Company assumes no obligation to update or supplement this information for any reason, and therefore, they may not represent the Company's estimates and assumptions after the date of this report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risks

Interest Rate Hedging Activities

The Company’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements or other identified risks. To accomplish this objective, the Company uses interest rate swaps as part of its cash flow hedging strategy. As of December 31, 2020, the Company had entered into five interest rate swap contracts to mitigate the risk of changes in the interest-related cash outflows on $175.0 million of the unsecured term debt. As of December 31, 2020, the Company also had $225.1 million of secured variable rate indebtedness. All of the Company’s interest rate swaps are designated as cash flow hedges as of December 31, 2020. The following table summarizes the notional amount, carrying value, and estimated fair value of the Company’s cash flow hedge derivative instruments used to hedge interest rates as of December 31, 2020. The notional amount represents the aggregate amount of a particular security that is currently hedged at one time, but does not represent exposure to credit, interest rates or market risks. The table also includes a sensitivity analysis to demonstrate the impact on the Company’s derivative instruments from an increase or decrease in 10-year Treasury bill interest rates by 50 basis points, as of December 31, 2020.

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				Carrying and		Estimated Carrying Value
			Maturity	Estimated		+ 50		- 50
($ in thousands)	Notional Amount		Date Range	Fair Value		Basis Points		Basis Points
Cash flow hedges:
Interest rate swaps	$	175,000	2022	$	(2,373)	$	(1,412)	$	(3,350)
Total cash flow hedges	$	175,000	2022	$	(2,373)	$	(1,412)	$	(3,350)

Additionally, the Company has entered into total return swap contracts, with an aggregate notional amount of $254.8 million that effectively convert $225.1 million of fixed mortgage notes payable and $29.7 million of mortgage notes payable related to real estate held for sale that is included in liabilities associated with real estate held for sale on the consolidated balance sheet to a floating interest rate based on the SIFMA plus a spread and have a carrying value of zero at December 31, 2020. The Company is exposed to insignificant interest rate risk on these swaps as the related mortgages are callable, at par, by the Company, co-terminus with the termination of any related swap. These derivatives do not qualify for hedge accounting.

Interest Rate Sensitive Liabilities

The Company is exposed to interest rate changes primarily as a result of its lines of credit and long-term debt used to maintain liquidity and fund capital expenditures and expansion of the Company’s real estate investment portfolio and operations. The Company’s interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. To achieve its objectives, the Company borrows primarily at fixed rates and may enter into derivative financial instruments such as interest rate swaps, caps and treasury locks in order to mitigate its interest rate risk on a related financial instrument. The Company does not enter into derivative or interest rate transactions for speculative purposes.

The Company’s interest rate risk is monitored using a variety of techniques. The table below presents the principal amounts and weighted average interest rates by year of expected maturity to evaluate the expected cash flows. Management has estimated the fair value of the Company’s $5.5 billion of fixed rate debt at December 31, 2020, to be $6.0 billion. Management has estimated the fair value of the Company’s $775.1 million of variable rate debt at December 31, 2020, to be $770.1 million based on the terms of existing mortgage notes payable and variable rate demand notes compared to those available in the marketplace. The following table represents scheduled principal payments ($ in thousands):

	For the Years Ended December 31,
($ in thousands, except for interest rates)	2021	2022	2023	2024	2025	Thereafter	Total	Fair value
Fixed rate debt	$202,788	$42,408	$602,093	$402,177	$632,035	$3,634,849	$5,516,350	$6,030,203
Average interest rate	4.3%	3.7%	3.7%	4.0%	3.5%	3.3%
Variable rate debt (1)	$713	$350,780	$200,852	$932	$1,019	$220,780	$775,076	$770,075
Average interest rate	1.3%	1.8%	1.5%	1.3%	1.3%	1.1%

(1)$175.0 million is subject to interest rate protection agreements ($175.0 million is subject to interest rate swaps). $225.1 million of variable rate debt in the table above excludes $29.7 million of variable rate debt related to real estate held for sale that is included in liabilities associated with real estate held for sale on the consolidated balance sheet and both amounts are subject to total return swaps.

The table incorporates only those exposures that exist as of December 31, 2020; it does not consider those exposures or positions that could arise after that date. As a result, the Company’s ultimate realized gain or loss, with respect to interest rate fluctuations and hedging strategies would depend on the exposures that arise prior to settlement.

Item 8. Financial Statements and Supplementary Data

The response to this item is submitted as a separate section of this Form 10-K. See Item 15.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9A. Controls and Procedures

Essex Property Trust, Inc.

As of December 31, 2020, Essex carried out an evaluation, under the supervision and with the participation of management, including Essex's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of Essex's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based upon that evaluation, Essex’s Chief Executive Officer and Chief Financial Officer concluded that as of December 31, 2020, Essex’s disclosure controls and procedures were effective to ensure that the information required to be disclosed by Essex in the reports that Essex files or submits under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such disclosure controls and procedures were also effective to ensure that information required to be disclosed in the reports that Essex files or submits under the Exchange Act is accumulated and communicated to Essex’s management, including Essex’s Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

There were no changes in Essex’s internal control over financial reporting, that occurred during the quarter ended December 31, 2020, that have materially affected, or are reasonably likely to materially affect, Essex’s internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

Essex’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Essex’s management assessed the effectiveness of Essex’s internal control over financial reporting as of December 31, 2020. In making this assessment, Essex’s management used the criteria set forth in the report entitled "Internal Control-Integrated Framework (2013)" published by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Essex’s management has concluded that, as of December 31, 2020, its internal control over financial reporting was effective based on these criteria. Essex’s independent registered public accounting firm, KPMG LLP, has issued an attestation report over Essex’s internal control over financial reporting, which is included herein.

Essex Portfolio, L.P.

As of December 31, 2020, the Operating Partnership carried out an evaluation, under the supervision and with the participation of management, including Essex's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Operating Partnership's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that as of December 31, 2020, the Operating Partnership’s disclosure controls and procedures were effective to ensure that the information required to be disclosed by the Operating Partnership in the reports that the Operating Partnership files or submits under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such disclosure controls and procedures were also effective to ensure that information required to be disclosed in the reports that the Operating Partnership files or submits under the Exchange Act is accumulated and communicated to the Operating Partnership’s management, including Essex's Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

There were no changes in the Operating Partnership’s internal control over financial reporting, that occurred during the quarter ended December 31, 2020, that have materially affected, or are reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

The Operating Partnership’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). The Operating Partnership’s management assessed the effectiveness of the Operating Partnership’s internal control over financial reporting as of December 31, 2020. In making this assessment, the Operating Partnership’s management used the criteria set forth in the report entitled "Internal Control-Integrated Framework (2013)" published by COSO. The Operating Partnership’s management has concluded that, as of December 31, 2020, its internal control over financial reporting was effective based on these criteria.

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Item 9B. Other Information

None.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this Item is incorporated herein by reference from our Proxy Statement, relating to our 2021 Annual Meeting of Stockholders, under the heading "Board and Corporate Governance Matters," to be filed with the SEC within 120 days of December 31, 2020.

Item 11. Executive Compensation

The information required by this Item is incorporated herein by reference from our Proxy Statement, relating to our 2021 Annual Meeting of Stockholders, under the headings "Executive Compensation" and "Director Compensation," to be filed with the SEC within 120 days of December 31, 2020.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this Item is incorporated herein by reference from our Proxy Statement, relating to our 2021 Annual Meeting of Stockholders, under the heading "Security Ownership of Certain Beneficial Owners and Management," to be filed with the SEC within 120 days of December 31, 2020.

Item 13. Certain Relationships and Related Transactions and Director Independence

The information required by this Item is incorporated herein by reference from our Proxy Statement, relating to our 2021 Annual Meeting of Stockholders, under the heading "Certain Relationships and Related Persons Transactions," to be filed with the SEC within 120 days of December 31, 2020.

Item 14. Principal Accounting Fees and Services

The information required by this Item is incorporated herein by reference from our Proxy Statement, relating to our 2021 Annual Meeting of Stockholders, under the headings "Report of the Audit Committee" and "Fees Paid to KPMG LLP," to be filed with the SEC within 120 days of December 31, 2020.

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PART IV

Item 15. Exhibits and Financial Statement Schedules

(A) Financial Statements

(1)   Consolidated Financial Statements of Essex Property Trust, Inc.	Page
Reports of Independent Registered Public Accounting Firm	F-1
Consolidated Balance Sheets: As of December 31, 2020 and 2019	F-6
Consolidated Statements of Income: Years ended December 31, 2020, 2019, and 2018	F-7
Consolidated Statements of Comprehensive Income: Years ended December 31, 2020, 2019, and 2018	F-8
Consolidated Statements of Equity: Years ended December 31, 2020, 2019, and 2018	F-9
Consolidated Statements of Cash Flows: Years ended December 31, 2020, 2019, and 2018	F-11
Notes to Consolidated Financial Statements	F-20
(2)   Consolidated Financial Statements of Essex Portfolio, L.P.
Report of Independent Registered Public Accounting Firm	F-4
Consolidated Balance Sheets: As of December 31, 2020 and 2019	F-13
Consolidated Statements of Income: Years ended December 31, 2020, 2019, and 2018	F-14
Consolidated Statements of Comprehensive Income: Years ended December 31, 2020, 2019, and 2018	F-15
Consolidated Statements of Capital: Years ended December 31, 2020, 2019, and 2018	F-16
Consolidated Statements of Cash Flows: Years ended December 31, 2020, 2019, and 2018	F-18
Notes to Consolidated Financial Statements	F-20
(3)  Financial Statement Schedule – Schedule III – Real Estate and Accumulated Depreciation as of December 31, 2020	F-58
(4)   See the Exhibit Index immediately preceding the signature page and certifications for a list of exhibits filed or incorporated by reference as part of this report.

(B) Exhibits

The Company hereby files, as exhibits to this Form 10-K, those exhibits listed on the Exhibit Index referenced in Item 15(A)(4) above.

Item 16. Form 10-K Summary

None.

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Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Essex Property Trust, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Essex Property Trust, Inc. and subsidiaries (the Company) as of December 31, 2020 and 2019, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the years in the three‑year period ended December 31, 2020, and the related notes and financial statement schedule III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 19, 2021 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Company has changed its method of accounting for leases as of January 1, 2019 due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842) and Accounting Standards Update No. 2018-11, Leases (Topic 842): Targeted Improvements.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Evaluation of events or changes in circumstances that indicate rental properties may be impaired

As discussed in Note 2 to the consolidated financial statements, the Company evaluates the carrying amount of rental properties for impairment whenever events or changes in circumstances indicate that the carrying amount of a rental property may not be fully recoverable. The Company had $10.9 billion in rental properties as of December 31, 2020.

F- 1

We identified the evaluation of events or changes in circumstances that indicate rental properties may be impaired as a critical audit matter. Specifically, a high degree of subjective and complex auditor judgment was required to evaluate the intent regarding the expected period the Company will receive cash flows from the rental property. Changes to shorten the expected period the Company will receive cash flows from the rental property could indicate a potential impairment.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s process to evaluate events or changes in circumstances that would indicate rental properties may be impaired. This included controls over the process for determining the expected period the Company will receive cash flows from the rental property. We evaluated the Company’s assessment by (1) inquiring with the Company about events or changes in circumstances considered by the Company, (2) considering certain factors related to the current economic environment, and (3) reading board of director’s minutes and external communications with investors and analysts. In addition, we observed the property conditions at certain rental property sites and inquired of property management personnel regarding events or changes in circumstances that indicate the rental properties may be impaired.

Evaluation of the value allocated to land and buildings in certain asset acquisitions

As discussed in Notes 2 and 3 to the consolidated financial statements, the Company acquired $463.4 million of real estate properties recorded as asset acquisitions for the year ended December 31, 2020. In asset acquisitions, the Company determines the value allocated to land and buildings using their relative estimated fair values.

We identified the evaluation of the value allocated to land and buildings in certain asset acquisitions as a critical audit matter. There was a high degree of subjective and complex auditor judgment in evaluating the fair value amounts used in the allocation of the purchase price to land and building, which required the assistance of valuation professionals with specialized skills and knowledge. Specifically, the relevance and reliability of market information including comparable land sales identified and replacement costs used to determine the building value.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s land and building value estimation process in asset acquisitions. This included controls over the identification of publicly available and comparable land sales and the key input used to estimate the replacement cost of the building. For certain asset acquisitions, with the assistance of valuation professionals with specialized skills and knowledge, we (1) compared the Company’s determination of the fair value of land to independently developed ranges of estimates based on publicly available land sales, and (2) compared the key input in the Company’s replacement building cost value to ranges of estimates of market data such as industry guides used for developing replacement building values.

/s/ KPMG LLP

We have served as the Company’s auditor since 1994.

San Francisco, California

February 19, 2021

F- 2

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Essex Property Trust, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Essex Property Trust, Inc. and subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2020 and 2019, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III (collectively, the consolidated financial statements), and our report dated February 19, 2021 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

San Francisco, California

February 19, 2021

F- 3

Report of Independent Registered Public Accounting Firm

To the Partners of Essex Portfolio, L.P. and the Board of Directors of Essex Property Trust, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Essex Portfolio, L.P. and subsidiaries (the Operating Partnership) as of December 31, 2020 and 2019, the related consolidated statements of income, comprehensive income, capital, and cash flows for each of the years in the three‑year period ended December 31, 2020, and the related notes and financial statement schedule III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Operating Partnership has changed its method of accounting for leases as of January 1, 2019 due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842) and Accounting Standards Update No. 2018-11, Leases (Topic 842): Targeted Improvements.

Basis for Opinion

These consolidated financial statements are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Operating Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Operating Partnership’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Evaluation of events or changes in circumstances that indicate rental properties may be impaired

As discussed in Note 2 to the consolidated financial statements, the Operating Partnership evaluates the carrying amount of rental properties for impairment whenever events or changes in circumstances indicate that the carrying amount of a rental property may not be fully recoverable. The Operating Partnership had $10.9 billion in rental properties as of December 31, 2020.

F- 4

We identified the evaluation of events or changes in circumstances that indicate rental properties may be impaired as a critical audit matter. Specifically, a high degree of subjective and complex auditor judgment was required to evaluate the intent regarding the expected period the Operating Partnership will receive cash flows from the rental property. Changes to shorten the expected period the Operating Partnership will receive cash flows from the rental property could indicate a potential impairment.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Operating Partnership’s process to evaluate events or changes in circumstances that would indicate rental properties may be impaired. This included controls over the process for determining the expected period the Operating Partnership will receive cash flows from the rental property. We evaluated the Operating Partnership’s assessment by (1) inquiring with the Operating Partnership about events or changes in circumstances considered by the Operating Partnership, (2) considering certain factors related to the current economic environment, and (3) reading board of director’s minutes and external communications with investors and analysts. In addition, we observed the property conditions at certain rental property sites and inquired of property management personnel regarding events or changes in circumstances that indicate the rental properties may be impaired.

Evaluation of the value allocated to land and buildings in certain asset acquisitions

As discussed in Notes 2 and 3 to the consolidated financial statements, the Operating Partnership acquired $463.4 million of real estate properties recorded as asset acquisitions for the year ended December 31, 2020. In asset acquisitions, the Operating Partnership determines the value allocated to land and buildings using their relative estimated fair values.

We identified the evaluation of the value allocated to land and buildings in certain asset acquisitions as a critical audit matter. There was a high degree of subjective and complex auditor judgment in evaluating the fair value amounts used in the allocation of the purchase price to land and building, which required the assistance of valuation professionals with specialized skills and knowledge. Specifically, the relevance and reliability of market information including comparable land sales identified and replacement costs used to determine the building value.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Operating Partnership’s land and building value estimation process in asset acquisitions. This included controls over the identification of publicly available and comparable land sales and the key input used to estimate the replacement cost of the building. For certain asset acquisitions, with the assistance of valuation professionals with specialized skills and knowledge, we (1) compared the Operating Partnership’s determination of the fair value of land to independently developed ranges of estimates based on publicly available land sales, and (2) compared the key input in the Operating Partnership’s replacement building cost value to ranges of estimates of market data such as industry guides used for developing replacement building values.

/s/ KPMG LLP

We have served as the Operating Partnership's auditor since 2013.

San Francisco, California

February 19, 2021

F- 5

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2020 and 2019

(Dollars in thousands, except share amounts) 

	2020		2019
ASSETS
Real estate:
Rental properties:
Land and land improvements	$	2,929,009	$	2,773,805
Buildings and improvements	12,132,736		11,264,337
	15,061,745		14,038,142
Less: accumulated depreciation	(4,133,959)		(3,689,482)
	10,927,786		10,348,660
Real estate under development	386,047		546,075
Co-investments	1,018,010		1,335,339
Real estate held for sale	57,938		—
	12,389,781		12,230,074
Cash and cash equivalents-unrestricted	73,629		70,087
Cash and cash equivalents-restricted	10,412		11,007
Marketable securities, net of allowance for credit losses of zero as of both December 31, 2020 and December 31, 2019	147,768		144,193
Notes and other receivables, net of allowance for credit losses of $0.8 million and zero as of December 31, 2020 and December 31, 2019, respectively (includes related party receivables of $4.7 million and $90.2 million as of December 31, 2020 and December 31, 2019, respectively)	195,104		134,365
Operating lease right-of-use assets	72,143		74,744
Prepaid expenses and other assets	47,340		40,935
Total assets	$	12,936,177	$	12,705,405
LIABILITIES AND EQUITY
Unsecured debt, net	$	5,607,985	$	4,763,206
Mortgage notes payable, net	643,550		990,667
Lines of credit	—		55,000
Accounts payable and accrued liabilities	152,855		158,017
Construction payable	31,417		48,912
Dividends payable	141,917		135,384
Operating lease liabilities	74,037		76,740
Liabilities associated with real estate held for sale	29,845		—
Other liabilities	39,140		36,565
Total liabilities	6,720,746		6,264,491
Commitments and contingencies
Redeemable noncontrolling interest	32,239		37,410
Equity:
Common stock; $0.0001 par value, 670,000,000 shares authorized; 64,999,015 and 66,091,954 shares issued and outstanding, respectively	6		7
Additional paid-in capital	6,876,326		7,121,927
Distributions in excess of accumulated earnings	(861,193)		(887,619)
Accumulated other comprehensive loss, net	(14,729)		(13,888)
Total stockholders' equity	6,000,410		6,220,427
Noncontrolling interest	182,782		183,077
Total equity	6,183,192		6,403,504
Total liabilities and equity	$	12,936,177	$	12,705,405

See accompanying notes to consolidated financial statements.

F- 6

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

Consolidated Statements of Income

Years ended December 31, 2020, 2019 and 2018

(Dollars in thousands, except per share and share amounts)

	2020		2019		2018
Revenues:
Rental and other property	$	1,486,150	$	1,450,628	$	1,390,870
Management and other fees from affiliates	9,598		9,527		9,183
	1,495,748		1,460,155		1,400,053
Expenses:
Property operating, excluding real estate taxes	263,389		241,357		232,771
Real estate taxes	177,011		155,170		151,570
Corporate-level property management expenses	34,573		34,067		32,055
Depreciation and amortization	525,497		483,750		479,884
General and administrative	65,388		54,262		53,451
Expensed acquisition and investment related costs	1,591		168		194
Impairment loss	1,825		7,105		—
	1,069,274		975,879		949,925
Gain (loss) on sale of real estate and land	64,967		(3,164)		61,861
Earnings from operations	491,441		481,112		511,989
Interest expense	(220,633)		(217,339)		(220,492)
Total return swap income	10,733		8,446		8,707
Interest and other income	40,999		46,298		23,010
Equity income from co-investments	66,512		112,136		89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)		(1,457)		—
(Loss) gain on early retirement of debt, net	(22,883)		3,717		—
Gain on remeasurement of co-investment	234,694		31,535		1,253
Net income	599,332		464,448		413,599
Net income attributable to noncontrolling interest	(30,462)		(25,162)		(23,446)
Net income available to common stockholders	$	568,870	$	439,286	$	390,153
Per share data:
Basic:
Net income available to common stockholders	$	8.69	$	6.67	$	5.91
Weighted average number of shares outstanding during the year	65,454,057		65,840,422		66,041,058
Diluted:
Net income available to common stockholders	$	8.69	$	6.66	$	5.90
Weighted average number of shares outstanding during the year	65,564,982		65,939,455		66,085,089

See accompanying notes to consolidated financial statements.

F- 7

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

Years ended December 31, 2020, 2019 and 2018

(Dollars in thousands)

	2020		2019		2018
Net income	$	599,332	$	464,448	$	413,599
Other comprehensive income (loss):
Change in fair value of derivatives and amortization of swap settlements	(4,148)		(2,948)		7,824
Cash flow hedge losses reclassified to earnings	3,338		1,824		—
Change in fair value of marketable debt securities, net	(61)		281		(118)
Reversal of unrealized (gains) losses upon the sale of marketable debt securities	—		(32)		13
Total other comprehensive (loss) income	(871)		(875)		7,719
Comprehensive income	598,461		463,573		421,318
Comprehensive income attributable to noncontrolling interest	(30,432)		(25,133)		(23,702)
Comprehensive income attributable to controlling interest	$	568,029	$	438,440	$	397,616

See accompanying notes to consolidated financial statements.

F- 8

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

Consolidated Statements of Equity

Years ended December 31, 2020, 2019 and 2018

(Dollars and shares in thousands)

	Common stock			Additional paid-in capital		Distributions in excess of accumulated earnings		Accumulated other comprehensive loss, net		Noncontrolling interest		Total
	Shares	Amount
Balances at December 31, 2017	66,054	$	7	$	7,129,571	$	(833,726)	$	(18,446)	$	119,419	$	6,396,825
Net income	—	—		—		390,153		—		23,446		413,599
Reversal of unrealized losses upon the sale of marketable securities	—	—		—		—		13		—		13
Change in fair value of derivatives and amortization of swap settlements	—	—		—		—		7,564		260		7,824
Change in fair value of marketable debt securities, net	—	—		—		—		(114)		(4)		(118)
Issuance of common stock under:												—
Stock option and restricted stock plans, net	41	—		6,213		—		—		—		6,213
Sale of common stock, net	—	—		(919)		—		—		—		(919)
Equity based compensation costs	—	—		11,651		—		—		1,200		12,851
Retirement of common stock, net	(210)	—		(51,233)		—		—		—		(51,233)
Cumulative effect upon adoption of ASU No. 2016-01	—	—		—		2,234		(2,234)		—		—
Cumulative effect upon adoption of ASU No. 2017-05	—	—		—		119,651		—		4,057		123,708
Changes in the redemption value of redeemable noncontrolling interest	—	—		(1,143)		—		—		(21)		(1,164)
Changes in noncontrolling interest from acquisition	—	—		—		—		—		7,919		7,919
Distributions to noncontrolling interest	—	—		—		—		—		(29,233)		(29,233)
Redemptions of noncontrolling interest	5	—		(1,061)		—		—		(272)		(1,333)
Common stock dividends ($7.44 per share)	—	—		—		(491,108)		—		—		(491,108)
Balances at December 31, 2018	65,890	$	7	$	7,093,079	$	(812,796)	$	(13,217)	$	126,771	$	6,393,844
Net income	—	—		—		439,286		—		25,162		464,448
Reversal of unrealized gains upon the sale of marketable debt securities	—	—		—		—		(31)		(1)		(32)
Cash flow hedge losses reclassified to earnings	—	—		—		—		1,762		62		1,824
Change in fair value of derivatives and amortization of swap settlements	—	—		—		—		(2,849)		(99)		(2,948)
Change in fair value of marketable debt securities, net	—	—		—		—		272		9		281
Issuance of common stock under:												—

F- 9

Stock option and restricted stock plans, net	195	—		33,779		—		—		—		33,779
Sale of common stock, net	228	—		72,539		—		—		—		72,539
Equity based compensation costs	—	—		11,029		—		—		1,254		12,283
Retirement of common stock, net	(234)	—		(56,989)		—		—		—		(56,989)
Cumulative effect upon adoption of ASU No. 2017-12	—	—		—		—		175		6		181
Changes in the redemption value of redeemable noncontrolling interest	—	—		(3,427)		—		—		1,419		(2,008)
Changes in noncontrolling interest from acquisition	—	—		—		—		—		65,472		65,472
Distributions to noncontrolling interest	—	—		—		—		—		(28,493)		(28,493)
Redemptions of noncontrolling interest	13	—		(28,083)		—		—		(8,485)		(36,568)
Common stock dividends ($7.80 per share)	—	—		—		(514,109)		—		—		(514,109)
Balances at December 31, 2019	66,092	$	7	$	7,121,927	$	(887,619)	$	(13,888)	$	183,077	$	6,403,504
Net income	—	—		—		568,870		—		30,462		599,332
Cash flow hedge losses reclassified to earnings	—	—		—		—		3,225		113		3,338
Change in fair value of derivatives and amortization of swap settlements	—	—		—		—		(4,007)		(141)		(4,148)
Change in fair value of marketable debt securities, net	—	—		—		—		(59)		(2)		(61)
Issuance of common stock under:												—
Stock option and restricted stock plans, net	95	—		9,201		—		—		—		9,201
Sale of common stock, net	—	—		(296)		—		—		—		(296)
Equity based compensation costs	—	—		12,453		—		—		460		12,913
Retirement of common stock, net	(1,197)	(1)		(269,314)		—		—		—		(269,315)
Cumulative effect upon adoption of ASU No. 2016-13	—	—		—		(190)		—		—		(190)
Changes in the redemption value of redeemable noncontrolling interest	—	—		4,375		—		—		(76)		4,299
Changes in noncontrolling interest from acquisition	—	—		—		—		—		1,349		1,349
Distributions to noncontrolling interest	—	—		—		—		—		(31,367)		(31,367)
Redemptions of noncontrolling interest	9	—		(2,020)		—		—		(1,093)		(3,113)
Common stock dividends ($8.31 per share)	—	—		—		(542,254)		—		—		(542,254)
Balances at December 31, 2020	64,999	$	6	$	6,876,326	$	(861,193)	$	(14,729)	$	182,782	$	6,183,192

See accompanying notes to consolidated financial statements.

F- 10

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years ended December 31, 2020, 2019 and 2018

(Dollars in thousands) 

	2020		2019		2018
Cash flows from operating activities:
Net income	$	599,332	$	464,448	$	413,599
Adjustments to reconcile net income to net cash provided by operating activities:
Straight-lined rents	(19,426)		(1,218)		(347)
Depreciation and amortization	525,497		483,750		479,884
Amortization of discount on marketable securities	(19,075)		(28,491)		(17,637)
Amortization of (premium) discount and debt financing costs, net	6,674		5,689		(2,587)
Gain on sale of marketable securities	(2,131)		(1,271)		(737)
Provision for credit losses	687		—		—
Unrealized (gains) losses on equity securities recognized through income	(12,515)		(5,710)		5,159
Company's share of gain on the sales of co-investments	(2,225)		(51,097)		(10,569)
Earnings from co-investments	(64,287)		(61,039)		(78,563)
Operating distributions from co-investments	74,419		99,277		99,593
Accrued interest from notes and other receivables	(3,683)		(6,012)		(5,436)
Impairment loss	1,825		7,105		—
(Gain) loss on the sale of real estate and land	(64,967)		3,164		(61,861)
Equity-based compensation	8,157		7,010		7,135
Loss (gain) on early retirement of debt, net	22,883		(3,717)		—
Gain on remeasurement of co-investment	(234,694)		(31,535)		(1,253)
Changes in operating assets and liabilities:
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets	(3,730)		6,969		(856)
Accounts payable, accrued liabilities, and operating lease liabilities	(10,382)		29,551		(145)
Other liabilities	749		2,206		1,175
Net cash provided by operating activities	803,108		919,079		826,554
Cash flows from investing activities:
Additions to real estate:
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired	(460,421)		(133,825)		(15,311)
Redevelopment	(48,980)		(70,295)		(73,000)
Development acquisitions of and additions to real estate under development	(108,781)		(158,234)		(182,772)
Capital expenditures on rental properties	(90,085)		(101,689)		(81,684)
Investments in notes receivable	(135,343)		(231,400)		—
Collections of notes and other receivables	98,711		168,720		29,500
Proceeds from insurance for property losses	723		3,734		1,408
Proceeds from dispositions of real estate	339,165		23,214		347,587
Contributions to co-investments	(114,017)		(402,284)		(162,437)
Changes in refundable deposits	96		5		(414)
Purchases of marketable securities	(83,379)		(46,458)		(37,952)
Sales and maturities of marketable securities	113,465		147,531		31,521
Non-operating distributions from co-investments	71,946		273,290		83,661

F- 11

Net cash used in investing activities	(416,900)		(527,691)		(59,893)
Cash flows from financing activities:
Proceeds from unsecured debt and mortgage notes	1,452,808		1,045,290		298,773
Payments on unsecured debt and mortgage notes	(916,209)		(1,026,616)		(230,398)
Proceeds from lines of credit	1,038,426		1,939,213		742,961
Repayments of lines of credit	(1,093,426)		(1,884,213)		(921,961)
Retirement of common stock	(269,315)		(56,989)		(51,233)
Additions to deferred charges	(13,772)		(10,898)		(4,250)
Payments related to debt prepayment penalties	(19,605)		(1,406)		—
Net proceeds from issuance of common stock	(296)		72,539		(919)
Net proceeds from stock options exercised	14,865		37,467		6,213
Payments related to tax withholding for share-based compensation	(5,664)		(3,688)		(869)
Distributions to noncontrolling interest	(30,990)		(27,993)		(29,050)
Redemption of noncontrolling interest	(3,113)		(36,568)		(1,333)
Redemption of redeemable noncontrolling interest	(872)		(73)		(144)
Common stock dividends paid	(536,098)		(507,754)		(484,182)
Net cash used in financing activities	(383,261)		(461,689)		(676,392)
Net increase (decrease) in unrestricted and restricted cash and cash equivalents	2,947		(70,301)		90,269
Unrestricted and restricted cash and cash equivalents at beginning of period	81,094		151,395		61,126
Unrestricted and restricted cash and cash equivalents at end of period	$	84,041	$	81,094	$	151,395
Supplemental disclosure of cash flow information:
Cash paid for interest, net of capitalized interest	$	211,732	$	194,418	$	203,803
Interest capitalized	$	14,615	$	24,169	$	18,708
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,892	$	6,811	$	—
Supplemental disclosure of noncash investing and financing activities:
Issuance of Operating Partnership units for contributed properties	$	—	$	—	$	7,919
Issuance of DownREIT units in connection with acquisition of real estate	$	—	$	65,472	$	—
Transfers between real estate under development and rental properties, net	$	253,039	$	19,812	$	100,415
Transfer from real estate under development to co-investments	$	1,739	$	671	$	853
Reclassifications (from) to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest	$	(4,299)	$	2,008	$	1,165
Redemption of redeemable noncontrolling interest via reduction of note receivable	$	—	$	—	$	4,751
Initial recognition of operating lease right-of-use assets	$	—	$	77,645	$	—
Initial recognition of operating lease liabilities	$	—	$	79,693	$	—
Debt assumed in connection with acquisition	$	—	$	143,006	$	45,804
Repayment of mortgage note from new financing proceeds	$	—	$	—	$	52,000

See accompanying notes to consolidated financial statements

F- 12

    ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2020 and 2019

(Dollars in thousands, except per unit amounts)

	2020		2019
ASSETS
Real estate:
Rental properties:
Land and land improvements	$	2,929,009	$	2,773,805
Buildings and improvements	12,132,736		11,264,337
	15,061,745		14,038,142
Less: accumulated depreciation	(4,133,959)		(3,689,482)
	10,927,786		10,348,660
Real estate under development	386,047		546,075
Co-investments	1,018,010		1,335,339
Real estate held for sale	57,938		—
	12,389,781		12,230,074
Cash and cash equivalents-unrestricted	73,629		70,087
Cash and cash equivalents-restricted	10,412		11,007
Marketable securities, net of allowance for credit losses of zero as of both December 31, 2020 and December 31, 2019	147,768		144,193
Notes and other receivables, net of allowance for credit losses of $0.8 million and zero as of December 31, 2020 and December 31, 2019, respectively (includes related party receivables of $4.7 million and $90.2 million as of December 31, 2020 and December 31, 2019, respectively)	195,104		134,365
Operating lease right-of-use assets	72,143		74,744
Prepaid expenses and other assets	47,340		40,935
Total assets	$	12,936,177	$	12,705,405
LIABILITIES AND CAPITAL
Unsecured debt, net	$	5,607,985	$	4,763,206
Mortgage notes payable, net	643,550		990,667
Lines of credit	—		55,000
Accounts payable and accrued liabilities	152,855		158,017
Construction payable	31,417		48,912
Distributions payable	141,917		135,384
Operating lease liabilities	74,037		76,740
Liabilities associated with real estate held for sale	29,845		—
Other liabilities	39,140		36,565
Total liabilities	6,720,746		6,264,491
Commitments and contingencies
Redeemable noncontrolling interest	32,239		37,410
Capital:
General Partner:
Common equity (64,999,015 and 66,091,954 units issued and outstanding, respectively)	6,015,139		6,234,315
	6,015,139		6,234,315
Limited Partners:
Common equity (2,294,760 and 2,301,653 units issued and outstanding, respectively)	58,184		57,359
Accumulated other comprehensive loss	(11,303)		(10,432)
Total partners' capital	6,062,020		6,281,242
Noncontrolling interest	121,172		122,262
Total capital	6,183,192		6,403,504
Total liabilities and capital	$	12,936,177	$	12,705,405

See accompanying notes to consolidated financial statements

F- 13

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

Consolidated Statements of Income

Years ended December 31, 2020, 2019, and 2018

(Dollars in thousands, except per unit and unit amounts)

	2020		2019		2018
Revenues:
Rental and other property	$	1,486,150	$	1,450,628	$	1,390,870
Management and other fees from affiliates	9,598		9,527		9,183
	1,495,748		1,460,155		1,400,053
Expenses:
Property operating, excluding real estate taxes	263,389		241,357		232,771
Real estate taxes	177,011		155,170		151,570
Corporate-level property management expenses	34,573		34,067		32,055
Depreciation and amortization	525,497		483,750		479,884
General and administrative	65,388		54,262		53,451
Expensed acquisition and investment related costs	1,591		168		194
Impairment loss	1,825		7,105		—
	1,069,274		975,879		949,925
Gain (loss) on sale of real estate and land	64,967		(3,164)		61,861
Earnings from operations	491,441		481,112		511,989
Interest expense	(220,633)		(217,339)		(220,492)
Total return swap income	10,733		8,446		8,707
Interest and other income	40,999		46,298		23,010
Equity income from co-investments	66,512		112,136		89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)		(1,457)		—
(Loss) gain on early retirement of debt, net	(22,883)		3,717		—
Gain on remeasurement of co-investment	234,694		31,535		1,253
Net income	599,332		464,448		413,599
Net income attributable to noncontrolling interest	(10,550)		(9,819)		(9,994)
Net income available to common unitholders	$	588,782	$	454,629	$	403,605
Per unit data:
Basic:
Net income available to common unitholders	$	8.69	$	6.67	$	5.91
Weighted average number of common units outstanding during the year	67,750,665		68,140,900		68,315,999
Diluted:
Net income available to common unitholders	$	8.69	$	6.66	$	5.90
Weighted average number of common units outstanding during the year	67,861,590		68,239,933		68,360,030

See accompanying notes to consolidated financial statements

F- 14

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2020, 2019, and 2018

(Dollars in thousands)

	2020		2019		2018
Net income	$	599,332	$	464,448	$	413,599
Other comprehensive income (loss):
Change in fair value of derivatives and amortization of swap settlements	(4,148)		(2,948)		7,824
Cash flow hedge losses reclassified to earnings	3,338		1,824		—
Change in fair value of marketable debt securities, net	(61)		281		(118)
Reversal of unrealized (gains) losses upon the sale of marketable debt securities	—		(32)		13
Total other comprehensive (loss) income	(871)		(875)		7,719
Comprehensive income	598,461		463,573		421,318
Comprehensive income attributable to noncontrolling interest	(10,550)		(9,819)		(9,994)
Comprehensive income attributable to controlling interest	$	587,911	$	453,754	$	411,324

See accompanying notes to consolidated financial statements.

F- 15

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

Consolidated Statements of Capital

Years ended December 31, 2020, 2019, and 2018

(Dollars and units in thousands)

							Accumulated other comprehensive loss, net
	General Partner			Limited Partners					Noncontrolling interest		Total
	Common Equity			Common Equity
	Units	Amount		Units	Amount
Balances at December 31, 2017	66,054	$	6,295,852	2,268	$	49,792	$	(15,229)	$	66,410	$	6,396,825
Net income	—	390,153		—	13,452		—		9,994		413,599
Reversal of unrealized gains upon the sale of marketable debt securities	—	—		—	—		13		—		13
Change in fair value of derivatives and amortization of swap settlements	—	—		—	—		7,824		—		7,824
Change in fair value of marketable debt securities, net	—	—		—	—		(118)		—		(118)
Issuance of common units under:											—
General partner's stock based compensation, net	41	6,213		—	—		—		—		6,213
Sale of common stock by general partner, net	—	(919)		—	—		—		—		(919)
Equity based compensation costs	—	11,651		11	1,200		—		—		12,851
Retirement of common units, net	(210)	(51,233)		—	—		—		—		(51,233)
Cumulative effect upon adoption of ASU No. 2016-01	—	2,234		—	(6)		(2,228)		—		—
Cumulative effect upon adoption of ASU No. 2017-05	—	119,651		—	4,057		—		—		123,708
Changes in redemption value of redeemable noncontrolling interest	—	(1,143)		—	(89)		—		68		(1,164)
Changes in noncontrolling interest from acquisition	—	—		31	7,919		—		—		7,919
Distributions to noncontrolling interest	—	—		—	—		—		(12,174)		(12,174)
Redemptions	5	(1,061)		(5)	(205)		—		(67)		(1,333)
Distributions declared ($7.44 per unit)	—	(491,108)		—	(17,059)		—		—		(508,167)
Balances at December 31, 2018	65,890	$	6,280,290	2,305	$	59,061	$	(9,738)	$	64,231	$	6,393,844
Net income	—	439,286		—	15,343		—		9,819		464,448
Reversal of unrealized gains upon the sale of marketable debt securities	—	—		—	—		(32)		—		(32)
Cash flow hedge losses reclassified to earnings	—	—		—	—		1,824		—		1,824
Change in fair value of derivatives and amortization of swap settlements	—	—		—	—		(2,948)		—		(2,948)
Change in fair value of marketable debt securities, net	—	—		—	—		281		—		281
Issuance of common units under:

F- 16

General partner's stock based compensation, net	195	33,779		—	—		—		—		33,779
Sale of common stock by general partner, net	228	72,539		—	—		—		—		72,539
Equity based compensation costs	—	11,029		10	1,254		—		—		12,283
Retirement of common units, net	(234)	(56,989)		—	—		—		—		(56,989)
Cumulative effect upon adoption of ASU No. 2017-12	—	—		—	—		181		—		181
Changes in the redemption value of redeemable noncontrolling interest	—	(3,427)		—	109		—		1,310		(2,008)
Changes in noncontrolling interest from acquisition	—	—		—	—		—		65,472		65,472
Distributions to noncontrolling interest	—	—		—	—		—		(10,521)		(10,521)
Redemptions	13	(28,083)		(13)	(436)		—		(8,049)		(36,568)
Distributions declared ($7.80 per unit)	—	(514,109)		—	(17,972)		—		—		(532,081)
Balances at December 31, 2019	66,092	$	6,234,315	2,302	$	57,359	$	(10,432)	$	122,262	$	6,403,504
Net income	—	568,870		—	19,912		—		10,550		599,332
Cash flow hedge losses reclassified to earnings	—	—		—	—		3,338		—		3,338
Change in fair value of derivatives and amortization of swap settlements	—	—		—	—		(4,148)		—		(4,148)
Change in fair value of marketable debt securities, net	—	—		—	—		(61)		—		(61)
Issuance of common units under:											—
General partner's stock based compensation, net	95	9,201		—	—		—		—		9,201
Sale of common stock by general partner, net	—	(296)		—	—		—		—		(296)
Equity based compensation costs	—	12,453		2	460		—		—		12,913
Retirement of common units, net	(1,197)	(269,315)		—	—		—		—		(269,315)
Cumulative effect upon adoption of ASU No. 2016-13	—	(190)		—	—		—		—		(190)
Changes in the redemption value of redeemable noncontrolling interest	—	4,375		—	(197)		—		121		4,299
Changes in noncontrolling interest from acquisition	—	—		—	—		—		1,349		1,349
Distributions to noncontrolling interest	—	—		—	—		—		(12,292)		(12,292)
Redemptions	9	(2,020)		(9)	(275)		—		(818)		(3,113)
Distributions declared ($8.31 per unit)	—	(542,254)		—	(19,075)		—		—		(561,329)
Balances at December 31, 2020	64,999	$	6,015,139	2,295	$	58,184	$	(11,303)	$	121,172	$	6,183,192

See accompanying notes to consolidated financial statements

F- 17

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years ended December 31, 2020, 2019, and 2018

(Dollars in thousands)

	2020		2019		2018
Cash flows from operating activities:
Net income	$	599,332	$	464,448	$	413,599
Adjustments to reconcile net income to net cash provided by operating activities:
Straight-lined rents	(19,426)		(1,218)		(347)
Depreciation and amortization	525,497		483,750		479,884
Amortization of discount on marketable securities	(19,075)		(28,491)		(17,637)
Amortization of (premium) discount and debt financing costs, net	6,674		5,689		(2,587)
Gain on sale of marketable securities	(2,131)		(1,271)		(737)
Provision for credit losses	687		—		—
Unrealized (gains) losses on equity securities recognized through income	(12,515)		(5,710)		5,159
Company's share of gain on the sales of co-investments	(2,225)		(51,097)		(10,569)
Earnings from co-investments	(64,287)		(61,039)		(78,563)
Operating distributions from co-investments	74,419		99,277		99,593
Accrued interest from notes and other receivables	(3,683)		(6,012)		(5,436)
Impairment loss	1,825		7,105		—
(Gain) loss on the sale of real estate and land	(64,967)		3,164		(61,861)
Equity-based compensation	8,157		7,010		7,135
Loss (gain) on early retirement of debt, net	22,883		(3,717)		—
Gain on remeasurement of co-investment	(234,694)		(31,535)		(1,253)
Changes in operating assets and liabilities:
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets	(3,730)		6,969		(856)
Accounts payable, accrued liabilities, and operating lease liabilities	(10,382)		29,551		(145)
Other liabilities	749		2,206		1,175
Net cash provided by operating activities	803,108		919,079		826,554
Cash flows from investing activities:
Additions to real estate:
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired	(460,421)		(133,825)		(15,311)
Redevelopment	(48,980)		(70,295)		(73,000)
Development acquisitions of and additions to real estate under development	(108,781)		(158,234)		(182,772)
Capital expenditures on rental properties	(90,085)		(101,689)		(81,684)
Investments in notes receivable	(135,343)		(231,400)		—
Collections of notes and other receivables	98,711		168,720		29,500
Proceeds from insurance for property losses	723		3,734		1,408
Proceeds from dispositions of real estate	339,165		23,214		347,587
Contributions to co-investments	(114,017)		(402,284)		(162,437)
Changes in refundable deposits	96		5		(414)
Purchases of marketable securities	(83,379)		(46,458)		(37,952)
Sales and maturities of marketable securities	113,465		147,531		31,521
Non-operating distributions from co-investments	71,946		273,290		83,661

F- 18

Net cash used in investing activities	(416,900)		(527,691)		(59,893)
Cash flows from financing activities:
Proceeds from unsecured debt and mortgage notes	1,452,808		1,045,290		298,773
Payments on unsecured debt and mortgage notes	(916,209)		(1,026,616)		(230,398)
Proceeds from lines of credit	1,038,426		1,939,213		742,961
Repayments of lines of credit	(1,093,426)		(1,884,213)		(921,961)
Retirement of common units	(269,315)		(56,989)		(51,233)
Additions to deferred charges	(13,772)		(10,898)		(4,250)
Payments related to debt prepayment penalties	(19,605)		(1,406)		—
Net proceeds from issuance of common units	(296)		72,539		(919)
Net proceeds from stock options exercised	14,865		37,467		6,213
Payments related to tax withholding for share-based compensation	(5,664)		(3,688)		(869)
Distributions to noncontrolling interest	(8,409)		(7,288)		(8,518)
Redemption of noncontrolling interests	(3,113)		(36,568)		(1,333)
Redemption of redeemable noncontrolling interests	(872)		(73)		(144)
Common units distributions paid	(558,679)		(528,459)		(504,714)
Net cash used in financing activities	(383,261)		(461,689)		(676,392)
Net increase (decrease) in unrestricted and restricted cash and cash equivalents	2,947		(70,301)		90,269
Unrestricted and restricted cash and cash equivalents at beginning of period	81,094		151,395		61,126
Unrestricted and restricted cash and cash equivalents at end of period	$	84,041	$	81,094	$	151,395
Supplemental disclosure of cash flow information:
Cash paid for interest, net of capitalized interest	$	211,732	$	194,418	$	203,803
Interest capitalized	$	14,615	$	24,169	$	18,708
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,892	$	6,811	$	—
Supplemental disclosure of noncash investing and financing activities:
Issuance of Operating Partnership units for contributed properties	$	—	$	—	$	7,919
Issuance of DownREIT units in connection with acquisition of real estate	$	—	$	65,472	$	—
Transfers between real estate under development and rental properties, net	$	253,039	$	19,812	$	100,415
Transfer from real estate under development to co-investments	$	1,739	$	671	$	853
Reclassifications (from) to redeemable noncontrolling interest from general and limited partner capital and noncontrolling interest	$	(4,299)	$	2,008	$	1,165
Redemption of redeemable noncontrolling interest via reduction of note receivable	$	—	$	—	$	4,751
Initial recognition of operating lease right-of-use assets	$	—	$	77,645	$	—
Initial recognition of operating lease liabilities	$	—	$	79,693	$	—
Debt assumed in connection with acquisition	$	—	$	143,006	$	45,804
Repayment of mortgage note from new financing proceeds	$	—	$	—	$	52,000

See accompanying notes to consolidated financial statements

F- 19

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(1) Organization

The accompanying consolidated financial statements present the accounts of Essex Property Trust, Inc. ("Essex" or the "Company"), which include the accounts of the Company and Essex Portfolio, L.P. and its subsidiaries (the "Operating Partnership," which holds the operating assets of the Company). Unless otherwise indicated, the notes to consolidated financial statements apply to both the Company and the Operating Partnership.

Essex is the sole general partner of the Operating Partnership with a 96.6% general partner interest and the limited partners owned a 3.4% interest as of December 31, 2020. The limited partners may convert their Operating Partnership units into an equivalent number of shares of Essex common stock. Total Operating Partnership limited partnership units outstanding were 2,294,760 and 2,301,653 as of December 31, 2020 and 2019, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock, totaled approximately $544.8 million and $692.5 million, as of December 31, 2020 and 2019, respectively. The Company has reserved shares of common stock for such conversions.

As of December 31, 2020, the Company owned or had ownership interests in 246 operating apartment communities, comprising 60,272 apartment homes, excluding the Company's ownership interests in preferred interest co-investments, loan investments, one operating commercial building, and a development pipeline comprised of three consolidated projects and three unconsolidated joint venture projects. The operating apartment communities are located in Southern California (primarily Los Angeles, Orange, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas.

F- 20

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(2) Summary of Critical and Significant Accounting Policies

(a) Principles of Consolidation and Basis of Presentation

The accounts of the Company, its controlled subsidiaries and the variable interest entities ("VIEs") in which it is the primary beneficiary are consolidated in the accompanying financial statements and prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included and are normal and recurring in nature. All significant inter-company accounts and transactions have been eliminated.

Noncontrolling interest includes the 3.4% limited partner interests in the Operating Partnership not held by the Company at both December 31, 2020 and 2019. These percentages include the Operating Partnership’s vested long-term incentive plan units (see Note 14).

(b) Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 "Leases (Topic 842)" which requires an entity that is a lessee to classify leases as either finance or operating and to recognize a lease liability and a right-of-use asset for all leases that have a duration of greater than 12 months. Leases of 12 months or less are to be accounted for similar to prior leasing guidance (Topic 840) for operating leases. For lessors, accounting for leases under the new standard is substantially the same as prior leasing guidance for sales-type leases, direct financing leases, and operating leases, but eliminates current real estate specific provisions and changes the treatment of initial direct costs. In July 2018, the FASB issued ASU No. 2018-11 "Leases (Topic 842): Targeted Improvements," which includes a practical expedient that allows lessors to not separate nonlease components from the associated lease component. This provides the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component, if certain requirements are met. The Company adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019 using the modified retrospective approach and elected a package of practical expedients. There was no adjustment to the opening balance of retained earnings as a result of the adoption. See Note 10, Lease Agreements - Company as Lessor, and Note 11, Lease Agreements - Company as Lessee, for further details.

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13 "Measurement of Credit Losses on Financial Instruments," which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities, and other financial instruments. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Previously, U.S. GAAP required entities to write down credit losses only when losses were probable and loss reversals were not permitted. The FASB additionally issued various updates to clarify and amend the guidance provided in ASU No. 2016-13. In May 2019, the FASB issued ASU No. 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which, with respect to credit losses, among other things, clarifies and addresses issues related to accrued interest, transfers between classifications of loans or debt securities, recoveries, and variable interest rates. Additionally, in May 2019, the FASB issued ASU No. 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which allows entities to irrevocably elect the fair value option on certain financial instruments. The Company adopted ASU No. 2016-13, ASU No. 2019-04, and ASU No. 2019-05 as of January 1, 2020, using the modified retrospective approach by applying a cumulative effect adjustment of $0.2 million representing estimated accumulated credit losses to the opening balance of retained earnings.

In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which eliminates certain disclosure requirements affecting all levels of measurements, and modifies and adds new disclosure requirements for Level 3 measurements. The Company adopted ASU No. 2018-13 as of January 1, 2020. This adoption did not have a material impact on the Company's consolidated results of operations or financial position.

In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In April 2020, the FASB issued a Staff Question-and-Answer ("Q&A") to clarify whether lease concessions related to the effects of COVID-19 require the application of the lease modification guidance under Accounting Standards Codification ("ASC") Topic 842, Leases. The Q&A allows companies to not apply the lease modification guidance to rent concessions that result in deferred rent where the total cash flows required by the modified lease agreement are materially the same as the cash flows required under the original lease and the changes to the lease do not result in a substantial increase to the rights of the lessor or the obligations of the lessee. The Company adopted the guidance during the three months ended June 30, 2020 for eligible residential lease concessions. The lease concessions that met the criteria of the Q&A are treated as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. The amount of rent concessions subject to the Q&A were not material and this adoption did not have a material impact on the Company's consolidated results of operations or financial position.

(c) Recent Accounting Pronouncements

In January 2021, the FASB issued ASU No. 2021-01 "Reference Rate Reform (Topic 848): Scope." The amendments in ASU No. 2021-01 provide optional expedients to the current guidance on contract modifications and hedge accounting from the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance generally can be applied to applicable contract modifications through December 31, 2022. The Company adopted this new guidance in January 2021 and will apply the guidance on a prospective basis. The Company is currently evaluating the impact of the transition from LIBOR to alternative reference rates and the application of optional expedients available in this guidance, but does not expect a material impact to its consolidated results of operations or financial position.

(d) Real Estate Rental Properties

Significant expenditures, which improve or extend the life of an asset and have a useful life of greater than one year, are capitalized. Operating real estate assets are stated at cost and consist of land and land improvements, buildings and improvements, furniture, fixtures and equipment, and other costs incurred during their development, redevelopment and acquisition.  Expenditures for maintenance and repairs are charged to expense as incurred.

The depreciable life of various categories of fixed assets is as follows:

Computer software and equipment	3 - 5 years
Interior apartment home improvements	5 years
Furniture, fixtures and equipment	5 - 10 years
Land improvements and certain exterior components of real property	10 years
Real estate structures	30 years

The Company capitalizes all costs incurred with the predevelopment, development or redevelopment of real estate assets or are associated with the construction or expansion of real property. Such capitalized costs include land, land improvements, allocated costs of the Company’s project management staff, construction costs, as well as interest and related loan fees, property taxes and insurance. Capitalization begins for predevelopment, development, and redevelopment projects when activity commences. Capitalization ends when the apartment home is completed and the property is available for a new tenant or if the development activities cease.

The Company allocates the purchase price of real estate on a fair value basis to land and building including personal property, and identifiable intangible assets, such as the value of above, below and in-place leases. In making estimates of relative fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent land appraisals which consider comparable market transactions, its own analysis of recently acquired or developed comparable

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

properties in our portfolio for land comparables and building replacement costs, and other publicly available market data. In calculating the fair value of identified intangible assets of an acquired property, the in-place leases are valued based on in-place rent rates and amortized over the average remaining term of all acquired leases.

The values of the above and below market leases are amortized and recorded as either a decrease (in the case of above market leases) or an increase (in the case of below market leases) to rental revenue over the remaining term of the associated leases acquired. The value of acquired in-place leases are amortized to expense over the average remaining term of the leases acquired. The net carrying value of acquired in-place leases is $4.7 million and $1.2 million as of December 31, 2020 and 2019, respectively, and are included in prepaid expenses and other assets on the Company's consolidated balance sheets.

The Company periodically assesses the carrying value of its real estate investments for indicators of impairment. The judgments regarding the existence of impairment indicators are based on monitoring investment market conditions and performance compared to budget for operating properties including the net operating income for the most recent 12 month period, monitoring estimated costs for properties under development, the Company's ability to hold and its intent with regard to each asset, and each property's remaining useful life. Whenever events or changes in circumstances indicate that the carrying amount of a property held for investment may not be fully recoverable, the carrying amount is evaluated. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount (including intangible assets) of a property held for investment, then the Company will recognize an impairment loss equal to the excess of the carrying amount over the fair value of the property. Fair value of a property is determined using conventional real estate valuation methods, such as discounted cash flow, the property’s unleveraged yield in comparison to the unleveraged yields and/or sales prices of similar communities that have been recently sold, and other third party information, if available. Communities held for sale are carried at the lower of cost or fair value less estimated costs to sell. As of December 31, 2020, two properties were classified as held for sale. As of December 31, 2019, no properties were classified as held for sale. The Company recorded an impairment charge of $1.8 million for the year ended December 31, 2020 related to one of the Company's consolidated properties as a result of a change in the Company's intent to hold the property for its remaining useful life. The Company recorded an impairment charge of $7.1 million for the year ended December 31, 2019 on a parcel of land that was part of a consolidated co-investment with Canada Pension Plan Investment Board ("CPPIB" or "CPP"). The impairment charge resulted from the Company's acquisition of CPPIB's 45% interest in the co-investment. The impairment analysis over the parcel’s fair value was determined using internally developed models based on market assumptions. No impairment charges were recorded for the year ended December 31, 2018.

In the normal course of business, the Company will receive purchase offers for its communities, either solicited or unsolicited. For those offers that are accepted, the prospective buyer will usually require a due diligence period before consummation of the transaction. It is not unusual for matters to arise that result in the withdrawal or rejection of the offer during this process. The Company classifies real estate as "held for sale" when all criteria under the accounting standard for the disposals of long-lived assets have been met.

(e) Co-investments

The Company owns investments in joint ventures in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Company’s equity in earnings less distributions received and the Company’s share of losses. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects.

Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the consolidated statement of income equal to the amount by which the fair value of the Company's previously owned co-investment interest exceeds its carrying value. A majority of the co-investments, excluding most preferred equity investments, compensate the Company for its asset management services and some of these investments may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income from co-investments.

The Company recorded an other-than-temporary impairment charge of $11.5 million for the year ended December 31, 2019 on an unconsolidated co-investment with CPPIB which held Agora, a 49 unit apartment home community located in Walnut

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

Creek, CA. The other-than-temporary impairment charge resulted from the Company's acquisition of CPPIB's 45% interest in the co-investment. The impairment analysis over the co-investments fair value was determined using internally developed models based on market assumptions. The impairment is reflected in equity income from co-investments on the consolidated statements of income. No other-than-temporary impairment charges were recorded for the years ended December 31, 2020 or 2018.

(f) Revenues and Gains on Sale of Real Estate

Revenues from tenants renting or leasing apartment homes are recorded when due from tenants and are recognized monthly as they are earned, which generally approximates a straight-line basis, else, adjustments are made to conform to a straight-line basis. Apartment homes are rented under short-term leases (generally, lease terms of 9 to 12 months). Revenues from tenants leasing commercial space are recorded on a straight-line basis over the life of the respective lease. See Note 4, Revenues, and Note 10, Lease Agreements - Company as Lessor, for additional information regarding such revenues.

The Company also generates other property-related revenue associated with the leasing of apartment homes, including storage income, pet rent, and other miscellaneous revenue. Similar to rental income, such revenues are recorded when due from tenants and recognized monthly as they are earned.

Apart from rental and other property-related revenue, revenues from contracts with customers are recognized as control of the promised services is passed to the customer. For customer contracts related to management and other fees from affiliates (which includes asset management and property management), the transaction price and amount of revenue to be recognized is determined each quarter based on the management fee calculated and earned for that month or quarter. The contract will contain a description of the service and the fee percentage for management services. Payments from such services are one month or one quarter in arrears of the service performed.

The Company recognizes any gains on sales of real estate when it transfers control of a property and when it is probable that the Company will collect substantially all of the related consideration.

(g) Cash, Cash Equivalents and Restricted Cash

Highly liquid investments with original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash balances relate primarily to reserve requirements for capital replacement at certain communities in connection with the Company’s mortgage debt.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows ($ in thousands):

	2020		2019		2018
Cash and cash equivalents - unrestricted	$	73,629	$	70,087	$	134,465
Cash and cash equivalents - restricted	10,412		11,007		16,930
Total unrestricted and restricted cash and cash equivalents shown in the consolidated statements of cash flows	$	84,041	$	81,094	$	151,395

(h) Marketable Securities

The Company reports its equity securities and available for sale debt securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds, Level 2 for the unsecured debt and Level 3 for investments in mortgage backed securities, as defined by the FASB standard for fair value measurements as discussed later in Note 2). As of December 31, 2020 and 2019, $2.5 million and $3.6 million, respectively, of equity securities presented within common stock and stock funds in the tables below represent investments measured at fair value, using net asset value as a practical expedient, and are not categorized in the fair value hierarchy.

Any unrealized gain or loss in debt securities classified as available for sale is recorded as other comprehensive income. There were no other than temporary impairment charges for the years ended December 31, 2020, 2019, and 2018. Unrealized gains

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

and losses in equity securities, realized gains and losses in debt securities, interest income, and amortization of purchase discounts are included in interest and other income on the consolidated statements of income.

As of December 31, 2020 and 2019, equity securities and available for sale debt securities consisted primarily of investment-grade unsecured debt, U.S. treasury securities, and common stock and stock funds. As of December 31, 2019, the Company classified its mortgage backed securities as held to maturity, and accordingly, the securities were stated at their amortized cost. One of the investments in mortgage backed securities matured in November 2019 and the other matured in December 2020.

As of December 31, 2020 and 2019, marketable securities consist of the following ($ in thousands):

	December 31, 2020
	Amortized Cost		Gross Unrealized Gain		Carrying Value		Allowance for Credit Losses
Equity securities:
Investment funds - debt securities	$	49,646	$	985	$	50,631	$	—
Common stock and stock funds	81,074		15,001		96,075		—
Debt securities:
Available for sale
Investment-grade unsecured debt	1,050		12		1,062		—
Total - Marketable securities	$	131,770	$	15,998	$	147,768	$	—

	December 31, 2019
	Amortized Cost		Gross Unrealized Gain		Carrying Value
Equity securities:
Investment funds - debt securities	$	29,588	$	544	$	30,132
Common stock and stock funds	34,941		2,927		37,868
Debt securities:
Available for sale
U.S. Treasury securities	2,421		13		2,434
Investment-grade unsecured debt	1,048		60		1,108
Held to maturity:
Mortgage backed securities	72,651		—		72,651
Total - Marketable securities	$	140,649	$	3,544	$	144,193

The Company uses the specific identification method to determine the cost basis of a debt security sold and to reclassify amounts from accumulated other comprehensive loss for such securities.

During the years ended December 31, 2020 and 2019, the Company received cash proceeds of $91.7 million and $83.1 million, respectively, from the maturity of two investments in mortgage backed securities. For the years ended December 31, 2020 and 2019, the Company recognized approximately $11.8 million and $7.0 million, respectively, of accelerated interest income or the reversal of an allowance for credit loss related to these maturities.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

For the years ended December 31, 2020, 2019 and 2018, the proceeds from sales and maturities of marketable securities totaled $113.5 million, $147.5 million and $31.5 million, respectively. For the years ended December 31, 2020, 2019 and 2018, these sales resulted in gains of $2.1 million, $1.3 million, and $0.7 million, respectively.

For the years ended December 31, 2020 and 2019, the portion of equity security unrealized losses or gains that were recognized in income totaled $12.5 million in gains, and $5.7 million in gains, respectively, and were included in interest and other income on the Company's consolidated statements of income and comprehensive income.

Unrealized losses on investment-grade unsecured debt as of December 31, 2020 have not been recognized into income because the debts of the issuers are of high credit quality, management does not intend to sell the securities, it is likely that the Company will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to other market conditions.

The Company monitors the credit quality of its held to maturity mortgage backed security through the review of remittance reports and individual loan watchlists, which are prepared quarterly and provide most recent debt service coverage ratios for each loan within the security, when available. The Company monitors such reports to determine the likelihood that a particular loan within the mortgage backed security may be foreclosed upon.

The Company measures the expected credit loss on its held to maturity mortgage backed security based on the present value of expected future cash flows, which takes into account current market conditions and available credit information obtained from the individual loans held within the mortgage backed security. The following table presents the allowance for credit losses rollforward for the mortgage backed security ($ in thousands):

Balance at December 31, 2019	$	—
Impact of adoption ASC 326 (1)	13,644
Reversal of provision for credit losses	(13,644)
Balance at December 31, 2020	$	—

(1) As part of the adoption of ASC 326, effective January 1, 2020, the Company recorded a gross up of the mortgage backed security and related allowance for credit losses of $13.6 million. The allowance was reversed upon maturity of the mortgage backed security in December 2020. The Company recorded $11.8 million of accelerated interest income related to this maturity.

(i) Notes Receivable

Notes receivable relate to real estate financing arrangements including mezzanine and bridge loans. Interest is recognized over the life of the note as interest income.

Each note is analyzed to determine if it is impaired. A note is impaired if it is probable that the Company will not collect all contractually due principal and interest. The Company does not accrue interest when a note is considered impaired and an allowance is recorded for any principal and previously accrued interest that are not believed to be collectible. All cash receipts on impaired notes are applied to reduce the principal amount of such notes until the principal has been recovered and, thereafter, are recognized as interest income. As of December 31, 2020 and 2019, no notes were impaired.

In the normal course of business, the Company originates and holds two types of loans: mezzanine loans issued to entities that are pursuing apartment development and short-term bridge loans issued to joint ventures with the Company.

The Company categorizes development project mezzanine loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as: current financial information, credit documentation, public information, and previous experience with the borrower. The Company initially analyzes each mezzanine loan individually to classify the credit risk of the loan. On a periodic basis the Company evaluates and performs site visits of the development projects associated with the mezzanine loans to confirm whether they are on budget and whether there are any delays in development that could impact the Company's assessment of credit loss.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

All bridge loans that the Company issues are, by their nature, short-term and meant only to provide time for the Company’s joint ventures to obtain long-term funding for newly acquired communities. As the Company is a partner in the joint ventures that are borrowing such funds and has performed a detailed review of each community as part of the acquisition process, there is little to no credit risk associated with such loans. As such, the Company does not review credit quality indicators for bridge loans on an ongoing basis.

The Company estimates the allowance for credit losses for each loan type using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made, if necessary, for differences in current loan-specific risk characteristics. For example, in the case of mezzanine loans, adjustments may be made due to differences in track record and experience of the mezzanine loan sponsor as well as the percent of equity that the sponsor has contributed to the project.

(j) Capitalization Policy

The Company capitalizes all direct and certain indirect costs, including interest, real estate taxes and insurance, incurred during development and redevelopment activities. Interest is capitalized on real estate assets that require a period of time to get them ready for their intended use. The amount of interest capitalized is based upon the average amount of accumulated development expenditures during the reporting period. Included in capitalized costs are management’s estimates of the direct and incremental personnel costs and indirect project costs associated with the Company's development and redevelopment activities. Indirect project costs consist primarily of personnel costs associated with construction administration and development, including accounting, legal fees, and various corporate and community onsite costs that clearly relate to projects under development. Those costs, inclusive of capitalized interest, as well as capitalized development and redevelopment fees totaled $31.4 million, $42.1 million and $37.3 million for the years ended December 31, 2020, 2019 and 2018, respectively, most of which relates to development projects. The Company capitalizes leasing costs associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized are immaterial for all periods presented.

(k) Fair Value of Financial Instruments

The Company values its financial instruments based on the fair value hierarchy of valuation techniques described in the FASB’s accounting standard for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. The Company uses Level 1 inputs for the fair values of its cash equivalents and its marketable securities except for unsecured bonds and mortgage backed securities. The Company uses Level 2 inputs for its investments in unsecured debt, notes receivable, notes payable, and derivative assets/liabilities. These inputs include interest rates for similar financial instruments. The Company’s valuation methodology for derivatives is described in Note 9. The Company uses Level 3 inputs to estimate the fair value of its mortgage backed securities. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of December 31, 2020 and 2019, because interest rates, yields and other terms for these instruments are consistent with interest rates, yields and other terms currently available for similar instruments. Management has estimated that the fair value of fixed rate debt with a carrying value of $5.5 billion and $5.2 billion at December 31, 2020 and 2019, respectively, to be $6.0 billion and $5.4 billion at December 31, 2020 and 2019, respectively. Management has estimated the fair value of the Company’s $775.1 million and $660.4 million of variable rate debt at December 31, 2020 and 2019, respectively, to be $770.1 million and $655.8 million at December 31, 2020 and 2019, respectively, based on the terms of existing mortgage notes payable, unsecured debt, and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of December 31, 2020 and 2019 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities, are carried at fair value as of December 31, 2020 and 2019.

At December 31, 2020 and 2019, the Company’s investments in mortgage backed securities had a carrying value of zero and $72.7 million, respectively. In November 2019, the Company received cash proceeds of $83.1 million from the maturity of an

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

investment in a mortgage backed security. Additionally, during 2020, the Company received cash proceeds of $91.7 million from the maturity of the remaining investment in a mortgage backed security. The Company estimated the fair value of its investment in mortgage backed securities at December 31, 2020 and 2019 to be approximately zero and $72.7 million, respectively. The Company determines the fair value of the mortgage backed securities based on unobservable inputs (Level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected, discounted cash flows to estimate the fair value.

(l) Interest Rate Protection, Swap, and Forward Contracts

The Company uses interest rate swaps, interest rate caps, and total return swap contracts to manage interest rate risks. The Company’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements or other identified risks. To accomplish this objective, the Company uses interest rate swaps as part of its cash flow hedging strategy. 

The Company records all derivatives on its consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.

For derivatives designated for accounting purposes as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. For derivatives designated for accounting purposes as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the initial and ongoing effectiveness of each hedging relationship by comparing the changes in fair value or cash flows of the derivative hedging instrument with the changes in fair value or cash flows of the designated hedged item or transaction.

For derivatives not designated for accounting purposes as cash flow hedges, changes in fair value are recognized in earnings. All of the Company’s interest rate swaps are considered cash flow hedges.

(m) Income Taxes

Generally in any year in which Essex qualifies as a real estate investment trust ("REIT") under the Internal Revenue Code (the "IRC"), it is not subject to federal income tax on that portion of its income that it distributes to stockholders. No provision for federal income taxes, other than the taxable REIT subsidiaries discussed below, has been made in the accompanying consolidated financial statements for each of the years in the three-year period ended December 31, 2020 as Essex has elected to be and believes it qualifies under the IRC as a REIT and has made distributions during the periods in amounts to preclude Essex from paying federal income tax.

In order to maintain compliance with REIT tax rules, the Company utilizes taxable REIT subsidiaries for various revenue generating or investment activities. The taxable REIT subsidiaries are consolidated by the Company. In general, the activities and tax related provisions, assets and liabilities are not material.

As a partnership, the Operating Partnership is not subject to federal or state income taxes, except that in order to maintain Essex's compliance with REIT tax rules that are applicable to Essex, the Operating Partnership utilizes taxable REIT subsidiaries for various revenue generating or investment activities. The taxable REIT subsidiaries are consolidated by the Operating Partnership.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

The status of cash dividends distributed for the years ended December 31, 2020, 2019, and 2018 related to common stock are classified for tax purposes as follows:

	2020		2019		2018
Common Stock
Ordinary income	85.23	%	83.81	%	79.72	%
Capital gain	10.68	%	13.78	%	15.35	%
Unrecaptured section 1250 capital gain	4.09	%	2.41	%	4.93	%
	100.00	%	100.00	%	100.00	%

(n) Equity-based Compensation

The cost of share- and unit-based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. The estimated grant date fair values of the long-term incentive plan units (discussed in Note 14) are being amortized over the expected service periods.

(o) Changes in Accumulated Other Comprehensive Loss, by Component

Changes in Accumulated Other Comprehensive Loss, Net, by Component

Essex Property Trust, Inc. ($ in thousands)

	Change in fair value and amortization of swap settlements		Unrealized gain (loss) on available for sale securities		Total
Balance at December 31, 2019	$	(13,989)	$	101	$	(13,888)
Other comprehensive income before reclassification	4,274		(59)		4,215
Amounts reclassified from accumulated other comprehensive loss	(5,056)		—		(5,056)
Other comprehensive loss	(782)		(59)		(841)
Balance at December 31, 2020	$	(14,771)	$	42	$	(14,729)

Changes in Accumulated Other Comprehensive Loss, by Component

Essex Portfolio, L.P. ($ in thousands)

	Change in fair value and amortization of swap settlements		Unrealized gain (loss) on available for sale securities		Total
Balance at December 31, 2019	$	(10,536)	$	104	$	(10,432)
Other comprehensive income before reclassification	4,424		(61)		4,363
Amounts reclassified from accumulated other comprehensive loss	(5,234)		—		(5,234)
Other comprehensive loss	(810)		(61)		(871)
Balance at December 31, 2020	$	(11,346)	$	43	$	(11,303)

Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the consolidated statements of income. Realized gains and losses on available for sale debt securities are included in interest and other income on the consolidated statements of income.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(p) Redeemable Noncontrolling Interest

The carrying value of redeemable noncontrolling interest in the accompanying balance sheets was $32.2 million and $37.4 million as of December 31, 2020 and 2019, respectively. The limited partners may redeem their noncontrolling interests for cash in certain circumstances.

The changes in the redemption value of redeemable noncontrolling interests for the years ended December 31, 2020, 2019, and 2018 are as follows:

	2020		2019		2018
Balance at January 1,	$	37,410	$	35,475	$	39,206
Reclassifications due to change in redemption value and other	(4,299)		2,008		1,164
Redemptions	(872)		(73)		(4,895)
Balance at December 31,	$	32,239	$	37,410	$	35,475

(q) Accounting Estimates

The preparation of consolidated financial statements, in accordance with U.S. GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, and its notes receivable. The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions.

(r) Variable Interest Entities

In accordance with accounting standards for consolidation of VIEs, the Company consolidates the Operating Partnership, 17 DownREIT entities (comprising nine communities), and five co-investments as of December 31, 2020. As of December 31, 2019, the Company consolidated the Operating Partnership, 17 DownREIT entities (comprising nine communities), and six co-investments. The Company consolidates these entities because it is deemed the primary beneficiary. The Company has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT entities, net of intercompany eliminations, were approximately $898.5 million and $326.8 million, respectively, as of December 31, 2020, and $1.0 billion and $364.3 million, respectively, as of December 31, 2019. Noncontrolling interests in these entities were $120.8 million and $122.5 million as of December 31, 2020 and 2019, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE.

The DownREIT VIEs collectively own nine apartment communities in which the Company is the general partner or manager of the DownREIT entity, the Operating Partnership is a special limited partner or member, and the other limited partners or members were granted rights of redemption for their interests. Such limited partners or members can request to be redeemed and the Company, subject to certain restrictions, can elect to redeem their rights for cash or by issuing shares of its common stock on a one share per unit basis. Conversion values will be based on the market value of the Company's common stock at the time of redemption multiplied by the number of units stipulated under various arrangements, as noted above. The other limited partners or members receive distributions based on the Company's current dividend rate times the number of units held. Total DownREIT units outstanding were 1,017,460 and 1,033,907 as of December 31, 2020 and 2019, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled approximately $241.6 million and $311.1 million, as of December 31, 2020 and 2019, respectively. The carrying value of redeemable noncontrolling interest in the accompanying balance sheets was $32.2 million and $37.4 million as of December 31, 2020 and 2019, respectively. Of these amounts, $11.9 million and $13.0 million as of December 31, 2020 and 2019, respectively, represent units of limited partners' or members' interests in DownREIT VIEs as to which it is outside of the Company’s control to redeem the DownREIT units with Company common stock and may potentially be redeemed for cash, and are presented at either their redemption value or historical cost, depending on the limited partner's or members' right to redeem their units as of the balance sheet date. The carrying value of DownREIT units as to which it is within the control of the Company to redeem the units with its common

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ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

stock was $97.4 million and $97.7 million as of December 31, 2020 and 2019, respectively, and is classified within noncontrolling interests in the accompanying consolidated balance sheets.

Interest holders in VIEs consolidated by the Company are allocated a priority of net income equal to the cash payments made to those interest holders or distributions from cash flow. The remaining results of operations are generally allocated to the Company.

As of December 31, 2020 and 2019, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary and did not have any VIEs of which it was not deemed to be the primary beneficiary.

(s) Discontinued Operations

The Company determined that the disposals during the years ended December 31, 2020, 2019 and 2018 were not considered discontinued operations in accordance with ASU No. 2014-08. The gains related to these disposals are recorded in gain on sale of real estate and land in the consolidated statements of income.

(3) Real Estate Investments

(a) Acquisitions of Real Estate

The table below summarizes acquisition activity for the year ended December 31, 2020 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2020	Purchase Price
CPPIB Portfolio	Various	2,020	100	%	Q1	$	463.4
Total 2020		2,020				$	463.4

In January 2020, the Company purchased CPPIB's 45.0% interest in each of a land parcel and six communities totaling 2,020 apartment homes, valued at $1.0 billion on a gross basis. As a result of this acquisition, the Company realized a gain on remeasurement of co-investment of $234.7 million. Furthermore, the Company recognized $6.5 million in promote income as a result of the transaction, which is included in equity income from co-investments on the consolidated statements of income.

The consolidated fair value of the acquisition listed above was included on the Company's consolidated balance sheet as follows: $189.0 million was included in land and land improvements, $846.0 million was included in buildings and improvements, $10.0 million was included in prepaid expenses and other assets, within the Company's consolidated balance sheets.

For the year ended December 31, 2019, the Company purchased four communities consisting of 849 apartment homes for approximately $373.3 million. Additionally, in December 2019, the Company purchased the joint venture partner's 25% ownership interest in Hidden Valley, a consolidated community consisting of 324 apartment homes, for a contract price of $24.2 million based on an estimated property valuation of $97.0 million and an encumbrance of $29.7 million of mortgage debt. The purchase was recorded as a redemption of noncontrolling interest in the consolidated statements of equity.

(b) Sales of Real Estate Investments

In June 2020, the Company completed a portfolio sale which consisted of two apartment communities with 429 apartment homes, One South Market and Museum Park, both located in San Jose, CA, for a total contract price of $232.0 million. The Company recognized a $16.6 million gain on sale.

In July 2020, the Company sold Delano, a 126 apartment home community located in Redmond, WA, for a total contract price of $51.5 million. The Company recognized a $22.7 million gain on sale.

In October 2020, the Company sold 416 on Broadway, a 115 apartment home community located in Glendale, CA, for a total contract price of $60.0 million. The Company recognized a $25.7 million gain on sale.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

For the year ended December 31, 2019, the Company sold a land parcel adjacent to the Mylo development project located in Santa Clara, CA, for $10.8 million and recorded an immaterial gain and sold land located in San Mateo, CA, that had been held for future development for $12.5 million and recorded a loss of $3.2 million.

For the year ended December 31, 2018, the Company sold two communities consisting of 669 apartment homes for $352.0 million resulting in gains totaling $61.9 million.

(c) Real Estate Assets Held for Sale

As of December 31, 2020, the Company had two communities totaling 439 apartment homes that are qualified as held for sale. As of December 31, 2019 the Company had no assets classified as held for sale.

(d) Co-investments

The Company has joint ventures which are accounted for under the equity method. The co-investments’ accounting policies are similar to the Company’s accounting policies. The co-investments own, operate, and develop apartment communities.

The carrying values of the Company’s co-investments as of December 31, 2020 and 2019 are as follows ($ in thousands, except in parenthetical):

	Weighted Average Essex Ownership		December 31,
	Percentage (1)		2020		2019
Ownership interest in:
CPPIB (2)	—	%	$	—	$	345,466
Wesco I, Wesco III, Wesco IV, and Wesco V	51	%	178,322		216,756
BEXAEW, BEX II, BEX III, and BEX IV	50	%	152,309		160,888
Other	47	%	27,635		20,351
Total operating and other co-investments, net			358,266		743,461
Total predevelopment and development co-investments	50	%	157,433		146,944
Total preferred interest co-investments (includes related party investments of $81.4 million and $73.2 million as of December 31, 2020 and December 31, 2019, respectively - Note 6 - Related Party Transactions for further discussion)			502,311		444,934
Total co-investments, net			$	1,018,010	$	1,335,339

(1)Weighted average Company ownership percentages are as of December 31, 2020.

(2)In January 2020, the Company purchased CPPIB's 45.0% interest in each of a land parcel and six communities totaling 2,020 apartment homes.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

The combined summarized financial information of co-investments is as follows ($ in thousands):

	December 31,
	2020		2019
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,242,611	$	4,733,762
Other assets	200,777		139,562
Total assets	$	4,443,388	$	4,873,324
Debt	$	2,611,365	$	2,442,213
Other liabilities	189,515		117,160
Equity	1,642,508		2,313,951
Total liabilities and equity	$	4,443,388	$	4,873,324
Company's share of equity	$	1,018,010	$	1,335,339

	Years ended December 31,
	2020		2019		2018
Combined statements of income: (1)
Property revenues	$	300,624	$	336,922	$	332,164
Property operating expenses	(108,682)		(115,658)		(107,584)
Net operating income	191,942		221,264		224,580
Gain on sale of real estate	—		112,918		24,218
Interest expense	(78,962)		(65,665)		(63,913)
General and administrative	(17,079)		(9,575)		(6,379)
Depreciation and amortization	(117,836)		(121,006)		(126,485)
Net income	$	(21,935)	$	137,936	$	52,021
Company's share of net income (2)	$	66,512	$	112,136	$	89,132

(1)Includes preferred equity investments held by the Company.

(2)Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $8.6 million, $7.5 million, and $2.0 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Operating Co-investments

As of December 31, 2020 and 2019, the Company, through several joint ventures, owned 8,652 and 10,672 apartment homes, respectively, in operating communities. The Company’s book value of these co-investments was $358.3 million and $743.5 million at December 31, 2020 and 2019, respectively.

Predevelopment and Development Co-investments

As of December 31, 2020 and 2019, the Company, through several joint ventures, owned 1,070 and 806 apartment homes in predevelopment and development communities, respectively. The Company’s book value of these co-investments was $157.4 million and $146.9 million at December 31, 2020 and 2019, respectively.

In 2020, the Company entered into a joint venture to develop Scripps Mesa Apartments, a multifamily community comprised of 264 apartment homes located in San Diego, CA. The Company has a 51% ownership interest in the development which has a projected total cost of $102.0 million. Construction began in the third quarter of 2020 and the community is expected to open in

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

the fourth quarter of 2022. The Company has a $5.9 million preferred equity investment in the project, which accrues an annualized preferred return of 10.0% until it is redeemed.

In 2017, the Company entered into a joint venture to develop Patina at Midtown (formerly known as Ohlone), a multifamily community comprised of 269 apartment homes located in San Jose, CA. The Company has a 50% ownership interest in the development which has a projected total cost of $148.0 million. The property began initial occupancy in the third quarter of 2020 and is expected to be fully stabilized by the second quarter of 2021. The Company has a $28.9 million preferred equity investment in the project, which accrues an initial annualized preferred return of 10.0% and matures in 2021.

In 2015, the Company entered into a joint venture to develop 500 Folsom, a multifamily community comprised of 537 apartment homes located in San Francisco, CA. The Company has a 50% ownership interest in the development which has a projected total cost of $415.0 million. The property began initial occupancy in the third quarter of 2019 and is expected to be fully stabilized by the first quarter of 2021. 

Preferred Equity Investments

As of December 31, 2020 and 2019, the Company held preferred equity investment interests in several joint ventures which own real estate. The Company’s book value of these preferred equity investments was $502.3 million and $444.9 million at December 31, 2020 and 2019, respectively, and is included in the co-investments line in the accompanying consolidated balance sheets.

During 2020, the Company made commitments to fund $191.3 million of preferred equity investment in seven preferred equity investments. The investments have initial preferred returns ranging from 9.0%-11.5%, with maturities ranging from March 2022 to February 2030. As of December 31, 2020, the Company had funded $55.1 million of the $191.3 million of commitments. The remaining committed amount is expected to be funded in 2021.

During 2019, the Company made commitments to fund $141.7 million of preferred equity investment in five preferred equity investments, some of which include related party sponsors. See Note 6, Related Party Transactions, for additional details. The investments have initial preferred returns ranging from 10.15%-11.3%, with maturities ranging from July 2022 to October 2024. As of December 31, 2020, the Company had fully funded $141.7 million of the commitments.

During 2018, the Company made commitments to fund $45.1 million of preferred equity investment in two preferred equity investments, some of which include related party sponsors. See Note 6, Related Party Transactions, for additional details. The investments have initial preferred returns ranging from 10.25%-12.0%, with maturities ranging from May 2023 to April 2024. As of December 31, 2020, the Company had funded $42.1 million of the $45.1 million of commitments. The remaining committed amount is expected to be funded when requested by the sponsors.

In March 2020, the Company received cash of $11.3 million, including an early redemption fee of $0.2 million, for the partial redemption of a preferred equity investment in a joint venture that holds property located in Southern California. In the fourth quarter of 2020, the Company subsequently received cash of $10.7 million for redemption of the remainder of this preferred equity investment.

In February and September 2020, the Company received cash of $13.4 million for the full redemption of a preferred equity investment in a property located in Southern California.

In December 2020, the Company received cash of $31.3 million for the full redemption of a preferred equity investment in two properties located in Southern California.

(e) Real Estate under Development

The Company defines development projects as new communities that are being constructed, or are newly constructed and are in a phase of lease-up and have not yet reached stabilized operations. As of December 31, 2020, the Company's development pipeline was comprised of three consolidated projects under development, three unconsolidated joint venture projects under development and various predevelopment projects, aggregating 1,853 apartment homes, with total incurred costs of $948.0 million.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(4) Revenues

Disaggregated Revenue

The following table presents the Company’s revenues disaggregated by revenue source ($ in thousands):

	2020		2019		2018
Rental income (1)	$	1,462,161	$	1,425,585	$	1,366,590
Other property (1)	23,989		25,043		24,280
Management and other fees from affiliates	9,598		9,527		9,183
Total revenues	$	1,495,748	$	1,460,155	$	1,400,053

(1)On January 1, 2019, the Company adopted ASU No. 2016-02 and ASU No. 2018-11. As a result of this adoption, certain amounts previously classified as other property revenue have been reclassified to rental income. Prior period amounts have been adjusted to conform to the current period's presentation.

The following table presents the Company’s rental and other property revenues disaggregated by geographic operating segment ($ in thousands):

	2020		2019		2018
Southern California	$	570,673	$	597,330	$	579,533
Northern California	610,867		557,139		520,117
Seattle Metro	243,900		243,060		234,138
Other real estate assets (1)	60,710		53,099		57,082
Total rental and other property revenues	$	1,486,150	$	1,450,628	$	1,390,870

(1)Other real estate assets consist of revenue generated from retail space, commercial properties, held for sale properties, disposition properties and straight-line rent adjustments for concessions. Executive management does not evaluate such operating performance geographically.

The following table presents the Company’s rental and other property revenues disaggregated by current property category status ($ in thousands):

	2020		2019		2018
Same-property (1)	$	1,286,686	$	1,338,690	$	1,288,771
Acquisitions (2)	78,666		7,704		—
Development (3)	20,050		7,675		2,741
Redevelopment	19,054		21,058		20,413
Non-residential/other, net (4)	59,838		75,501		78,945
Straight line rent concession (5)	21,856		—		—
Total rental and other property revenues	$	1,486,150	$	1,450,628	$	1,390,870

(1)Properties that have comparable stabilized results as of January 1, 2019 and are consolidated by the Company for the years ended December 31, 2020, 2019, and 2018. A community is generally considered to have reach stabilized operations once it achieves an initial occupancy of 90%.

(2)Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2019.

(3)Development includes properties developed which did not have stabilized results as of January 1, 2019.

(4)Non-residential/other, net consists of revenue generated from retail space, commercial properties, held for sale properties, disposition properties, student housing, properties undergoing significant construction activities that do not meet our redevelopment criteria, and three communities located in the California counties of Riverside, Santa Barbara, and Santa Cruz, which the Company does not consider its core markets.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(5)Same-property revenues reflect concessions on a cash basis. Total rental and other property revenues reflect concessions on a straight-line basis in accordance with U.S. GAAP.

Deferred Revenues and Remaining Performance Obligations

When cash payments are received or due in advance of the Company’s performance of contracts with customers, deferred revenue is recorded. The total deferred revenue balance related to such contracts was $3.1 million and $3.9 million as of December 31, 2020 and December 31, 2019, respectively, and was included in accounts payable and accrued liabilities within the accompanying consolidated balance sheets. The amount of revenue recognized for the year ended December 31, 2020 that was included in the December 31, 2019 deferred revenue balance was $0.8 million, which was included in interest and other income within the consolidated statements of income and comprehensive income.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue recognition accounting standard. As of December 31, 2020, the Company had $3.1 million of remaining performance obligations. The Company expects to recognize approximately 23% of these remaining performance obligations in 2021, an additional 45% through 2023, and the remaining balance thereafter.

Practical Expedients

The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less or when variable consideration is allocated entirely to a wholly unsatisfied performance obligation.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(5) Notes and Other Receivables

Notes and other receivables consist of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020		2019
Note receivable, secured, bearing interest at 9.00% due May 2021 (Originated May 2017) (1)	$	—	$	16,828
Note receivable, secured, bearing interest at 9.90%, due November 2021 (Originated November 2018)	14,216		12,838
Related party note receivable, secured, bearing variable rate interest, due February 2020 (Originated November 2019) (2)(3)	—		85,713
Notes receivable, secured, bearing interest at 10.50%, due February 2023 (Originated March 2020)	15,299		—
Note receivable, secured, bearing interest at 11.00%, due October 2023 (Originated April 2020)	25,461		—
Note receivable, secured, bearing interest at 9.00%, due December 2023 (Originated November 2020)	79,827		—
Note receivable, secured, bearing interest at 11.50%, due November 2024 (Originated November 2020)	15,423		—
Notes and other receivables from affiliates (4)	4,744		4,442
Straight line rent receivables (5)	25,214		6,083
Other receivables	15,671		8,461
Allowance for credit losses	(751)		—
Total notes and other receivables	$	195,104	$	134,365

(1)In January 2020, the Company received cash of $16.9 million from the payoff of this note receivable.

(2)See Note 6, Related Party Transactions, for additional details.

(3)In January 2020, the Company received cash of $85.8 million from the payoff of this note receivable.

(4)These amounts consist of short-term loans outstanding and due from various joint ventures as of December 31, 2020 and 2019, respectively. See Note 6, Related Party Transactions, for additional details.

(5)These amounts are receivables from lease concessions recorded on a straight-line basis for the Company's operating properties.

The following table presents the activity in the allowance for credit losses for notes and other receivables by loan type ($ in thousands):

	Mezzanine Loans		Bridge Loans		Total
Balance at December 31, 2019	$	—	$	—	$	—
Impact of adoption ASC 326	147		43		190
Provision for credit losses	604		(43)		561
Balance at December 31, 2020	$	751	$	—	$	751

No loans were placed on nonaccrual status or charged off during the year ended December 31, 2020 or 2019.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(6) Related Party Transactions

The Company has adopted written related party transaction guidelines that are intended to cover transactions in which the Company (including entities it controls) is a party and in which any "related person" has a direct or indirect interest. A "related person" means any person who is or was (since the beginning of the last fiscal year) a Company director, director nominee, or executive officer, any beneficial owner of more than 5% of the Company’s outstanding common stock, and any immediate family member of any of the foregoing persons. A related person may be considered to have an indirect interest in a transaction if he or she (i) is an owner, director, officer or employee of or otherwise associated with another company that is engaging in a transaction with the Company, or (ii) otherwise, through one or more entities or arrangements, has an indirect financial interest in or personal benefit from the transaction.

The related person transaction review and approval process is intended to determine, among any other relevant issues, the dollar amount involved in the transaction; the nature and value of any related person’s direct or indirect interest (if any) in the transaction; and whether or not (i) a related person’s interest is material, (ii) the transaction is fair, reasonable, and serves the best interest of the Company and its shareholders, and (iii) whether the transaction or relationship should be entered into, continued or ended.

The Company’s Chairman and founder, Mr. George Marcus, is the Chairman of the Marcus & Millichap Company ("MMC"), which is a parent company of a diversified group of real estate service, investment, and development firms. Mr. Marcus is also the Co-Chairman of Marcus & Millichap, Inc. ("MMI"), and Mr. Marcus owns a controlling interest in MMI, a national brokerage firm listed on the NYSE that underwent its initial public offering in 2013. For the year ended December 31, 2020, the Company paid brokerage commissions of $0.2 million to MMC and its affiliates related to real estate transactions. For the years ended December 31, 2019 and 2018, there were no brokerage commissions paid by the Company to MMI or its affiliates.

The Company charges certain fees relating to its co-investments for asset management, property management, development and redevelopment services. These fees from affiliates totaled $11.3 million, $13.8 million, and $13.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. All of these fees are net of intercompany amounts eliminated by the Company. The Company netted development and redevelopment fees of $1.7 million, $4.3 million, and $4.8 million against general and administrative expenses for the years ended December 31, 2020, 2019 and 2018, respectively.

As described in Note 5, Notes and Other Receivables, the Company has provided short-term loans to affiliates. As of December 31, 2020 and 2019, $4.7 million and $4.4 million, respectively, of short-term loans remained outstanding due from joint venture affiliates and are classified within notes and other receivables in the accompanying consolidated balance sheets. In November 2016, the Company provided a $6.6 million mezzanine loan to a limited liability company in which MMC holds a significant ownership interest through subsidiaries. The mezzanine loan was classified within notes and other receivables in the accompanying consolidated balance sheets and was paid off in October 2019.

In November 2019, the Company provided an $85.5 million related party bridge loan to Wesco V as part of the acquisition of Velo and Ray. The note receivable accrued interest at LIBOR plus 1.30% and was scheduled to mature in February 2020, but was paid off in January 2020. The bridge loan was classified within notes and other receivables in the accompanying consolidated balance sheets.

In August 2019, the Company provided an $89.0 million related party bridge loan to Wesco V in connection with the acquisition of The Courtyards at 65th Street. The note receivable accrued interest at LIBOR plus 1.30% and was paid off in November 2019.

In August 2019, the Company provided a $44.4 million related party bridge loan to BEX IV in connection with the acquisition of 777 Hamilton. The note receivable accrued interest at 3.25%. In November 2019, the term of the bridge loan was extended to February 2020, but was paid off in December 2019.

In June 2019, the Company acquired Brio, a 300 unit apartment home community located in Walnut Creek, CA. The Company issued DownREIT units to an affiliate of MMC, based on a contract price of $164.9 million. The property was encumbered by $98.7 million of mortgage debt which was assumed by the Company at the time of acquisition. As a result of this transaction, the Company consolidated the property, based on a VIE analysis performed by the Company.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

In February 2019, the Company funded a $24.5 million preferred equity investment in an entity whose sponsor is an affiliate of MMC, which owns a multifamily development community located in Mountain View, CA. The investment has an initial preferred return of 11.0% and is scheduled to mature in February 2024.

In October 2018, the Company funded a $18.6 million preferred equity investment in an entity whose sponsor is an affiliate of MMC. The entity wholly owns a 268 apartment home community development located in Burlingame, CA. This investment accrues interest based on an initial 12.0% preferred return. The investment is scheduled to mature in April 2024.

In May 2018, the Company made a commitment to fund a $26.5 million preferred equity investment in an entity whose sponsors include an affiliate of MMC. The entity wholly owns a 400 apartment home community located in Ventura, CA. This investment accrues interest based on a 10.25% preferred return. The investment is scheduled to mature in May 2023. As of December 31, 2020, the Company had funded $23.4 million of the commitment. The remaining committed amount is expected to be funded if and when requested by the sponsors.

In March 2017, the Company converted its existing $15.3 million preferred equity investment in Sage at Cupertino, a 230 apartment home community located in San Jose, CA, into a 40.5% common equity ownership interest in the property. The Company issued DownREIT units to the other members, including an MMC affiliate, based on an estimated property valuation of $90.0 million. At the time of the conversion, the property was encumbered by $52.0 million of mortgage debt. As a result of this transaction, the Company consolidates the property, based on a consolidation analysis performed by the Company.

In 2015, the Company made preferred equity investments totaling $20.0 million in three entities affiliated with MMC that own apartment communities in California. The Company earned a 9.5% preferred return on each such investment. One $5.0 million investment, which was scheduled to mature in 2022, was fully redeemed in 2017. Another $5.0 million investment, which was scheduled to mature in 2022, was fully redeemed in 2018. The remaining investment was fully redeemed in February 2019.

(7) Unsecured Debt

Essex does not have any indebtedness as all debt is incurred by the Operating Partnership. Essex guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities up to the maximum amounts and for the full term of the facilities.

Unsecured debt consists of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020			2019			Weighted Average Maturity In Years
Unsecured bonds private placement - fixed rate	$	199,950		$	199,820		0.5
Term loan - variable rate	549,380			349,189			1.5
Bonds public offering - fixed rate	4,858,655			4,214,197			9.4
Unsecured debt, net (1)	5,607,985			4,763,206
Lines of credit (2)	—			55,000
Total unsecured debt	$	5,607,985		$	4,818,206
Weighted average interest rate on fixed rate unsecured bonds private placement and bonds public offering	3.4		%	3.8		%
Weighted average interest rate on variable rate term loan	1.7		%	2.7		%
Weighted average interest rate on lines of credit	1.0		%	2.5		%

(1)Includes unamortized discount, net of premiums, of $10.1 million and $12.2 million and unamortized debt issuance costs of $31.9 million and $24.5 million as of December 31, 2020 and 2019, respectively.

(2)Lines of credit, related to the Company's two lines of unsecured credit aggregating $1.24 billion, excludes unamortized debt issuance costs of $3.7 million and $3.8 million as of December 31, 2020 and 2019, respectively. These debt issuance costs are included in prepaid expenses and other assets on the consolidated balance sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

As of both December 31, 2020 and 2019, the Company had $200.0 million of private placement unsecured bonds outstanding at an average effective interest rate of 4.4%.

The following is a summary of the Company’s unsecured private placement bonds as of December 31, 2020 and 2019 ($ in thousands):

	Maturity	2020		2019		Coupon Rate
Senior unsecured private placement notes	April 2021	100,000		100,000		4.27	%
Senior unsecured private placement notes	June 2021	50,000		50,000		4.30	%
Senior unsecured private placement notes	August 2021	50,000		50,000		4.37	%
		$	200,000	$	200,000

As of December 31, 2020 and 2019, the Company had unsecured term loans outstanding of $550.0 million and $350.0 million, respectively, at an average interest rate of 1.7% and 2.7%, respectively. These loans are included in the line "Term loan - variable rate" in the table above, and as of December 31, 2020 and 2019, the carrying value, net of debt issuance costs, was $549.4 million and $349.2 million, respectively. $350.0 million of the term loan matures in February 2022 and $200.0 million of the term loan matures in April 2021 with two 12-month extension options, exercisable at the Company’s option. The Company had entered into five interest rate swap contracts, for a term of five years with a notional amount totaling $175.0 million, which will effectively convert the interest rate on $175.0 million of the term loan to a fixed rate of 2.3%. These interest rate swaps are accounted for as cash flow hedges.

In February 2020, the Operating Partnership issued $500.0 million of senior unsecured notes due on March 15, 2032, with a coupon rate of 2.650% (the "2032 Notes"), which are payable on March 15 and September 15 of each year, beginning on September 15, 2020. The 2032 Notes were offered to investors at a price of 99.628% of par value. The 2032 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay indebtedness under its unsecured lines of credit, which had been used to fund the buyout of CPPIB's 45.0% joint venture interests, as well as repay $100.3 million of secured debt during the quarter that ended March 31, 2020. In June 2020, the Operating Partnership issued an additional $150.0 million of the 2032 Notes at a price of 105.660% of par value, plus accrued interest from February 2020 up to, but not including, the date of delivery of the additional notes, with an effective yield of 2.093%. These additional notes have substantially identical terms as the 2032 Notes issued in February 2020. The proceeds were used to repay indebtedness under the Company's unsecured credit facilities and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, the carrying value of the 2032 Notes, net of premiums and debt issuance costs, was $650.7 million.

In April 2020, the Company obtained a $200.0 million unsecured term loan with a one-year maturity and two 12-month extension options, exercisable at the Company’s option. The unsecured term loan bears a variable interest rate of LIBOR plus 1.20% and the proceeds were used to repay all remaining consolidated debt maturing in 2020.

In August 2020, the Operating Partnership issued $600.0 million of senior unsecured notes, consisting of $300.0 million aggregate principal amount due on January 15, 2031 with a coupon rate of 1.650% (the “2031 Notes”) and $300.0 million aggregate principal amount due on September 1, 2050 with a coupon rate of 2.650% (the “2050 Notes” and together with the 2031 Notes, the “Notes”). The 2031 Notes were offered to investors at a price of 99.035% of par value and the 2050 Notes at 99.691% of par value. Interest is payable on the 2031 Notes semiannually on January 15 and July 15 of each year, beginning on January 15, 2021. Interest is payable on the 2050 Notes semiannually on March 1 and September 1 of each year, beginning on March 1, 2021. The Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay debt maturities, including certain unsecured private placement notes, secured mortgage notes, and to fund the redemption of $300.0 million aggregate principal amount of

its outstanding 3.625% senior unsecured notes due August 2022, and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, the carrying value of the 2031 Notes and 2050 Notes, net of discount and debt issuance costs was $294.5 million and $295.7 million, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

In August 2019, the Operating Partnership issued $400.0 million of senior unsecured notes due on January 15, 2030, with a coupon rate of 3.000% per annum (the "2030 Notes"), which are payable on January 15 and July 15 of each year, beginning on January 15, 2020. The 2030 Notes were offered to investors at a price of 98.632% of the principal amount thereof. The 2030 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex Property Trust, Inc. In October 2019, the Operating Partnership issued an additional $150.0 million of the 2030 notes at a price of 101.685% of the principal amount thereof. These additional notes have substantially identical terms as the 2030 Notes issued in August 2019. The Company used the net proceeds of these offerings to prepay, with no prepayment penalties, certain secured indebtedness under outstanding mortgage notes, to repay indebtedness under its unsecured lines of credit and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, and 2019, the carrying value of the 2030 Notes, net of discount and debt issuance costs, was $543.1 million and $542.3 million, respectively.

In February 2019, the Operating Partnership issued $350.0 million of senior unsecured notes due on March 1, 2029, with a coupon rate of 4.000% per annum (the "2029 Notes"), which are payable on March 1 and September 1 of each year, beginning on September 1, 2019. The 2029 Notes were offered to investors at a price of 99.188% of the principal amount thereof. The 2029 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex Property Trust, Inc. In March 2019, the Operating Partnership issued an additional $150.0 million of the 2029 Notes at a price of 100.717% of the principal amount thereof. These additional notes have substantially identical terms as the 2029 Notes issued in February 2019. The Company used the net proceeds of these offerings to repay indebtedness under its unsecured lines of credit and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, and 2019, the carrying value of the 2029 Notes, net of discount and debt issuance costs was $494.8 million and $494.1 million, respectively.

In March 2018, the Operating Partnership issued $300.0 million of senior unsecured notes due on March 15, 2048 with a coupon rate of 4.500% per annum and are payable on March 15 and September 15 of each year, beginning on September 15, 2018 (the "2048 Notes"). The 2048 Notes were offered to investors at a price of 99.591% of par value. The 2048 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2048 Notes, net of discount and debt issuance costs was $295.8 million and $295.6 million, respectively.

In April 2017, the Operating Partnership issued $350.0 million of senior unsecured notes due on May 1, 2027 with a coupon rate of 3.625% per annum and are payable on May 1 and November 1 of each year, beginning on November 1, 2017 (the "2027 Notes"). The 2027 Notes were offered to investors at a price of 99.423% of par value. The 2027 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2027 Notes, net of discount and debt issuance costs was $346.8 million and $346.3 million, respectively.

In April 2016, the Operating Partnership issued $450.0 million of senior unsecured notes due on April 15, 2026 with a coupon rate of 3.375% per annum and are payable on April 15th and October 15th of each year, beginning October 15, 2016 (the "2026 Notes"). The 2026 Notes were offered to investors at a price of 99.386% of par value. The 2026 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2026 Notes, net of discount and debt issuance costs was $446.4 million and $445.7 million, respectively.

In March 2015, the Operating Partnership issued $500.0 million of senior unsecured notes due on April 1, 2025 with a coupon rate of 3.5% per annum and are payable on April 1st and October 1st of each year, beginning October 1, 2015 (the "2025 Notes"). The 2025 Notes were offered to investors at a price of 99.747% of par value. The 2025 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2025 Notes, net of discount and debt issuance costs was $497.6 million and $497.1 million, respectively.

In April 2014, the Company assumed $900.0 million aggregate principal amount of BRE Property Inc.’s 5.500% senior notes due 2017; 5.200% senior notes due 2021; and 3.375% senior notes due 2023 (together the "BRE Notes"). These notes are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the BRE Notes, plus unamortized premium was $296.8 million and $599.4 million, respectively. In December 2020, the Company paid off $300.0 million of 5.200% senior notes. In March 2017, the Company paid off $300.0 million of 5.500% senior notes, at maturity.

In April 2014, the Operating Partnership issued $400.0 million of senior unsecured notes due on May 1, 2024 with a coupon rate of 3.875% per annum and are payable on May 1st and November 1st of each year, beginning November 1, 2014 (the "2024 Notes"). The 2024 Notes were offered to investors at a price of 99.234% of par value. The 2024 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2024 Notes, net of discount and debt issuance costs was $397.8 million and $397.1 million, respectively.

In April 2013, the Operating Partnership issued $300.0 million of senior unsecured notes due on May 1, 2023 with a coupon rate of 3.25% per annum and are payable on May 1st and November 1st of each year, beginning November 1, 2013 (the "2023 Notes"). The 2023 Notes were offered to investors at a price of 99.152% of par value. The 2023 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2023 Notes, net of discount and debt issuance costs was $298.7 million and $298.2 million, respectively.

The following is a summary of the Company’s senior unsecured notes as of December 31, 2020 and 2019 ($ in thousands):

	Maturity	2020		2019		Coupon Rate
Senior notes	March 2021	$	—	$	300,000	5.200	%
Senior notes	August 2022	—		300,000		3.625	%
Senior notes	January 2023	300,000		300,000		3.375	%
Senior notes	May 2023	300,000		300,000		3.250	%
Senior notes	May 2024	400,000		400,000		3.875	%
Senior notes	April 2025	500,000		500,000		3.500	%
Senior notes	April 2026	450,000		450,000		3.375	%
Senior notes	May 2027	350,000		350,000		3.625	%
Senior notes	March 2029	500,000		500,000		4.000	%
Senior notes	January 2030	550,000		550,000		3.000	%
Senior notes	January 2031	300,000		—		1.650	%
Senior notes	March 2032	650,000		—		2.650	%
Senior notes	March 2048	300,000		300,000		4.500	%
Senior notes	September 2050	300,000		—		2.650	%
		$	4,900,000	$	4,250,000

The aggregate scheduled principal payments of unsecured debt payable, excluding lines of credit, at December 31, 2020 are as follows ($ in thousands):

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

2021	$	—
2022	—
2023	600,000
2024	400,000
2025	500,000
Thereafter	3,400,000
	$	4,900,000

As of December 31, 2020, the Company had two unsecured lines of credit aggregating $1.24 billion, including a $1.2 billion unsecured line of credit and a $35.0 million working capital unsecured line of credit. As of December 31, 2020, there was no amount outstanding on the $1.2 billion unsecured line of credit. As of December 31, 2019, there was $55.0 million outstanding on this line. The interest rate is based on a tiered rate structure tied to the Company's credit ratings and was LIBOR plus 0.825% as of December 31, 2020. The $1.2 billion unsecured line of credit has a scheduled maturity date in December 2023 with one 18-month extension, exercisable at the Company's option. As of both December 31, 2020 and 2019, there was no amount outstanding on the Company's $35.0 million working capital unsecured line of credit. The interest rate on the amended line is based on a tiered rate structure tied to the Company's credit ratings and is currently at LIBOR plus 0.825%.

The Company’s unsecured lines of credit and unsecured debt agreements contain debt covenants related to limitations on indebtedness and liabilities, and maintenance of minimum levels of consolidated earnings before depreciation, interest and amortization. The Company was in compliance with the debt covenants as of December 31, 2020 and 2019.

(8) Mortgage Notes Payable

Essex does not have any indebtedness as all debt is incurred by the Operating Partnership. Mortgage notes payable consist of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020			2019
Fixed rate mortgage notes payable	$	419,323		$	736,490
Variable rate mortgage notes payable (1)	224,227			254,177
Total mortgage notes payable (2)	$	643,550		$	990,667
Number of properties securing mortgage notes	12			24
Remaining terms	1-26 years			1-27 years
Weighted average interest rate	2.7		%	4.1		%

The aggregate scheduled principal payments of mortgage notes payable at December 31, 2020 are as follows ($ in thousands):

2021	$	3,501
2022	43,188
2023	2,945
2024	3,109
2025	133,054
Thereafter	455,629
	$	641,426

(1)Variable rate mortgage notes payable, including $225.1 million in bonds that have been converted to variable rate through total return swap contracts, consists of multifamily housing mortgage revenue bonds secured by deeds of trust on rental properties and guaranteed by collateral pledge agreements, payable monthly at a variable rate as defined in the Loan Agreement (approximately 1.2% at December 2020 and 2.3% at December 2019) including credit enhancement and underwriting fees. Among the terms imposed on the properties, which are security for the bonds, is a requirement that 20% of the apartment homes are subject to tenant income criteria. Once the bonds have been repaid, the properties may no

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

longer be obligated to comply with such tenant income criteria. Principal balances are due in full at various maturity dates from December 2027 through December 2046. The Company had no interest rate cap agreements as of December 31, 2020 and 2019, respectively.

(2)Includes total unamortized premium, net of discounts, of $3.9 million and $5.9 million and reduced by unamortized debt issuance costs of $1.8 million and $2.6 million as of December 31, 2020 and 2019, respectively.

For the Company’s mortgage notes payable as of December 31, 2020, monthly interest expense and principal amortization, excluding balloon payments, totaled approximately $3.0 million and $0.5 million, respectively. Second deeds of trust accounted for none of the mortgage notes payable balance as of both December 31, 2020 and 2019. Repayment of debt before the scheduled maturity date could result in prepayment penalties. The prepayment penalty on the majority of the Company’s mortgage notes payable are computed by the greater of (a) 1% of the amount of the principal being prepaid or (b) the present value of the principal being prepaid multiplied by the difference between the interest rate of the mortgage note and the stated yield rate on a U.S. treasury security which generally has an equivalent remaining term as the mortgage note.

(9) Derivative Instruments and Hedging Activities

The Company uses interest rate swaps, interest rate caps, and total return swap contracts to manage certain interest rate risks. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps and total return swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements.

In November 2016, the Company replaced its $225.0 million term loan with a $350.0 million five-year term loan with a delayed draw feature that carries a variable interest rate of LIBOR plus 95 basis points. In 2016, the Company entered into four forward starting interest rate swaps (settlement payments commenced in March 2017) and in 2017, the Company entered into one forward starting interest rate swap (settlement payments commenced in March 2017) all related to the $350.0 million term loan. These five swaps, with a total notional amount of $175.0 million bear an average fixed interest rate of 2.3% and are scheduled to mature in February 2022. These derivatives qualify for hedge accounting.

As of December 31, 2020 and 2019, the Company had no interest rate caps.

As of December 31, 2020 and 2019, the aggregate carrying value of the interest rate swap contracts were a liability of $2.4 million and an asset of $0.8 million, respectively. As of December 31, 2020 and 2019, the swap contracts were presented in the consolidated balance sheets as an asset of zero and $1.0 million, respectively, and were in prepaid expenses and other assets on the consolidated balance sheets, and a liability of $2.4 million and $0.2 million, respectively, and were included in other liabilities on the consolidated balance sheets. The Company had no interest rate caps on the balance sheets as of December 31, 2020 and 2019.

Hedge ineffectiveness related to cash flow hedges, which is included in interest expense on the consolidated statements of income, was zero, a loss of $0.2 million, and a loss of $0.1 million for the years ended December 31, 2020, 2019, and 2018 respectively.

The Company has four total return swap contracts, with an aggregate notional amount of $254.8 million, that effectively convert $225.1 million of mortgage notes payable and $29.7 million of mortgage notes payable related to real estate held for sale that is included in liabilities associated with real estate held for sale on the consolidated balance sheet to a floating interest rate based on the Securities Industry and Financial Markets Association Municipal Swap Index ("SIFMA") plus a spread. The total return swaps provide fair market value protection on the mortgage notes payable to our counterparties during the initial period of the total return swap until the Company's option to call the mortgage notes at par can be exercised. The Company can currently call all four of the total return swaps with $254.8 million of the outstanding debt at par. These derivatives do not qualify for hedge accounting and had a carrying and fair value of zero at both December 31, 2020 and 2019, respectively. These total return swaps are scheduled to mature between November 2022 and December 2024. The realized gains of $10.7 million,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

$8.4 million, and $8.7 million as of December 31, 2020, 2019, and 2018, respectively, were reported on the consolidated statements of income as total return swap income.

(10) Lease Agreements - Company as Lessor

As of December 31, 2020, the Company is a lessor of apartment homes at all of its consolidated operating and lease-up communities, one commercial building, and commercial portions of mixed use communities. The apartment homes are rented under short-term leases (generally, lease terms of 9 to 12 months) while commercial lease terms typically range from 5 to 20 years. All such leases are classified as operating leases.

Although the majority of the Company’s apartment home and commercial leasing income is derived from fixed lease payments, some lease agreements also allow for variable payments. The primary driver of variable leasing income comes from utility reimbursements from apartment home leases and common area maintenance reimbursements from commercial leases. A small number of commercial leases contain provisions for lease payments based on a percentage of gross retail sales over set hurdles.

At the end of the term of apartment home leases, unless the lessee decides to renew the lease with the Company at the market rate or gives notice not to renew, the lease will be automatically renewed on a month-to-month term. Apartment home leases include an option to terminate the lease, however the lessee must pay the Company for expected or actual downtime to find a new tenant to lease the space or a lease-break fee specified in the lease agreement. Most commercial leases include options to renew, with the renewal periods extending the term of the lease for no greater than the same period of time as the original lease term. The initial option to renew for commercial leases will typically be based on a fixed price while any subsequent renewal options will generally be based on the current market rate at the time of the renewal. Certain commercial leases contain lease termination options that would require the lessee to pay termination fees based on the expected amount of time it would take the Company to re-lease the space.

The Company’s apartment home and commercial lease agreements do not contain residual value guarantees. As the Company is the lessor of real estate assets which tend to either hold their value or appreciate, residual value risk is not deemed to be substantial. Furthermore, the Company carries comprehensive liability, fire, extended coverage, and rental loss insurance for each of its communities as well as limited insurance coverage for certain types of extraordinary losses, such as, for example, losses from terrorism or earthquakes.

A maturity analysis of undiscounted future minimum non-cancelable base rent to be received under the above operating leases as of December 31, 2020 is summarized as follows ($ in thousands):

	Future Minimum Rent
2021	$	720,570
2022	34,240
2023	14,971
2024	13,619
2025	11,265
Thereafter	24,855
	$	819,520

Practical Expedients

The Company has elected to account for operating lease (e.g., fixed payments including rent) and non-lease components (e.g., utility reimbursements and common-area maintenance costs) as a single combined lease component under ASC 842 "Leases" as the lease components are the predominant elements of the combined components.

As part of the transition to ASC Topic 842, the Company has elected to use the modified retrospective transition method with the new standard being applied as of the January 1, 2019 adoption date. Additionally, the Company has elected, as of the

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC Topic 842, and not to reassess whether existing or expired land easements meet the definition of a lease.

(11) Lease Agreements - Company as Lessee

As of December 31, 2020, the Company is a lessee of corporate office space, ground leases and a parking lease associated with various consolidated properties, and equipment. Lease terms for the Company's office leases, in general, range between 5 to 10 years while ground leases and the parking lease have terms typically ranging from 20 to 85 years. The corporate office leases occasionally contain renewal options of approximately five years while certain ground leases contain renewal options that can extend the lease term from approximately 10 to 39 years.

A majority of the Company’s ground leases and the parking lease are subject to changes in the Consumer Price Index ("CPI"). Furthermore, certain of the Company’s ground leases include rental payments based on a percentage of gross or net income. While lease liabilities are not remeasured as a result of changes in the CPI or percentage of gross or net income, such changes are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred.

The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

As of December 31, 2020 and 2019, the Company had no material finance leases.

Supplemental consolidated balance sheet information related to leases as of December 31, 2020 and 2019 is as follows ($ in thousands):

	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	72,143	$	74,744
Total leased assets		$	72,143	$	74,744
Liabilities
Operating lease liabilities	Operating lease liabilities	74,037		76,740
Total lease liabilities		$	74,037	$	76,740

The components of lease expense for the years ended December 31, 2020 and 2019 were as follows ($ in thousands):

	December 31, 2020		December 31, 2019
Operating lease cost	$	6,749	$	6,745
Variable lease cost	1,436		783
Short-term lease cost	432		610
Sublease income	(438)		(436)
Total lease cost	$	8,179	$	7,702

A maturity analysis of lease liabilities as of December 31, 2020 is as follows ($ in thousands):

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

	Operating Leases
2021	$	6,963
2022	6,987
2023	6,962
2024	6,690
2025	6,310
Thereafter	140,417
Total lease payments	$	174,329
Less: Imputed interest	(100,292)
Present value of lease liabilities	$	74,037

Lease term and discount rate information for leases at December 31, 2020 and 2019 are as follows:

	December 31, 2020		December 31, 2019
Weighted-average of remaining lease terms (years)
Operating Leases	39		39
Weighted-average of discount rates
Operating Leases	5.00	%	4.99	%

Practical Expedients

As part of the transition to ASC Topic 842, the Company elected to use the modified retrospective transition method with the new standard being applied as of the January 1, 2019 adoption date. Additionally, the Company has elected, as of the adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC Topic 842, and not to reassess whether existing or expired land easements meet the definition of a lease.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term.

The Company has elected to account for lease components (e.g., fixed payments including rent) and non-lease components (e.g., common-area maintenance costs) as a single combined lease component as the lease components are the predominant elements of the combined components.

(12) Equity Transactions

Common Stock Offerings

In September 2018, the Company entered into an equity distribution agreement pursuant to which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $900.0 million (the "2018 ATM Program"). Upon entering into the 2018 ATM Program, the Company simultaneously terminated its existing equity distribution agreements, which were entered into in March 2016 in connection with its prior at-the-market equity offering program (the "2016 ATM Program").

In connection with the 2018 ATM Program, the Company may also enter into related forward sale agreements whereby, at the Company’s discretion, it may sell shares of its common stock under the 2018 ATM Program under forward sale agreements. The use of a forward sale agreement would allow the Company to lock in a share price on the sale of shares of its common stock at the time the agreement is executed, but defer receiving the proceeds from the sale of shares until a later date. The Company anticipates using the net proceeds, which are contributed to the Operating Partnership, to acquire, develop, or

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ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

redevelop properties, which primarily will be apartment communities, to make other investments and for working capital or general corporate purposes, which may include the repayment of indebtedness.

For the year ended December 31, 2020, the Company did not issue any shares of common stock through the 2018 ATM Program. For the year ended December 31, 2019, the Company issued 228,271 shares of common stock through the 2018 ATM Program at an average price of $321.56 per share for proceeds of $73.4 million. For the year ended December 31, 2018, the Company did not sell any shares of its common stock through the 2018 ATM Program or through the 2016 ATM Program. As of December 31, 2020, there were no outstanding forward sale agreements, and $826.6 million of shares remained available to be sold under this program.

Operating Partnership Units and Long-Term Incentive Plan ("LTIP") Units

As of December 31, 2020 and 2019, the Operating Partnership had outstanding 2,188,623 and 2,158,396 operating partnership units and 106,137 and 143,257 vested LTIP units, respectively. The Operating Partnership’s general partner, Essex, owned 96.6% of the partnership interests in the Operating Partnership as of both December 31, 2020 and 2019, and Essex is responsible for the management of the Operating Partnership’s business. As the general partner of the Operating Partnership, Essex effectively controls the ability to issue common stock of Essex upon a limited partner’s notice of redemption. Essex has generally acquired Operating Partnership limited partnership units ("OP Units") upon a limited partner’s notice of redemption in exchange for shares of its common stock. The redemption provisions of OP Units owned by limited partners that permit Essex to settle in either cash or common stock at the option of Essex were further evaluated in accordance with applicable accounting guidance to determine whether temporary or permanent equity classification on the balance sheet is appropriate. The Operating Partnership evaluated this guidance, including the requirement to settle in unregistered shares, and determined that, with few exceptions, these OP Units meet the requirements to qualify for presentation as permanent equity.

LTIP units represent an interest in the Operating Partnership for services rendered or to be rendered by the LTIP unitholder in its capacity as a partner, or in anticipation of becoming a partner, in the Operating Partnership. Upon the occurrence of specified events, LTIP units may over time achieve full parity with common units of the Operating Partnership for all purposes. Upon achieving full parity, LTIP units will be exchanged for an equal number of the OP Units.

The collective redemption value of OP Units and LTIP units owned by the limited partners, not including Essex, was approximately $544.8 million and $692.5 million based on the closing price of Essex's common stock as of December 31, 2020 and 2019, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(13) Net Income Per Common Share and Net Income Per Common Unit

Essex Property Trust, Inc.

Basic and diluted income per share is calculated as follows for the years ended December 31 ($ in thousands, except share and per share amounts):

	2020					2019					2018
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Net income available to common stockholders	$	568,870	65,454,057	$	8.69	$	439,286	65,840,422	$	6.67	$	390,153	66,041,058	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common stockholders	$	569,653	65,564,982	$	8.69	$	439,286	65,939,455	$	6.66	$	390,153	66,085,089	$	5.90

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,296,608, 2,300,478, and 2,274,941, which include vested Series Z-1 Incentive Units, 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units, for the years ended December 31, 2020, 2019 and 2018, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $20.0 million, $15.3 million, and $13.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Additionally, the table excludes all DownREIT units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

Stock options of 403,458, 115,066, and 160,039, for the years ended December 31, 2020, 2019, and 2018, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of such options plus the average unearned compensation were greater than the average market price of the common stock for the years ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.

Basic and diluted income per unit is calculated as follows for the years ended December 31 ($ in thousands, except unit and per unit amounts):

	2020					2019					2018
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Net income available to common unitholders	$	588,782	67,750,665	$	8.69	$	454,629	68,140,900	$	6.67	$	403,605	68,315,999	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common unitholders	$	589,565	67,861,590	$	8.69	$	454,629	68,239,933	$	6.66	$	403,605	68,360,030	$	5.90

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ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

Stock options of 403,458, 115,066, and 160,039, for the years ended December 31, 2020, 2019, and 2018, respectively, were excluded from the calculation of diluted earnings per unit because the assumed proceeds per unit of these options plus the average unearned compensation were greater than the average market price of the common unit for the years ended and, therefore, were anti-dilutive. Additionally, the table excludes all DownREIT units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(14) Equity Based Compensation Plans

Stock Options and Restricted Stock

In May 2018, stockholders approved the Company’s 2018 Stock Award and Incentive Compensation Plan ("2018 Plan"). The 2018 Plan serves as the successor to the Company’s 2013 Stock Incentive Plan (the "2013 Plan"). The Company’s 2018 Plan provides incentives to attract and retain officers, directors and key employees. The 2018 Plan provides for the grant of stock-based awards to employees, directors and consultants of the Company and its affiliates. The aggregate number of shares of the Company’s common stock available for issuance pursuant to awards granted under the 2018 Plan is 2,000,000 shares, plus the number of shares authorized for grants and available for issuance under the 2013 Plan as of the effective date of the 2018 Plan and the number of shares subject to outstanding awards under the 2013 Plan that are forfeited or otherwise not issued under such awards. No further awards will be granted under the 2013 Plan and the shares that remained available for future issuance under the 2013 Plan as of the effective date of the 2018 Plan will be available for issuance under the 2018 Plan. In connection with the adoption of the 2018 Plan, the Board delegated to the Compensation Committee of the Board the authority to administer the 2018 Plan.

Equity-based compensation costs for options and restricted stock under the fair value method totaled $12.9 million, $11.4 million, and $12.1 million for years ended December 31, 2020, 2019 and 2018, respectively. For each of the years ended December 31, 2020, 2019 and 2018 equity-based compensation costs included $3.5 million related to restricted stock for bonuses awarded based on asset dispositions, which is recorded as a cost of real estate and land sold, respectively. Stock-based compensation for options and restricted stock related to recipients who are direct and incremental to projects under development were capitalized and totaled $1.3 million, $1.6 million, and $2.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. The intrinsic value of the options exercised totaled $7.4 million, $18.7 million, and $3.1 million, for the years ended December 31, 2020, 2019, and 2018 respectively. The intrinsic value of the options exercisable totaled $3.4 million and $23.5 million as of December 31, 2020 and 2019, respectively.

Total unrecognized compensation cost related to unvested stock options totaled $4.4 million as of December 31, 2020 and the unrecognized compensation cost is expected to be recognized over a period of 2.2 years.

The average fair value of stock options granted for the years ended December 31, 2020, 2019 and 2018 was $20.69, $24.02 and $26.13, respectively. Certain stock options granted in 2020, 2019, and 2018 included a $100 cap, $125 cap, or no cap on the appreciation of the market price over the exercise price. The fair value of stock options was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants:

	2020			2019			2018
Stock price	$	244.74		$	304.85		$	262.09
Risk-free interest rates	0.83		%	2.01		%	2.76		%
Expected lives	6 years			6 years			6 years
Volatility	25.72		%	19.56		%	24.89		%
Dividend yield	2.93		%	2.72		%	2.81		%

A summary of the status of the Company’s stock option plans as of December 31, 2020, 2019, and 2018 and changes during the years ended on those dates is presented below:

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

	2020			2019			2018
	Shares	Weighted- average exercise price		Shares	Weighted- average exercise price		Shares	Weighted- average exercise price
Outstanding at beginning of year	572,971	$	251.10	612,954	$	224.57	536,208	$	211.41
Granted	149,020	244.74		148,147	304.85		119,361	262.09
Exercised	(70,802)	208.57		(182,817)	205.25		(39,175)	159.05
Forfeited and canceled	(38,080)	228.64		(5,313)	257.87		(3,440)	221.80
Outstanding at end of year	613,109	255.86		572,971	251.10		612,954	224.57
Options exercisable at year end	361,985	245.83		305,379	223.90		322,837	206.63

The following table summarizes information about restricted stock outstanding as of December 31, 2020, 2019 and 2018 and changes during the years ended:

	2020			2019			2018
	Shares	Weighted- average grant price		Shares	Weighted- average grant price		Shares	Weighted- average grant price
Unvested at beginning of year	114,877	$	197.62	91,058	$	180.99	90,823	$	163.49
Granted	45,196	248.16		41,643	235.93		51,945	194.70
Vested	(15,116)	170.61		(13,222)	143.56		(48,212)	150.76
Forfeited and canceled	(12,354)	184.11		(4,602)	158.06		(3,498)	158.71
Unvested at end of year	132,603	214.34		114,877	197.62		91,058	180.99

The unrecognized compensation cost related to unvested restricted stock totaled $13.8 million as of December 31, 2020 and is expected to be recognized over a period of 2.3 years.

Long-Term Incentive Plans – LTIP Units

On December 9, 2014, the Operating Partnership issued 44,750 LTIP units under the 2015 Long-Term Incentive Plan Award agreements to executives of the Company. The 2015 Long-Term Incentive Plan Units (the "2015 LTIP Units") are subject to forfeiture based on performance-based and service based conditions. An additional 24,000 LTIP units were granted subject only to performance-based criteria and were fully vested on the date granted. The 2015 LTIP Units, that are subject to vesting, vested at 20% per year on each of the first five anniversaries of the initial grant date. The 2015 LTIP Units performance conditions measurement ended on December 9, 2015 and 95.75% of the units awarded were earned by the recipients. 2015 LTIP Units not earned based on the performance-based criteria were automatically forfeited by the recipients. The 2015 LTIP Units, once earned and vested, are convertible one-for-one into OP Units which, in turn, are convertible into common stock of the Company subject to a 10-year liquidity restriction.

In December 2013, the Operating Partnership issued 50,500 LTIP units under the 2014 Long-Term Incentive Plan Award agreements to executives of the Company. The 2014 Long-Term Incentive Plan Units (the "2014 LTIP Units") were subject to forfeiture based on performance-based conditions and are currently subject to service based vesting. The 2014 LTIP Units vested 25% per year on each of the first four anniversaries of the initial grant date. In December 2014, the Company achieved the performance criteria and all of the 2014 LTIP Units awarded were earned by the recipients, subject to satisfaction of service based vesting conditions. The 2014 LTIP Units are convertible one-for-one into OP Units which, in turn, are convertible into common stock of the Company subject to a ten year liquidity restriction.

The estimated fair value of the 2015 LTIP Units and 2014 LTIP Units were determined on the grant date using Monte Carlo simulations under a risk-neutral premise and considered Essex’s stock price on the date of grant, the unpaid dividends on unvested units and the discount factor for 10 years of illiquidity.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

Prior to 2013, the Company issued Series Z Incentive Units and Series Z-1 Incentive Units (collectively referred to as "Z Units") of limited partnership interest in the Operating Partnership. Vesting in the Z Units is based on performance criteria established in the plan. The criteria can be revised by the Compensation Committee of the Board of Directors if the Committee deems that the plan's criterion is unachievable for any given year. The sale of Z Units is contractually prohibited. Z Units are convertible into Operating Partnership units which are exchangeable for shares of the Company’s common stock that have marketability restrictions. The estimated fair value of Z Units were determined on the grant date and considered the Company's stock price on the date of grant, the dividends that are not paid on unvested units and a marketability discount for the 8 to 15 years of illiquidity. Compensation expense is calculated by multiplying estimated vesting increases for the period by the estimated fair value as of the grant date.

During 2011 and 2010, the Operating Partnership issued 154,500 Series Z-1 Incentive Units (the "Z-1 Units") of limited partner interest to executives of the Company. The Z-1 Units are convertible one-for-one into common units of the Operating Partnership (which, in turn, are convertible into common stock of the Company) upon the earlier to occur of 100 percent vesting of the units or the year 2026. The conversion ratchet (accounted for as vesting) of the Z-1 Units into common units, is to increase consistent with the Company’s annual FFO growth, but is not to be less than zero or greater than 14 percent. Z-1 Unitholders are entitled to receive distributions, on vested units, that are now equal to dividends distributed to common stockholders.

Equity-based compensation costs for LTIP and Z Units under the fair value method totaled approximately zero, $0.9 million and $0.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Equity-based compensation costs related to LTIP Units attributable to recipients who are direct and incremental to these projects was capitalized to real estate under development and totaled approximately zero, $0.2 million, and $0.2 million, for the years ended December 31, 2020, 2019, and 2018, respectively. The intrinsic value of the vested and unvested LTIP Units totaled $25.2 million as of December 31, 2020. Total unrecognized compensation cost related to the unvested LTIP Units under the LTIP Units plans was zero as of December 31, 2020.

The following table summarizes information about the LTIP Units outstanding as of December 31, 2020:

	Long-Term Incentive Plan - LTIP Units
	Total Vested Units	Total Unvested Units	Total Outstanding Units	Weighted- average Grant-date Fair Value		Weighted- average Remaining Contractual Life (years)
Balance, December 31, 2017	213,300	23,212	236,512	$	75.03	7.5
Granted	—	—	—
Vested	12,051	(12,051)	—
Converted	(91,270)	—	(91,270)
Cancelled	—	—	—
Balance, December 31, 2018	134,081	11,161	145,242	$	75.03	6.5
Granted	—	—	—
Vested	9,176	(9,176)	—
Converted	—	—	—
Cancelled	—	(95)	(95)
Balance, December 31, 2019	143,257	1,890	145,147	$	75.03	5.2
Granted	—	—	—
Vested	1,890	(1,890)	—
Converted	(39,010)	—	(39,010)
Cancelled	—	—	—
Balance, December 31, 2020	106,137	—	106,137	$	84.47	3.6

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

(15) Segment Information

The Company's segment disclosures present the measure used by the chief operating decision makers for purposes of assessing each segment's performance. The Company's chief operating decision makers are comprised of several members of its executive management team who use net operating income ("NOI") to assess the performance of the business for the Company's reportable operating segments. NOI represents total property revenues less direct property operating expenses.

The executive management team generally evaluates the Company's operating performance geographically. The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California and Seattle Metro. 

Excluded from segment revenues and NOI are management and other fees from affiliates and interest and other income. Non-segment revenues and NOI included in the following schedule also consist of revenues generated from commercial properties and properties that have been sold. Other non-segment assets include items such as real estate under development, co-investments, real estate held for sale, cash and cash equivalents, marketable securities, notes and other receivables, and prepaid expenses and other assets.

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ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

The revenues and NOI for each of the reportable operating segments are summarized as follows for the years ended December 31, 2020, 2019, and 2018 ($ in thousands):

	Years Ended December 31,
	2020		2019		2018
Revenues:
Southern California	$	570,673	$	597,330	$	579,533
Northern California	610,867		557,139		520,117
Seattle Metro	243,900		243,060		234,138
Other real estate assets	60,710		53,099		57,082
Total property revenues	$	1,486,150	$	1,450,628	$	1,390,870
Net operating income:
Southern California	$	393,776	$	425,882	$	412,517
Northern California	435,403		412,706		384,548
Seattle Metro	166,847		172,601		163,927
Other real estate assets	49,724		42,912		45,537
Total net operating income	1,045,750		1,054,101		1,006,529
Management and other fees from affiliates	9,598		9,527		9,183
Corporate-level property management expenses	(34,573)		(34,067)		(32,055)
Depreciation and amortization	(525,497)		(483,750)		(479,884)
General and administrative	(65,388)		(54,262)		(53,451)
Expensed acquisition and investment related costs	(1,591)		(168)		(194)
Impairment loss	(1,825)		(7,105)		—
Gain (loss) on sale of real estate and land	64,967		(3,164)		61,861
Interest expense	(220,633)		(217,339)		(220,492)
Total return swap income	10,733		8,446		8,707
Interest and other income	40,999		46,298		23,010
Equity income from co-investments	66,512		112,136		89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)		(1,457)		—
(Loss) Gain on early retirement of debt, net	(22,883)		3,717		—
Gain on remeasurement of co-investment	234,694		31,535		1,253
Net income	$	599,332	$	464,448	$	413,599

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ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

Total assets for each of the reportable operating segments are summarized as follows as of December 31, 2020 and 2019 ($ in thousands):

	As of December 31,
	2020		2019
Assets:
Southern California	$	3,993,275	$	4,139,104
Northern California	5,520,019		4,408,404
Seattle Metro	1,403,678		1,456,187
Other real estate assets	10,814		344,965
Net reportable operating segments - real estate assets	10,927,786		10,348,660
Real estate under development	386,047		546,075
Co-investments	1,018,010		1,335,339
Real estate held for sale	57,938		—
Cash and cash equivalents, including restricted cash	84,041		81,094
Marketable securities	147,768		144,193
Notes and other receivables	195,104		134,365
Operating lease right-of-use assets	72,143		74,744
Prepaid expenses and other assets	47,340		40,935
Total assets	$	12,936,177	$	12,705,405

(16) 401(k) Plan

The Company has a 401(k) benefit plan (the "Plan") for all eligible employees. Employee contributions are limited by the maximum allowed under Section 401(k) of the Internal Revenue Code. The Company matches 50% of the employee contributions up to a specified maximum. Company contributions to the Plan were approximately $2.7 million, $2.4 million, and $2.1 million for the years ended December 31, 2020, 2019, and 2018, respectively.

(17) Commitments and Contingencies

The Company's total minimum lease payment commitments, under ground leases, parking leases, and operating leases are disclosed in Note 11, Lease Agreements - Company as Lessee.

To the extent that an environmental matter arises or is identified in the future that has other than a remote risk of having a material impact on the financial statements, the Company will disclose the estimated range of possible outcomes associated with it and, if an outcome is probable, accrue an appropriate liability for that matter. The Company will consider whether any such matter results in an impairment of value on the affected property and, if so, the impairment will be recognized.

The Company has no way of determining the magnitude of any potential liability to which it may be subject arising out of unknown environmental conditions with respect to the communities currently or formerly owned by the Company. No assurance can be given that: existing environmental assessments conducted with respect to any of these communities have revealed all environmental conditions or potential liabilities associated with such conditions; any prior owner or operator of a property did not create any material environmental condition not known to the Company; or a material unknown environmental condition does not otherwise exist as to any one or more of the communities. The Company has limited insurance coverage for some of the types of environmental conditions and associated liabilities described above.

The Company has entered into transactions that may require the Company to pay the tax liabilities of the partners or members in the Operating Partnership or in the DownREIT entities. These transactions are within the Company’s control. Although the Company plans to hold the contributed assets or defer recognition of gain on their sale pursuant to like-kind exchange rules under Section 1031 of the Internal Revenue Code, the Company can provide no assurance that it will be able to do so and if such tax liabilities were incurred they may have a material impact on the Company’s financial position.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020, 2019, and 2018

There continue to be lawsuits against owners and managers of certain of the Company's apartment communities alleging personal injury and property damage caused by the presence of mold in the residential units and common areas of those communities. Some of these lawsuits have resulted in substantial monetary judgments or settlements in the past. The Company has been sued for mold related matters and has settled some, but not all, of such suits. Insurance carriers have reacted to the increase in mold related liability awards by excluding mold related claims from standard general liability policies and pricing mold endorsements at prohibitively high rates. The Company has, however, purchased pollution liability insurance which includes coverage for some mold claims. The Company has also adopted policies intended to promptly address and resolve reports of mold and to minimize any impact mold might have on tenants of its properties. The Company believes its mold policies and proactive response to address reported mold exposures reduces its risk of loss from mold claims. While no assurances can be given that the Company has identified and responded to all mold occurrences, the Company promptly addresses and responds to all known mold reports. Liabilities resulting from such mold related matters are not expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. As of December 31, 2020, potential liabilities for mold and other environmental liabilities are not quantifiable and an estimate of possible loss cannot be made.

The Company carries comprehensive liability, fire, extended coverage and rental loss insurance for each of the communities.  There are, however, certain types of extraordinary losses, such as, for example, losses from terrorism or earthquakes, for which the Company has limited insurance coverage. Substantially all of the communities are located in areas that are subject to earthquake activity. The Company has established a wholly-owned insurance subsidiary, Pacific Western Insurance LLC ("PWI"). Through PWI, the Company is self-insured for earthquake related losses. Additionally, since January 2008, PWI has provided property and casualty insurance coverage for the first $5.0 million of the Company’s property level insurance claims per incident. As of December 31, 2020, PWI has cash and marketable securities of approximately $152.8 million. These assets are consolidated in the Company’s financial statements. Beginning in 2013, the Company has obtained limited third party seismic insurance on selected assets in the Company's co-investments.

The Company is subject to various other legal and/or regulatory proceedings arising in the course of its business operations. The Company believes that, with respect to such matters that it is currently a party to, the ultimate disposition of any such matter will not result in a material adverse effect on the Company’s financial condition, results of operations or cash flows.

(18) Subsequent Events

In February 2021, the Company repaid $100.0 million of unsecured debt due to mature in 2021 at an effective rate of 4.3%.

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FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

									Costs
					Initial cost				capitalized		Gross amount carried at close of period
	Apartment						Buildings and		subsequent to		Land and		Buildings and				Accumulated		Date of	Date	Lives
Property	Homes	Location	Encumbrance		Land		improvements		acquisition		improvements		improvements		Total (1)		depreciation		construction	acquired	(years)
Encumbered communities
Belmont Station	275	Los Angeles, CA	29,728		8,100		66,666		7,386		8,267		73,885		82,152		(33,891)		2009	Mar-09	3-30
Brio	300	Walnut Creek, CA	98,956		16,885		151,741		1,263		16,885		153,004		169,889		(8,559)		2015	Jun-19	3-30
Form 15	242	San Diego, CA	42,271		24,510		72,221		11,835		25,540		83,026		108,566		(13,807)		2014	Mar-16	3-30
Fountain Park	705	Playa Vista, CA	82,707		25,073		94,980		36,019		25,203		130,869		156,072		(80,772)		2002	Feb-04	3-30
Highridge	255	Rancho Palos Verdes, CA	69,345		5,419		18,347		33,311		6,073		51,004		57,077		(41,762)		1972	May-97	3-30
Magnolia Square/Magnolia Lane (2)	188	Sunnyvale, CA	52,303		8,190		24,736		18,553		8,191		43,288		51,479		(26,038)		1963	Sep-07	3-30
Marquis	166	San Jose, CA	44,077		20,495		47,823		178		20,495		48,001		68,496		(3,290)		2015	Dec-18	3-30
Sage at Cupertino	230	San Jose, CA	51,758		35,719		53,449		9,242		35,719		62,691		98,410		(9,454)		1971	Mar-17	3-30
The Barkley (3)	161	Anaheim, CA	14,873		—		8,520		7,659		2,353		13,826		16,179		(10,114)		1984	Apr-00	3-30
The Dylan	184	West Hollywood, CA	58,515		19,984		82,286		1,502		19,990		83,782		103,772		(18,368)		2015	Mar-15	3-30
The Huxley	187	West Hollywood, CA	53,277		19,362		75,641		1,710		19,371		77,342		96,713		(17,213)		2014	Mar-15	3-30
Township	132	Redwood City, CA	45,740		19,812		70,619		630		19,812		71,249		91,061		(3,199)		2014	Sep-19	3-30
	3,025		$	643,550	$	203,549	$	767,029	$	129,288	$	207,899	$	891,967	$	1,099,866	$	(266,467)
Unencumbered Communities
Agora	49	Walnut Creek, CA	—		4,932		60,423		187		4,934		60,608		65,542		(1,987)		2016	Jan-20	3-30
Alessio	624	Los Angeles, CA	—		32,136		128,543		14,335		32,136		142,878		175,014		(37,803)		2001	Apr-14	5-30
Allegro	97	Valley Village, CA	—		5,869		23,977		2,758		5,869		26,735		32,604		(11,343)		2010	Oct-10	3-30
Allure at Scripps Ranch	194	San Diego, CA	—		11,923		47,690		1,979		11,923		49,669		61,592		(12,386)		2002	Apr-14	5-30
Alpine Village	301	Alpine, CA	—		4,967		19,728		9,687		4,982		29,400		34,382		(18,364)		1971	Dec-02	3-30
Anavia	250	Anaheim, CA	—		15,925		63,712		9,732		15,925		73,444		89,369		(25,398)		2009	Dec-10	3-30
Annaliese	56	Seattle, WA	—		4,727		14,229		808		4,726		15,038		19,764		(4,182)		2009	Jan-13	3-30
Apex	366	Milpitas, CA	—		44,240		103,251		6,095		44,240		109,346		153,586		(23,316)		2014	Aug-14	3-30
Aqua Marina Del Rey	500	Marina Del Rey, CA	—		58,442		175,326		15,117		58,442		190,443		248,885		(52,469)		2001	Apr-14	5-30
Ascent	90	Kirkland, WA	—		3,924		11,862		2,286		3,924		14,148		18,072		(4,792)		1988	Oct-12	3-30
Ashton Sherman Village	264	Los Angeles, CA	—		23,550		93,811		1,536		23,550		95,347		118,897		(13,614)		2014	Dec-16	3-30
Avant	440	Los Angeles, CA	—		32,379		137,940		3,722		32,379		141,662		174,041		(26,788)		2014	Jun-15	3-30
Avenue 64	224	Emeryville, CA	—		27,235		64,403		16,322		27,235		80,725		107,960		(18,800)		2007	Apr-14	5-30
Aviara (4)	166	Mercer Island, WA	—		—		49,813		1,874		—		51,687		51,687		(13,707)		2013	Apr-14	5-30
Avondale at Warner Center	446	Woodland Hills, CA	—		10,536		24,522		25,418		10,601		49,875		60,476		(36,728)		1970	Jan-99	3-30

F- 58

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Bel Air	462	San Ramon, CA	—	12,105	18,252	43,348	12,682	61,023	73,705	(43,768)	1988	Jan-95	3-30
Belcarra	296	Bellevue, WA	—	21,725	92,091	2,613	21,725	94,704	116,429	(23,150)	2009	Apr-14	5-30
Bella Villagio	231	San Jose, CA	—	17,247	40,343	4,651	17,247	44,994	62,241	(16,688)	2004	Sep-10	3-30
BellCentre	248	Bellevue, WA	—	16,197	67,207	5,644	16,197	72,851	89,048	(18,845)	2001	Apr-14	5-30
Bellerive	63	Los Angeles, CA	—	5,401	21,803	1,390	5,401	23,193	28,594	(8,573)	2011	Aug-11	3-30
Belmont Terrace	71	Belmont, CA	—	4,446	10,290	7,387	4,473	17,650	22,123	(10,455)	1974	Oct-06	3-30
Bennett Lofts	165	San Francisco, CA	—	21,771	50,800	30,939	28,371	75,139	103,510	(22,577)	2004	Dec-12	3-30
Bernardo Crest	216	San Diego, CA	—	10,802	43,209	5,214	10,802	48,423	59,225	(12,642)	1988	Apr-14	5-30
Bonita Cedars	120	Bonita, CA	—	2,496	9,913	5,834	2,503	15,740	18,243	(9,541)	1983	Dec-02	3-30
Boulevard	172	Fremont, CA	—	3,520	8,182	14,651	3,580	22,773	26,353	(18,916)	1978	Jan-96	3-30
Brookside Oaks	170	Sunnyvale, CA	—	7,301	16,310	27,349	10,328	40,632	50,960	(26,656)	1973	Jun-00	3-30
Bridle Trails	108	Kirkland, WA	—	1,500	5,930	6,690	1,531	12,589	14,120	(9,424)	1986	Oct-97	3-30
Brighton Ridge	264	Renton, WA	—	2,623	10,800	7,010	2,656	17,777	20,433	(13,419)	1986	Dec-96	3-30
Bristol Commons	188	Sunnyvale, CA	—	5,278	11,853	10,433	5,293	22,271	27,564	(16,949)	1989	Jan-95	3-30
Bunker Hill	456	Los Angeles, CA	—	11,498	27,871	96,132	11,639	123,862	135,501	(79,005)	1968	Mar-98	3-30
Camarillo Oaks	564	Camarillo, CA	—	10,953	25,254	8,869	11,075	34,001	45,076	(26,629)	1985	Jul-96	3-30
Cambridge Park	320	San Diego, CA	—	18,185	72,739	4,120	18,185	76,859	95,044	(19,617)	1998	Apr-14	5-30
Camino Ruiz Square	159	Camarillo, CA	—	6,871	26,119	2,543	6,931	28,602	35,533	(13,801)	1990	Dec-06	3-30
Canyon Oaks	250	San Ramon, CA	—	19,088	44,473	7,051	19,088	51,524	70,612	(23,554)	2005	May-07	3-30
Canyon Pointe	250	Bothell, WA	—	4,692	18,288	9,479	4,693	27,766	32,459	(17,295)	1990	Oct-03	3-30
Capri at Sunny Hills	102	Fullerton, CA	—	3,337	13,320	9,690	4,048	22,299	26,347	(15,327)	1961	Sep-01	3-30
Carmel Creek	348	San Diego, CA	—	26,842	107,368	8,308	26,842	115,676	142,518	(30,274)	2000	Apr-14	5-30
Carmel Landing	356	San Diego, CA	—	16,725	66,901	10,506	16,725	77,407	94,132	(20,335)	1989	Apr-14	5-30
Carmel Summit	246	San Diego, CA	—	14,968	59,871	4,545	14,968	64,416	79,384	(16,376)	1989	Apr-14	5-30
Castle Creek	216	Newcastle, WA	—	4,149	16,028	5,677	4,833	21,021	25,854	(15,908)	1998	Dec-98	3-30
Catalina Gardens	128	Los Angeles, CA	—	6,714	26,856	2,490	6,714	29,346	36,060	(7,343)	1987	Apr-14	5-30
CBC Apartments & The Sweeps	239	Goleta, CA	—	11,841	45,320	6,922	11,906	52,177	64,083	(28,445)	1962	Jan-06	3-30
Cedar Terrace	180	Bellevue, WA	—	5,543	16,442	8,601	5,652	24,934	30,586	(13,973)	1984	Jan-05	3-30
CentrePointe	224	San Diego, CA	—	3,405	7,743	22,335	3,442	30,041	33,483	(22,318)	1974	Jun-97	3-30
Chestnut Street Apartments	96	Santa Cruz, CA	—	6,582	15,689	2,277	6,582	17,966	24,548	(7,884)	2002	Jul-08	3-30
City View	572	Hayward, CA	—	9,883	37,670	32,941	10,350	70,144	80,494	(53,374)	1975	Mar-98	3-30
Collins on Pine	76	Seattle, WA	—	7,276	22,226	688	7,276	22,914	30,190	(5,180)	2013	May-14	3-30
Connolly Station	309	Dublin, CA	—	19,949	123,428	1,545	19,949	124,973	144,922	(4,139)	2014	Jan-20	3-30

F- 59

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Corbella at Juanita Bay	169	Kirkland, WA	—	5,801	17,415	3,961	5,801	21,376	27,177	(8,273)	1978	Nov-10	3-30
Cortesia	308	Rancho Santa Margarita, CA	—	13,912	55,649	3,302	13,912	58,951	72,863	(14,944)	1999	Apr-14	5-30
Country Villas	180	Oceanside, CA	—	4,174	16,583	5,547	4,187	22,117	26,304	(13,934)	1976	Dec-02	3-30
Courtyard off Main	110	Bellevue, WA	—	7,465	21,405	5,047	7,465	26,452	33,917	(10,190)	2000	Oct-10	3-30
Crow Canyon	400	San Ramon, CA	—	37,579	87,685	12,923	37,579	100,608	138,187	(26,738)	1992	Apr-14	5-30
Deer Valley	171	San Rafael, CA	—	21,478	50,116	3,644	21,478	53,760	75,238	(13,744)	1996	Apr-14	5-30
Devonshire	276	Hemet, CA	—	3,470	13,786	6,533	3,482	20,307	23,789	(12,163)	1988	Dec-02	3-30
Domaine	92	Seattle, WA	—	9,059	27,177	1,545	9,059	28,722	37,781	(8,376)	2009	Sep-12	3-30
Elevation	158	Redmond, WA	—	4,758	14,285	7,372	4,757	21,658	26,415	(10,931)	1986	Jun-10	3-30
Ellington	220	Bellevue, WA	—	15,066	45,249	4,089	15,066	49,338	64,404	(11,978)	1994	Jul-14	3-30
Emerald Pointe	160	Diamond Bar, CA	—	8,458	33,832	2,404	8,458	36,236	44,694	(9,304)	1989	Apr-14	5-30
Emerald Ridge	180	Bellevue, WA	—	3,449	7,801	6,915	3,449	14,716	18,165	(11,762)	1987	Nov-94	3-30
Emerson Valley Village	144	Los Angeles, CA	—	13,378	53,240	1,349	13,378	54,589	67,967	(7,825)	2012	Dec-16	3-30
Emme	190	Emeryville, CA	—	15,039	80,532	357	15,039	80,889	95,928	(2,709)	2015	Jan-20	3-30
Enso	183	San Jose, CA	—	21,397	71,135	1,907	21,397	73,042	94,439	(13,258)	2014	Dec-15	3-30
Epic	769	San Jose, CA	—	89,111	307,769	509	89,111	308,278	397,389	(10,261)	2013	Jan-20	3-30
Esplanade	278	San Jose, CA	—	18,170	40,086	16,209	18,429	56,036	74,465	(32,656)	2002	Apr-04	3-30
Essex Skyline	350	Santa Ana, CA	—	21,537	146,099	12,601	21,537	158,700	180,237	(48,170)	2008	Apr-10	3-30
Evergreen Heights	200	Kirkland, WA	—	3,566	13,395	7,339	3,649	20,651	24,300	(15,822)	1990	Jun-97	3-30
Fairhaven Apartments	164	Santa Ana, CA	—	2,626	10,485	10,243	2,957	20,397	23,354	(13,581)	1970	Nov-01	3-30
Fairway Apartments at Big Canyon (5)	74	Newport Beach, CA	—	—	7,850	8,513	—	16,363	16,363	(12,710)	1972	Jun-99	3-28
Fairwood Pond	194	Renton, WA	—	5,296	15,564	4,599	5,297	20,162	25,459	(11,530)	1997	Oct-04	3-30
Foothill Commons	394	Bellevue, WA	—	2,435	9,821	41,978	2,440	51,794	54,234	(47,403)	1978	Mar-90	3-30
Foothill Gardens/Twin Creeks	176	San Ramon, CA	—	5,875	13,992	12,289	5,964	26,192	32,156	(19,884)	1985	Feb-97	3-30
Forest View	192	Renton, WA	—	3,731	14,530	3,713	3,731	18,243	21,974	(10,629)	1998	Oct-03	3-30
Foster's Landing	490	Foster City, CA	—	61,714	144,000	11,178	61,714	155,178	216,892	(41,241)	1987	Apr-14	5-30
Fountain Court	320	Seattle, WA	—	6,702	27,306	13,573	6,985	40,596	47,581	(29,905)	2000	Mar-00	3-30
Fountains at River Oaks	226	San Jose, CA	—	26,046	60,773	5,897	26,046	66,670	92,716	(17,559)	1990	Apr-14	3-30
Fourth & U	171	Berkeley, CA	—	8,879	52,351	4,337	8,879	56,688	65,567	(21,596)	2010	Apr-10	3-30
Fox Plaza	445	San Francisco, CA	—	39,731	92,706	39,712	39,731	132,418	172,149	(41,715)	1968	Feb-13	3-30
The Henley I/The Henley II	215	Glendale, CA	—	6,695	16,753	28,607	6,733	45,322	52,055	(30,235)	1970	Jun-99	3-30
Highlands at Wynhaven	333	Issaquah, WA	—	16,271	48,932	15,477	16,271	64,409	80,680	(30,874)	2000	Aug-08	3-30

F- 60

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Hillcrest Park	608	Newbury Park, CA	—	15,318	40,601	22,105	15,755	62,269	78,024	(45,189)	1973	Mar-98	3-30
Hillsdale Garden	697	San Mateo, CA	—	22,000	94,681	29,391	22,000	124,072	146,072	(64,193)	1948	Sep-06	3-30
Hope Ranch	108	Santa Barbara, CA	—	4,078	16,877	3,144	4,208	19,891	24,099	(9,564)	1965	Mar-07	3-30
Huntington Breakers	342	Huntington Beach, CA	—	9,306	22,720	22,039	9,315	44,750	54,065	(35,095)	1984	Oct-97	3-30
Inglenook Court	224	Bothell, WA	—	3,467	7,881	8,603	3,474	16,477	19,951	(13,915)	1985	Oct-94	3-30
Lafayette Highlands	150	Lafayette, CA	—	17,774	41,473	4,292	17,774	45,765	63,539	(11,649)	1973	Apr-14	5-30
Lakeshore Landing	308	San Mateo, CA	—	38,155	89,028	9,182	38,155	98,210	136,365	(26,612)	1988	Apr-14	5-30
Laurels at Mill Creek	164	Mill Creek, WA	—	1,559	6,430	8,586	1,595	14,980	16,575	(11,277)	1981	Dec-96	3-30
Lawrence Station	336	Sunnyvale, CA	—	45,532	106,735	2,494	45,532	109,229	154,761	(30,819)	2012	Apr-14	5-30
Le Parc	140	Santa Clara, CA	—	3,090	7,421	14,181	3,092	21,600	24,692	(17,358)	1975	Feb-94	3-30
Marbrisa	202	Long Beach, CA	—	4,700	18,605	10,150	4,760	28,695	33,455	(18,760)	1987	Sep-02	3-30
Marina City Club (6)	101	Marina Del Rey, CA	—	—	28,167	34,572	—	62,739	62,739	(31,601)	1971	Jan-04	3-30
Marina Cove (7)	292	Santa Clara, CA	—	5,320	16,431	16,263	5,324	32,690	38,014	(27,925)	1974	Jun-94	3-30
Mariner's Place	105	Oxnard, CA	—	1,555	6,103	2,679	1,562	8,775	10,337	(6,362)	1987	May-00	3-30
MB 360	360	San Francisco, CA	—	42,001	212,648	12,308	42,001	224,956	266,957	(50,304)	2014	Apr-14	3-30
Mesa Village	133	Clairemont, CA	—	1,888	7,498	2,734	1,894	10,226	12,120	(6,127)	1963	Dec-02	3-30
Mill Creek at Windermere	400	San Ramon, CA	—	29,551	69,032	7,370	29,551	76,402	105,953	(34,899)	2005	Sep-07	3-30
Mio	103	San Jose, CA	—	11,012	39,982	675	11,012	40,657	51,669	(7,166)	2015	Jan-16	3-30
Mirabella	188	Marina Del Rey, CA	—	6,180	26,673	17,242	6,270	43,825	50,095	(28,017)	2000	May-00	3-30
Mira Monte	354	Mira Mesa, CA	—	7,165	28,459	12,402	7,186	40,840	48,026	(26,833)	1982	Dec-02	3-30
Miracle Mile/Marbella	236	Los Angeles, CA	—	7,791	23,075	15,609	7,886	38,589	46,475	(29,348)	1988	Aug-97	3-30
Mission Hills	282	Oceanside, CA	—	10,099	38,778	11,525	10,167	50,235	60,402	(26,979)	1984	Jul-05	3-30
Mission Peaks	453	Fremont, CA	—	46,499	108,498	8,474	46,499	116,972	163,471	(29,818)	1995	Apr-14	5-30
Mission Peaks II	336	Fremont, CA	—	31,429	73,334	8,388	31,429	81,722	113,151	(21,416)	1989	Apr-14	5-30
Montanosa	472	San Diego, CA	—	26,697	106,787	7,521	26,697	114,308	141,005	(28,912)	1990	Apr-14	5-30
Montclaire	390	Sunnyvale, CA	—	4,842	19,776	28,355	4,997	47,976	52,973	(43,336)	1973	Dec-88	3-30
Montebello	248	Kirkland, WA	—	13,857	41,575	7,496	13,858	49,070	62,928	(15,854)	1996	Jul-12	3-30
Montejo Apartments	124	Garden Grove, CA	—	1,925	7,685	4,490	2,194	11,906	14,100	(7,588)	1974	Nov-01	3-30
Monterey Villas	122	Oxnard, CA	—	2,349	5,579	7,169	2,424	12,673	15,097	(9,150)	1974	Jul-97	3-30
Muse	152	North Hollywood, CA	—	7,822	33,436	3,659	7,823	37,094	44,917	(15,284)	2011	Feb-11	3-30
1000 Kiely	121	Santa Clara, CA	—	9,359	21,845	8,669	9,359	30,514	39,873	(13,890)	1971	Mar-11	3-30
Palm Valley	1,099	San Jose, CA	—	133,802	312,205	18,156	133,802	330,361	464,163	(48,807)	2008	Jan-17	3-30
Paragon Apartments	301	Fremont, CA	—	32,230	77,320	2,583	32,230	79,903	112,133	(17,735)	2013	Jul-14	3-30

F- 61

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Park 20	197	San Mateo, CA	—	27,041	89,281	(1,340)	26,607	88,375	114,982	(2,983)	2015	Jan-20	3-30
Park Catalina	90	Los Angeles, CA	—	4,710	18,839	3,628	4,710	22,467	27,177	(8,035)	2002	Jun-12	3-30
Park Highland	250	Bellevue, WA	—	9,391	38,224	13,735	9,391	51,959	61,350	(16,898)	1993	Apr-14	5-30
Park Hill at Issaquah	245	Issaquah, WA	—	7,284	21,937	11,471	7,284	33,408	40,692	(18,428)	1999	Feb-99	3-30
Park Viridian	320	Anaheim, CA	—	15,894	63,574	4,541	15,894	68,115	84,009	(17,410)	2008	Apr-14	5-30
Park West	126	San Francisco, CA	—	9,424	21,988	12,712	9,424	34,700	44,124	(14,022)	1958	Sep-12	3-30
Parkwood at Mill Creek	240	Mill Creek, WA	—	10,680	42,722	3,545	10,680	46,267	56,947	(12,081)	1989	Apr-14	5-30
Patent 523	295	Seattle, WA	—	14,558	69,417	6,137	14,558	75,554	90,112	(29,643)	2010	Mar-10	3-30
Pathways at Bixby Village	296	Long Beach, CA	—	4,083	16,757	22,199	6,239	36,800	43,039	(33,133)	1975	Feb-91	3-30
Piedmont	396	Bellevue, WA	—	19,848	59,606	13,932	19,848	73,538	93,386	(20,426)	1969	May-14	3-30
Pinehurst (8)	28	Ventura, CA	—	—	1,711	756	—	2,467	2,467	(1,643)	1973	Dec-04	3-24
Pinnacle at Fullerton	192	Fullerton, CA	—	11,019	45,932	4,475	11,019	50,407	61,426	(13,250)	2004	Apr-14	5-30
Pinnacle on Lake Washington	180	Renton, WA	—	7,760	31,041	3,915	7,760	34,956	42,716	(9,138)	2001	Apr-14	5-30
Pinnacle at MacArthur Place	253	Santa Ana, CA	—	15,810	66,401	6,056	15,810	72,457	88,267	(18,585)	2002	Apr-14	5-30
Pinnacle at Otay Ranch I & II	364	Chula Vista, CA	—	17,023	68,093	4,828	17,023	72,921	89,944	(18,684)	2001	Apr-14	5-30
Pinnacle at Talega	362	San Clemente, CA	—	19,292	77,168	3,631	19,292	80,799	100,091	(20,288)	2002	Apr-14	5-30
Pinnacle Sonata	268	Bothell, WA	—	14,647	58,586	5,554	14,647	64,140	78,787	(16,211)	2000	Apr-14	5-30
Pointe at Cupertino	116	Cupertino, CA	—	4,505	17,605	12,918	4,505	30,523	35,028	(20,740)	1963	Aug-98	3-30
Pure Redmond	105	Redmond, WA	—	7,461	31,363	411	7,461	31,774	39,235	(1,195)	2016	Dec-19	3-30
Radius	264	Redwood City, CA	—	11,702	152,336	1,190	11,702	153,526	165,228	(39,220)	2015	Apr-14	3-30
Reed Square	100	Sunnyvale, CA	—	6,873	16,037	8,746	6,873	24,783	31,656	(11,387)	1970	Jan-12	3-30
Regency at Encino	75	Encino, CA	—	3,184	12,737	4,212	3,184	16,949	20,133	(7,710)	1989	Dec-09	3-30
Renaissance at Uptown Orange	460	Orange, CA	—	27,870	111,482	7,258	27,870	118,740	146,610	(29,992)	2007	Apr-14	5-30
Reveal	438	Woodland Hills, CA	—	25,073	121,314	3,656	25,073	124,970	150,043	(27,492)	2010	Apr-15	3-30
Salmon Run at Perry Creek	132	Bothell, WA	—	3,717	11,483	3,054	3,801	14,453	18,254	(9,519)	2000	Oct-00	3-30
Sammamish View	153	Bellevue, WA	—	3,324	7,501	7,530	3,331	15,024	18,355	(13,067)	1986	Nov-94	3-30
101 San Fernando	323	San Jose, CA	—	4,173	58,961	13,856	4,173	72,817	76,990	(30,215)	2001	Jul-10	3-30
San Marcos	432	Richmond, CA	—	15,563	36,204	33,980	22,866	62,881	85,747	(36,750)	2003	Nov-03	3-30
Santee Court/Santee Village	238	Los Angeles, CA	—	9,581	40,317	13,433	9,582	53,749	63,331	(19,802)	2004	Oct-10	3-30
Shadow Point	172	Spring Valley, CA	—	2,812	11,170	4,576	2,820	15,738	18,558	(9,638)	1983	Dec-02	3-30
Shadowbrook	418	Redmond, WA	—	19,292	77,168	6,131	19,292	83,299	102,591	(21,393)	1986	Apr-14	5-30
Slater 116	108	Kirkland, WA	—	7,379	22,138	1,323	7,379	23,461	30,840	(6,063)	2013	Sep-13	3-30
Solstice	280	Sunnyvale, CA	—	34,444	147,262	6,856	34,444	154,118	188,562	(42,130)	2014	Apr-14	5-30

F- 62

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Station Park Green - Phases I, II, and III	492	San Mateo, CA	—	54,782	314,694	282	54,782	314,976	369,758	(21,497)	2018	Mar-18	3-30
Stevenson Place	200	Fremont, CA	—	996	5,582	14,268	1,001	19,845	20,846	(15,706)	1975	Apr-00	3-30
Stonehedge Village	196	Bothell, WA	—	3,167	12,603	9,180	3,201	21,749	24,950	(15,989)	1986	Oct-97	3-30
Summerhill Park	100	Sunnyvale, CA	—	2,654	4,918	11,257	2,656	16,173	18,829	(12,935)	1988	Sep-88	3-30
Summit Park	300	San Diego, CA	—	5,959	23,670	8,912	5,977	32,564	38,541	(19,893)	1972	Dec-02	3-30
Taylor 28	197	Seattle, WA	—	13,915	57,700	3,693	13,915	61,393	75,308	(15,413)	2008	Apr-14	5-30
The Audrey at Belltown	137	Seattle, WA	—	9,228	36,911	2,050	9,228	38,961	48,189	(9,456)	1992	Apr-14	5-30
The Avery	121	Los Angeles, CA	—	6,964	29,922	889	6,964	30,811	37,775	(7,071)	2014	Mar-14	3-30
The Bernard	63	Seattle, WA	—	3,699	11,345	884	3,689	12,239	15,928	(4,075)	2008	Sep-11	3-30
The Blake LA	196	Los Angeles, CA	—	4,023	9,527	24,135	4,031	33,654	37,685	(20,615)	1979	Jun-97	3-30
The Cairns	99	Seattle, WA	—	6,937	20,679	2,586	6,939	23,263	30,202	(10,874)	2006	Jun-07	3-30
The Commons	264	Campbell, CA	—	12,555	29,307	9,940	12,556	39,246	51,802	(16,958)	1973	Jul-10	3-30
The Elliot at Mukilteo	301	Mukilteo, WA	—	2,498	10,595	18,928	2,824	29,197	32,021	(22,866)	1981	Jan-97	3-30
The Galloway	506	Pleasanton, CA	—	32,966	184,499	488	32,966	184,987	217,953	(6,214)	2016	Jan-20	3-30
The Grand	243	Oakland, CA	—	4,531	89,208	7,518	4,531	96,726	101,257	(40,981)	2009	Jan-09	3-30
The Hallie	292	Pasadena, CA	—	2,202	4,794	55,653	8,385	54,264	62,649	(39,551)	1972	Apr-97	3-30
The Huntington	276	Huntington Beach, CA	—	10,374	41,495	7,036	10,374	48,531	58,905	(15,784)	1975	Jun-12	3-30
The Landing at Jack London Square	282	Oakland, CA	—	33,554	78,292	7,860	33,554	86,152	119,706	(23,251)	2001	Apr-14	5-30
The Lofts at Pinehurst	118	Ventura, CA	—	1,570	3,912	5,699	1,618	9,563	11,181	(6,616)	1971	Jun-97	3-30
The Palisades	192	Bellevue, WA	—	1,560	6,242	13,990	1,565	20,227	21,792	(18,275)	1977	May-90	3-30
The Palms at Laguna Niguel	460	Laguna Niguel, CA	—	23,584	94,334	12,080	23,584	106,414	129,998	(27,812)	1988	Apr-14	5-30
The Stuart	188	Pasadena, CA	—	13,574	54,298	3,098	13,574	57,396	70,970	(14,822)	2007	Apr-14	5-30
The Trails of Redmond	423	Redmond, WA	—	21,930	87,720	6,031	21,930	93,751	115,681	(23,961)	1985	Apr-14	5-30
The Waterford	238	San Jose, CA	—	11,808	24,500	17,968	15,165	39,111	54,276	(25,616)	2000	Jun-00	3-30
Tierra Vista	404	Oxnard, CA	—	13,652	53,336	7,831	13,661	61,158	74,819	(34,469)	2001	Jan-01	3-30
Tiffany Court	101	Los Angeles, CA	—	6,949	27,796	2,042	6,949	29,838	36,787	(7,574)	1987	Apr-14	5-30
Trabuco Villas	132	Lake Forest, CA	—	3,638	8,640	4,292	3,890	12,680	16,570	(9,358)	1985	Oct-97	3-30
Valley Park	160	Fountain Valley, CA	—	3,361	13,420	6,653	3,761	19,673	23,434	(12,488)	1969	Nov-01	3-30
Via	284	Sunnyvale, CA	—	22,000	82,270	3,630	22,016	85,884	107,900	(30,810)	2011	Jul-11	3-30
Villa Angelina	256	Placentia, CA	—	4,498	17,962	8,173	4,962	25,671	30,633	(16,856)	1970	Nov-01	3-30
Villa Granada	270	Santa Clara, CA	—	38,299	89,365	1,974	38,299	91,339	129,638	(22,819)	2010	Apr-14	5-30
Villa Siena	272	Costa Mesa, CA	—	13,842	55,367	9,356	13,842	64,723	78,565	(17,830)	1974	Apr-14	5-30

F- 63

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

									Costs
					Initial cost				capitalized		Gross amount carried at close of period
	Apartment						Buildings and		subsequent to		Land and		Buildings and				Accumulated		Date of	Date	Lives
Property	Homes	Location	Encumbrance		Land		improvements		acquisition		improvements		improvements		Total (1)		depreciation		construction	acquired	(years)
Village Green	272	La Habra, CA	—		6,488		36,768		4,309		6,488		41,077		47,565		(11,151)		1971	Apr-14	5-30
Vista Belvedere	76	Tiburon, CA	—		5,573		11,901		9,031		5,573		20,932		26,505		(13,068)		1963	Aug-04	3-30
Vox Apartments	58	Seattle, WA	—		5,545		16,635		435		5,545		17,070		22,615		(4,158)		2013	Oct-13	3-30
Walnut Heights	163	Walnut, CA	—		4,858		19,168		5,868		4,887		25,007		29,894		(14,831)		1964	Oct-03	3-30
Wandering Creek	156	Kent, WA	—		1,285		4,980		5,345		1,296		10,314		11,610		(8,403)		1986	Nov-95	3-30
Wharfside Pointe	155	Seattle, WA	—		2,245		7,020		13,442		2,258		20,449		22,707		(15,891)		1990	Jun-94	3-30
Willow Lake	508	San Jose, CA	—		43,194		101,030		17,140		43,194		118,170		161,364		(37,680)		1989	Oct-12	3-30
5600 Wilshire	284	Los Angeles, CA	—		30,535		91,604		5,049		30,535		96,653		127,188		(23,763)		2008	Apr-14	5-30
Wilshire La Brea	478	Los Angeles, CA	—		56,932		211,998		11,972		56,932		223,970		280,902		(60,187)		2014	Apr-14	5-30
Wilshire Promenade	149	Fullerton, CA	—		3,118		7,385		12,572		3,797		19,278		23,075		(12,881)		1992	Jan-97	3-30
Windsor Ridge	216	Sunnyvale, CA	—		4,017		10,315		17,003		4,021		27,314		31,335		(23,963)		1989	Mar-89	3-30
Woodland Commons	302	Bellevue, WA	—		2,040		8,727		24,952		2,044		33,675		35,719		(24,474)		1978	Mar-90	3-30
Woodside Village	145	Ventura, CA	—		5,331		21,036		5,855		5,341		26,881		32,222		(14,838)		1987	Dec-04	3-30
	48,156		$	—	$	2,680,765	$	9,375,284	$	1,876,157	$	2,717,201	$	11,215,005	$	13,932,206	$	(3,848,633)

								Costs
				Initial cost				capitalized		Gross amount carried at close of period
						Buildings and		subsequent		Land and		Buildings and				Accumulated
	Property	Encumbrance		Land		improvements		to acquisition		improvements		improvements		Total(1)		depreciation
	Other real estate assets	—		3,079		12,315		14,279		3,909		25,764		29,673		(18,859)
		$	—	$	3,079	$	12,315	$	14,279	$	3,909	$	25,764	$	29,673	$	(18,859)
Total		$	643,550	$	2,887,393	$	10,154,628	$	2,019,724	$	2,929,009	$	12,132,736	$	15,061,745	$	(4,133,959)

(1) The aggregate cost for federal income tax purposes is approximately $11.6 billion (unaudited).

(2) A portion of land is leased pursuant to a ground lease expiring 2070.

(3) The land is leased pursuant to a ground lease expiring 2082.

(4) The land is leased pursuant to a ground lease expiring 2070.

(5) The land is leased pursuant to a ground lease expiring 2027.

(6) The land is leased pursuant to a ground lease expiring 2067.

(7) A portion of land is leased pursuant to a ground lease expiring in 2028.

(8) The land is leased pursuant to a ground lease expiring in 2028.

F- 64

ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIES

ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES

FINANCIAL STATEMENT SCHEDULE III

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2020

(Dollars in thousands)

A summary of activity for rental properties and accumulated depreciation is as follows:

	2020		2019		2018			2020		2019		2018
Rental properties:							Accumulated depreciation:
Balance at beginning of year	$	14,038,142	$	13,366,101	$	13,362,073	Balance at beginning of year	$	3,689,482	$	3,209,548	$	2,769,297
Acquisition, development, and improvement of real estate	1,426,505		672,041		325,986		Depreciation expense	518,629		479,934		478,721
Disposition of real estate and other	(402,902)		—		(321,958)		Depreciation expense - Disposals and other	(74,152)		—		(38,470)
Balance at the end of year	$	15,061,745	$	14,038,142	$	13,366,101	Balance at the end of year	$	4,133,959	$	3,689,482	$	3,209,548

F- 65

EXHIBIT INDEX

Exhibit No.	Document
3.1	Articles of Amendment and Restatement of Essex Property Trust, Inc., attached as Exhibit 3.2 to the Company's Current Report on Form 8-K, filed May 23, 2016, and incorporated herein by reference.
3.2	Sixth Amended and Restated Bylaws of Essex Property Trust, Inc. (as of February 21, 2017), attached as Exhibit 3.2 to the Company's Current Report on Form 8-K, filed February 27, 2017, and incorporated herein by reference.
3.3	First Amendment to Sixth Amended and Restated Bylaws of Essex Property Trust, Inc., dated February 20, 2018, attached as Exhibit 3.2 to the Company's Current Report on Form 8-K, filed February 21, 2018, and incorporated herein by reference.
3.4	Certificate of Limited Partnership of Essex Portfolio, L.P. and amendments thereto, attached as Exhibit 3.4 to the Company’s Annual Report on Form 10-K, filed February 21, 2019, and incorporated herein by reference.
4.1	Indenture, dated April 15, 2013, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of 3.25% Senior Notes due 2023 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed April 15, 2013, and incorporated herein by reference.
4.2	Form of Common Stock Certificate of Essex Property Trust, Inc., filed as Exhibit 4.5 to the Company's Form S-4 Registration Statement, filed January 29, 2014, and incorporated herein by reference.
4.3	Indenture governing 3.375% Senior Notes due 2023, dated April 4, 2014, by and among Essex Portfolio, L.P., Essex Property Trust, Inc. and U.S. Bank National Association, as trustee, including the form of 3.375% Senior Notes due 2023, attached as Exhibit 4.3 to Essex Property Trust, Inc.'s Current Report on Form 8-K, filed April 10, 2014, and incorporated herein by reference.
4.4	Indenture, dated April 15, 2014, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of 3.875% Senior Notes due 2024 and the guarantee thereof, attached as Exhibit 4.1 to Essex Property Trust, Inc.'s Current Report on Form 8-K, filed April 16, 2014, and incorporated herein by reference.
4.5	Indenture, dated March 17, 2015, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of 3.500% Senior Notes due 2025 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed March 17, 2015, and incorporated herein by reference.
4.6	Indenture, dated April 11, 2016, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of the 3.375% Senior Notes due 2026 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed April 11, 2016, and incorporated herein by reference.
4.7	Indenture, dated April 10, 2017, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of the 3.625% Senior Notes due 2027 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed April 10, 2017, and incorporated herein by reference.
4.8	Indenture, dated March 8, 2018, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of the 4.500% Senior Notes due 2048 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed March 8, 2018, and incorporated herein by reference.
4.9	Indenture, dated February 11, 2019, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of 4.000% Senior Notes due 2029 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed February 11, 2019, and incorporated herein by reference.
4.10	Indenture, dated August 7, 2019, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of 3.000% Senior Notes due 2030 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed August 7, 2019, and incorporated herein by reference.
4.11	Indenture, dated February 11, 2020, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of 2.650% Senior Notes due 2032 and the guarantee thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed February 11, 2020, and incorporated herein by reference.

4.12	Indenture, dated August 24, 2020, among Essex Portfolio, L.P., Essex Property Trust, Inc., and U.S. Bank National Association, as trustee, including the form of 1.650% Senior Notes due 2031, the form of 2.650% Senior Notes due 2050 and the guarantees thereof, attached as Exhibit 4.1 to the Company's Current Report on Form 8-K, filed August 24, 2020, and incorporated herein by reference.
4.13	Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, attached as Exhibit 4.14 to the Company’s Annual Report on Form 10-K, filed February 20, 2020, and incorporated herein by reference.
10.1	Agreement between Essex Property Trust, Inc. and George M. Marcus, dated March 27, 2003 attached as Exhibit 10.32 to the Company's Form 10-K for the year ended December 31, 2002, and incorporated herein by reference.
10.2	Essex Property Trust, Inc. 2004 Stock Incentive Plan, attached as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, and incorporated herein by reference.*
10.3	BRE Properties, Inc. 2005 Amended and Restated Deferred Compensation Plan (assumed by Essex Property Trust, Inc.), as amended on each of May 18, 2010, November 17, 2014 and December 9, 2016, attached as Exhibit 10.3 to the Company's BRE Properties, Inc. 2005 Amended and Restated Deferred Compensation Plan (assumed by Essex Property Trust, Inc.), as amended on each of May 18, 2010, November 17, 2014 and December 9, 2016, attached as Exhibit 10.3 to the Company's Annual Report on Form 10-K, filed February 21, 2019, and incorporated herein by reference.* Report on Form 10-K, filed February 21, 2019, and incorporated herein by reference.*
10.4	Form of Indemnification Agreement between Essex Property Trust, Inc. and its directors and officers, attached as Exhibit 10.4 to the Company's Annual Report on Form 10-K, filed February 21, 2019, and incorporated herein by reference.*
10.5	Note Purchase Agreement, dated as of June 30, 2011, among Essex Portfolio, L.P., Essex Property Trust, Inc. and the purchasers of the notes party thereto (including the forms of the 4.50% Senior Guaranteed Notes, Series A, due September 30, 2017, and the 4.92% Senior Guaranteed Notes, Series B, due December 30, 2019), attached as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed July 5, 2011, and incorporated herein by reference. †
10.6	Note Purchase Agreement, dated as of March 14, 2012, among Essex Portfolio, L.P., the Company and the purchasers of the notes party thereto (including the forms of the 4.27% Senior Guaranteed Notes, Series C, due April 30, 2021, the 4.30% Senior Guaranteed Notes, Series D, due June 29, 2021, and the 4.37% Senior Guaranteed Notes, Series E, due August 30, 2021), attached as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on March 20, 2012, and incorporated herein by reference. †
10.7	Modification Agreement, dated July 30, 2012, attached as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, and incorporated herein by reference.
10.8	Amendment to Agreement, dated as of September 11, 2012, between the Company and George Marcus, attached as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, and incorporated herein by reference.
10.9	Essex Property Trust, Inc. Executive Severance Plan (as Amended and Restated effective March 12, 2013), attached as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed March 18, 2013, and incorporated herein Essex Property Trust, Inc. Executive Severance Plan (as Amended and Restated effective March 12, 2013), attached as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed March 18, 2013, and incorporated herein by reference.*
10.10	Essex Property Trust, Inc. 2013 Stock Award and Incentive Compensation Plan, attached as Appendix B to the Company's Definitive Proxy Statement on Schedule 14A for the Annual Meeting of Stockholders held May 14, 2013, filed April 1, 2013, and incorporated herein by reference.*
10.11	Essex Property Trust, Inc. 2013 Employee Stock Purchase Plan, attached as Appendix C to the Company's Definitive Proxy Statement on Schedule 14A for the Annual Meeting of Stockholders held May 14, 2013, filed April 1, 2013, and incorporated herein by reference.*
10.12	Forms of equity award agreements for officers under the 2013 Stock Award and Incentive Compensation Plan, attached as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, and incorporated herein by reference.*
10.13	Amended and Restated Non-Employee Director Equity Award Program, dated May 17, 2016, attached as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed May 23, 2016, and incorporated herein by reference.*

10.14	Fourth Amended and Restated Agreement of Limited Partnership of Essex Portfolio, L.P., dated as of December 20, 2018, attached as Exhibit 10.14 to the Company's Annual Report on Form 10-K, filed February 21, 2019, and incorporated herein by reference.
10.15	Third Modification Agreement, dated as of January 29, 2014 by and among Essex Portfolio, L.P., U.S. Bank National Association, as Administrative Agent and Lender and the other lenders party thereto, attached as Exhibit 10.2 to the Company's Current Report on Form 8-K, filed January 31, 2014, and incorporated herein by reference.
10.16	Forms of Essex Property Trust, Inc., Essex Portfolio L.P., Long-Term Incentive Plan Award Agreements, attached as Exhibit 10.28 to the Company's Annual Report on Form 10-K, filed March 2, 2015, and incorporated herein by reference.*
10.17	Terms Agreement dated as of May 20, 2015, among Essex Property Trust, Inc. and Citigroup Global Markets Inc., attached as Exhibit 1.1 to the Company's Current Report on Form 8-K, filed May 26, 2015, and incorporated herein by reference.
10.18	Second Amended and Restated Revolving Credit Agreement, dated as of January 17, 2018, by and among Essex Portfolio, L.P., PNC Bank, National Association, as Administrative Agent and L/C Issuer and other lenders party thereto, attached as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed January 18, 2018, and incorporated herein by reference.
10.19	First Amendment to Second Amended and Restated Revolving Credit Agreement, dated as of January 11, 2019, by and among Essex Portfolio, L.P., PNC Bank, National Association, as Administrative Agent and L/C Issuer and other lenders party thereto, attached as Exhibit 10.21 to the Company's Annual Report on Form 10-K, filed February 21, 2019, and incorporated herein by reference.
10.20	Essex Property Trust, Inc. 2018 Stock Award and Incentive Compensation Plan, attached as Appendix A to the Company's Definitive Proxy Statement on Schedule 14A for the Annual Meeting of Stockholders held May 15, 2018, filed March 23, 2018, and incorporated herein by reference.*
10.21	Form of Non-Employee Director Restricted Stock Award Agreement, attached as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q, filed August 3, 2018, and incorporated herein by reference.*
10.22	Form of Non-Employee Director Stock Option Award Agreement, attached as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q, filed August 3, 2018, and incorporated herein by reference.*
10.23	Forms of Essex Property Trust, Inc. Long-Term Incentive Award Agreements pursuant to the 2018 Stock Award and Incentive Compensation Plan.*
10.24	Executive Transition Services Agreement, dated December 19, 2018, by and between Essex Property Trust, Inc. and John D. Eudy, attached as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed December 19, 2018, and incorporated herein by reference.*
10.25	Executive Transition Services Agreement, effective as of September 5, 2019, by and between Essex Property Trust, Inc. and Craig K. Zimmerman, attached as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed September 6, 2019, and incorporated herein by reference.*
10.26	Second Amendment to Second Amended and Restated Revolving Credit Agreement, dated as of January 9, 2020, by and among Essex Portfolio, L.P., PNC Bank, National Association, as Administrative Agent and L/C Issuer and other lenders party thereto.
10.27	Deferred Compensation Plan for Non-Employee Directors, attached as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed May 7, 2020 and incorporated herein by reference.*
10.28	Executive Transition Services Agreement, dated as of December 22, 2020, by and between Essex Property Trust, Inc. and John Burkart, attached as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed December 29, 2020 and incorporated herein by reference.*
21.1	List of Subsidiaries of Essex Property Trust, Inc. and Essex Portfolio, L.P.
23.1	Consent of KPMG LLP, Independent Registered Public Accounting Firm.
23.2	Consent of KPMG LLP, Independent Registered Public Accounting Firm.
24.1	Power of Attorney (see signature page)
31.1	Certification of Michael J. Schall, Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Barbara Pak, Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.3	Certification of Michael J. Schall, Principal Executive Officer of General Partner, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.4	Certification of Barbara Pak, Principal Financial Officer of General Partner, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Michael J. Schall, Principal Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Barbara Pak, Principal Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3	Certification of Michael J. Schall, Principal Executive Officer of General Partner, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.4	Certification of Barbara Pak, Principal Financial Officer of General Partner, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial statements from the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets of Essex Property Trust, Inc., (ii) Consolidated Statements of Income of Essex Property Trust, Inc., (iii) Consolidated Statements of Comprehensive Income of Essex Property Trust, Inc., (iv) Consolidated Statements of Equity of Essex Property Trust, Inc., (v) Consolidated Statements of Cash Flows of Essex Property Trust, Inc., (vi) Notes to Consolidated Financial Statements of Essex Property Trust, Inc., (vii) Consolidated Balance Sheets of Essex Portfolio, L.P., (viii) Consolidated Statements of Income of Essex Portfolio, L.P., (ix) Consolidated Statements of Comprehensive Income of Essex Portfolio, L.P., (x) Consolidated Statements of Capital of Essex Portfolio, L.P., (xi) Consolidated Statements of Cash Flows of Essex Portfolio, L.P. and (xii) Notes to Consolidated Financial Statements of Essex Portfolio, L.P., tagged as blocks of text and including detailed tags.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

* Management contract or compensatory plan or arrangement.

† The schedules and certain exhibits to this agreement, as set forth in the agreement, have not been filed herewith. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the Securities and Exchange Commission upon request.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Mateo, State of California, on February 19, 2021.

ESSEX PROPERTY TRUST, INC.

By:  /s/ BARBARA PAK

Barbara Pak

Executive Vice President, Chief Financial Officer
(Authorized Officer, Principal Financial Officer)

By:  /s/ JOHN FARIAS

John Farias

Senior Vice President, Chief Accounting Officer

ESSEX PORTFOLIO, L.P.

By: Essex Property Trust, Inc., its general partner

By:  /s/ BARBARA PAK

Barbara Pak

Executive Vice President, Chief Financial Officer
(Authorized Officer, Principal Financial Officer)

By:  /s/ JOHN FARIAS

John Farias

Senior Vice President, Chief Accounting Officer

S-1

KNOWN ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Michael J. Schall and Barbara Pak, and each of them, his or her attorney-in-fact, each with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorney-in-fact, or his or her or substitute or substitutes, may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of each Registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ GEORGE M. MARCUS George M. Marcus	Director and Chairman of the Board	February 19, 2021
/s/ KEITH R. GUERICKE Keith R. Guericke	Director, and Vice Chairman of the Board	February 19, 2021
/s/ IRVING F. LYONS, III Irving F. Lyons, III	Lead Director	February 19, 2021
/s/ MARIA R. HAWTHORNE Maria R. Hawthorne	Director	February 19, 2021
/s/ AMAL M. JOHNSON Amal M. Johnson	Director	February 19, 2021
/s/ MARY KASARIS Mary Kasaris	Director	February 19, 2021
/s/ THOMAS E. ROBINSON Thomas E. Robinson	Director	February 19, 2021
/s/ MICHAEL J. SCHALL Michael J. Schall	Chief Executive Officer and President, and Director (Principal Executive Officer)	February 19, 2021
/s/ BYRON A. SCORDELIS Byron A. Scordelis	Director	February 19, 2021

S-2

EX-2.11

Exhibit 21.1

ESSEX PROPERTY TRUST, INC.

AND ESSEX PORTFOLIO, L.P.

List of Subsidiaries

as of December 31, 2020

1.Essex Portfolio, L.P., a California limited partnership (a subsidiary of Essex Property Trust, Inc.)

2.Essex Management Corporation, a California corporation

3.Essex-Palisades Facilitator, a California limited partnership

4.Essex Mirabella Marina Apartments, L.P., a California limited partnership

5.Essex San Ramon Partners L.P., a California limited partnership

6.Essex Camarillo Corporation, a California corporation

7.Essex Camarillo, L.P., a California limited partnership

8.Essex Meadowood, L.P., a California limited partnership

9.Essex Bunker Hill, L.P., a California limited partnership

10.Essex Treetops, L.P., a California limited partnership

11.Essex Bluffs, L.P., a California limited partnership

12.Essex Huntington Breakers, L.P., a California limited partnership

13.Essex Stonehedge Village, L.P., a California limited partnership

14.Essex Inglenook Court, LLC, a Delaware limited liability company

15.Essex Wandering Creek, LLC, a Delaware limited liability company

16.Essex Columbus, L.P., a California limited partnership

17.Essex Lorraine, L.P., a California limited partnership

18.Essex Glenbrook, L.P., a California limited partnership

19.Essex Euclid, L.P., a California limited partnership

20.Richmond Essex L.P., a California limited partnership

21.Essex Wilshire, L.P., a California limited partnership

22.Essex Wynhaven, L.P., a California limited partnership

23.Jackson School Village Limited Partnership, a California limited partnership

24.Essex Carlyle, L.P., a California limited partnership

25.Essex Dupont Lofts, L.P., a California limited partnership

26.ESG Properties I, LLC, a Delaware limited liability company

27.Essex Cochran, L.P., a California limited partnership

28.Essex Kings Road, L.P., a California limited partnership

29.Essex Le Parc, L.P., a California limited partnership

30.Essex Monterey Villas, L.P., a California limited partnership

31.Essex Monterey Villas, LLC, a Delaware limited liability company

32.Essex Jaysac Tasman, L.P., a California limited partnership

33.Western Blossom Hill Investors, a California limited partnership

34.Western-Los Gatos I Investors, a California limited partnership

35.Western Highridge Investors, a California limited partnership

36.Western-San Jose III Investors, a California limited partnership

37.Western Riviera Investors, a California limited partnership

38.Western-Palo Alto II Investors, a California limited partnership

39.Irvington Square Associates, a California limited partnership

40.Western-Seven Trees Investors, a California limited partnership

41.Western-Las Hadas Investors, a California limited partnership

42.San Pablo Medical Investors, Ltd., a California limited partnership

43.Gilroy Associates, a California limited partnership

44.The Oakbrook Company, an Ohio limited partnership

45.Pine Grove Apartment Fund, Ltd., a California limited partnership

46.Valley Park Apartments, Ltd., a California limited partnership

47.Fairhaven Apartment Fund, Ltd., a California limited partnership

48.K-H Properties, a California limited partnership

49.Villa Angelina Apartment Fund, Ltd., a California limited partnership

50.Essex Camarillo Oaks 789, L.P., a California limited partnership

51.Essex Emerald Ridge, L.P., a California limited partnership

52.Essex CAL-WA, L.P., a California limited partnership

53.Essex Marina City Club, L.P., a California limited partnership

54.Essex Fountain Park Apartments, L.P., a California limited partnership

55.Essex SPE, LLC, a Delaware limited liability company

56.Essex MCC, LLC, a Delaware limited liability company

57.Essex Excess Assets TRS, Inc., a Delaware corporation

58.Essex The Pointe, L.P., a California limited partnership

59.Essex Tierra Vista, L.P., a California limited partnership

60.EMC SPE, LLC, a Delaware limited liability company

61.Essex Vista Belvedere, L.P., a California limited partnership

62.Essex Marbrisa Long Beach, L.P., a California limited partnership

63.Essex Northwest Gateway, LLC, a Delaware limited liability company

64.Essex Fairwood Pond, L.P., a California limited partnership

65.Park Hill LLC, a Washington limited liability company

66.Essex NBN SPE, LLC, a Delaware limited liability company

67.Essex Gateway Management, LLC, a California limited liability company

68.Essex Property Financial Corporation, a California corporation

69.Northwest Gateway Apartments, L.P., a California limited partnership

70.Essex Alamo, L.P., a Delaware limited partnership

71.Essex Broadway, LLC, a Washington limited liability company

72.Essex HGA, LLC, a Delaware limited liability company

73.Essex Hillsdale Garden Apartments, L.P., a California limited partnership

74.Essex Camino Ruiz Apartments, L.P., a California limited partnership

75.Belmont Affordable Partners, L.P., a California limited partnership

76.Essex Chestnut Apartments, L.P., a California limited partnership

77.Essex Canyon Oaks Apartments, L.P., a California limited partnership

78.Essex Esplanade, L.P., a California limited partnership

79.Pacific Western Insurance LLC, a Hawaii limited liability company

80.Western-Mountain View II Investors, a California limited partnership

81.Western-San Jose IV Investors Limited Partnership, a California limited partnership

82.Essex Berkeley 4th Street, L.P., a California limited partnership

83.Newport Beach North LLC, a Delaware limited liability company

84.Essex Summerhill Park, L.P., a California limited partnership

85.Essex Skyline, L.P., a Delaware limited partnership

86.Essex San Fernando, L.P., a California limited partnership

87.Essex Eagle Rim, L.P., a California limited partnership

88.Essex Hillcrest Park, L.P., a California limited partnership

89.Essex The Commons, L.P., a California limited partnership

90.Essex Derian, L.P., a California limited partnership

91.Essex Bella Villagio, L.P., a California limited partnership

92.Essex NoHo Apartments, L.P., a California limited partnership

93.Essex Hillsborough Park, L.P., a California limited partnership

94.Essex Santee Court, L.P., a California limited partnership

95.Essex City View, L.P., a California limited partnership

96.Essex Courtyard, L.P., a California limited partnership

97.Essex Anavia, L.P., a California limited partnership

98.Essex Waterford, L.P., a California limited partnership

99.Essex 416 on Broadway, L.P., a California limited partnership

100.RP/Essex Skyline Holdings, L.L.C., a Delaware limited liability company

101.Essex Valley Village Magnolia, LLC, a Delaware limited liability company

102.Essex Queen Anne, LLC, a Washington limited liability company

103.Essex Wesco, L.P., a California limited partnership

104.Essex Arbors, L.P., a California limited partnership

105.Essex Cadence GP, L.P., a Delaware limited partnership

106.Essex Cadence Owner, L.P., a California limited partnership

107.Cadence San Jose, L.P., a Delaware limited partnership

108.Essex Warner Center, L.P., a California limited partnership

109.Essex Bellerive, L.P., a California limited partnership

110.Essex Bernard, L.P., a California limited partnership

111.Essex Dublin GP, L.P., a Delaware limited partnership

112.Essex Dublin Owner, L.P., a California limited partnership

113.West Dublin Bart, L.P., a Delaware limited partnership

114.Essex Redmond Hill CW, L.P., a California limited partnership

115.Essex Redmond Hill NE, L.P., a California limited partnership

116.Essex Monarch I, L.P., a Delaware limited partnership

117.Essex Monarch La Brea Apartments, L.P., a California limited partnership

118.Essex Monarch II, L.P., a Delaware limited partnership

119.Essex Monarch Santa Monica Apartments, L.P., a California limited partnership

120.Essex Briarwood, L.P., a California limited partnership

121.Essex The Woods, L.P., a California limited partnership

122.Essex JMS Acquisition, L.P., a California limited partnership

123.Wesco I, LLC, a Delaware limited liability company

124.Santa Clara Square, LLC, a California limited liability company

125.Wesco GP, LLC, a Delaware limited liability company

126.Cadence REIT, LLC, a Delaware limited liability company

127.LINC REIT, LLC, a Delaware limited liability company

128.EssexMonarch GP I, LLC, a Delaware limited liability company

129.EssexMonarch GP II, LLC, a Delaware limited liability company

130.Wesco Redmond CW GP, LLC, a Delaware limited liability company

131.Wesco Redmond NE GP, LLC, a Delaware limited liability company

132.Essex CPP GP, L.P., a Delaware limited partnership

133.Essex CPP, L.P., a Delaware limited partnership

134.Essex CPP REIT, LLC, a Delaware limited liability company

135.Essex Huntington on Edinger, L.P., a California limited partnership

136.Essex Montebello, L.P., a California limited partnership

137.Essex Elkhorn Owner, L.P., a California limited partnership

138.Essex PE Lofts, L.P., a California limited partnership

139.Essex Riley Square, L.P., a California limited partnership

140.Essex Moorpark GP, L.P., a California limited partnership

141.Essex Moorpark Owner, L.P., a California limited partnership

142.Essex Moorpark, L.P., a Delaware limited partnership

143.Essex Moorpark REIT, LLC, a Delaware limited liability company

144.Essex Wesco III, L.P. a California limited partnership

145.Wesco III, LLC, a Delaware limited liability company

146.Wesco III GP, LLC, a Delaware limited liability company

147.Essex Haver Hill, L.P., a California limited partnership

148.Essex Walnut REIT, LLC, a Delaware limited liability company

149.Essex OSM REIT, LCC, a Delaware limited liability company

150.Essex Fox Plaza, L.P., a California limited partnership

151.Essex Walnut GP, L.P., a Delaware limited partnership

152.Essex Walnut Owner, L.P., a California limited partnership

153.Essex Walnut, L.P., a Delaware limited partnership

154.Essex OSM GP, L.P., a Delaware limited partnership

155.Essex OSM, L.P., a Delaware limited partnership

156.Essex Regency Escuela, L.P., a California limited partnership

157.La Brea Affordable Partners, L.P., a California limited partnership

158.Santa Monica Affordable Partners, L.P., a California limited partnership

159.Essex Gas Company Lofts, L.P., a California limited partnership

160.BEXAEW Bothell Ridge, LP, a Washington limited partnership

161.BEXAEW Parkside Court, LP, a California limited partnership

162.BEXAEW Esplanade, LP, a California limited partnership

163.BEXAEW The Havens, LP, a California limited partnership

164.Essex Piedmont, L.P., a California limited partnership

165.Essex Bellevue Park, L.P., a California limited partnership

166.Essex Emeryville GP, L.P., a Delaware limited partnership

167.Essex Emeryville, L.P., a Delaware limited partnership

168.Essex Emeryville Owner, L.P., a California limited partnership

169.Essex Pleasanton GP, L.P., a Delaware limited partnership

170.Essex Pleasanton, L.P., a Delaware limited partnership

171.Essex Pleasanton Owner, L.P., a California limited partnership

172.Essex Cadence Phase III Owner, L.P., a California limited partnership

173.Block 9 Transbay, LLC, a Delaware limited liability company

174.BEX Portfolio, LLC, a Delaware limited liability company

175.Wesco III BEX, LLC, a Delaware limited liability company

176.Essex Wesco IV, LLC, a Delaware limited liability company

177.Wesco IV, LLC, a Delaware limited liability company

178.Essex BEXAEW, LLC, a Delaware limited liability company

179.BEXAEW, LLC, a Delaware limited liability company

180.BEXAEW GP, LLC, a Delaware limited liability company

181.BRE-FMCA, LLC, a Delaware limited liability company

182.BEX FMCA, LLC, a Delaware limited liability company

183.Emerald Pointe Apartments, LLC, a Delaware limited liability company

184.Essex Emeryville REIT, LLC, a Delaware limited liability company

185.Essex Pleasanton REIT, LLC, a Delaware limited liability company

186.Cadence Phase III REIT, LLC, a Delaware limited liability company

187.GBR Palm Valley LLC, a Delaware limited liability company

188.Palm Valley Roll-Up LLC, a Delaware limited liability company

189.New Century Towers, LLC, a Delaware limited liability company

190.Block 9 Residential, LLC, a Delaware limited liability company

191.Essex Block 9 Manager, LLC, a Delaware limited liability company

192.Essex Form 15, LP, a California limited partnership

193.Essex Park Catalina, LP, a California limited partnership

194.500 Folsom, LP, a California limited partnership

195.Essex Bridgeport, LP, a California limited partnership

196.Essex 500 Folsom, LLC, a Delaware limited liability company

197.Block 9 MRU Residential, LLC, a Delaware limited liability company

198.BEX II, LLC, a Delaware limited liability company

199.BEX II GP, LLC, a Delaware limited liability company

200.Essex Kiely, LP, a California limited partnership

201.Block 9 UPPER MRU and Retail, LLC, a Delaware limited liability company

202.Japantown Associates, LLC, a Delaware limited liability company

203.Essex BEX II, LLC, a Delaware limited liability company

204.Essex Portfolio Management, L.P., a California limited partnership

205.360 Residences, L.P., a California limited partnership

206.Essex Toluca Lake, L.P., a California limited partnership

207.GBR Palma Sorrento LLC, a Delaware limited liability company

208.GBR Villa Veneto LLC, a Delaware limited liability company

209.GBR Santa Palmia LLC, a Delaware limited liability company

210.GBR Palm Valley Podium LLC, a Delaware limited liability company

211.PPC Sage LLC, a Delaware limited liability company

212.PPC Sage Apartments Manager II LLC, a Delaware limited liability company

213.GR Block B LLC, a Delaware limited liability company

214.EPT SPE LLC, a Delaware limited liability company

215.Essex Wesco V, LLC, a California limited liability company

216.Wesco V, LLC, a Delaware limited liability company

217.Wesco V GP, LLC, a Delaware limited liability company

218.Wesco V Sub, LLC, a Delaware limited liability company

219.Wesco V Sub GP, LLC, a Delaware limited liability company

220.8th and Republican, LLC, a Washington limited liability company

221.8th & Republican REIT LP, a Delaware limited partnership

222.8th & Republican REIT GP LLC, a Delaware limited liability company

223.8th & Republican TRS, LLC, a Delaware limited liability company

224.8th & Republican SPE, LLC, a Delaware limited liability company

225.Essex BEX III, LLC, a Delaware limited liability company

226.BEX III, LLC, a Delaware limited liability company

227.BEX III GP, LLC, a Delaware limited liability company

228.Essex Meridian, LLC, a Delaware limited liability company

229.PacWest Insurance Services, LLC, a California limited liability company

230.Essex Scripps, LLC, a Delaware limited liability company

231.Zarsion Essex, LLC, a Delaware limited liability company

232.Courtyards at 65th, L.P., a California limited partnership

233.Essex Township, L.P., a California limited partnership

234.Essex Hamilton, L.P., a California limited partnership

235.Scripps MRU Owner, L.P., a California limited partnership

236.Scripps AU Owner, L.P., a California limited partnership

237.Monarch Essex Scripps GP, LLC, a Delaware limited liability company

238.Monarch Essex Scripps, LLC, a Delaware limited liability company

239.Essex Velo Ray, L.P., a California limited partnership

240.WC Brio Apartments LLC, a Delaware limited liability company

241.SAC Redwood City Apartments LLC, a Delaware limited liability company

242.Essex BEX IV, LLC, a Delaware limited liability company

243.BEX IV, LLC, a Delaware limited liability company

244.BEX IV GP, LLC, a Delaware limited liability company

245.EPLP CA, LLC, a Delaware limited liability company

246.Essex 19 BWay, LLC, a Delaware limited liability company

EX-10.23

Exhibit 10.23

3 Year Vest (Executive)

ESSEX PROPERTY TRUST, INC.

[____] LONG-TERM INCENTIVE AWARD

AWARD AGREEMENT

Name of Grantee:  [________] (“the Grantee”)

No. of Restricted Stock Units: [_________] (the “Stock Units”)

Grant Date: [__________] (the “Grant Date”)

RECITALS

A.       The Grantee is an employee of Essex Property Trust, Inc., a Maryland corporation (the “Company”).

B.      As of [_____________], the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) approved the terms of the [______] Long-Term Incentive Awards to be granted by the Company under the Company’s 2018 Stock Award and Incentive Compensation Plan (the “2018 Plan”) to provide the Company’s employees with incentive compensation.  This award agreement (this “Award Agreement”) evidences a [______] Long-Term Incentive Award to the Grantee under the 2018 Plan (the “Award”), which is subject to the terms and conditions set forth herein and in the 2018 Plan.

C.      The Grantee was selected by the Company to receive the Award.  The Company, effective as of the Grant Date set forth above, issued to the Grantee the number of Stock Units set forth above.

D.     Capitalized terms used herein shall have the respective meanings ascribed to them in Appendix A hereto. Unless the context requires otherwise, capitalized terms used, but not otherwise defined herein or in Appendix A, shall have the respective meanings ascribed to them in the 2018 Plan.

NOW, THEREFORE,IT IS HEREBY AGREED AS FOLLOWS:

1.        Grant of Stock Units; Issuance of Stock; Payment of Dividends.

(a)     The Company hereby grants the Grantee an award consisting of [________] Stock Units with the terms and conditions set forth in this Agreement.  The 2018 Plan is hereby incorporated herein by reference as though set forth herein in its entirety.

(b)     On the Determination Date, (i) the Committee will determine, pursuant to Section 2(b), the number of Stock Units for which the performance criteria applicable to such Stock Units were satisfied as of the Valuation Date, (ii) the Company will issue to the Grantee a number of shares of Stock equal to the number of such earned Stock Units and (iii) all of the Stock Units shall be canceled.

        (c)     Neither this Award nor the Stock Units may be sold, transferred, pledged assigned or otherwise encumbered or disposed of by the Grantee. The shares of Stock issuable hereunder may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of by the Grantee prior to vesting and any book entries or certificates for the shares of Stock shall bear an appropriate legend, as determined by the Committee in its sole discretion, to the effect that such shares are subject to restrictions as set forth herein and in the 2018 Plan.

(d)     With respect to the shares of Stock issuable pursuant to Section 1(b) above, the Grantee shall be entitled to dividends with a record date on or after the later of the Determination Date or the applicable Vesting Date (as defined below). Prior to the occurrence of the later of the Determination Date or the applicable Vesting Date, Grantee shall not be entitled to any dividends with respect to the Stock Units or the Stock issuable in settlement thereof.

2.        Performance Criteria and Attainment Levels.

(a)     The number of Stock Units that will be earned pursuant to this Award will be based on the Company’s Equity REIT Relative TSR as of the Valuation Date in accordance with the following table:

Equity REIT Relative TSR	Percentage of Stock Units Earned	Number of Stock Units Earned
Below 5th percentile	[____]	[____]
Equal to or above 5th percentile but below 25th percentile	[____]	[____]
Equal to or above 25th percentile but below 50th percentile	[____]	[____]
Equal to or above 50th percentile	[____]	[____]

For Equity REIT Relative TSR falling between the 25th percentile and the 50th percentile, the number of Stock Units earned will be based on linear interpolation between the number of Stock Units that would have been earned if Equity REIT Relative TSR was at the 25th percentile and the number that would have been earned if Equity REIT Relative TSR was at the 50th percentile, as set forth above.

(b)      The Committee, as promptly as practicable following the conclusion of the Performance Period (but, in any event, no later than two and one-half months after the conclusion of the Performance Period), shall determine the actual number of the Stock Units that are earned in accordance with this Section 2.  Notwithstanding anything herein to the contrary, if a Change in Control occurs on or prior to the twelve (12)-month anniversary of the Grant Date and the Grantee remains employed by the Company or a Company Affiliate until at least immediately prior to the date of such Change in Control or has incurred a Terminating Event prior to such Change in Control, one hundred percent (100%) of the Stock Units subject to this Award shall be deemed earned in accordance with this Section 2.

2

3.        Vesting.

(a)      All of the Stock Units and shares of Stock issued pursuant to this Award prior to the Final Vesting Date (as defined below) shall be subject to time-based vesting, with one-third (1/3) of the Stock Units earned pursuant to this Award and the shares of Stock issued or issuable pursuant to this Award vesting on each of the first three (3) anniversaries of the Grant Date (each, a “Vesting Date,” and the third (3rd) anniversary of the Grant Date, the “Final Vesting Date”), subject to the Grantee’s continued employment with the Company (or a Company Affiliate) through the applicable Vesting Date. All shares of Stock issued pursuant to this Award after the Final Vesting Date shall be fully vested upon issuance. Except as provided in Sections 3(b) and 3(c) below, if at any time the Grantee shall cease to be an employee of the Company or a Company Affiliate for any reason (other than in circumstances where the Grantee immediately thereafter remains or becomes an employee of the Company or a Company Affiliate), then the Stock Units and shares of Stock issued pursuant to this Award that remain unvested at such time shall automatically and immediately be forfeited by the Grantee without consideration therefor.

(b)     If the Grantee shall cease to be an employee of the Company or a Company Affiliate (other than in circumstances where the Grantee immediately thereafter remains or becomes an employee of a Company Affiliate) in circumstances that constitute a Terminating Event, any then unvested Stock Units or shares of Stock issued pursuant to this Award will not be forfeited and such Stock Units or shares of Stock issued pursuant to this Award will be fully time-vested as of the date of such Terminating Event. Any shares of Stock issued pursuant to this Award with respect to Stock Units that vested pursuant to this Section 3(b) will be fully time-vested upon issuance.

(c)      In the event the Grantee shall cease to be an employee of the Company or a Company Affiliate (other than in circumstances where the Grantee immediately thereafter remains or becomes an employee of a Company Affiliate) as a result of the Grantee’s change in status from an Employee to a Director or Consultant, then, unless otherwise required by law, the Grantee shall continue to time-vest in any then unvested Stock Units or shares of Stock issued pursuant to this Award based on the Grantee’s continued service as a Director or Consultant, in which case, the Grantee ceasing to serve as a Director or Consultant will be treated in the same manner as Grantee ceasing to be an Employee of the Company or a Company Affiliate for purposes of this Agreement.

4.       Tax Withholding.  The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be required by law.  The Grantee shall, not later than the date as of which vesting or payment in respect of this Award becomes a taxable event, pay to the Company or make arrangements satisfactory to the Company for payment of any Federal, state and local taxes required by law to be withheld on account of such taxable event; provided that, to the extent such taxable event occurs upon or concurrently with the issuance or vesting of Stock hereunder, the Company will satisfy any required tax withholding obligation by withholding a number of shares of Stock issued or issuable hereunder with a Fair Market Value on the date of withholding equal to the aggregate amount of such tax withholding obligation based on the maximum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to this Award, as determined pursuant to the 2018 Plan.  For purposes of this Section 4, the Fair Market Value of the shares of Stock to be withheld shall be calculated in the same manner as the shares of Stock are valued for purposes of determining the amount of withholding taxes due.

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5.       Changes in Capital Structure.  If (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company or other transaction similar thereto, (ii) any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, significant repurchases of stock, or other similar change in the capital stock of the Company, (iii) any cash dividend or other distribution to holders of shares of Stock shall be declared and paid other than in the ordinary course, or (iv) any other extraordinary corporate event shall occur that in each case in the good faith judgment of the Committee necessitates action by way of equitable or proportionate adjustment in the terms of this Award Agreement, the Stock Units or the shares of Stock issuable pursuant to this Award to avoid distortion in the value of this Award, then the Committee shall make equitable or proportionate adjustment and take such other action as it deems necessary to maintain the Grantee’s rights hereunder so that they are substantially proportionate to the rights existing under this Award and the terms of the Stock Units and the shares of Stock prior to such event, including, without limitation: (A) interpretations of or modifications to any defined term in this Award Agreement; (B) adjustments in any calculations provided for in this Award Agreement, and (C) substitution of other awards under the 2018 Plan or otherwise.  All adjustments made by the Committee shall be final, binding and conclusive.

    6.        Effectiveness of Award Agreement

(a)      This award shall be binding upon the successors and permitted assigns of the Grantee and shall be binding upon successors and assigns of the Company.

(b)     Every provision of this Award Agreement is intended to be severable, and if any term or provision hereof is held to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder hereof.

    7.        Governing Law.

This Award Agreement shall be governed by and construed in accordance with the laws of the State of Maryland.

    8.        Administration.

This Award shall be administered by the Committee, which in the administration of this Award shall have all the powers and authority it has in the administration of the 2018 Plan as set forth in the 2018 Plan.

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9.        Section 409A.

The Award is intended to comply with or be exempt from (under the “short term deferral” exception) Section 409A of the Internal Revenue Code (“Section 409A”) and, to the extent applicable, this Agreement shall be interpreted in accordance with Section 409A, including without limitation any applicable Department of Treasury regulations and other interpretive guidance currently in effect or that may be issued after the effective date of this Agreement. In addition, notwithstanding any provision herein to the contrary, in the event that following the Grant Date, the Administrator determines that it may be necessary or appropriate to do so, the Administrator may adopt such amendments to the Plan and/or this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (a) exempt the Plan and/or the Stock Units from the application of Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to this Award, or (b) comply with the requirements of Section 409A; provided, however, that this paragraph shall not create an obligation on the part of the Administrator to adopt any such amendment, policy or procedure or take any such other action.  No payment hereunder shall be made during the six (6)-month period following the Grantee’s “separation from service” (within the meaning of Section 409A) to the extent that the Administrator determines that paying such amount at the time set forth herein would be a prohibited distribution under Section 409A(a)(2)(B)(i). If the payment of any such amounts is delayed as a result of the previous sentence, then within thirty (30) days following the end of such six (6)-month period (or, if earlier, the Grantee’s death), the Administrator shall pay to the Grantee (or to the Grantee’s estate) the cumulative amounts that would have otherwise been payable to the Grantee during such period, without interest. Notwithstanding anything herein or in the Plan to the contrary, to the extent required to avoid the imposition of additional taxes under Section 409A, a “Change in Control” shall not be deemed to have occurred for purposes of this Agreement unless such transaction also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).

10.      Communication.

Any notice, demand, request or other communication which may be required or contemplated herein shall be sufficiently given if (i) given either by facsimile transmission or telex, by reputable overnight delivery service, postage prepaid, or by registered or certified mail, postage prepaid and return receipt requested, to the address indicated herein or to such other address as my party hereto may specify as provided herein, or (ii) delivered personally at such address.

11.      Recovery of Erroneously Awarded Compensation.

If the Grantee is now or hereafter become subject to any policy providing for the recovery of Awards, Shares, Stock Units, proceeds or payments to the Grantee in the event of fraud or other circumstances, then this Award, the Stock Units, and any Shares issuable upon the settlement of this Awards or proceeds therefrom, are subject to potential recovery by the Company under the circumstances provided under such policy as may be in effect from time to time.

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IN WITNESS WHEREOF, the undersigned has executed this Award Agreement as of the Grant Date.

ESSEX PROPERTY TRUST, INC.
By
	Hereunto duly authorized

Agreed and Accepted:

Name:

[Signature page to [_____] RSU Award Agreement]

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APPENDIX A

DEFINITIONS

“2018 Plan” means the Essex Property Trust, Inc. 2018 Stock Award and Incentive Compensation Plan, as amended, modified or supplemented from time to time.

“Cause” shall mean, and shall be limited to, the occurrence of any one or more of the following events:

(i)       a willful act of dishonesty by the Grantee with respect to any matter involving the Company or any Company Affiliates;

(ii)      conviction of the Grantee of a crime involving moral turpitude; or

(iii)   the deliberate or willful failure by the Grantee (other than by reason of the Grantee’s physical or mental illness, incapacity or disability) to substantially perform the Grantee’s duties with the Company and the Company Affiliates and the continuation of such failure for a period of 30 days after delivery by the Company or a Company Affiliate to the Grantee of written notice specifying the scope and nature of such failure and its intention to terminate the Grantee for Cause.

For purposes of clauses (i) and (iii) above, no act, or failure to act, on the Grantee’s part shall be deemed “willful” unless done, or omitted to be done, by the Grantee without reasonable belief that the Grantee’s act, or failure to act, was in the best interest of the Company and/or the Company Affiliates.

“Company Affiliate” means any parent entity of the Company, if any, that directly or indirectly owns a majority of the common equity of the Company, any direct or indirect subsidiary of any such parent entity and any direct or indirect subsidiary of the Company.

“Determination Date” means the date on which the number of Stock Units earned pursuant to this Award is determined by the Compensation Committee pursuant to Section 2(b).

“Equity REIT Relative TSR” means the percentile rank of the Company’s total stockholder return during the Performance Period relative to the total stockholder returns of the Index Companies during the Performance Period as determined by dividing (a) the sum of (i) 100% minus the percentage of Index Companies with a total stockholder return greater than the Company during the Performance Period, plus (ii) the percentage of Index Companies with a total stockholder return less than the Company during the Performance Period, by (b) two. For example, if there were nine Index Companies, four with higher total stockholder returns, four with lower total stockholder returns and one with identical total stockholder return during the Performance Period, then the Company would be in the 50th percentile, as calculated by taking the sum of (i) 100% minus the percentage of companies with higher total stockholder returns (100% - 4 / 9 = 56%), and (ii) the percentage of companies with lower total stockholder returns (4 / 9 = 44%) and dividing by two ((56% + 44%) / 2 = 50%).

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For purposes of this definition, the total stockholder return of the Company and each of the Index Companies shall be computed based on the total return that would have been realized by a stockholder who (1) bought $100 of shares of common equity securities of such company on the first day of the Performance Period at a price per share equal to the closing sales price per share on the principal national stock exchange on which shares of such common equity securities are listed on such date (or, if such date is not a trading date, on the most recent prior trading date), (2) contemporaneously reinvested in shares of Stock each dividend and other distribution declared during the Performance Period and received with respect to such share (and any other shares previously received upon reinvestment of dividends or other distributions) and (3) sold such shares on the last day of the Performance Period for a per share price equal to the average closing sales price per share on the principal national stock exchange on which shares of such common equity securities are listed for the twenty (20) consecutive calendar day period up to and including the Valuation Date; provided that if the Valuation Date is the date upon which a Transactional Change in Control occurs, the ending stock price of the Stock as of such date shall be equal to the fair market value in cash, as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the Transactional Change in Control for one share of Stock. Total stockholder return shall be computed on a consistent basis across all companies, in accordance with the foregoing, using total stockholder return data obtained from SNL Financial (or such other third party data provider as is selected by the Committee in its sole discretion).

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Executive Severance Plan” means the Essex Property Trust, Inc. Executive Severance Plan, as Amended and Restated, effective March 12, 2013, as amended, modified or supplemented from time to time.

“Good Reason” means, for purposes of determining whether a Terminating Event occurred in connection with a Change in Control, the occurrence of any of the following events:

(i)     a substantial adverse change in the nature or scope of the Grantee’s responsibilities, authorities, title, powers, functions, or duties from the responsibilities, authorities, powers, functions, or duties exercised by the Grantee immediately prior to the Change in Control; or

(ii)      a reduction in the Grantee’s annual base salary as in effect on the date hereof or as the same may be increased from time to time; or

(iii)    a reduction in the Grantee’s annual bonus opportunity to an annual bonus opportunity that is less than the highest bonus opportunity during the three fiscal years preceding the date of the Change in Control; or

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(iv)    a reduction in the long-term incentive, savings and retirement program opportunities and health and welfare benefits to a level that is less favorable than the most favorable of such benefits and opportunities as are in effect on the date hereof or as the same may be increased from time to time; or

(v)     a reduction in the fringe benefits programs and policies and vacation accrual rate to a level that is less favorable than the most favorable of such benefits and accrual rates as are in effect on the date hereof or as the same may be increased from time to time; or

(vi)    the relocation of the offices of the Company or Company Affiliate at which the Grantee is principally employed immediately prior to the date of the Change in Control to a location more than 30 miles from such offices, or the requirement by the Company or a Company Affiliate for the Grantee to be based anywhere other than the offices of the Company or Company Affiliate at such location, except for required travel on the business of the Company and the Company Affiliates to an extent substantially consistent with the Grantee’s business travel obligations immediately prior to the Change in Control; or

(vii)   the failure by the Company or a Company Affiliate to pay to the Grantee any portion of Grantee’s compensation or to pay to the Grantee any portion of an installment of deferred compensation under any deferred compensation program of the Company or a Company Affiliate within 15 days of the date such compensation is due without prior written consent of the Grantee; or

(viii)  the failure by the Company and the Company Affiliates to obtain an effective agreement from any successor to assume and agree to perform the obligation of the Company and the Company Affiliates under the Executive Severance Plan; or

(ix)     any material breach by the Company under the Executive Severance Plan or by any successor of the Company.

Notwithstanding the foregoing to the contrary, none of the circumstances described above will constitute Good Reason unless the Grantee has provided written notice to the Company that such circumstances exist within ninety (90) days of the Grantee’s learning of such circumstances and the Company has failed to cure such circumstances within thirty (30) days following its receipt of such notice; and provided further, that the Grantee did not previously consent in writing to the action leading to his or her claim of resignation for Good Reason.

“Index Companies” means, as of a particular date, the companies comprising the SNL Apartment REIT Index which, as of the Grant Date, consists of the companies listed on Appendix B hereto; provided that no such company will be deemed an Index Company if such company ceases to have a class of common equity securities listed on a national stock exchange during the entire Performance Period.

“Performance Period” means the period beginning on [_____________] and ending on the Valuation Date.

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“Qualified Termination” of the Grantee means (i) termination by the Company and/or a Company Affiliate of the employment of the Grantee with the Company (if the Grantee is then employed by the Company) and all Company Affiliates then employing the Grantee for any reason other than for Cause or the death or disability (as determined under the then existing long-term disability coverage of the Company or such Company Affiliate) of the Grantee or (ii) termination by the Grantee of the Grantee’s employment with the Company (if the Grantee is then employed by the Company) and all other Company Affiliates then employing the Grantee for Good Reason; provided, for avoidance of doubt, that no such termination shall constitute a Qualified Termination if the Grantee remains or becomes an employee of the Company or a Company Affiliate immediately following such termination.

“Stock” means a share of the Company’s common stock, par value $0.001 per share.

“Terminating Event” shall mean:

(A) a Qualified Termination of the Grantee during (i) the 24 months following a Change in Control or (ii) the two-month period prior to the date of a Change in Control, and it is reasonably demonstrated by the Grantee that such termination of employment (1) was at the request of a third party that had taken steps reasonably calculated to effect such Change in Control or (2) otherwise arose in connection with or anticipation of a Change in Control; provided that a Terminating Event under this clause (A) shall not be deemed to have occurred solely as a result of the Grantee being an employee of any direct or indirect successor to the business or assets of the Company, rather than continuing as an employee of the Company following a Change in Control; or

(B) a termination by the Company and/or a Company Affiliate of the employment of the Grantee with the Company (if the Grantee is then employed by the Company) and all Company Affiliates then employing the Grantee for any reason other than for Cause or the death or disability (as determined under the then existing long-term disability coverage of the Company or such Company Affiliate) of the Grantee that occurs (x) at least one year after the Grant Date, and (y) at a time when the Grantee’s combined age and years of Continuous Service are equal to or greater than 68 and the Grantee has at least seven (7) years of Continuous Service with the Company or a Company Affiliate.

“Transactional Change in Control” means a Change in Control resulting from any person or group making a tender offer for Stock, a merger or consolidation where the Company is not the surviving entity, the shares of Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property or consisting of a sale, transfer or disposition of all or substantially all of the assets of the Company.

“Valuation Date” means the earlier of (A) [___________], or (B) the date upon which a Change in Control shall occur.

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APPENDIX B

SNL Apartment REIT Index

AvalonBay Communities, Inc.	AVB
BRT Apartments Corp.	BRT
Equity Residential	EQR
Essex Property Trust, Inc.	ESS
Mid-America Apartment Communities, Inc.	MAA
UDR, Inc.	UDR
Camden Property Trust	CPT
Apartment Investment and Management Co	AIV
Independence Realty Trust, Inc.	IRT
Investors Real Estate Trust	IRET
Preferred Apartment Communities, Inc.	APTS
NexPoint Residential Trust Inc.	NXRT
Bluerock Residential Growth REIT, Inc.	BRG

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Full Vest

ESSEX PROPERTY TRUST, INC.

[________] LONG-TERM INCENTIVE AWARD

AWARD AGREEMENT

Name of Grantee:  [________] (“the Grantee”)

No. of Restricted Stock Units: [_________] (the “Stock Units”)

Grant Date: [_____________] (the “Grant Date”)

RECITALS

A.       The Grantee is an employee of Essex Property Trust, Inc., a Maryland corporation (the “Company”).

B.       As of [_____________], the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) approved the terms of the [_______] Long-Term Incentive Awards to be granted by the Company under the Company’s 2018 Stock Award and Incentive Compensation Plan (the “2018 Plan”) to provide the Company’s employees with incentive compensation.  This award agreement (this “Award Agreement”) evidences a [_______] Long-Term Incentive Award to the Grantee under the 2018 Plan (the “Award”), which is subject to the terms and conditions set forth herein and in the 2018 Plan.

C.      The Grantee was selected by the Company to receive the Award.  The Company, effective as of the Grant Date set forth above, issued to the Grantee the number of Stock Units set forth above.

D.      Capitalized terms used herein shall have the respective meanings ascribed to them in Appendix A hereto. Unless the context requires otherwise, capitalized terms used, but not otherwise defined herein or in Appendix A, shall have the respective meanings ascribed to them in the 2018 Plan.

NOW, THEREFORE,IT IS HEREBY AGREED AS FOLLOWS:

1.            Grant of Stock Units; Issuance of Stock; Payment of Dividends.

(a)      The Company hereby grants the Grantee an award consisting of [________] Stock Units with the terms and conditions set forth in this Agreement.  The 2018 Plan is hereby incorporated herein by reference as though set forth herein in its entirety.

(b)    On the Determination Date, (i) the Committee will determine, pursuant to Section 2(b), the number of Stock Units for which the performance criteria applicable to such Stock Units were satisfied as of the Valuation Date, (ii) the Company will issue to the Grantee a number of shares of Stock equal to the number of such earned Stock Units and (iii) all of the Stock Units shall be canceled.

(c)      Neither this Award nor the Stock Units may be sold, transferred, pledged assigned or otherwise encumbered or disposed of by the Grantee.

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(d)      With respect to the shares of Stock issuable pursuant to Section 1(b) above, the Grantee shall be entitled to dividends with a record date on or after the Determination Date. Prior to the Determination Date, Grantee shall not be entitled to any dividends with respect to the Stock Units or the Stock issuable in settlement thereof.

2.        Performance Criteria and Attainment Levels.

(a)      The number of Stock Units that will be earned pursuant to this Award will be based on the Company’s Equity REIT Relative TSR as of the Valuation Date in accordance with the following table:

Equity REIT Relative TSR	Percentage of Stock Units Earned	Number of Stock Units Earned
Below 5th percentile	[____]	[____]
Equal to or above 5th percentile but below 25th percentile	[____]	[____]
Equal to or above 25th percentile but below 50th percentile	[____]	[____]
Equal to or above 50th percentile	[____]	[____]

For Equity REIT Relative TSR falling between the 25th percentile and the 50th percentile, the number of Stock Units earned will be based on linear interpolation between the number of Stock Units that would have been earned if Equity REIT Relative TSR was at the 25th percentile and the number that would have been earned if Equity REIT Relative TSR was at the 50th percentile, as set forth above.

(b)     The Committee, as promptly as practicable following the conclusion of the Performance Period (but, in any event, no later than two and one-half months after the conclusion of the Performance Period), shall determine the actual number of the Stock Units that are earned in accordance with this Section 2.  Notwithstanding anything herein to the contrary, if a Change in Control occurs on or prior to the twelve (12) month-anniversary of the Grant Date, one hundred percent (100%) of the Stock Units subject to this Award shall be deemed earned in accordance with this Section 2.

3.            Vesting.  All of the Stock Units and shares of Stock issued pursuant to this Award shall be fully vested upon issuance.

4.          Tax Withholding.  The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be required by law.  The Grantee shall, not later than the date as of which vesting or payment in respect of this Award becomes a taxable event, pay to the Company or make arrangements satisfactory to the Company for payment of any Federal, state and local taxes required by law to be withheld on account of such taxable event; provided that, to the extent such taxable event occurs upon or concurrently with the issuance or vesting of Stock hereunder, the Company will satisfy any required tax withholding obligation by withholding a number of shares of Stock issued or issuable hereunder with a Fair Market Value on the date of withholding equal to the aggregate amount of such tax withholding obligation based on the maximum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to this Award, as determined pursuant to the 2018 Plan.  For purposes of this Section 4, the Fair Market Value of the shares of Stock to be withheld shall be calculated in the same manner as the shares of Stock are valued for purposes of determining the amount of withholding taxes due.

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5.           Changes in Capital Structure.  If (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company or other transaction similar thereto, (ii) any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, significant repurchases of stock, or other similar change in the capital stock of the Company, (iii) any cash dividend or other distribution to holders of shares of Stock shall be declared and paid other than in the ordinary course, or (iv) any other extraordinary corporate event shall occur that in each case in the good faith judgment of the Committee necessitates action by way of equitable or proportionate adjustment in the terms of this Award Agreement, the Stock Units or the shares of Stock issuable pursuant to this Award to avoid distortion in the value of this Award, then the Committee shall make equitable or proportionate adjustment and take such other action as it deems necessary to maintain the Grantee’s rights hereunder so that they are substantially proportionate to the rights existing under this Award and the terms of the Stock Units and the shares of Stock prior to such event, including, without limitation: (A) interpretations of or modifications to any defined term in this Award Agreement; (B) adjustments in any calculations provided for in this Award Agreement, and (C) substitution of other awards under the 2018 Plan or otherwise.  All adjustments made by the Committee shall be final, binding and conclusive.

6.        Effectiveness of Award Agreement

(a)      This award shall be binding upon the successors and permitted assigns of the Grantee and shall be binding upon successors and assigns of the Company.

(b)     Every provision of this Award Agreement is intended to be severable, and if any term or provision hereof is held to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder hereof.

7.            Governing Law.

This Award Agreement shall be governed by and construed in accordance with the laws of the State of Maryland.

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8.            Administration.

This Award shall be administered by the Committee, which in the administration of this Award shall have all the powers and authority it has in the administration of the 2018 Plan as set forth in the 2018 Plan.

9.            Section 409A.

The Award is intended to comply with or be exempt from (under the “short term deferral” exception) Section 409A of the Internal Revenue Code (“Section 409A”) and, to the extent applicable, this Agreement shall be interpreted in accordance with Section 409A, including without limitation any applicable Department of Treasury regulations and other interpretive guidance currently in effect or that may be issued after the effective date of this Agreement.In addition, notwithstanding any provision herein to the contrary, in the event that following the Grant Date, the Administrator determines that it may be necessary or appropriate to do so, the Administrator may adopt such amendments to the Plan and/or this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (a) exempt the Plan and/or the Stock Units from the application of Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to this Award, or (b) comply with the requirements of Section 409A; provided, however, that this paragraph shall not create an obligation on the part of the Administrator to adopt any such amendment, policy or procedure or take any such other action.  No payment hereunder shall be made during the six (6)-month period following the Grantee’s “separation from service” (within the meaning of Section 409A) to the extent that the Administrator determines that paying such amount at the time set forth herein would be a prohibited distribution under Section 409A(a)(2)(B)(i). If the payment of any such amounts is delayed as a result of the previous sentence, then within thirty (30) days following the end of such six (6)-month period (or, if earlier, the Grantee’s death), the Administrator shall pay to the Grantee (or to the Grantee’s estate) the cumulative amounts that would have otherwise been payable to the Grantee during such period, without interest.  Notwithstanding anything herein or in the Plan to the contrary, to the extent required to avoid the imposition of additional taxes under Section 409A, a “Change in Control” shall not be deemed to have occurred for purposes of this Agreement unless such transaction also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).

10.          Communication.

Any notice, demand, request or other communication which may be required or contemplated herein shall be sufficiently given if (i) given either by facsimile transmission or telex, by reputable overnight delivery service, postage prepaid, or by registered or certified mail, postage prepaid and return receipt requested, to the address indicated herein or to such other address as my party hereto may specify as provided herein, or (ii) delivered personally at such address.

11.          Recovery of Erroneously Awarded Compensation.

If the Grantee is now or hereafter become subject to any policy providing for the recovery of Awards, Shares, Stock Units, proceeds or payments to the Grantee in the event of fraud or other circumstances, then this Award, the Stock Units, and any Shares issuable upon the settlement of this Awards or proceeds therefrom, are subject to potential recovery by the Company under the circumstances provided under such policy as may be in effect from time to time.

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IN WITNESS WHEREOF, the undersigned has executed this Award Agreement as of the Grant Date.

ESSEX PROPERTY TRUST, INC.
By:
	Hereunto duly authorized

Agreed and Accepted:

Name:

[Signature page to [_______] RSU Award Agreement]

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APPENDIX A

DEFINITIONS

“2018 Plan” means the Essex Property Trust, Inc. 2018 Stock Award and Incentive Compensation Plan, as amended, modified or supplemented from time to time.

“Company Affiliate” means any parent entity of the Company, if any, that directly or indirectly owns a majority of the common equity of the Company, any direct or indirect subsidiary of any such parent entity and any direct or indirect subsidiary of the Company.

“Determination Date” means the date on which the number of Stock Units earned pursuant to this Award is determined by the Compensation Committee pursuant to Section 2(b).

“Equity REIT Relative TSR” means the percentile rank of the Company’s total stockholder return during the Performance Period relative to the total stockholder returns of the Index Companies during the Performance Period as determined by dividing (a) the sum of (i) 100% minus the percentage of Index Companies with a total stockholder return greater than the Company during the Performance Period, plus (ii) the percentage of Index Companies with a total stockholder return less than the Company during the Performance Period, by (b) two. For example, if there were nine Index Companies, four with higher total stockholder returns, four with lower total stockholder returns and one with identical total stockholder return during the Performance Period, then the Company would be in the 50th percentile, as calculated by taking the sum of (i) the percentage of companies with higher total stockholder returns (100% - 4 / 9 = 56%), and (ii) the percentage of companies with lower total stockholder returns (4 / 9 = 44%) and dividing by two ((56% + 44%) / 2 = 50%).

For purposes of this definition, the total stockholder return of the Company and each of the Index Companies shall be computed based on the total return that would have been realized by a stockholder who (1) bought $100 of shares of common equity securities of such company on the first day of the Performance Period at a price per share equal to the closing sales price per share on the principal national stock exchange on which shares of such common equity securities are listed on such date (or, if such date is not a trading date, on the most recent prior trading date), (2) contemporaneously reinvested in shares of Stock each dividend and other distribution declared during the Performance Period and received with respect to such share (and any other shares previously received upon reinvestment of dividends or other distributions) and (3) sold such shares on the last day of the Performance Period for a per share price equal to the average closing sales price per share on the principal national stock exchange on which shares of such common equity securities are listed for the twenty (20) consecutive calendar day period up to and including the Valuation Date; provided that if the Valuation Date is the date upon which a Transactional Change in Control occurs, the ending stock price of the Stock as of such date shall be equal to the fair market value in cash, as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the Transactional Change in Control for one share of Stock. Total stockholder return shall be computed on a consistent basis across all companies, in accordance with the foregoing, using total stockholder return data obtained from SNL Financial (or such other third party data provider as is selected by the Committee in its sole discretion).

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“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Index Companies” means, as of a particular date, the companies comprising the SNL Apartment REIT Index which, as of the Grant Date, consists of the companies listed on Appendix B hereto; provided that no such company will be deemed an Index Company if such company ceases to have a class of common equity securities listed on a national stock exchange during the entire Performance Period.

“Performance Period” means the period beginning on [_____________] and ending on the Valuation Date.

“Stock” means a share of the Company’s common stock, par value $0.001 per share.

“Transactional Change in Control” means a Change in Control resulting from any person or group making a tender offer for Stock, a merger or consolidation where the Company is not the surviving entity, the shares of Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property or consisting of a sale, transfer or disposition of all or substantially all of the assets of the Company.

“Valuation Date” means the earlier of (A) [_______], or (B) the date upon which a Change in Control shall occur.

18

APPENDIX B

SNL Apartment REIT Index

AvalonBay Communities, Inc.	AVB
BRT Apartments Corp.	BRT
Equity Residential	EQR
Essex Property Trust, Inc.	ESS
Mid-America Apartment Communities, Inc.	MAA
UDR, Inc.	UDR
Camden Property Trust	CPT
Apartment Investment and Management Co	AIV
Independence Realty Trust, Inc.	IRT
Investors Real Estate Trust	IRET
Preferred Apartment Communities, Inc.	APTS
NexPoint Residential Trust Inc.	NXRT
Bluerock Residential Growth REIT, Inc.	BRG

19

DIP

ESSEX PROPERTY TRUST, INC.

[_______] LONG-TERM INCENTIVE AWARD

AWARD AGREEMENT

Name of Grantee:  [________] (“the Grantee”)

Maximum Number of Restricted Stock Units: [_________]

Target Number of Restricted Stock Units: [_________]

Grant Date: [_____________] (the “Grant Date”)

RECITALS

    A.       The Grantee is an employee of Essex Property Trust, Inc., a Maryland corporation (the “Company”).

B.           As of [_____________], the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) approved the terms of the [_______] Long-Term Incentive Awards to be granted by the Company under the Company’s 2018 Stock Award and Incentive Compensation Plan (the “2018 Plan”) to provide the Company’s employees with incentive compensation.  This award agreement (this “Award Agreement”) evidences a [_______] Long-Term Incentive Award to the Grantee under the 2018 Plan (the “Award”), which is subject to the terms and conditions set forth herein and in the 2018 Plan.

C.           The Grantee was selected by the Company to receive the Award.  The Company, effective as of the Grant Date set forth above, issued to the Grantee the Maximum Number of Restricted Stock Units set forth above.

D.           Capitalized terms used herein shall have the respective meanings ascribed to them in Appendix A hereto. Unless the context requires otherwise, capitalized terms used, but not otherwise defined herein or in Appendix A, shall have the respective meanings ascribed to them in the 2018 Plan.

NOW, THEREFORE,IT IS HEREBY AGREED AS FOLLOWS:

1.           Grant of Stock Units; Issuance of Stock; Payment of Dividends.

(a)      The Company hereby grants the Grantee an award consisting of [________]1 Restricted Stock Units (the “Stock Units”) with the terms and conditions set forth in this Agreement.  The 2018 Plan is hereby incorporated herein by reference as though set forth herein in its entirety.

(b)      On the First Determination Date, the Committee will determine the number of Stock Units that will be eligible to be earned hereunder (the “Eligible Stock Units”), as set forth in Section 2(a) (including the final sentence thereof).  In the event that any Stock Units granted hereunder fail to become Eligible Stock Units in accordance with the provisions set forth herein, such Stock Units that fail to become Eligible Stock Units shall thereupon automatically be forfeited by the Grantee without further action and without payment of consideration therefor.  On the Final Determination Date, (i) the Committee will determine, pursuant to Section 2(c), the number of Stock Units for which the performance criteria applicable to such Stock Units pursuant to Section 2(b) were satisfied as of the Valuation Date, (ii) the Company will issue to the Grantee a number of shares of Stock equal to the number of such earned Stock Units and (iii) all of the Stock Units shall be canceled.

_____________________________________________________________

1 Note to Draft:  Maximum Number of Restricted Stock Units.

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(c)      Neither this Award nor the Stock Units may be sold, transferred, pledged assigned or otherwise encumbered or disposed of by the Grantee. The shares of Stock issuable hereunder may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of by the Grantee prior to vesting and any book entries or certificates for the shares of Stock shall bear an appropriate legend, as determined by the Committee in its sole discretion, to the effect that such shares are subject to restrictions as set forth herein and in the 2018 Plan.

(d)     With respect to the shares of Stock issuable pursuant to Section 1(b) above, the Grantee shall be entitled to dividends with a record date on or after the later of the Final Determination Date or the Vesting Date (as defined below). Prior to the occurrence of the later of the Final Determination Date or the Vesting Date, Grantee shall not be entitled to any dividends with respect to the Stock Units or the Stock issuable in settlement thereof.

2.        Performance Criteria and Attainment Levels.

(a)      The number of Stock Units that will become Eligible Stock Units pursuant to this Award will be based on the gain or purchase price from the disposition of certain assets of the Company’s real estate portfolio, determined by reference to the following formula and subject to the final sentence of this Section 2(a):

Number of Eligible Stock Units = (___%2 * Funded Amount) / $[_______]

The Number of Eligible Stock Units shall be rounded to the nearest whole Stock Unit.

For purposes of this Agreement, “Funded Amount” shall mean the dollar amount that is equal to the product of (A) the greater of (x) 1% of the aggregate purchase price (net of the cost of sale) of all Company real estate dispositions consummated during the Funding Period or (y) 10% of the gain from all Company real estate dispositions consummated during the Funding Period determined in accordance with Generally Accepted Accounting Principles (GAAP), multiplied by (B) the quotient of (x) $[_______]3 // $[_______]4 over (y) $[_______]; provided, that the Funded Amount shall not exceed $[_______]5 // $[_______]6. Notwithstanding anything in this Section 2(a) to the contrary, in determining the number of Stock Units that become Eligible Stock Units hereunder the Committee (or its designee or delegatee, as applicable) may, in its sole discretion, adjust the number of Stock Units that become Eligible Stock Units under the formula set forth above in this Section 2(a); provided, that in no event shall the number of Eligible Stock Units hereunder, as adjusted, be less than zero or exceed the Maximum Number of Restricted Stock Units (as defined above).

_____________________________________________________________

2Note to Draft:  Percentage to equal individual’s maximum dollar amount divided by $[_______] - NEOs // $[_______] – Non-NEOs.

3Note to Draft:  NEO form only.

4Note to Draft:  Non-NEO form only.

5Note to Draft:  NEO form only.

6Note to Draft:  Non-NEO form only.

21

(b)      The number of Eligible Stock Units that will be earned pursuant to this Award will be based on the Company’s Equity REIT Relative TSR as of the Valuation Date in accordance with the following table:

Equity REIT Relative TSR	Percentage of Eligible Stock Units Earned	Number of Eligible Stock Units Earned
Below 5th percentile	[____]	[____]
Equal to or above 5th percentile but below 25th percentile	[____]	[____]
Equal to or above 25th percentile but below 50th percentile	[____]	[____]
Equal to or above 50th percentile	[____]	[____]

For Equity REIT Relative TSR falling between the 25th percentile and the 50th percentile, the number of Eligible Stock Units earned will be based on linear interpolation between the number of Eligible Stock Units that would have been earned if Equity REIT Relative TSR was at the 25th percentile and the number that would have been earned if Equity REIT Relative TSR was at the 50th percentile, as set forth above.

(c)      The Committee, as promptly as practicable following the conclusion of the Performance Period (but, in any event, no later than two and one-half months after the conclusion of the Performance Period), shall determine the actual number of the Eligible Stock Units that are earned in accordance with this Section 2.  Notwithstanding anything herein to the contrary, if a Change in Control occurs on or prior to [_______], and the Grantee remains employed by the Company or a Company Affiliate until at least immediately prior to the date of such Change in Control [or has incurred a Terminating Event prior to such Change in Control,]7 then, as of the date of such Change in Control, the Target Number of Restricted Stock Units (as defined herein) shall be deemed earned in accordance with Section 2(b) and this Section 2(c).

_____________________________________________________________

7Note to Draft:  Exec form only.

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3.        Vesting.

(a)     All of the Stock Units and shares of Stock issued pursuant to this Award prior to the Vesting Date (as defined below) shall be subject to time-based vesting, with 100% of the Stock Units earned pursuant to this Award and the shares of Stock issued or issuable pursuant to this Award vesting on [_______] (the “Vesting Date”), subject to the Grantee’s continued employment with the Company (or a Company Affiliate) through such vesting date. All shares of Stock issued pursuant to this Award after the Vesting Date shall be fully vested upon issuance. Except as provided in Sections 3(b) and 3(c) below, if at any time the Grantee shall cease to be an employee of the Company or a Company Affiliate for any reason (other than in circumstances where the Grantee immediately thereafter remains or becomes an employee of the Company or a Company Affiliate), then the Stock Units and shares of Stock issued pursuant to this Award that remain unvested at such time shall automatically and immediately be forfeited by the Grantee without consideration therefor.

(b)     If the Grantee shall cease to be an employee of the Company or a Company Affiliate (other than in circumstances where the Grantee immediately thereafter remains or becomes an employee of a Company Affiliate) in circumstances that constitute a Terminating Event, any then unvested Stock Units or shares of Stock issued pursuant to this Award will not be forfeited and such Stock Units or shares of Stock issued pursuant to this Award will be fully time-vested as of the date of such Terminating Event. Any shares of Stock issued pursuant to this Award with respect to Stock Units that vested pursuant to this Section 3(b) will be fully time-vested upon issuance.

(c)     In the event the Grantee shall cease to be an employee of the Company or a Company Affiliate (other than in circumstances where the Grantee immediately thereafter remains or becomes an employee of a Company Affiliate) as a result of the Grantee’s change in status from an Employee to a Director or Consultant, then, unless otherwise required by law, the Administrator may, on or prior to the date on which such change in status occurs, permit the Grantee to continue to time-vest in any then unvested Stock Units or shares of Stock issued pursuant to this Award based on the Grantee’s continued service as a Director or Consultant, in which case, unless otherwise provided by the Administrator, the Grantee ceasing to serve as a Director or Consultant will be treated in the same manner as Grantee ceasing to be an Employee of the Company or a Company Affiliate for purposes of this Agreement.

4.       Tax Withholding.  The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be required by law.  The Grantee shall, not later than the date as of which vesting or payment in respect of this Award becomes a taxable event, pay to the Company or make arrangements satisfactory to the Company for payment of any Federal, state and local taxes required by law to be withheld on account of such taxable event; provided that, to the extent such taxable event occurs upon or concurrently with the issuance or vesting of Stock hereunder, the Company will satisfy any required tax withholding obligation by withholding a number of shares of Stock issued or issuable hereunder with a Fair Market Value on the date of withholding equal to the aggregate amount of such tax withholding obligation based on the maximum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to this Award, as determined pursuant to the 2018 Plan.  For purposes of this Section 4, the Fair Market Value of the shares of Stock to be withheld shall be calculated in the same manner as the shares of Stock are valued for purposes of determining the amount of withholding taxes due.

23

5.        Changes in Capital Structure.  If (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company or other transaction similar thereto, (ii) any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, significant repurchases of stock, or other similar change in the capital stock of the Company, (iii) any cash dividend or other distribution to holders of shares of Stock shall be declared and paid other than in the ordinary course, or (iv) any other extraordinary corporate event shall occur that in each case in the good faith judgment of the Committee necessitates action by way of equitable or proportionate adjustment in the terms of this Award Agreement, the Stock Units or the shares of Stock issuable pursuant to this Award to avoid distortion in the value of this Award, then the Committee shall make equitable or proportionate adjustment and take such other action as it deems necessary to maintain the Grantee’s rights hereunder so that they are substantially proportionate to the rights existing under this Award and the terms of the Stock Units and the shares of Stock prior to such event, including, without limitation: (A) interpretations of or modifications to any defined term in this Award Agreement; (B) adjustments in any calculations provided for in this Award Agreement, and (C) substitution of other awards under the 2018 Plan or otherwise.  All adjustments made by the Committee shall be final, binding and conclusive.

6.        Effectiveness of Award Agreement

(a)      This award shall be binding upon the successors and permitted assigns of the Grantee and shall be binding upon successors and assigns of the Company.

(b)     Every provision of this Award Agreement is intended to be severable, and if any term or provision hereof is held to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder hereof.

7.        Governing Law.

This Award Agreement shall be governed by and construed in accordance with the laws of the State of Maryland.

8.        Administration.

This Award shall be administered by the Committee, which in the administration of this Award shall have all the powers and authority it has in the administration of the 2018 Plan as set forth in the 2018 Plan; provided that, unless the Grantee is an officer or director of the Company subject to reporting under Section 16 of the Exchange Act or as otherwise determined by the Committee, the Chief Executive Officer or Chief Financial Officer of the Company shall serve as the Administrator for purposes of the determination set forth in Section 3 (c).

24

9.        Section 409A.

The Award is intended to comply with or be exempt from (under the “short term deferral” exception) Section 409A of the Internal Revenue Code (“Section 409A”) and, to the extent applicable, this Agreement shall be interpreted in accordance with Section 409A, including without limitation any applicable Department of Treasury regulations and other interpretive guidance currently in effect or that may be issued after the effective date of this Agreement. In addition, notwithstanding any provision herein to the contrary, in the event that following the Grant Date, the Administrator determines that it may be necessary or appropriate to do so, the Administrator may adopt such amendments to the Plan and/or this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (a) exempt the Plan and/or the Stock Units from the application of Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to this Award, or (b) comply with the requirements of Section 409A; provided, however, that this paragraph shall not create an obligation on the part of the Administrator to adopt any such amendment, policy or procedure or take any such other action.  No payment hereunder shall be made during the six (6)-month period following the Grantee’s “separation from service” (within the meaning of Section 409A) to the extent that the Administrator determines that paying such amount at the time set forth herein would be a prohibited distribution under Section 409A(a)(2)(B)(i). If the payment of any such amounts is delayed as a result of the previous sentence, then within thirty (30) days following the end of such six (6)-month period (or, if earlier, the Grantee’s death), the Administrator shall pay to the Grantee (or to the Grantee’s estate) the cumulative amounts that would have otherwise been payable to the Grantee during such period, without interest. Notwithstanding anything herein or in the Plan to the contrary, to the extent required to avoid the imposition of additional taxes under Section 409A, a “Change in Control” shall not be deemed to have occurred for purposes of this Agreement unless such transaction also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).

10.      Communication.

Any notice, demand, request or other communication which may be required or contemplated herein shall be sufficiently given if (i) given either by facsimile transmission or telex, by reputable overnight delivery service, postage prepaid, or by registered or certified mail, postage prepaid and return receipt requested, to the address indicated herein or to such other address as my party hereto may specify as provided herein, or (ii) delivered personally at such address.

11.      Recovery of Erroneously Awarded Compensation.

If the Grantee is now or hereafter become subject to any policy providing for the recovery of Awards, Shares, Stock Units, proceeds or payments to the Grantee in the event of fraud or other circumstances, then this Award, the Stock Units, and any Shares issuable upon the settlement of this Awards or proceeds therefrom, are subject to potential recovery by the Company under the circumstances provided under such policy as may be in effect from time to time.

25

IN WITNESS WHEREOF, the undersigned has executed this Award Agreement as of the Grant Date.

ESSEX PROPERTY TRUST, INC.
By:
	Hereunto duly authorized

Agreed and Accepted:

Name:

[Signature page to [_______] RSU Award Agreement (DIP)]

26

APPENDIX A

DEFINITIONS

“2018 Plan” means the Essex Property Trust, Inc. 2018 Stock Award and Incentive Compensation Plan, as amended, modified or supplemented from time to time.

“Cause” shall mean, and shall be limited to, the occurrence of any one or more of the following events:

(i)       a willful act of dishonesty by the Grantee with respect to any matter involving the Company or any Company Affiliates;

(ii)     conviction of the Grantee of a crime involving moral turpitude; or

(iii)    the deliberate or willful failure by the Grantee (other than by reason of the Grantee’s physical or mental illness, incapacity or disability) to substantially perform the Grantee’s duties with the Company and the Company Affiliates and the continuation of such failure for a period of 30 days after delivery by the Company or a Company Affiliate to the Grantee of written notice specifying the scope and nature of such failure and its intention to terminate the Grantee for Cause.

For purposes of clauses (i) and (iii) above, no act, or failure to act, on the Grantee’s part shall be deemed “willful” unless done, or omitted to be done, by the Grantee without reasonable belief that the Grantee’s act, or failure to act, was in the best interest of the Company and/or the Company Affiliates.

“Company Affiliate” means any parent entity of the Company, if any, that directly or indirectly owns a majority of the common equity of the Company, any direct or indirect subsidiary of any such parent entity and any direct or indirect subsidiary of the Company.

“Eligible Stock Units” means the Stock Units that the Compensation Committee determines, pursuant to Section 2(a), are eligible to be earned pursuant to this Award.

“Equity REIT Relative TSR” means the percentile rank of the Company’s total stockholder return during the Performance Period relative to the total stockholder returns of the Index Companies during the Performance Period as determined by dividing (a) the sum of (i) 100% minus the percentage of Index Companies with a total stockholder return greater than the Company during the Performance Period, plus (ii) the percentage of Index Companies with a total stockholder return less than the Company during the Performance Period, by (b) two. For example, if there were nine Index Companies, four with higher total stockholder returns, four with lower total stockholder returns and one with identical total stockholder return during the Performance Period, then the Company would be in the 50th percentile, as calculated by taking the sum of (i) 100% minus the percentage of companies with higher total stockholder returns (100% - 4 / 9 = 56%), and (ii) the percentage of companies with lower total stockholder returns (4 / 9 = 44%) and dividing by two ((56% + 44%) / 2 = 50%).

27

For purposes of this definition, the total stockholder return of the Company and each of the Index Companies shall be computed based on the total return that would have been realized by a stockholder who (1) bought $100 of shares of common equity securities of such company on the first day of the Performance Period at a price per share equal to the closing sales price per share on the principal national stock exchange on which shares of such common equity securities are listed on such date (or, if such date is not a trading date, on the most recent prior trading date), (2) contemporaneously reinvested in shares of Stock each dividend and other distribution declared during the Performance Period and received with respect to such share (and any other shares previously received upon reinvestment of dividends or other distributions) and (3) sold such shares on the last day of the Performance Period for a per share price equal to the average closing sales price per share on the principal national stock exchange on which shares of such common equity securities are listed for the twenty (20) consecutive calendar day period up to and including the Valuation Date; provided that if the Valuation Date is the date upon which a Transactional Change in Control occurs, the ending stock price of the Stock as of such date shall be equal to the fair market value in cash, as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the Transactional Change in Control for one share of Stock. Total stockholder return shall be computed on a consistent basis across all companies, in accordance with the foregoing, using total stockholder return data obtained from SNL Financial (or such other third party data provider as is selected by the Committee in its sole discretion).

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

[“Executive Severance Plan” means the Essex Property Trust, Inc. Executive Severance Plan, as Amended and Restated, effective March 12, 2013, as amended, modified or supplemented from time to time.]8

“Final Determination Date” means the date on which the number of Eligible Stock Units earned pursuant to this Award is determined by the Compensation Committee pursuant to Section 2(c).

“First Determination Date” means the date on which the number of Stock Units that are Eligible Stock Units pursuant to this Award is determined by the Compensation Committee pursuant to Section 2(a) which date shall be as soon as practicable following [_______], and in no event later than [_______].

“Funding Period” means the period commencing on [_______] and ending on the earlier of (A) [_______], or (B) the date upon which a Change in Control occurs.

[“Good Reason” means, for purposes of determining whether a Terminating Event occurred in connection with a Change in Control, the occurrence of any of the following events:

_____________________________________________________________

8Note to Draft:  Exec form only.

28

(i)     a substantial adverse change in the nature or scope of the Grantee’s responsibilities, authorities, title, powers, functions, or duties from the responsibilities, authorities, powers, functions, or duties exercised by the Grantee immediately prior to the Change in Control; or

(ii)     a reduction in the Grantee’s annual base salary as in effect on the date hereof or as the same may be increased from time to time; or

(iii)    a reduction in the Grantee’s annual bonus opportunity to an annual bonus opportunity that is less than the highest bonus opportunity during the three fiscal years preceding the date of the Change in Control; or

(iv)   a reduction in the long-term incentive, savings and retirement program opportunities and health and welfare benefits to a level that is less favorable than the most favorable of such benefits and opportunities as are in effect on the date hereof or as the same may be increased from time to time; or

(v)     a reduction in the fringe benefits programs and policies and vacation accrual rate to a level that is less favorable than the most favorable of such benefits and accrual rates as are in effect on the date hereof or as the same may be increased from time to time; or

(vi)     the relocation of the offices of the Company or Company Affiliate at which the Grantee is principally employed immediately prior to the date of the Change in Control to a location more than 30 miles from such offices, or the requirement by the Company or a Company Affiliate for the Grantee to be based anywhere other than the offices of the Company or Company Affiliate at such location, except for required travel on the business of the Company and the Company Affiliates to an extent substantially consistent with the Grantee’s business travel obligations immediately prior to the Change in Control; or

(vii)   the failure by the Company or a Company Affiliate to pay to the Grantee any portion of Grantee’s compensation or to pay to the Grantee any portion of an installment of deferred compensation under any deferred compensation program of the Company or a Company Affiliate within 15 days of the date such compensation is due without prior written consent of the Grantee; or

(viii)  the failure by the Company and the Company Affiliates to obtain an effective agreement from any successor to assume and agree to perform the obligation of the Company and the Company Affiliates under the Executive Severance Plan; or

(ix)     any material breach by the Company under the Executive Severance Plan or by any successor of the Company.

29

Notwithstanding the foregoing to the contrary, none of the circumstances described above will constitute Good Reason unless the Grantee has provided written notice to the Company that such circumstances exist within ninety (90) days of the Grantee’s learning of such circumstances and the Company has failed to cure such circumstances within thirty (30) days following its receipt of such notice; and provided further, that the Grantee did not previously consent in writing to the action leading to his or her claim of resignation for Good Reason.]9

“Index Companies” means, as of a particular date, the companies comprising the SNL Apartment REIT Index which, as of the Grant Date, consists of the companies listed on Appendix B hereto; provided that no such company will be deemed an Index Company if such company ceases to have a class of common equity securities listed on a national stock exchange during the entire Performance Period.

“Performance Period” means the period beginning on [_____________] and ending on the Valuation Date.

[“Qualified Termination” of the Grantee means (i) termination by the Company and/or a Company Affiliate of the employment of the Grantee with the Company (if the Grantee is then employed by the Company) and all Company Affiliates then employing the Grantee for any reason other than for Cause or the death or disability (as determined under the then existing long-term disability coverage of the Company or such Company Affiliate) of the Grantee or (ii) termination by the Grantee of the Grantee’s employment with the Company (if the Grantee is then employed by the Company) and all other Company Affiliates then employing the Grantee for Good Reason; provided, for avoidance of doubt, that no such termination shall constitute a Qualified Termination if the Grantee remains or becomes an employee of the Company or a Company Affiliate immediately following such termination.]10

“Stock” means a share of the Company’s common stock, par value $0.001 per share.

“Terminating Event” shall mean [(A) a Qualified Termination of the Grantee during (i) the 24 months following a Change in Control or (ii) the two-month period prior to the date of a Change in Control, and it is reasonably demonstrated by the Grantee that such termination of employment (1) was at the request of a third party that had taken steps reasonably calculated to effect such Change in Control or (2) otherwise arose in connection with or anticipation of a Change in Control; provided that a Terminating Event under this clause (A) shall not be deemed to have occurred solely as a result of the Grantee being an employee of any direct or indirect successor to the business or assets of the Company, rather than continuing as an employee of the Company following a Change in Control; or (B) ]11a termination by the Company and/or a Company Affiliate of the employment of the Grantee with the Company (if the Grantee is then employed by the Company) and all Company Affiliates then employing the Grantee for any reason other than for Cause or the death or disability (as determined under the then existing long-term disability coverage of the Company or such Company Affiliate) of the Grantee that occurs (x) at least one year after the Grant Date, and (y) at a time when the Grantee’s combined age and years of Continuous Service are equal to or greater than 68 and the Grantee has at least seven (7) years of Continuous Service with the Company or a Company Affiliate.

_____________________________________________________________

9Note to Draft:  Exec form only.

10Note to Draft:  Exec form only.

11Note to Draft:  Exec form only.

30

“Transactional Change in Control” means a Change in Control resulting from any person or group making a tender offer for Stock, a merger or consolidation where the Company is not the surviving entity, the shares of Stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property or consisting of a sale, transfer or disposition of all or substantially all of the assets of the Company.

“Valuation Date” means the earlier of (A) [_______], or (B) the date upon which a Change in Control shall occur.

31

APPENDIX B

SNL Apartment REIT Index

AvalonBay Communities, Inc.	AVB
BRT Apartments Corp.	BRT
Equity Residential	EQR
Essex Property Trust, Inc.	ESS
Mid-America Apartment Communities, Inc.	MAA
UDR, Inc.	UDR
Camden Property Trust	CPT
Apartment Investment and Management Co	AIV
Independence Realty Trust, Inc.	IRT
Investors Real Estate Trust	IRET
Preferred Apartment Communities, Inc.	APTS
NexPoint Residential Trust Inc.	NXRT
Bluerock Residential Growth REIT, Inc.	BRG

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ESSEX PROPERTY TRUST, INC.

2018 STOCK AWARD AND INCENTIVE COMPENSATION PLAN

NOTICE OF STOCK OPTION AWARD

Grantee’s Name and Address:

You (the “Grantee”) have been granted an option to purchase shares of Common Stock, subject to the terms and conditions of this Notice of Stock Option Award (the “Notice”), the Essex Property Trust, Inc. 2018 Stock Award and Incentive Compensation Plan, as amended from time to time (the “Plan”), and the Stock Option Award Agreement (the “Option Agreement”) attached hereto, as follows.  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Notice.

Award Number
Grant Date	[_____________]
Exercise Price per Share (*)	$
Total Number of Shares Subject to the Option (the “Shares”)
Total Exercise Price	$

Type of Option		Incentive Stock Option
		Non-Qualified Stock Option
Expiration Date	[_____________]

Post-Termination Exercise Period: Three (3) Months, subject to an extended Post-Termination Exercise period that may apply upon a termination of the Grantee’s Continuous Service under the circumstances set forth in Section 6, 7, or 8 of the Option Agreement.

* An amount in addition to the Exercise Price will become payable if the Fair Market Value of the Shares on date of exercise exceeds the Exercise Price per Share by more than $100 as set forth in Section 2(c) of the Option Agreement.

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Vesting Schedule:

Subject to the Grantee’s Continuous Service through the vesting dates set forth below and other limitations set forth in this Notice, the Plan and the Option Agreement, the Option may be exercised, in whole or in part, in accordance with the following schedule:

1/3 of the Shares subject to the Option shall vest on the first anniversary of the Grant Date, 1/3 of the Shares subject to the Option shall vest on the second anniversary of the Grant Date, and 1/3 of the Shares subject to the Option shall vest on the third anniversary of the Grant Date.

IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the Option is to be governed by the terms and conditions of this Notice, the Plan, and the Option Agreement.

Essex Property Trust, Inc.,

a Maryland corporation

By:

Title:

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF THE GRANTEE’S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE RIGHT OF THE COMPANY OR RELATED ENTITY TO WHICH THE GRANTEE PROVIDES SERVICES TO TERMINATE THE GRANTEE'S CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, THE GRANTEE’S EMPLOYMENT STATUS IS AT WILL.

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THE GRANTEE ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN AND THE OPTION AGREEMENT, AND REPRESENTS THAT HE OR SHE IS FAMILIAR WITH THE TERMS AND PROVISIONS HEREOF AND THEREOF, AND HEREBY ACCEPTS THE OPTION SUBJECT TO ALL OF THE TERMS AND PROVISIONS HEREOF AND THEREOF. THE GRANTEE HAS REVIEWED THIS NOTICE, THE PLAN, AND THE OPTION AGREEMENT IN THEIR ENTIRETY, HAS HAD AN OPPORTUNITY TO OBTAIN THE ADVICE OF COUNSEL PRIOR TO EXECUTING THIS NOTICE, AND FULLY UNDERSTANDS ALL PROVISIONS OF THIS NOTICE, THE PLAN AND THE OPTION AGREEMENT. THE GRANTEE HEREBY AGREES THAT ALL QUESTIONS OF INTERPRETATION AND ADMINISTRATION RELATING TO THIS NOTICE, THE PLAN AND THE OPTION AGREEMENT SHALL BE RESOLVED BY THE ADMINISTRATOR IN ACCORDANCE WITH SECTION 13 OF THE OPTION AGREEMENT. THE GRANTEE FURTHER AGREES TO THE VENUE SELECTION AND WAIVER OF A JURY TRIAL IN ACCORDANCE WITH SECTION 14 OF THE OPTION AGREEMENT. THE GRANTEE FURTHER AGREES TO NOTIFY THE COMPANY UPON ANY CHANGE IN THE RESIDENCE ADDRESS INDICATED IN THIS NOTICE.

Dated:	Signed:
		Grantee

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Award Number: 

ESSEX PROPERTY TRUST, INC.

2018 STOCK AWARD AND INCENTIVE COMPENSATION PLAN

STOCK OPTION AWARD AGREEMENT

1.              Grant of Option. Essex Property Trust, Inc., a Maryland corporation (the “Company”), hereby grants to the Grantee (the “Grantee”) named in the Notice of Stock Option Award (the “Notice”), an option (the “Option”) to purchase the Total Number of Shares of Common Stock subject to the Option (the “Shares”) set forth in the Notice, at the Exercise Price per Share set forth in the Notice, and payment of, if applicable, the Purchase Price Supplement (as defined below, and collectively with the Exercise Price, the “Exercise Price”) subject to the terms and provisions of the Notice, this Stock Option Award Agreement (the “Option Agreement”) and the Company’s 2018 StockAward and Incentive Compensation Plan, as amended from time to time (the “Plan”), all of which are incorporated herein by reference.  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement.

If designated in the Notice as an Incentive Stock Option, the Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of Shares subject to Options designated as Incentive Stock Options which become exercisable for the first time by the Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary of the Company) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in excess of the foregoing limitation, shall be treated as Non-Qualified Stock Options.  For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the date the Option with respect to such Shares is awarded.

2.               Exercise of Option.

(a)      Right to Exercise. The Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice and with the applicable provisions of the Plan and this Option Agreement.  The Option shall be subject to the provisions of Section11 of the Plan relating to the exercisability or termination of the Option in the event of a Change in Control.  The Grantee shall be subject to reasonable limitations on the number of requested exercises during any monthly or weekly period as determined by the Administrator. In no event shall the Company issue fractional Shares.

(b)      Method of Exercise. The Option shall be exercisable by compliance with such procedures as specified from time to time by the Administrator, which may include completion and delivery of an exercise notice in a form specified by the Administrator.  The Option shall be deemed to be exercised upon completion of the procedures specified by the Administrator and receipt by the Company of the Exercise Price, which, to the extent selected, shall be deemed to be satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in Section 3, below.

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(c)      Purchase Price Supplement.  If, at the time of exercise of the Option, the Fair Market Value of a share of Common Stock exceeds the Exercise Price per Share by more than $100 (the “$100 Spread”), then an amount equal to the amount by which the Fair Market Value of a share of Common Stock exceeds the $100 Spread shall be payable to the Company in addition to the Exercise Price per Share (the “Purchase Price Supplement”).

(d)     Taxes.  Regardless of any action the Company or any Related Entity takes with respect to any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Grantee’s participation in the Plan and legally applicable to the Grantee (“Tax-Related Items”), the Grantee acknowledges that the ultimate liability for all Tax-Related Items is and remains the Grantee’s responsibility and may exceed the amount actually withheld by the Company or a Related Entity.  The Grantee further acknowledges that the Company (1) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including, but not limited to, the grant or vesting of the Option, the issuance of Shares under the Option, the subsequent sale of Shares acquired pursuant to such issuance and the receipt of any dividends and/or any dividend equivalents; and (2) does not commit to and is under no obligation to structure the terms of the Option or any aspect of the Option to reduce or eliminate the Grantee’s liability for Tax-Related Items or achieve any particular tax result.

Prior to any relevant taxable or tax withholding event, as applicable, the Grantee shall pay or make adequate arrangements satisfactory to the Company to satisfy all Tax-Related Items.  In this regard, the Grantee hereby authorizes the Company or its agent, at the Company’s discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following methods:

(i)      withholding from wages or other cash compensation otherwise payable to the Grantee by the Company or the Company’s employer (if different); and/or

(ii)      withholding from the proceeds of the sale of Shares acquired upon exercise of the Option, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Grantee’s behalf pursuant to this authorization); and/or

(iii)     withholding in Shares to be issued upon exercise of the Option.

Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case the Grantee will receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Shares.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Grantee will be deemed to have been issued the full number of Shares subject to the exercised portion of the Option, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Grantee’s participation in the Plan.

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3.              Method of Payment. Payment of the Exercise Price shall be made by any of the following, or a combination thereof, at the election of the Grantee; provided, however, that such exercise method does not then violate any Applicable Law:

(a)       cash;

(b)      check;

(c)      surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require which have a Fair Market Value on the date of surrender or attestation equal to the aggregate Exercise Price of the Shares as to which the Option is being exercised; or

(d)     payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (i) shall provide written instructions to a Company-designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company sufficient funds to cover the aggregate Exercise Price payable for the purchased Shares and (ii) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction.

4.              Restrictions on Exercise. The Option may not be exercised if the issuance of the Shares subject to the Option upon suchexercise would constitute a violation of any Applicable Laws.

5.               Termination or Change of Continuous Service.

(a)      In the event the Grantee’s Continuous Service terminates, other than for Cause, the Grantee may, but only during the Post-Termination Exercise Period (set forth in the Notice), exercise the portion of the Option that was vested at the date of such termination (the “Termination Date”).  In the event of termination of the Grantee’s Continuous Service for Cause, the Grantee’s right to exercise the Option shall terminate concurrently with the termination of the Grantee’s Continuous Service.  In no event, however, shall the Option be exercised later than the Expiration Date set forth in the Notice.

(b)      Change in Status.  In the event of the Grantee’s change in status from Employee, Director or Consultant to any other status of Employee, Director or Consultant or from an Employee whose customary employment is 20 hours or more per week to an Employee whose customary employment is fewer than 20 hours per week, then, unless otherwise required by law, the Option shall remain in place and vesting of the Option shall continue; provided, however, that with respect to any Incentive Stock Option that shall remain in effect after a change in status from Employee to Director or Consultant, such Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following such change in status.  Except as provided in Sections 6, 7 and 8 below, to the extent that the Option was unvested on the Termination Date, or if the Grantee does not exercise the vested portion of the Option within the Post-Termination Exercise Period,the Option shall terminate.

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(c)      Leave of Absence.  During any authorized leave of absence, the vesting of the Option as provided in this schedule shall be suspended after the leave of absence exceeds a period of ninety (90) days.  For purposes of an Incentive Stock Option, in the case of any leave of absence exceeding three months where reemployment upon expiration of the leave is not guaranteed by statute or contract, the Incentive Stock Option shall be treated as a Non-Statutory Stock Option on the date three months and one day following the date that the leave of absence exceeds three months.  Vesting of the Option shall resume upon the Grantee’s termination of the leave of absence and return to service to the Company or a Related Entity.  The Vesting Schedule of the Option shall be extended by the length of the suspension.

(d)      Terminating Event.  Notwithstanding anything in the Notice, this Option Agreement or the Plan to the contrary, upon the termination by the Company and/or a Company Affiliate of the Grantee’s Continuous Service with the Company and all Company Affiliates (for which the Grantee is then providing Continuous Service) for any reason other than for Cause or the death or disability (as determined under the then existing long-term disability coverage of the Company or such Company Affiliate) of the Grantee that occurs (x) at least one year after the Grant Date, and (y) at a time when the Grantee’s combined age and years of Continuous Service are equal to or greater than 68 and the Grantee has at least seven (7) years of Continuous Service with the Company or a Company Affiliate, the Shares subject to the Option that are unvested immediately prior to such termination or change will not be forfeited and will instead vest in full upon such termination of Continuous Service..

6.              Retirement of Grantee.  If the Grantee’s Continuous Service terminates at a time when the Grantee’s combined age and years of Continuous Service is equal to or greater than 68, then the Grantee may, but only within the period ending on the third anniversary of the Termination Date (but in no event later than the Expiration Date), exercise the portion of the Option that was vested as of the Termination Date.  To the extent that the Option was unvested on the Termination Date then, except as provided in Section 5(d) above, the Option shall terminate.  If the Grantee does not exercise the vested portion of the Option within the time specified herein the Option shall terminate.  If the Option is an Incentive Stock Option, such Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the Termination Date.

7.              Disability of Grantee.  In the event the Grantee’s Continuous Service terminates as a result of his or her Disability, the Grantee may, but only within twelve (12) months from the Termination Date (but in no event later than the Expiration Date), exercise the portion of the Option that was vested on the Termination Date; provided, however, that if such Disability is not a “disability” as such term is defined in Section 22(e)(3) of the Code (without regard to the last sentence thereof) and the Option is an Incentive Stock Option, such Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the Termination Date.  To the extent that the Option was unvested on the Termination Date then the Option shall terminate.  If the Grantee does not exercise the vested portion of the Option within the time specified herein the Option shall terminate.  Section 22(e)(3) of the Code provides, in part, that an individual is permanently and totally disabled if he or she is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.

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8.            Death of Grantee. In the event of the termination of the Grantee’s Continuous Service as a result of his or her death, or in the event of the Grantee’s death during the Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s termination of Continuous Service as a result of his or her Disability, the person who acquired the right to exercise the Option pursuant to Section 9 may exercise the portion of the Option that was vested at the date of termination within twelve (12) months from the date of death (but in no event later than the Expiration Date).  To the extent that the Option was unvested on the date of death then the Option shall terminate.  If the vested portion of the Option is not exercised within the time specified herein, the Option shall terminate.

9.              Transferability of Option. The Option, if an Incentive Stock Option, may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the lifetime of the Grantee only by the Grantee. The Option, if a Non-Qualified Stock Option, may not be transferred in any manner other than by will or by the laws of descent and distribution, provided, however, that a Non-Qualified Stock Option may be transferred during the lifetime of the Grantee to the extent and in the manner authorized by the Administrator, subject to the applicable limitations, if any, described in the General Instructions to Form S-8 Registration Statement under the Securities Act; provided, that any transfer of a Non-Qualified Stock Option that is permitted hereunder shall be without consideration, except as required by Applicable Laws. Notwithstanding the foregoing, the Grantee may designate one or more beneficiaries of the Grantee’s Incentive Stock Option or Non-Qualified Stock Option in the event of the Grantee’s death on a beneficiary designation form provided by the Administrator. Following the death of the Grantee, the Option, to the extent provided in Section 8, may be exercised (a) by the person or persons designated under the deceased Grantee’s beneficiary designation or (b) in the absence of an effectively designated beneficiary, by the Grantee’s legal representative or by any person empowered to do so under the deceased Grantee’s will or under the then applicable laws of descent and distribution. The Option may not be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance of the Option shall be void and unenforceable against the Company or any Related Entity.  The terms of the Option shall be binding upon the executors, administrators, heirs, successors and transferees of the Grantee.

10.            Term of Option. The Option must be exercised no later than the Expiration Date set forth in the Notice or such earlier date as otherwise provided herein. After the Expiration Date or such earlier date, the Option shall be of no further force or effect and may not be exercised.

11.             Entire Agreement: Governing Law. The Notice, the Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan and this Option Agreement (except as expressly provided therein) is intended to confer any rights or remedies on any persons other than the parties. The Notice, the Plan and this Option Agreement are to be construed in accordance with and governed by the internal laws of theState of Maryland without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Maryland to the rights and duties of the parties. Should any provision of the Notice, the Plan or this Option Agreement be determined to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

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12.             Headings. The captions used in the Notice and this Option Agreement are inserted for convenience and shall not be deemed a part of the Option for construction or interpretation.

13.             Administration and Interpretation. The grant of the Option, the vesting of the Option and the issuance of Shares upon exercise of the Option are subject to, and shall be administered in accordance with, the provisions of the Plan, as the same may be amended from time to time.  Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Option Agreement shall be submitted by the Grantee or by the Company to the Administrator. The resolution of such question or dispute by the Administrator shall be final and binding on all persons.

14.           Venue and Waiver of Jury Trial. The parties agree that any suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Option Agreement shall be brought in the United States District Court for the Northern District of California (or should such court lack jurisdiction to hear such action, suit or proceeding, in a California state court in the County of Santa Clara) and that the parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this Section 14 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

15.            Tax Consequences for Exercise After Per Share Fair Market Value Exceeds $100 Spread.  The Grantee hereby acknowledges that he or she shall be solely responsible for any adverse tax consequences that may arise if the Grantee elects to exercise the Option at any time after the date that the Fair Market Value of a share of Common Stock exceeds the Exercise Price Per Share by an amount that would exceed the $100 Spread (as contemplated under Section 2(c) hereof).

16.           Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing from time to time to the other party.

17.             Adjustments.  The number and type of Shares subject to the Option and exercise price Option is subject to adjustment as provided in Section 10 of the Plan.  The Grantee shall be notified of such adjustment and such adjustment shall be binding upon the Company and the Grantee.

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18.           Restrictions on Resale.  The Grantee hereby agrees not to sell any Shares at a time when Applicable Laws, Company policies or an agreement between the Company and its underwriters prohibit a sale.  This restriction will apply as long as the Grantee’s Continuous Service continues and for such period of time after the termination of the Grantee’s Continuous Service as the Company may specify.

19.             Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon the Grantee and his or her heirs, executors, administrators, successors and assign.

20.            Severability.  Should any provision of the Notice, the Plan or this Agreement be determined to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

21.           No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Grantee’s participation in the Plan or the Grantee’s acquisition or sale of the underlying Shares.  The Grantee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding the Grantee’s participation in the Plan before taking any action related to the Plan.

22.            Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Grantee hereby consents to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

23.             Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Grantee’s participation in the Plan, on the Option and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Grantee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

24.           Amendments.  The Company may amend this Agreement at any time, provided that no such amendment shall be made without the Grantee’s consent if such action would materially and adversely affect the Grantee’s rights under this Agreement.  The Company reserves the right to impose other requirements on the Option and the Shares acquired upon vesting of the Option, to the extent the Company determines it is necessary or advisable under the laws of the country in which the Grantee resides pertaining to the issuance or sale of the Shares or to facilitate the administration of the Plan.

25.             Counterparts.  For the convenience of the parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document.

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26.           Waiver.  The Grantee acknowledges that a waiver by the Company of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Grantee or any other person.

27.            Recovery of Erroneously Awarded Compensation.  If the Grantee is now or hereafter becomes subject to any policy providing for the recovery of Awards, Shares, proceeds or payments to the Grantee in the event of fraud or other circumstances, then this Award, and any Shares issuable upon the exercise of the Option or proceeds therefrom, are subject to potential recovery by the Company under the circumstances provided under such policy as may be in effect from time to time.

END OF AGREEMENT

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EX-10.26

Exhibit 10.26

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this “Second Amendment”) is made as of January 9, 2020 (the “Effective Date”), by and among ESSEX PORTFOLIO, L.P., a California limited partnership (“Borrower”), the lenders which are parties hereto (collectively, the “Lenders”) and PNC BANK, NATIONAL ASSOCIATION, as administrative agent under the Credit Agreement (in such capacity, “Administrative Agent”) and L/C Issuer.

BACKGROUND

    A.    Administrative Agent, the Lenders, and Borrower entered into that certain Second Amended and Restated Revolving Credit Agreement, dated as of January 17, 2018, as amended by that certain First Amendment to Second Amended and Restated Revolving Credit Agreement dated January 11, 2019 (as amended, the “Credit Agreement”), pursuant to which the Lenders agreed to make revolving credit loans to Borrower under the terms and conditions set forth therein.

    B.    Administrative Agent, the Lenders and Borrower desire to modify the Credit Agreement and the other Loan Documents to (i) extend the Original Maturity Date, and (ii) modify certain other terms and provisions, on the terms and subject to the conditions herein set forth.

NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as follows:

AGREEMENT

        1.    Terms. Capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement.

        2.    Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows:

            (a)    The definition of “Original Maturity Date” in Section 1.1 is hereby amended and restated to read in full as follows:

    ““Original Maturity Date” means December 29, 2023.”

            (b)    Exhibit D (Form of Compliance Certificate) to the Credit Agreement is hereby amended and replaced with Exhibit D attached hereto.

        3.    Loan Documents. Except where the context clearly requires otherwise, all references to the Credit Agreement in any other Loan Document shall be to the Credit Agreement as amended by this Second Amendment.

        4.    Borrower’s Ratification. Borrower agrees that it has no defenses or set-offs against the Lenders or their respective officers, directors, employees, agents or attorneys, with respect to the Loan Documents, all of which are in full force and effect, and that all of the terms and conditions of the Loan Documents not inconsistent herewith shall remain in full force and effect unless and until modified or amended in writing in accordance with their terms. Borrower hereby ratifies and confirms its obligations under the Loan Documents and agrees that the execution and delivery of this Second Amendment does not in any way diminish or invalidate any of its obligations thereunder.

        5.    Guarantor Ratification. Guarantor agrees that it has no defenses or set-offs against the Lenders or their respective officers, directors, employees, agents or attorneys, with respect to the Guaranty, which is in full force and effect, and that all of the terms and conditions of the Guaranty not inconsistent herewith shall remain in full force and effect unless and until modified or amended in writing in accordance with their terms. Guarantor hereby ratifies and confirms its obligations under the Guaranty and agrees that the execution and delivery of this Second Amendment does not in any way diminish or invalidate any of its obligations thereunder.

        6.    Representations and Warranties. Borrower hereby represents and warrants to the Lenders that:

            (a)    The representations and warranties made in the Credit Agreement, as amended by this Second Amendment, are true and correct in all material respects as of the date hereof;

            (b)    After giving effect to this Second Amendment, no Default or Event of Default under the Credit Agreement or the other Loan Documents exists on the date hereof;

            (c)    This Second Amendment has been duly authorized, executed and delivered by Borrower so as to constitute the legal, valid and binding obligations of Borrower, enforceable in accordance with its terms, except as the same may be limited by insolvency, bankruptcy, reorganization or other laws relating to or affecting the enforcement of creditors’ rights or by general equitable principles;

            (d)    The Joinder Page to this Second Amendment has been duly authorized, executed and delivered by Guarantor; and

            (e)    No material adverse change in the business, assets, operations, condition (financial or otherwise) or prospects of Borrower, Guarantor or any of their subsidiaries or Affiliates has occurred since the date of the last financial statements of the afore-mentioned entities which were delivered to Administrative Agent.

        All of the above representations and warranties shall survive the making of this Second Amendment.

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        7.    Conditions Precedent. The effectiveness of the amendments set forth herein is subject to the fulfillment, to the satisfaction of Administrative Agent and its counsel, of the following conditions precedent:

            (a)    Borrower shall have delivered to Administrative Agent the following, all of which shall be in form and substance satisfactory to Administrative Agent and shall be duly completed and executed (as applicable):

                (i)    This Second Amendment;

                (ii)    If requested by Administrative Agent, evidence that the execution, delivery and performance by Borrower and Guarantor, as the case may be, of this Second Amendment have been duly authorized, executed and delivered by Responsible Officers of Borrower and Guarantor, as the case may be; and

                (iii)    Such additional documents, certificates and information as Administrative Agent may require pursuant to the terms hereof or otherwise reasonably request.

            (b)    The representations and warranties set forth in the Credit Agreement shall be true and correct in all material respects on and as of the date hereof.

            (c)    After giving effect to this Second Amendment, no Default or Event of Default shall have occurred and be continuing as of the date hereof.

            (d)    Borrower shall have paid to Administrative Agent, (i) any fees required to be paid by Borrower to Administrative Agent for its benefit or the benefit of the Lenders in connection with the extension of the Original Maturity Date as agreed to by Borrower and Administrative Agent; and (ii) all other costs and expenses of Administrative Agent in connection with preparing and negotiating this Second Amendment, including, but not limited to, reasonable attorneys’ fees and costs.

        8.    Miscellaneous.

            (a)    All terms, conditions, provisions and covenants in the Loan Documents and all other documents delivered to Administrative Agent in connection therewith shall remain unaltered and in full force and effect except as modified or amended hereby. To the extent that any term or provision of this Second Amendment is or may be deemed expressly inconsistent with any term or provision in any Loan Document or any other document executed in connection therewith, the terms and provisions hereof shall control.

            (b)    Except as expressly provided herein, the execution, delivery and effectiveness of this Second Amendment shall neither operate as a waiver of any right, power or remedy of Administrative Agent or the Lenders under any of the Loan Documents nor constitute a waiver of any Default or Event of Default thereunder.

            (c)    This Second Amendment constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings and agreements.

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            (d)    In the event any provisions of this Second Amendment shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof.

            (e)    This Second Amendment shall be governed by and construed according to the laws of the State of California, without giving effect to any of its choice of law rules.

            (f)    This Second Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns and may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

            (g)    The headings used in this Second Amendment are for convenience of reference only, do not form a part of this Second Amendment and shall not affect in any way the meaning or interpretation of this Second Amendment.

[Signatures commence on the next page]

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    IN WITNESS WHEREOF, Borrower, Administrative Agent and the Lenders have caused this Second Amendment to be executed by their duly authorized officers as of the date first above written.

ESSEX PORTFOLIO, L.P.,

a California limited partnership

BY:    ESSEX PROPERTY TRUST, INC.,

    a Maryland corporation, its general partner

By: /s/ Anne Morrison

Name: Anne Morrison

Title: GVP, Acting General Counsel

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

PNC BANK, NATIONAL ASSOCIATION,

as Administrative Agent

By: /s/ David C. Drouillard

David C. Drouillard, Senior Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

PNC BANK, NATIONAL ASSOCIATION,

as L/C Issuer, Swing Line Lender and Lender

By: /s/ David C. Drouillard

David C. Drouillard, Senior Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

MUFG UNION BANK, N.A.,

as Lender

By: /s/ Peter Jablonski

Name: Peter Jablonski

Title: Account Officer

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

U.S. BANK NATIONAL ASSOCIATION,

as Lender

By: /s/ Michael F. Diemer

Name: Michael F. Diemer

Title: Senior Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

CAPITAL ONE, NATIONAL ASSOCIATION,

as Lender

By: /s/ Jessica W. Phillips

Name: Jessica W. Phillips

Title: Duly Authorized Signatory

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Lender

By: /s/ Ricky Nahal

Name: Ricky Nahal

Title: Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

BANK OF THE WEST,

as Lender

By: /s/ Nancy Lam

Name: Nancy Lam

Title: AVP

By: /s/ Dennis Larden

Name: Dennis Larden

Title: Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

THE BANK OF NOVA SCOTIA,

as Lender

By: /s/ Ajit Goswami

Name: Ajit Goswami

Title: Managing Director & Industry Head

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

CITIBANK, N.A.,

as Lender

By: /s/ Christopher J. Albano

Name: Christopher J. Albano

Title: Authorized Signatory

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

MIZUHO BANK, LTD.,

as Lender

By: /s/ Donna DeMagistris

Name: Donna DeMagistris

Title: Authorized Signatory

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

JPMORGAN CHASE BANK, N.A.,

as Lender

By: /s/ Paul Choi

Name: Paul Choi

Title: Authorized Signer

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

CITY NATIONAL BANK, a national banking association,

as Lender

By: /s/ Cynthia Choy

Name: Cynthia Choy

Title: Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

REGIONS BANK,

as Lender

By: /s/ William Chalmers

Name: William Chalmers

Title: Assistant Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

TRUIST BANK, formerly known as BRANCH BANKING AND TRUST COMPANY,

as Lender

By: /s/ Ahaz Armstrong

Name: Ahaz Armstrong

Title: Senior Vice President

[Signatures Continue on the Next Page]

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

BNP PARIBAS,

as Lender

By: /s/ James Goodall

Name: James Goodall

Title: Managing Director

By: /s/ Kyle Fitzpatrick

Name: Kyle Fitzpatrick

Title: Vice President

[Signature Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

JOINDER PAGE

    Essex Property Trust, Inc., a Maryland corporation, as the “Guarantor” under the Credit Agreement hereby joins in the execution of this Second Amendment to make the affirmations set forth in Section 5 of this Second Amendment and to evidence its agreement to be bound by the terms and conditions of this Second Amendment applicable to it. The party executing this Joinder Page on behalf of Guarantor has the requisite power and authority, and has been duly authorized, to execute this Joinder Page on behalf of Guarantor.

ESSEX PROPERTY TRUST, INC.,

a Maryland corporation, as Guarantor

By: /s/ Anne Morrison

Name: Anne Morrison

Title: Acting General Counsel

[Joinder Page to Second Amendment to Second

Amended and Restated Revolving Credit Agreement]

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Essex Property Trust, Inc.:

We consent to the incorporation by reference in the registration statements Nos. 333‑227600 & 333-102552 on Form S-3 and registration statements Nos.333-224941, 333-194954, 333-189239, 333-123001 and 333-122999 on Form S-8 of Essex Property Trust, Inc. of our reports dated February 19, 2021, with respect to the consolidated balance sheets of Essex Property Trust, Inc. and subsidiaries as of December 31, 2020 and 2019, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III (collectively, the consolidated financial statements), and the effectiveness of internal control over financial reporting as of December 31, 2020, which reports appear in the December 31, 2020 annual report on Form 10‑K of Essex Property Trust, Inc. and Essex Portfolio, L.P.

Our report on the consolidated financial statements refers to a change in the method of accounting for leases as of January 1, 2019 due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842) and Accounting Standards Update No. 2018-11, Leases (Topic 842): Targeted Improvements.

/s/ KPMG LLP    

San Francisco, California

February 19, 2021

EX-23.2

Exhibit 23.2

Consent of Independent Registered Public Accounting Firm

The Partners of Essex Portfolio, L.P. and Board of Directors of Essex Property Trust, Inc.:

We consent to the incorporation by reference in the registration statement No. 333‑227600-01 on Form S-3 of Essex Portfolio, L.P. of our report dated February 19, 2021, with respect to the consolidated balance sheets of Essex Portfolio, L.P. and subsidiaries as of December 31, 2020 and 2019, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III, which report appears in the December 31, 2020 annual report on Form 10‑K of Essex Property Trust, Inc. and Essex Portfolio, L.P.

Our report on the consolidated financial statements refers to a change in the method of accounting for leases as of January 1, 2019 due to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842) and Accounting Standards Update No. 2018-11, Leases (Topic 842): Targeted Improvements.

/s/ KPMG LLP    

San Francisco, California

February 19, 2021

EX-31.1

Exhibit 31.1

ESSEX PROPERTY TRUST, INC.

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael J. Schall, certify that:

1.I have reviewed this annual report on Form 10-K of Essex Property Trust, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:   February 19, 2021

/s/ Michael J. Schall

Michael J. Schall

Chief Executive Officer and President

Essex Property Trust, Inc.

EX-31.2

Exhibit 31.2

ESSEX PROPERTY TRUST, INC.

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Barbara Pak, certify that:

1.I have reviewed this annual report on Form 10-K of Essex Property Trust, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:   February 19, 2021

/s/ Barbara Pak

Barbara Pak

Chief Financial Officer and Executive Vice President

Essex Property Trust, Inc.

EX-31.3

Exhibit 31.3

ESSEX PORTFOLIO, L.P.

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael J. Schall, certify that:

1.I have reviewed this annual report on Form 10-K of Essex Portfolio, L.P.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:   February 19, 2021

/s/ Michael J. Schall

Michael J. Schall

Chief Executive Officer and President

Essex Property Trust, Inc., general partner of

Essex Portfolio, L.P.

EX-31.4

Exhibit 31.4

ESSEX PORTFOLIO, L.P.

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Barbara Pak, certify that:

1.I have reviewed this annual report on Form 10-K of Essex Portfolio, L.P.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:   February 19, 2021

/s/ Barbara Pak

Barbara Pak

Chief Financial Officer and Executive Vice President

Essex Property Trust, Inc., general partner of

Essex Portfolio, L.P.

EX-32.1

Exhibit 32.1

ESSEX PROPERTY TRUST, INC.

Certification of Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350 as adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, chapter 63 of title 18, United States Code), I, Michael J. Schall, hereby certify, to the best of my knowledge, that the Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”) of Essex Property Trust, Inc. fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Essex Property Trust, Inc. at the dates of and for the periods presented.

Date: February 19, 2021

/s/ Michael J. Schall

Michael J. Schall

Chief Executive Officer and President

Essex Property Trust, Inc.

EX-32.2

Exhibit 32.2

ESSEX PROPERTY TRUST, INC.

Certification of Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350 as adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, chapter 63 of title 18, United States Code), I, Barbara Pak, hereby certify, to the best of my knowledge, that the Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”) of Essex Property Trust, Inc. fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Essex Property Trust, Inc. at the dates of and for the periods presented.

Date: February 19, 2021

/s/ Barbara Pak

Barbara Pak

Chief Financial Officer and Executive Vice President

Essex Property Trust, Inc.

EX-32.3

Exhibit 32.3

ESSEX PORTFOLIO, L.P.

Certification of Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350 as adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, chapter 63 of title 18, United States Code), I, Michael J. Schall, hereby certify, to the best of my knowledge, that the Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”) of Essex Portfolio, L.P. fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Essex Portfolio, L.P. at the dates of and for the periods presented.

Date: February 19, 2021

/s/ Michael J. Schall

Michael J. Schall

Chief Executive Officer and President

Essex Property Trust, Inc., general partner of

Essex Portfolio, L.P.

EX-32.4

Exhibit 32.4

ESSEX PORTFOLIO, L.P.

Certification of Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350 as adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, chapter 63 of title 18, United States Code), I, Barbara Pak, hereby certify, to the best of my knowledge, that the Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”) of Essex Portfolio, L.P. fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Essex Portfolio, L.P. at the dates of and for the periods presented.

Date: February 19, 2021

/s/ Barbara Pak

Barbara Pak

Chief Financial Officer and Executive Vice President

Essex Property Trust, Inc., general partner of

Essex Portfolio, L.P.

XML

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2020	Feb. 17, 2021	Jun. 30, 2020
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-13106
Entity Registrant Name	ESSEX PROPERTY TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	77-0369576
Entity Address, Address Line One	1100 Park Place, Suite 200
Entity Address, City or Town	San Mateo
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94403
City Area Code	650
Local Phone Number	655-7800
Title of 12(b) Security	Common Stock, $.0001 par value (Essex Property Trust, Inc.)
Trading Symbol	ESS
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 14,874,979,309
Entity Common Stock, Shares Outstanding		64,994,503
Documents Incorporated by Reference	Portions of the definitive Proxy Statement to be filed with the Securities and Exchange Commission (the "SEC") pursuant to Regulation 14A in connection with the 2021 annual meeting of stockholders of Essex Property Trust, Inc. are incorporated by reference in Part III of this Annual Report on Form 10-K. Such Proxy Statement will be filed with the SEC within 120 days of December 31, 2020.
Entity Central Index Key	0000920522
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Essex Portfolio, L.P.
Entity Information [Line Items]
Current Fiscal Year End Date	--12-31
Entity File Number	333-44467-01
Entity Registrant Name	ESSEX PORTFOLIO, L.P.
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	77-0369575
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Rental properties:
Land and land improvements	$ 2,929,009	$ 2,773,805
Buildings and improvements	12,132,736	11,264,337
Total rental properties	15,061,745	14,038,142
Less: accumulated depreciation	(4,133,959)	(3,689,482)
Net real estate	10,927,786	10,348,660
Real estate under development	386,047	546,075
Co-investments	1,018,010	1,335,339
Real estate held for sale	57,938	0
Total real estate	12,389,781	12,230,074
Cash and cash equivalents-unrestricted	73,629	70,087
Cash and cash equivalents-restricted	10,412	11,007
Marketable securities, net of allowance for credit losses of zero as of both December 31, 2020 and December 31, 2019	147,768	144,193
Notes and other receivables, net of allowance for credit losses of $0.8 million and zero as of December 31, 2020 and December 31, 2019, respectively (includes related party receivables of $4.7 million and $90.2 million as of December 31, 2020 and December 31, 2019, respectively)	195,104	134,365
Operating lease right-of-use assets	72,143	74,744
Prepaid expenses and other assets	47,340	40,935
Total assets	12,936,177	12,705,405
LIABILITIES AND EQUITY
Unsecured debt, net	5,607,985	4,763,206
Mortgage notes payable, net	643,550	990,667
Lines of credit	0	55,000
Accounts payable and accrued liabilities	152,855	158,017
Construction payable	31,417	48,912
Dividends payable	141,917	135,384
Operating lease liabilities	74,037	76,740
Liabilities associated with real estate held for sale	29,845	0
Other liabilities	39,140	36,565
Total liabilities	6,720,746	6,264,491
Commitments and contingencies
Redeemable noncontrolling interest	32,239	37,410
Equity/ Capital:
Common stock; $0.0001 par value, 670,000,000 shares authorized; 64,999,015 and 66,091,954 shares issued and outstanding, respectively	6	7
Additional paid-in capital	6,876,326	7,121,927
Distributions in excess of accumulated earnings	(861,193)	(887,619)
Limited Partners:
Accumulated other comprehensive loss, net	(14,729)	(13,888)
Total stockholders' equity	6,000,410	6,220,427
Noncontrolling interest	182,782	183,077
Total equity	6,183,192	6,403,504
Total liabilities and equity/capital	12,936,177	12,705,405
Essex Portfolio, L.P.
Rental properties:
Land and land improvements	2,929,009	2,773,805
Buildings and improvements	12,132,736	11,264,337
Total rental properties	15,061,745	14,038,142
Less: accumulated depreciation	(4,133,959)	(3,689,482)
Net real estate	10,927,786	10,348,660
Real estate under development	386,047	546,075
Co-investments	1,018,010	1,335,339
Real estate held for sale	57,938	0
Total real estate	12,389,781	12,230,074
Cash and cash equivalents-unrestricted	73,629	70,087
Cash and cash equivalents-restricted	10,412	11,007
Marketable securities, net of allowance for credit losses of zero as of both December 31, 2020 and December 31, 2019	147,768	144,193
Notes and other receivables, net of allowance for credit losses of $0.8 million and zero as of December 31, 2020 and December 31, 2019, respectively (includes related party receivables of $4.7 million and $90.2 million as of December 31, 2020 and December 31, 2019, respectively)	195,104	134,365
Operating lease right-of-use assets	72,143	74,744
Prepaid expenses and other assets	47,340	40,935
Total assets	12,936,177	12,705,405
LIABILITIES AND EQUITY
Unsecured debt, net	5,607,985	4,763,206
Mortgage notes payable, net	643,550	990,667
Lines of credit	0	55,000
Accounts payable and accrued liabilities	152,855	158,017
Construction payable	31,417	48,912
Dividends payable	141,917	135,384
Operating lease liabilities	74,037	76,740
Liabilities associated with real estate held for sale	29,845	0
Other liabilities	39,140	36,565
Total liabilities	6,720,746	6,264,491
Commitments and contingencies
Redeemable noncontrolling interest	32,239	37,410
Limited Partners:
Accumulated other comprehensive loss, net	(11,303)	(10,432)
Total partners' capital	6,062,020	6,281,242
Noncontrolling interest	121,172	122,262
Total capital	6,183,192	6,403,504
Total liabilities and equity/capital	12,936,177	12,705,405
Essex Portfolio, L.P. | General Partner
General Partner:
Common equity (64,999,015 and 66,091,954 units issued and outstanding, respectively)	6,015,139	6,234,315
Essex Portfolio, L.P. | General Partner | Common Equity
General Partner:
Common equity (64,999,015 and 66,091,954 units issued and outstanding, respectively)	6,015,139	6,234,315
Limited Partners:
Total capital	6,015,139	6,234,315
Essex Portfolio, L.P. | Limited Partner
Limited Partners:
Common equity (2,294,760 and 2,301,653 units issued and outstanding, respectively)	58,184	57,359
Essex Portfolio, L.P. | Limited Partner | Common Equity
Limited Partners:
Total capital	$ 58,184	$ 57,359

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Marketable securities, allowance for credit loss	$ 0	$ 0
Notes and other receivable, allowance for credit loss	751	0
Due from related parties	$ 4,700	$ 90,200
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	670,000,000	670,000,000
Common stock, shares issued	64,999,015	66,091,954
Common stock shares outstanding	64,999,015	66,091,954
Essex Portfolio, L.P.
Marketable securities, allowance for credit loss	$ 0	$ 0
Notes and other receivable, allowance for credit loss	800	0
Due from related parties	$ 4,700	$ 90,200
Essex Portfolio, L.P. | General Partner
Common stock, shares issued	64,999,015	66,091,954
Common stock shares outstanding	64,999,015	66,091,954
Essex Portfolio, L.P. | Limited Partner
Common stock, shares issued	2,294,760	2,301,653
Common stock shares outstanding	2,294,760	2,301,653

XML

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Rental and other property	$ 1,486,150	$ 1,450,628	$ 1,390,870
Management and other fees from affiliates	9,598	9,527	9,183
Total revenues	1,495,748	1,460,155	1,400,053
Expenses:
Property operating, excluding real estate taxes	263,389	241,357	232,771
Real estate taxes	177,011	155,170	151,570
Corporate-level property management expenses	34,573	34,067	32,055
Depreciation and amortization	525,497	483,750	479,884
General and administrative	65,388	54,262	53,451
Expensed acquisition and investment related costs	1,591	168	194
Impairment loss	1,825	7,105	0
Total expenses	1,069,274	975,879	949,925
Gain (loss) on sale of real estate and land	64,967	(3,164)	61,861
Earnings from operations	491,441	481,112	511,989
Interest expense	(220,633)	(217,339)	(220,492)
Total return swap income	10,733	8,446	8,707
Interest and other income	40,999	46,298	23,010
Equity income from co-investments	66,512	112,136	89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)	(1,457)	0
(Loss) gain on early retirement of debt, net	(22,883)	3,717	0
Gain on remeasurement of co-investment	234,694	31,535	1,253
Net income	599,332	464,448	413,599
Net income attributable to noncontrolling interest	(30,462)	(25,162)	(23,446)
Net income available to common stockholders/unitholders	$ 568,870	$ 439,286	$ 390,153
Basic:
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.67	$ 5.91
Weighted average number of shares/units outstanding during the year (in shares)	65,454,057	65,840,422	66,041,058
Diluted:
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.66	$ 5.90
Weighted average number of shares/units outstanding during the year (in shares)	65,564,982	65,939,455	66,085,089
Essex Portfolio, L.P.
Revenues:
Rental and other property	$ 1,486,150	$ 1,450,628	$ 1,390,870
Management and other fees from affiliates	9,598	9,527	9,183
Total revenues	1,495,748	1,460,155	1,400,053
Expenses:
Property operating, excluding real estate taxes	263,389	241,357	232,771
Real estate taxes	177,011	155,170	151,570
Corporate-level property management expenses	34,573	34,067	32,055
Depreciation and amortization	525,497	483,750	479,884
General and administrative	65,388	54,262	53,451
Expensed acquisition and investment related costs	1,591	168	194
Impairment loss	1,825	7,105	0
Total expenses	1,069,274	975,879	949,925
Gain (loss) on sale of real estate and land	64,967	(3,164)	61,861
Earnings from operations	491,441	481,112	511,989
Interest expense	(220,633)	(217,339)	(220,492)
Total return swap income	10,733	8,446	8,707
Interest and other income	40,999	46,298	23,010
Equity income from co-investments	66,512	112,136	89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)	(1,457)	0
(Loss) gain on early retirement of debt, net	(22,883)	3,717	0
Gain on remeasurement of co-investment	234,694	31,535	1,253
Net income	599,332	464,448	413,599
Net income attributable to noncontrolling interest	(10,550)	(9,819)	(9,994)
Net income available to common stockholders/unitholders	$ 588,782	$ 454,629	$ 403,605
Basic:
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.67	$ 5.91
Weighted average number of shares/units outstanding during the year (in shares)	67,750,665	68,140,900	68,315,999
Diluted:
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.66	$ 5.90
Weighted average number of shares/units outstanding during the year (in shares)	67,861,590	68,239,933	68,360,030

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net income	$ 599,332	$ 464,448	$ 413,599
Other comprehensive income (loss):
Change in fair value of derivatives and amortization of swap settlements	(4,148)	(2,948)	7,824
Cash flow hedge losses reclassified to earnings	3,338	1,824	0
Change in fair value of marketable debt securities, net	(61)	281	(118)
Reversal of unrealized (gains) losses upon the sale of marketable debt securities	0	(32)	13
Total other comprehensive (loss) income	(871)	(875)	7,719
Comprehensive income	598,461	463,573	421,318
Comprehensive income attributable to noncontrolling interest	(30,432)	(25,133)	(23,702)
Comprehensive income attributable to controlling interest	568,029	438,440	397,616
Essex Portfolio, L.P.
Net income	599,332	464,448	413,599
Other comprehensive income (loss):
Change in fair value of derivatives and amortization of swap settlements	(4,148)	(2,948)	7,824
Cash flow hedge losses reclassified to earnings	3,338	1,824	0
Change in fair value of marketable debt securities, net	(61)	281	(118)
Reversal of unrealized (gains) losses upon the sale of marketable debt securities	0	(32)	13
Total other comprehensive (loss) income	(871)	(875)	7,719
Comprehensive income	598,461	463,573	421,318
Comprehensive income attributable to noncontrolling interest	(10,550)	(9,819)	(9,994)
Comprehensive income attributable to controlling interest	$ 587,911	$ 453,754	$ 411,324

XML

Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common stock	Additional paid-in capital	Distributions in excess of accumulated earnings	Distributions in excess of accumulated earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated other comprehensive loss, net	Accumulated other comprehensive loss, net Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling interest	Noncontrolling interest Cumulative Effect, Period of Adoption, Adjustment
Issuance of common stock under:
Cumulative effect upon adoption	$ 6,396,825		$ 7	$ 7,129,571	$ (833,726)		$ (18,446)		$ 119,419
Cumulative effect upon adoption | ASU 2016-01		$ 0				$ 2,234		$ (2,234)
Cumulative effect upon adoption | ASU 2017-05		123,708				119,651				$ 4,057
Balances at Dec. 31, 2017	6,396,825		$ 7	7,129,571	(833,726)		(18,446)		119,419
Balances (ASU 2016-01) at Dec. 31, 2017		0				2,234		(2,234)
Balances (ASU 2017-05) at Dec. 31, 2017		123,708				119,651				4,057
Balances (in shares) at Dec. 31, 2017			66,054
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	413,599				390,153				23,446
Reversal of unrealized gains upon the sale of marketable securities	13						13
Cash flow hedge losses reclassified to earnings	0
Change in fair value of derivatives and amortization of swap settlements	7,824						7,564		260
Change in fair value of marketable securities, net	(118)						(114)		(4)
Issuance of common stock under:
Stock option and restricted stock plans, net	6,213			6,213
Stock option and restricted stock plans, net (in shares)			41
Sale of common stock, net	(919)			(919)
Equity based compensation costs	12,851			11,651					1,200
Retirement of common stock, net	(51,233)			(51,233)
Retirement of common stock, net (in shares)			(210)
Cumulative effect upon adoption	$ 6,393,844		$ 7	7,093,079	(812,796)		(13,217)		126,771
Cumulative effect upon adoption | ASU 2016-01		0				2,234		(2,234)
Cumulative effect upon adoption | ASU 2017-05		123,708				119,651				4,057
Cumulative effect upon adoption | ASU 2017-12		181						175		6
Accounting Standards Update [Extensible List] | ASU 2016-01	us-gaap:AccountingStandardsUpdate201601Member
Accounting Standards Update [Extensible List] | ASU 2017-05	us-gaap:AccountingStandardsUpdate201705Member
Changes in the redemption value of redeemable noncontrolling interest	$ (1,164)			(1,143)					(21)
Changes in noncontrolling interest from acquisition	7,919								7,919
Distributions to noncontrolling interest	(29,233)								(29,233)
Redemptions of noncontrolling interest	(1,333)			(1,061)					(272)
Redemptions of noncontrolling interest (in shares)			5
Common stock dividends	(491,108)				(491,108)
Balances at Dec. 31, 2018	6,393,844		$ 7	7,093,079	(812,796)		(13,217)		126,771
Balances (ASU 2017-12) at Dec. 31, 2018		181						175		6
Balances (in shares) at Dec. 31, 2018			65,890
Issuance of common stock under:
Cumulative effect upon adoption	6,393,844		$ 7	7,093,079	(812,796)		(13,217)		126,771
Cumulative effect upon adoption | ASU 2017-12		181						175		6
Net income	464,448				439,286				25,162
Reversal of unrealized gains upon the sale of marketable securities	(32)						(31)		(1)
Cash flow hedge losses reclassified to earnings	1,824						1,762		62
Change in fair value of derivatives and amortization of swap settlements	(2,948)						(2,849)		(99)
Change in fair value of marketable securities, net	281						272		9
Stock option and restricted stock plans, net	33,779			33,779
Stock option and restricted stock plans, net (in shares)			195
Sale of common stock, net	72,539			72,539
Sale of common stock, net (in shares)			228
Equity based compensation costs	12,283			11,029					1,254
Retirement of common stock, net	(56,989)			(56,989)
Retirement of common stock, net (in shares)			(234)
Cumulative effect upon adoption	$ 6,403,504		$ 7	7,121,927	(887,619)	(190)	(13,888)		183,077
Cumulative effect upon adoption | ASU 2017-12		181						$ 175		$ 6
Cumulative effect upon adoption | ASU 2016-13		(190)
Accounting Standards Update [Extensible List] | ASU 2017-12	us-gaap:AccountingStandardsUpdate201712Member
Changes in the redemption value of redeemable noncontrolling interest	$ (2,008)			(3,427)					1,419
Changes in noncontrolling interest from acquisition	65,472								65,472
Distributions to noncontrolling interest	(28,493)								(28,493)
Redemptions of noncontrolling interest	(36,568)			(28,083)					(8,485)
Redemptions of noncontrolling interest (in shares)			13
Common stock dividends	(514,109)				(514,109)
Balances at Dec. 31, 2019	6,403,504		$ 7	7,121,927	(887,619)	(190)	(13,888)		183,077
Balances (ASU 2016-13) at Dec. 31, 2019		(190)
Balances (in shares) at Dec. 31, 2019			66,092
Issuance of common stock under:
Cumulative effect upon adoption	6,403,504		$ 7	7,121,927	(887,619)	(190)	(13,888)		183,077
Cumulative effect upon adoption | ASU 2016-13		(190)
Net income	599,332				568,870				30,462
Reversal of unrealized gains upon the sale of marketable securities	0
Cash flow hedge losses reclassified to earnings	3,338						3,225		113
Change in fair value of derivatives and amortization of swap settlements	(4,148)						(4,007)		(141)
Change in fair value of marketable securities, net	(61)						(59)		(2)
Stock option and restricted stock plans, net	9,201			9,201
Stock option and restricted stock plans, net (in shares)			95
Sale of common stock, net	(296)			(296)
Equity based compensation costs	12,913			12,453					460
Retirement of common stock, net	(269,315)		$ (1)	(269,314)
Retirement of common stock, net (in shares)			(1,197)
Cumulative effect upon adoption	$ 6,403,504		$ 6	6,876,326	(861,193)	$ (190)	(14,729)		182,782
Cumulative effect upon adoption | ASU 2016-13		$ (190)
Accounting Standards Update [Extensible List] | ASU 2016-13	us-gaap:AccountingStandardsUpdate201613Member
Changes in the redemption value of redeemable noncontrolling interest	$ 4,299			4,375					(76)
Changes in noncontrolling interest from acquisition	1,349								1,349
Distributions to noncontrolling interest	(31,367)								(31,367)
Redemptions of noncontrolling interest	(3,113)			(2,020)					(1,093)
Redemptions of noncontrolling interest (in shares)			9
Common stock dividends	(542,254)				(542,254)
Balances at Dec. 31, 2020	6,183,192		$ 6	6,876,326	(861,193)		(14,729)		182,782
Balances (in shares) at Dec. 31, 2020			64,999
Issuance of common stock under:
Cumulative effect upon adoption	$ 6,183,192		$ 6	$ 6,876,326	$ (861,193)		$ (14,729)		$ 182,782

XML

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Common stock dividends (in dollars per share)	$ 8.31	$ 7.80	$ 7.44

XML

Consolidated Statements of Capital - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income	$ 599,332	$ 464,448	$ 413,599
Reversal of unrealized gains upon the sale of marketable securities	0	(32)	13
Cash flow hedge losses reclassified to earnings	3,338	1,824	0
Change in fair value of derivatives and amortization of swap settlements	(4,148)	(2,948)	7,824
Change in fair value of marketable securities, net	(61)	281	(118)
Issuance of common stock under:
Sale of common stock by general partner, net	(296)	72,539	(919)
Retirement of common stock, net	(269,315)	(56,989)	(51,233)
Changes in the redemption value of redeemable noncontrolling interest	4,299	(2,008)	(1,164)
Changes in noncontrolling interest from acquisition	1,349	65,472	7,919
Distributions to noncontrolling interest	(31,367)	(28,493)	(29,233)
Redemptions	(3,113)	$ (36,568)	$ (1,333)
ASU 2016-01
Issuance of common stock under:
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201601Member
ASU 2017-05
Issuance of common stock under:
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201705Member
ASU 2017-12
Issuance of common stock under:
Accounting Standards Update [Extensible List]		us-gaap:AccountingStandardsUpdate201712Member
Essex Portfolio, L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances	6,403,504	$ 6,393,844	$ 6,396,825
Net income	599,332	464,448	413,599
Reversal of unrealized gains upon the sale of marketable securities	0	(32)	13
Cash flow hedge losses reclassified to earnings	3,338	1,824	0
Change in fair value of derivatives and amortization of swap settlements	(4,148)	(2,948)	7,824
Change in fair value of marketable securities, net	(61)	281	(118)
Issuance of common stock under:
General partner's stock based compensation, net	9,201	33,779	6,213
Sale of common stock by general partner, net	(296)	72,539	(919)
Equity based compensation costs	12,913	12,283	12,851
Retirement of common stock, net	(269,315)	(56,989)	(51,233)
Cumulative effect upon adoption	6,403,504	6,403,504	6,393,844
Changes in the redemption value of redeemable noncontrolling interest	4,299	(2,008)	(1,164)
Changes in noncontrolling interest from acquisition	1,349	65,472	7,919
Distributions to noncontrolling interest	(12,292)	(10,521)	(12,174)
Redemptions	(3,113)	(36,568)	(1,333)
Distributions declared	(561,329)	(532,081)	(508,167)
Balances	6,183,192	6,403,504	6,393,844
Essex Portfolio, L.P. | Cumulative Effect, Period of Adoption, Adjustment | ASU 2017-05
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances			123,708
Issuance of common stock under:
Cumulative effect upon adoption			123,708
Essex Portfolio, L.P. | Cumulative Effect, Period of Adoption, Adjustment | ASU 2017-12
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances	(190)	181
Issuance of common stock under:
Cumulative effect upon adoption	(190)	(190)	181
Balances		(190)	181
Essex Portfolio, L.P. | Accumulated other comprehensive loss, net
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances	(10,432)	(9,738)	(15,229)
Reversal of unrealized gains upon the sale of marketable securities		(32)	13
Cash flow hedge losses reclassified to earnings	3,338	1,824
Change in fair value of derivatives and amortization of swap settlements	(4,148)	(2,948)	7,824
Change in fair value of marketable securities, net	(61)	281	(118)
Issuance of common stock under:
Cumulative effect upon adoption	(11,303)	(10,432)	(9,738)
Balances	(11,303)	(10,432)	(9,738)
Essex Portfolio, L.P. | Accumulated other comprehensive loss, net | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-01
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances			(2,228)
Issuance of common stock under:
Cumulative effect upon adoption			(2,228)
Essex Portfolio, L.P. | Accumulated other comprehensive loss, net | Cumulative Effect, Period of Adoption, Adjustment | ASU 2017-12
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances		181
Issuance of common stock under:
Cumulative effect upon adoption		181	181
Balances			181
Essex Portfolio, L.P. | Noncontrolling interest
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances	122,262	64,231	66,410
Net income	10,550	9,819	9,994
Issuance of common stock under:
Cumulative effect upon adoption	121,172	122,262	64,231
Changes in the redemption value of redeemable noncontrolling interest	121	1,310	68
Changes in noncontrolling interest from acquisition	1,349	65,472
Distributions to noncontrolling interest	(12,292)	(10,521)	(12,174)
Redemptions	(818)	(8,049)	(67)
Balances	121,172	122,262	64,231
Essex Portfolio, L.P. | General Partner | Common Equity
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances	$ 6,234,315	$ 6,280,290	$ 6,295,852
Balances (in shares)	66,092	65,890	66,054
Net income	$ 568,870	$ 439,286	$ 390,153
Issuance of common stock under:
General partner's stock based compensation, net	$ 9,201	$ 33,779	$ 6,213
General partner's stock based compensation, net (in shares)	95	195	41
Sale of common stock by general partner, net	$ (296)	$ 72,539	$ (919)
Sale of common stock by general partner, net (in shares)		228
Equity based compensation costs	12,453	$ 11,029	11,651
Retirement of common stock, net	$ (269,315)	$ (56,989)	$ (51,233)
Retirement of common stock, net (in shares)	(1,197)	(234)	(210)
Cumulative effect upon adoption	$ 6,015,139	$ 6,234,315	$ 6,280,290
Changes in the redemption value of redeemable noncontrolling interest	4,375	(3,427)	(1,143)
Redemptions	$ (2,020)	$ (28,083)	$ (1,061)
Redemptions (in shares)	9	13	5
Distributions declared	$ (542,254)	$ (514,109)	$ (491,108)
Balances	$ 6,015,139	$ 6,234,315	$ 6,280,290
Balances (in shares)	64,999	66,092	65,890
Essex Portfolio, L.P. | General Partner | Common Equity | ASU 2016-01
Issuance of common stock under:
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201601Member
Essex Portfolio, L.P. | General Partner | Common Equity | ASU 2017-05
Issuance of common stock under:
Accounting Standards Update [Extensible List]			us-gaap:AccountingStandardsUpdate201705Member
Essex Portfolio, L.P. | General Partner | Common Equity | ASU 2017-12
Issuance of common stock under:
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201613Member	us-gaap:AccountingStandardsUpdate201712Member
Essex Portfolio, L.P. | General Partner | Common Equity | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-01
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances			$ 2,234
Issuance of common stock under:
Cumulative effect upon adoption			2,234
Essex Portfolio, L.P. | General Partner | Common Equity | Cumulative Effect, Period of Adoption, Adjustment | ASU 2017-05
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances			119,651
Issuance of common stock under:
Cumulative effect upon adoption			119,651
Essex Portfolio, L.P. | General Partner | Common Equity | Cumulative Effect, Period of Adoption, Adjustment | ASU 2017-12
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances	$ (190)
Issuance of common stock under:
Cumulative effect upon adoption	(190)	$ (190)
Balances		(190)
Essex Portfolio, L.P. | Limited Partner | Common Equity
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances	$ 57,359	$ 59,061	$ 49,792
Balances (in shares)	2,302	2,305	2,268
Net income	$ 19,912	$ 15,343	$ 13,452
Issuance of common stock under:
Equity based compensation costs	$ 460	$ 1,254	$ 1,200
Equity based compensation costs (in shares)	2	10	11
Cumulative effect upon adoption	$ 58,184	$ 57,359	$ 59,061
Changes in the redemption value of redeemable noncontrolling interest	(197)	109	(89)
Changes in noncontrolling interest from acquisition			$ 7,919
Changes in noncontrolling interest from acquisition (in shares)			31
Redemptions	$ (275)	$ (436)	$ (205)
Redemptions (in shares)	(9)	(13)	(5)
Distributions declared	$ (19,075)	$ (17,972)	$ (17,059)
Balances	$ 58,184	$ 57,359	$ 59,061
Balances (in shares)	2,295	2,302	2,305
Essex Portfolio, L.P. | Limited Partner | Common Equity | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-01
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances			$ (6)
Issuance of common stock under:
Cumulative effect upon adoption			(6)
Essex Portfolio, L.P. | Limited Partner | Common Equity | Cumulative Effect, Period of Adoption, Adjustment | ASU 2017-05
Increase (Decrease) in Partners' Capital [Roll Forward]
Balances			4,057
Issuance of common stock under:
Cumulative effect upon adoption			$ 4,057

XML

Consolidated Statements of Capital (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Essex Portfolio, L.P. | Preferred Equity
Distributions declared (in dollars per share)	$ 8.31	$ 7.80	$ 7.44

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 599,332	$ 464,448	$ 413,599
Adjustments to reconcile net income to net cash provided by operating activities:
Straight-lined rents	(19,426)	(1,218)	(347)
Depreciation and amortization	525,497	483,750	479,884
Amortization of discount on marketable securities	(19,075)	(28,491)	(17,637)
Amortization of (premium) discount and debt financing costs, net	6,674	5,689	(2,587)
Gain on sale of marketable securities	(2,131)	(1,271)	(737)
Provision for credit losses	687	0	0
Unrealized (gains) losses on equity securities recognized through income	(12,515)	(5,710)	5,159
Company's share of gain on the sales of co-investments	(2,225)	(51,097)	(10,569)
Earnings from co-investments	(64,287)	(61,039)	(78,563)
Operating distributions from co-investments	74,419	99,277	99,593
Accrued interest from notes and other receivables	(3,683)	(6,012)	(5,436)
Impairment loss	1,825	7,105	0
(Gain) loss on the sale of real estate and land	(64,967)	3,164	(61,861)
Equity-based compensation	8,157	7,010	7,135
Loss (gain) on early retirement of debt, net	22,883	(3,717)	0
Gain on remeasurement of co-investment	(234,694)	(31,535)	(1,253)
Changes in operating assets and liabilities:
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets	(3,730)	6,969	(856)
Accounts payable, accrued liabilities, and operating lease liabilities	(10,382)	29,551	(145)
Other liabilities	749	2,206	1,175
Net cash provided by operating activities	803,108	919,079	826,554
Additions to real estate:
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired	(460,421)	(133,825)	(15,311)
Redevelopment	(48,980)	(70,295)	(73,000)
Development acquisitions of and additions to real estate under development	(108,781)	(158,234)	(182,772)
Capital expenditures on rental properties	(90,085)	(101,689)	(81,684)
Investments in notes receivable	(135,343)	(231,400)	0
Collections of notes and other receivables	98,711	168,720	29,500
Proceeds from insurance for property losses	723	3,734	1,408
Proceeds from dispositions of real estate	339,165	23,214	347,587
Contributions to co-investments	(114,017)	(402,284)	(162,437)
Changes in refundable deposits	96	5	(414)
Purchases of marketable securities	(83,379)	(46,458)	(37,952)
Sales and maturities of marketable securities	113,465	147,531	31,521
Non-operating distributions from co-investments	71,946	273,290	83,661
Net cash used in investing activities	(416,900)	(527,691)	(59,893)
Cash flows from financing activities:
Proceeds from unsecured debt and mortgage notes	1,452,808	1,045,290	298,773
Payments on unsecured debt and mortgage notes	(916,209)	(1,026,616)	(230,398)
Proceeds from lines of credit	1,038,426	1,939,213	742,961
Repayments of lines of credit	(1,093,426)	(1,884,213)	(921,961)
Retirement of common stock	(269,315)	(56,989)	(51,233)
Additions to deferred charges	(13,772)	(10,898)	(4,250)
Payments related to debt prepayment penalties	(19,605)	(1,406)	0
Net proceeds from issuance of common stock	(296)	72,539	(919)
Net proceeds from stock options exercised	14,865	37,467	6,213
Payments related to tax withholding for share-based compensation	(5,664)	(3,688)	(869)
Distributions to noncontrolling interest	(30,990)	(27,993)	(29,050)
Redemption of noncontrolling interest	(3,113)	(36,568)	(1,333)
Redemption of redeemable noncontrolling interest	(872)	(73)	(144)
Common stock dividends paid	(536,098)	(507,754)	(484,182)
Net cash used in financing activities	(383,261)	(461,689)	(676,392)
Net increase (decrease) in unrestricted and restricted cash and cash equivalents	2,947	(70,301)	90,269
Unrestricted and restricted cash and cash equivalents at beginning of period	81,094	151,395	61,126
Unrestricted and restricted cash and cash equivalents at end of period	84,041	81,094	151,395
Supplemental disclosure of cash flow information:
Cash paid for interest, net of capitalized interest	211,732	194,418	203,803
Interest capitalized	14,615	24,169	18,708
Operating cash flows from operating leases	6,892	6,811	0
Supplemental disclosure of noncash investing and financing activities:
Issuance of Operating Partnership units for contributed properties	0	0	7,919
Issuance of DownREIT units in connection with acquisition of real estate	0	65,472	0
Transfers between real estate under development and rental properties, net	253,039	19,812	100,415
Transfer from real estate under development to co-investments	1,739	671	853
Reclassifications (from) to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest	(4,299)	2,008	1,165
Redemption of redeemable noncontrolling interest via reduction of note receivable	0	0	4,751
Initial recognition of operating lease right-of-use assets	0	77,645	0
Initial recognition of operating lease liabilities	0	79,693	0
Debt assumed in connection with acquisition	0	143,006	45,804
Repayment of mortgage note from new financing proceeds	0	0	52,000
Essex Portfolio, L.P.
Cash flows from operating activities:
Net income	599,332	464,448	413,599
Adjustments to reconcile net income to net cash provided by operating activities:
Straight-lined rents	(19,426)	(1,218)	(347)
Depreciation and amortization	525,497	483,750	479,884
Amortization of discount on marketable securities	(19,075)	(28,491)	(17,637)
Amortization of (premium) discount and debt financing costs, net	6,674	5,689	(2,587)
Gain on sale of marketable securities	(2,131)	(1,271)	(737)
Provision for credit losses	687	0	0
Unrealized (gains) losses on equity securities recognized through income	(12,515)	(5,710)	5,159
Company's share of gain on the sales of co-investments	(2,225)	(51,097)	(10,569)
Earnings from co-investments	(64,287)	(61,039)	(78,563)
Operating distributions from co-investments	74,419	99,277	99,593
Accrued interest from notes and other receivables	(3,683)	(6,012)	(5,436)
Impairment loss	1,825	7,105	0
(Gain) loss on the sale of real estate and land	(64,967)	3,164	(61,861)
Equity-based compensation	8,157	7,010	7,135
Loss (gain) on early retirement of debt, net	22,883	(3,717)	0
Gain on remeasurement of co-investment	(234,694)	(31,535)	(1,253)
Changes in operating assets and liabilities:
Prepaid expenses, receivables, operating lease right-of-use assets, and other assets	(3,730)	6,969	(856)
Accounts payable, accrued liabilities, and operating lease liabilities	(10,382)	29,551	(145)
Other liabilities	749	2,206	1,175
Net cash provided by operating activities	803,108	919,079	826,554
Additions to real estate:
Acquisitions of real estate and acquisition related capital expenditures, net of cash acquired	(460,421)	(133,825)	(15,311)
Redevelopment	(48,980)	(70,295)	(73,000)
Development acquisitions of and additions to real estate under development	(108,781)	(158,234)	(182,772)
Capital expenditures on rental properties	(90,085)	(101,689)	(81,684)
Investments in notes receivable	(135,343)	(231,400)	0
Collections of notes and other receivables	98,711	168,720	29,500
Proceeds from insurance for property losses	723	3,734	1,408
Proceeds from dispositions of real estate	339,165	23,214	347,587
Contributions to co-investments	(114,017)	(402,284)	(162,437)
Changes in refundable deposits	96	5	(414)
Purchases of marketable securities	(83,379)	(46,458)	(37,952)
Sales and maturities of marketable securities	113,465	147,531	31,521
Non-operating distributions from co-investments	71,946	273,290	83,661
Net cash used in investing activities	(416,900)	(527,691)	(59,893)
Cash flows from financing activities:
Proceeds from unsecured debt and mortgage notes	1,452,808	1,045,290	298,773
Payments on unsecured debt and mortgage notes	(916,209)	(1,026,616)	(230,398)
Proceeds from lines of credit	1,038,426	1,939,213	742,961
Repayments of lines of credit	(1,093,426)	(1,884,213)	(921,961)
Retirement of common stock	(269,315)	(56,989)	(51,233)
Additions to deferred charges	(13,772)	(10,898)	(4,250)
Payments related to debt prepayment penalties	(19,605)	(1,406)	0
Net proceeds from issuance of common stock	(296)	72,539	(919)
Net proceeds from stock options exercised	14,865	37,467	6,213
Payments related to tax withholding for share-based compensation	(5,664)	(3,688)	(869)
Distributions to noncontrolling interest	(8,409)	(7,288)	(8,518)
Redemption of noncontrolling interest	(3,113)	(36,568)	(1,333)
Redemption of redeemable noncontrolling interest	(872)	(73)	(144)
Common stock dividends paid	(558,679)	(528,459)	(504,714)
Net cash used in financing activities	(383,261)	(461,689)	(676,392)
Net increase (decrease) in unrestricted and restricted cash and cash equivalents	2,947	(70,301)	90,269
Unrestricted and restricted cash and cash equivalents at beginning of period	81,094	151,395	61,126
Unrestricted and restricted cash and cash equivalents at end of period	84,041	81,094	151,395
Supplemental disclosure of cash flow information:
Cash paid for interest, net of capitalized interest	211,732	194,418	203,803
Interest capitalized	14,615	24,169	18,708
Operating cash flows from operating leases	6,892	6,811	0
Supplemental disclosure of noncash investing and financing activities:
Issuance of Operating Partnership units for contributed properties	0	0	7,919
Issuance of DownREIT units in connection with acquisition of real estate	0	65,472	0
Transfers between real estate under development and rental properties, net	253,039	19,812	100,415
Transfer from real estate under development to co-investments	1,739	671	853
Reclassifications (from) to redeemable noncontrolling interest from additional paid in capital and noncontrolling interest	(4,299)	2,008	1,165
Redemption of redeemable noncontrolling interest via reduction of note receivable	0	0	4,751
Initial recognition of operating lease right-of-use assets	0	77,645	0
Initial recognition of operating lease liabilities	0	79,693	0
Debt assumed in connection with acquisition	0	143,006	45,804
Repayment of mortgage note from new financing proceeds	$ 0	$ 0	$ 52,000

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Organization

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

The accompanying consolidated financial statements present the accounts of Essex Property Trust, Inc. ("Essex" or the "Company"), which include the accounts of the Company and Essex Portfolio, L.P. and its subsidiaries (the "Operating Partnership," which holds the operating assets of the Company). Unless otherwise indicated, the notes to consolidated financial statements apply to both the Company and the Operating Partnership.

Essex is the sole general partner of the Operating Partnership with a 96.6% general partner interest and the limited partners owned a 3.4% interest as of December 31, 2020. The limited partners may convert their Operating Partnership units into an equivalent number of shares of Essex common stock. Total Operating Partnership limited partnership units outstanding were 2,294,760 and 2,301,653 as of December 31, 2020 and 2019, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock, totaled approximately $544.8 million and $692.5 million, as of December 31, 2020 and 2019, respectively. The Company has reserved shares of common stock for such conversions.

As of December 31, 2020, the Company owned or had ownership interests in 246 operating apartment communities, comprising 60,272 apartment homes, excluding the Company's ownership interests in preferred interest co-investments, loan investments, one operating commercial building, and a development pipeline comprised of three consolidated projects and three unconsolidated joint venture projects. The operating apartment communities are located in Southern California (primarily Los Angeles, Orange, San Diego, and Ventura counties), Northern California (the San Francisco Bay Area) and the Seattle metropolitan areas.

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Summary of Critical and Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Critical and Significant Accounting Policies

Summary of Critical and Significant Accounting Policies

(a) Principles of Consolidation and Basis of Presentation

The accounts of the Company, its controlled subsidiaries and the variable interest entities ("VIEs") in which it is the primary beneficiary are consolidated in the accompanying financial statements and prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included and are normal and recurring in nature. All significant inter-company accounts and transactions have been eliminated.

Noncontrolling interest includes the 3.4% limited partner interests in the Operating Partnership not held by the Company at both December 31, 2020 and 2019. These percentages include the Operating Partnership’s vested long-term incentive plan units (see Note 14).

(b) Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 "Leases (Topic 842)" which requires an entity that is a lessee to classify leases as either finance or operating and to recognize a lease liability and a right-of-use asset for all leases that have a duration of greater than 12 months. Leases of 12 months or less are to be accounted for similar to prior leasing guidance (Topic 840) for operating leases. For lessors, accounting for leases under the new standard is substantially the same as prior leasing guidance for sales-type leases, direct financing leases, and operating leases, but eliminates current real estate specific provisions and changes the treatment of initial direct costs. In July 2018, the FASB issued ASU No. 2018-11 "Leases (Topic 842): Targeted Improvements," which includes a practical expedient that allows lessors to not separate nonlease components from the associated lease component. This provides the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component, if certain requirements are met. The Company adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019 using the modified retrospective approach and elected a package of practical expedients. There was no adjustment to the opening balance of retained earnings as a result of the adoption. See Note 10, Lease Agreements - Company as Lessor, and Note 11, Lease Agreements - Company as Lessee, for further details.

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13 "Measurement of Credit Losses on Financial Instruments," which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities, and other financial instruments. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Previously, U.S. GAAP required entities to write down credit losses only when losses were probable and loss reversals were not permitted. The FASB additionally issued various updates to clarify and amend the guidance provided in ASU No. 2016-13. In May 2019, the FASB issued ASU No. 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which, with respect to credit losses, among other things, clarifies and addresses issues related to accrued interest, transfers between classifications of loans or debt securities, recoveries, and variable interest rates. Additionally, in May 2019, the FASB issued ASU No. 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which allows entities to irrevocably elect the fair value option on certain financial instruments. The Company adopted ASU No. 2016-13, ASU No. 2019-04, and ASU No. 2019-05 as of January 1, 2020, using the modified retrospective approach by applying a cumulative effect adjustment of $0.2 million representing estimated accumulated credit losses to the opening balance of retained earnings.

In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which eliminates certain disclosure requirements affecting all levels of measurements, and modifies and adds new disclosure requirements for Level 3 measurements. The Company adopted ASU No. 2018-13 as of January 1, 2020. This adoption did not have a material impact on the Company's consolidated results of operations or financial position.

In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over

time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In April 2020, the FASB issued a Staff Question-and-Answer ("Q&A") to clarify whether lease concessions related to the effects of COVID-19 require the application of the lease modification guidance under Accounting Standards Codification ("ASC") Topic 842, Leases. The Q&A allows companies to not apply the lease modification guidance to rent concessions that result in deferred rent where the total cash flows required by the modified lease agreement are materially the same as the cash flows required under the original lease and the changes to the lease do not result in a substantial increase to the rights of the lessor or the obligations of the lessee. The Company adopted the guidance during the three months ended June 30, 2020 for eligible residential lease concessions. The lease concessions that met the criteria of the Q&A are treated as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. The amount of rent concessions subject to the Q&A were not material and this adoption did not have a material impact on the Company's consolidated results of operations or financial position.

(c) Recent Accounting Pronouncements

In January 2021, the FASB issued ASU No. 2021-01 "Reference Rate Reform (Topic 848): Scope." The amendments in ASU No. 2021-01 provide optional expedients to the current guidance on contract modifications and hedge accounting from the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance generally can be applied to applicable contract modifications through December 31, 2022. The Company adopted this new guidance in January 2021 and will apply the guidance on a prospective basis. The Company is currently evaluating the impact of the transition from LIBOR to alternative reference rates and the application of optional expedients available in this guidance, but does not expect a material impact to its consolidated results of operations or financial position.

(d) Real Estate Rental Properties

Significant expenditures, which improve or extend the life of an asset and have a useful life of greater than one year, are capitalized. Operating real estate assets are stated at cost and consist of land and land improvements, buildings and improvements, furniture, fixtures and equipment, and other costs incurred during their development, redevelopment and acquisition.  Expenditures for maintenance and repairs are charged to expense as incurred.

The depreciable life of various categories of fixed assets is as follows:

Computer software and equipment	3 - 5 years
Interior apartment home improvements	5 years
Furniture, fixtures and equipment	5 - 10 years
Land improvements and certain exterior components of real property	10 years
Real estate structures	30 years

The Company capitalizes all costs incurred with the predevelopment, development or redevelopment of real estate assets or are associated with the construction or expansion of real property. Such capitalized costs include land, land improvements, allocated costs of the Company’s project management staff, construction costs, as well as interest and related loan fees, property taxes and insurance. Capitalization begins for predevelopment, development, and redevelopment projects when activity commences. Capitalization ends when the apartment home is completed and the property is available for a new tenant or if the development activities cease.

The Company allocates the purchase price of real estate on a fair value basis to land and building including personal property, and identifiable intangible assets, such as the value of above, below and in-place leases. In making estimates of relative fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent land appraisals which consider comparable market transactions, its own analysis of recently acquired or developed comparable

properties in our portfolio for land comparables and building replacement costs, and other publicly available market data. In calculating the fair value of identified intangible assets of an acquired property, the in-place leases are valued based on in-place rent rates and amortized over the average remaining term of all acquired leases.

The values of the above and below market leases are amortized and recorded as either a decrease (in the case of above market leases) or an increase (in the case of below market leases) to rental revenue over the remaining term of the associated leases acquired. The value of acquired in-place leases are amortized to expense over the average remaining term of the leases acquired. The net carrying value of acquired in-place leases is $4.7 million and $1.2 million as of December 31, 2020 and 2019, respectively, and are included in prepaid expenses and other assets on the Company's consolidated balance sheets.

The Company periodically assesses the carrying value of its real estate investments for indicators of impairment. The judgments regarding the existence of impairment indicators are based on monitoring investment market conditions and performance compared to budget for operating properties including the net operating income for the most recent 12 month period, monitoring estimated costs for properties under development, the Company's ability to hold and its intent with regard to each asset, and each property's remaining useful life. Whenever events or changes in circumstances indicate that the carrying amount of a property held for investment may not be fully recoverable, the carrying amount is evaluated. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount (including intangible assets) of a property held for investment, then the Company will recognize an impairment loss equal to the excess of the carrying amount over the fair value of the property. Fair value of a property is determined using conventional real estate valuation methods, such as discounted cash flow, the property’s unleveraged yield in comparison to the unleveraged yields and/or sales prices of similar communities that have been recently sold, and other third party information, if available. Communities held for sale are carried at the lower of cost or fair value less estimated costs to sell. As of December 31, 2020, two properties were classified as held for sale. As of December 31, 2019, no properties were classified as held for sale. The Company recorded an impairment charge of $1.8 million for the year ended December 31, 2020 related to one of the Company's consolidated properties as a result of a change in the Company's intent to hold the property for its remaining useful life. The Company recorded an impairment charge of $7.1 million for the year ended December 31, 2019 on a parcel of land that was part of a consolidated co-investment with Canada Pension Plan Investment Board ("CPPIB" or "CPP"). The impairment charge resulted from the Company's acquisition of CPPIB's 45% interest in the co-investment. The impairment analysis over the parcel’s fair value was determined using internally developed models based on market assumptions. No impairment charges were recorded for the year ended December 31, 2018.

In the normal course of business, the Company will receive purchase offers for its communities, either solicited or unsolicited. For those offers that are accepted, the prospective buyer will usually require a due diligence period before consummation of the transaction. It is not unusual for matters to arise that result in the withdrawal or rejection of the offer during this process. The Company classifies real estate as "held for sale" when all criteria under the accounting standard for the disposals of long-lived assets have been met.

(e) Co-investments

The Company owns investments in joint ventures in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Company’s equity in earnings less distributions received and the Company’s share of losses. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects.

Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the consolidated statement of income equal to the amount by which the fair value of the Company's previously owned co-investment interest exceeds its carrying value. A majority of the co-investments, excluding most preferred equity investments, compensate the Company for its asset management services and some of these investments may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income from co-investments.

The Company recorded an other-than-temporary impairment charge of $11.5 million for the year ended December 31, 2019 on an unconsolidated co-investment with CPPIB which held Agora, a 49 unit apartment home community located in Walnut

Creek, CA. The other-than-temporary impairment charge resulted from the Company's acquisition of CPPIB's 45% interest in the co-investment. The impairment analysis over the co-investments fair value was determined using internally developed models based on market assumptions. The impairment is reflected in equity income from co-investments on the consolidated statements of income. No other-than-temporary impairment charges were recorded for the years ended December 31, 2020 or 2018.

(f) Revenues and Gains on Sale of Real Estate

Revenues from tenants renting or leasing apartment homes are recorded when due from tenants and are recognized monthly as they are earned, which generally approximates a straight-line basis, else, adjustments are made to conform to a straight-line basis. Apartment homes are rented under short-term leases (generally, lease terms of 9 to 12 months). Revenues from tenants leasing commercial space are recorded on a straight-line basis over the life of the respective lease. See Note 4, Revenues, and Note 10, Lease Agreements - Company as Lessor, for additional information regarding such revenues.

The Company also generates other property-related revenue associated with the leasing of apartment homes, including storage income, pet rent, and other miscellaneous revenue. Similar to rental income, such revenues are recorded when due from tenants and recognized monthly as they are earned.

Apart from rental and other property-related revenue, revenues from contracts with customers are recognized as control of the promised services is passed to the customer. For customer contracts related to management and other fees from affiliates (which includes asset management and property management), the transaction price and amount of revenue to be recognized is determined each quarter based on the management fee calculated and earned for that month or quarter. The contract will contain a description of the service and the fee percentage for management services. Payments from such services are one month or one quarter in arrears of the service performed.

The Company recognizes any gains on sales of real estate when it transfers control of a property and when it is probable that the Company will collect substantially all of the related consideration.

(g) Cash, Cash Equivalents and Restricted Cash

Highly liquid investments with original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash balances relate primarily to reserve requirements for capital replacement at certain communities in connection with the Company’s mortgage debt.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows ($ in thousands):

	2020		2019		2018
Cash and cash equivalents - unrestricted	$	73,629	$	70,087	$	134,465
Cash and cash equivalents - restricted	10,412		11,007		16,930
Total unrestricted and restricted cash and cash equivalents shown in the consolidated statements of cash flows	$	84,041	$	81,094	$	151,395

(h) Marketable Securities

The Company reports its equity securities and available for sale debt securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds, Level 2 for the unsecured debt and Level 3 for investments in mortgage backed securities, as defined by the FASB standard for fair value measurements as discussed later in Note 2). As of December 31, 2020 and 2019, $2.5 million and $3.6 million, respectively, of equity securities presented within common stock and stock funds in the tables below represent investments measured at fair value, using net asset value as a practical expedient, and are not categorized in the fair value hierarchy.

Any unrealized gain or loss in debt securities classified as available for sale is recorded as other comprehensive income. There were no other than temporary impairment charges for the years ended December 31, 2020, 2019, and 2018. Unrealized gains

and losses in equity securities, realized gains and losses in debt securities, interest income, and amortization of purchase discounts are included in interest and other income on the consolidated statements of income.

As of December 31, 2020 and 2019, equity securities and available for sale debt securities consisted primarily of investment-grade unsecured debt, U.S. treasury securities, and common stock and stock funds. As of December 31, 2019, the Company classified its mortgage backed securities as held to maturity, and accordingly, the securities were stated at their amortized cost. One of the investments in mortgage backed securities matured in November 2019 and the other matured in December 2020.

As of December 31, 2020 and 2019, marketable securities consist of the following ($ in thousands):

	December 31, 2020
	Amortized Cost		Gross Unrealized Gain		Carrying Value		Allowance for Credit Losses
Equity securities:
Investment funds - debt securities	$	49,646	$	985	$	50,631	$	—
Common stock and stock funds	81,074		15,001		96,075		—
Debt securities:
Available for sale
Investment-grade unsecured debt	1,050		12		1,062		—
Total - Marketable securities	$	131,770	$	15,998	$	147,768	$	—

	December 31, 2019
	Amortized Cost		Gross Unrealized Gain		Carrying Value
Equity securities:
Investment funds - debt securities	$	29,588	$	544	$	30,132
Common stock and stock funds	34,941		2,927		37,868
Debt securities:
Available for sale
U.S. Treasury securities	2,421		13		2,434
Investment-grade unsecured debt	1,048		60		1,108
Held to maturity:
Mortgage backed securities	72,651		—		72,651
Total - Marketable securities	$	140,649	$	3,544	$	144,193

The Company uses the specific identification method to determine the cost basis of a debt security sold and to reclassify amounts from accumulated other comprehensive loss for such securities.

During the years ended December 31, 2020 and 2019, the Company received cash proceeds of $91.7 million and $83.1 million, respectively, from the maturity of two investments in mortgage backed securities. For the years ended December 31, 2020 and 2019, the Company recognized approximately $11.8 million and $7.0 million, respectively, of accelerated interest income or the reversal of an allowance for credit loss related to these maturities.

For the years ended December 31, 2020, 2019 and 2018, the proceeds from sales and maturities of marketable securities totaled $113.5 million, $147.5 million and $31.5 million, respectively. For the years ended December 31, 2020, 2019 and 2018, these sales resulted in gains of $2.1 million, $1.3 million, and $0.7 million, respectively.

For the years ended December 31, 2020 and 2019, the portion of equity security unrealized losses or gains that were recognized in income totaled $12.5 million in gains, and $5.7 million in gains, respectively, and were included in interest and other income on the Company's consolidated statements of income and comprehensive income.

Unrealized losses on investment-grade unsecured debt as of December 31, 2020 have not been recognized into income because the debts of the issuers are of high credit quality, management does not intend to sell the securities, it is likely that the Company will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to other market conditions.

The Company monitors the credit quality of its held to maturity mortgage backed security through the review of remittance reports and individual loan watchlists, which are prepared quarterly and provide most recent debt service coverage ratios for each loan within the security, when available. The Company monitors such reports to determine the likelihood that a particular loan within the mortgage backed security may be foreclosed upon.

The Company measures the expected credit loss on its held to maturity mortgage backed security based on the present value of expected future cash flows, which takes into account current market conditions and available credit information obtained from the individual loans held within the mortgage backed security. The following table presents the allowance for credit losses rollforward for the mortgage backed security ($ in thousands):

Balance at December 31, 2019	$	—
Impact of adoption ASC 326 (1)	13,644
Reversal of provision for credit losses	(13,644)
Balance at December 31, 2020	$	—

(1) As part of the adoption of ASC 326, effective January 1, 2020, the Company recorded a gross up of the mortgage backed security and related allowance for credit losses of $13.6 million. The allowance was reversed upon maturity of the mortgage backed security in December 2020. The Company recorded $11.8 million of accelerated interest income related to this maturity.

(i) Notes Receivable

Notes receivable relate to real estate financing arrangements including mezzanine and bridge loans. Interest is recognized over the life of the note as interest income.

Each note is analyzed to determine if it is impaired. A note is impaired if it is probable that the Company will not collect all contractually due principal and interest. The Company does not accrue interest when a note is considered impaired and an allowance is recorded for any principal and previously accrued interest that are not believed to be collectible. All cash receipts on impaired notes are applied to reduce the principal amount of such notes until the principal has been recovered and, thereafter, are recognized as interest income. As of December 31, 2020 and 2019, no notes were impaired.

In the normal course of business, the Company originates and holds two types of loans: mezzanine loans issued to entities that are pursuing apartment development and short-term bridge loans issued to joint ventures with the Company.

The Company categorizes development project mezzanine loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as: current financial information, credit documentation, public information, and previous experience with the borrower. The Company initially analyzes each mezzanine loan individually to classify the credit risk of the loan. On a periodic basis the Company evaluates and performs site visits of the development projects associated with the mezzanine loans to confirm whether they are on budget and whether there are any delays in development that could impact the Company's assessment of credit loss.

All bridge loans that the Company issues are, by their nature, short-term and meant only to provide time for the Company’s joint ventures to obtain long-term funding for newly acquired communities. As the Company is a partner in the joint ventures that are borrowing such funds and has performed a detailed review of each community as part of the acquisition process, there is little to no credit risk associated with such loans. As such, the Company does not review credit quality indicators for bridge loans on an ongoing basis.

The Company estimates the allowance for credit losses for each loan type using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made, if necessary, for differences in current loan-specific risk characteristics. For example, in the case of mezzanine loans, adjustments may be made due to differences in track record and experience of the mezzanine loan sponsor as well as the percent of equity that the sponsor has contributed to the project.

(j) Capitalization Policy

The Company capitalizes all direct and certain indirect costs, including interest, real estate taxes and insurance, incurred during development and redevelopment activities. Interest is capitalized on real estate assets that require a period of time to get them ready for their intended use. The amount of interest capitalized is based upon the average amount of accumulated development expenditures during the reporting period. Included in capitalized costs are management’s estimates of the direct and incremental personnel costs and indirect project costs associated with the Company's development and redevelopment activities. Indirect project costs consist primarily of personnel costs associated with construction administration and development, including accounting, legal fees, and various corporate and community onsite costs that clearly relate to projects under development. Those costs, inclusive of capitalized interest, as well as capitalized development and redevelopment fees totaled $31.4 million, $42.1 million and $37.3 million for the years ended December 31, 2020, 2019 and 2018, respectively, most of which relates to development projects. The Company capitalizes leasing costs associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized are immaterial for all periods presented.

(k) Fair Value of Financial Instruments

The Company values its financial instruments based on the fair value hierarchy of valuation techniques described in the FASB’s accounting standard for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. The Company uses Level 1 inputs for the fair values of its cash equivalents and its marketable securities except for unsecured bonds and mortgage backed securities. The Company uses Level 2 inputs for its investments in unsecured debt, notes receivable, notes payable, and derivative assets/liabilities. These inputs include interest rates for similar financial instruments. The Company’s valuation methodology for derivatives is described in Note 9. The Company uses Level 3 inputs to estimate the fair value of its mortgage backed securities. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of December 31, 2020 and 2019, because interest rates, yields and other terms for these instruments are consistent with interest rates, yields and other terms currently available for similar instruments. Management has estimated that the fair value of fixed rate debt with a carrying value of $5.5 billion and $5.2 billion at December 31, 2020 and 2019, respectively, to be $6.0 billion and $5.4 billion at December 31, 2020 and 2019, respectively. Management has estimated the fair value of the Company’s $775.1 million and $660.4 million of variable rate debt at December 31, 2020 and 2019, respectively, to be $770.1 million and $655.8 million at December 31, 2020 and 2019, respectively, based on the terms of existing mortgage notes payable, unsecured debt, and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of December 31, 2020 and 2019 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities, are carried at fair value as of December 31, 2020 and 2019.

At December 31, 2020 and 2019, the Company’s investments in mortgage backed securities had a carrying value of zero and $72.7 million, respectively. In November 2019, the Company received cash proceeds of $83.1 million from the maturity of an

investment in a mortgage backed security. Additionally, during 2020, the Company received cash proceeds of $91.7 million from the maturity of the remaining investment in a mortgage backed security. The Company estimated the fair value of its investment in mortgage backed securities at December 31, 2020 and 2019 to be approximately zero and $72.7 million, respectively. The Company determines the fair value of the mortgage backed securities based on unobservable inputs (Level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected, discounted cash flows to estimate the fair value.

(l) Interest Rate Protection, Swap, and Forward Contracts

The Company uses interest rate swaps, interest rate caps, and total return swap contracts to manage interest rate risks. The Company’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements or other identified risks. To accomplish this objective, the Company uses interest rate swaps as part of its cash flow hedging strategy. 

The Company records all derivatives on its consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.

For derivatives designated for accounting purposes as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. For derivatives designated for accounting purposes as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the initial and ongoing effectiveness of each hedging relationship by comparing the changes in fair value or cash flows of the derivative hedging instrument with the changes in fair value or cash flows of the designated hedged item or transaction.

For derivatives not designated for accounting purposes as cash flow hedges, changes in fair value are recognized in earnings. All of the Company’s interest rate swaps are considered cash flow hedges.

(m) Income Taxes

Generally in any year in which Essex qualifies as a real estate investment trust ("REIT") under the Internal Revenue Code (the "IRC"), it is not subject to federal income tax on that portion of its income that it distributes to stockholders. No provision for federal income taxes, other than the taxable REIT subsidiaries discussed below, has been made in the accompanying consolidated financial statements for each of the years in the three-year period ended December 31, 2020 as Essex has elected to be and believes it qualifies under the IRC as a REIT and has made distributions during the periods in amounts to preclude Essex from paying federal income tax.

In order to maintain compliance with REIT tax rules, the Company utilizes taxable REIT subsidiaries for various revenue generating or investment activities. The taxable REIT subsidiaries are consolidated by the Company. In general, the activities and tax related provisions, assets and liabilities are not material.

As a partnership, the Operating Partnership is not subject to federal or state income taxes, except that in order to maintain Essex's compliance with REIT tax rules that are applicable to Essex, the Operating Partnership utilizes taxable REIT subsidiaries for various revenue generating or investment activities. The taxable REIT subsidiaries are consolidated by the Operating Partnership.

The status of cash dividends distributed for the years ended December 31, 2020, 2019, and 2018 related to common stock are classified for tax purposes as follows:

	2020		2019		2018
Common Stock
Ordinary income	85.23	%	83.81	%	79.72	%
Capital gain	10.68	%	13.78	%	15.35	%
Unrecaptured section 1250 capital gain	4.09	%	2.41	%	4.93	%
	100.00	%	100.00	%	100.00	%

(n) Equity-based Compensation

The cost of share- and unit-based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. The estimated grant date fair values of the long-term incentive plan units (discussed in Note 14) are being amortized over the expected service periods.

(o) Changes in Accumulated Other Comprehensive Loss, by Component

Changes in Accumulated Other Comprehensive Loss, Net, by Component

Essex Property Trust, Inc. ($ in thousands)

	Change in fair value and amortization of swap settlements		Unrealized gain (loss) on available for sale securities		Total
Balance at December 31, 2019	$	(13,989)	$	101	$	(13,888)
Other comprehensive income before reclassification	4,274		(59)		4,215
Amounts reclassified from accumulated other comprehensive loss	(5,056)		—		(5,056)
Other comprehensive loss	(782)		(59)		(841)
Balance at December 31, 2020	$	(14,771)	$	42	$	(14,729)

Changes in Accumulated Other Comprehensive Loss, by Component

Essex Portfolio, L.P. ($ in thousands)

	Change in fair value and amortization of swap settlements		Unrealized gain (loss) on available for sale securities		Total
Balance at December 31, 2019	$	(10,536)	$	104	$	(10,432)
Other comprehensive income before reclassification	4,424		(61)		4,363
Amounts reclassified from accumulated other comprehensive loss	(5,234)		—		(5,234)
Other comprehensive loss	(810)		(61)		(871)
Balance at December 31, 2020	$	(11,346)	$	43	$	(11,303)

Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the consolidated statements of income. Realized gains and losses on available for sale debt securities are included in interest and other income on the consolidated statements of income.

(p) Redeemable Noncontrolling Interest

The carrying value of redeemable noncontrolling interest in the accompanying balance sheets was $32.2 million and $37.4 million as of December 31, 2020 and 2019, respectively. The limited partners may redeem their noncontrolling interests for cash in certain circumstances.

The changes in the redemption value of redeemable noncontrolling interests for the years ended December 31, 2020, 2019, and 2018 are as follows:

	2020		2019		2018
Balance at January 1,	$	37,410	$	35,475	$	39,206
Reclassifications due to change in redemption value and other	(4,299)		2,008		1,164
Redemptions	(872)		(73)		(4,895)
Balance at December 31,	$	32,239	$	37,410	$	35,475

(q) Accounting Estimates

The preparation of consolidated financial statements, in accordance with U.S. GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, and its notes receivable. The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions.

(r) Variable Interest Entities

In accordance with accounting standards for consolidation of VIEs, the Company consolidates the Operating Partnership, 17 DownREIT entities (comprising nine communities), and five co-investments as of December 31, 2020. As of December 31, 2019, the Company consolidated the Operating Partnership, 17 DownREIT entities (comprising nine communities), and six co-investments. The Company consolidates these entities because it is deemed the primary beneficiary. The Company has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT entities, net of intercompany eliminations, were approximately $898.5 million and $326.8 million, respectively, as of December 31, 2020, and $1.0 billion and $364.3 million, respectively, as of December 31, 2019. Noncontrolling interests in these entities were $120.8 million and $122.5 million as of December 31, 2020 and 2019, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE.

The DownREIT VIEs collectively own nine apartment communities in which the Company is the general partner or manager of the DownREIT entity, the Operating Partnership is a special limited partner or member, and the other limited partners or members were granted rights of redemption for their interests. Such limited partners or members can request to be redeemed and the Company, subject to certain restrictions, can elect to redeem their rights for cash or by issuing shares of its common stock on a one share per unit basis. Conversion values will be based on the market value of the Company's common stock at the time of redemption multiplied by the number of units stipulated under various arrangements, as noted above. The other limited partners or members receive distributions based on the Company's current dividend rate times the number of units held. Total DownREIT units outstanding were 1,017,460 and 1,033,907 as of December 31, 2020 and 2019, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled approximately $241.6 million and $311.1 million, as of December 31, 2020 and 2019, respectively. The carrying value of redeemable noncontrolling interest in the accompanying balance sheets was $32.2 million and $37.4 million as of December 31, 2020 and 2019, respectively. Of these amounts, $11.9 million and $13.0 million as of December 31, 2020 and 2019, respectively, represent units of limited partners' or members' interests in DownREIT VIEs as to which it is outside of the Company’s control to redeem the DownREIT units with Company common stock and may potentially be redeemed for cash, and are presented at either their redemption value or historical cost, depending on the limited partner's or members' right to redeem their units as of the balance sheet date. The carrying value of DownREIT units as to which it is within the control of the Company to redeem the units with its common

stock was $97.4 million and $97.7 million as of December 31, 2020 and 2019, respectively, and is classified within noncontrolling interests in the accompanying consolidated balance sheets.

Interest holders in VIEs consolidated by the Company are allocated a priority of net income equal to the cash payments made to those interest holders or distributions from cash flow. The remaining results of operations are generally allocated to the Company.

As of December 31, 2020 and 2019, the Company did not have any other VIEs of which it was deemed to be the primary beneficiary and did not have any VIEs of which it was not deemed to be the primary beneficiary.

(s) Discontinued Operations

The Company determined that the disposals during the years ended December 31, 2020, 2019 and 2018 were not considered discontinued operations in accordance with ASU No. 2014-08. The gains related to these disposals are recorded in gain on sale of real estate and land in the consolidated statements of income.

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Real Estate Investments

12 Months Ended

Dec. 31, 2020

Real Estate Investments, Net [Abstract]

Real Estate Investments

Real Estate Investments

(a) Acquisitions of Real Estate

The table below summarizes acquisition activity for the year ended December 31, 2020 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2020	Purchase Price
CPPIB Portfolio	Various	2,020	100	%	Q1	$	463.4
Total 2020		2,020				$	463.4

In January 2020, the Company purchased CPPIB's 45.0% interest in each of a land parcel and six communities totaling 2,020 apartment homes, valued at $1.0 billion on a gross basis. As a result of this acquisition, the Company realized a gain on remeasurement of co-investment of $234.7 million. Furthermore, the Company recognized $6.5 million in promote income as a result of the transaction, which is included in equity income from co-investments on the consolidated statements of income.

The consolidated fair value of the acquisition listed above was included on the Company's consolidated balance sheet as follows: $189.0 million was included in land and land improvements, $846.0 million was included in buildings and improvements, $10.0 million was included in prepaid expenses and other assets, within the Company's consolidated balance sheets.

For the year ended December 31, 2019, the Company purchased four communities consisting of 849 apartment homes for approximately $373.3 million. Additionally, in December 2019, the Company purchased the joint venture partner's 25% ownership interest in Hidden Valley, a consolidated community consisting of 324 apartment homes, for a contract price of $24.2 million based on an estimated property valuation of $97.0 million and an encumbrance of $29.7 million of mortgage debt. The purchase was recorded as a redemption of noncontrolling interest in the consolidated statements of equity.

(b) Sales of Real Estate Investments

In June 2020, the Company completed a portfolio sale which consisted of two apartment communities with 429 apartment homes, One South Market and Museum Park, both located in San Jose, CA, for a total contract price of $232.0 million. The Company recognized a $16.6 million gain on sale.

In July 2020, the Company sold Delano, a 126 apartment home community located in Redmond, WA, for a total contract price of $51.5 million. The Company recognized a $22.7 million gain on sale.

In October 2020, the Company sold 416 on Broadway, a 115 apartment home community located in Glendale, CA, for a total contract price of $60.0 million. The Company recognized a $25.7 million gain on sale.

For the year ended December 31, 2019, the Company sold a land parcel adjacent to the Mylo development project located in Santa Clara, CA, for $10.8 million and recorded an immaterial gain and sold land located in San Mateo, CA, that had been held for future development for $12.5 million and recorded a loss of $3.2 million.

For the year ended December 31, 2018, the Company sold two communities consisting of 669 apartment homes for $352.0 million resulting in gains totaling $61.9 million.

(c) Real Estate Assets Held for Sale

As of December 31, 2020, the Company had two communities totaling 439 apartment homes that are qualified as held for sale. As of December 31, 2019 the Company had no assets classified as held for sale.

(d) Co-investments

The Company has joint ventures which are accounted for under the equity method. The co-investments’ accounting policies are similar to the Company’s accounting policies. The co-investments own, operate, and develop apartment communities.

The carrying values of the Company’s co-investments as of December 31, 2020 and 2019 are as follows ($ in thousands, except in parenthetical):

	Weighted Average Essex Ownership		December 31,
	Percentage (1)		2020		2019
Ownership interest in:
CPPIB (2)	—	%	$	—	$	345,466
Wesco I, Wesco III, Wesco IV, and Wesco V	51	%	178,322		216,756
BEXAEW, BEX II, BEX III, and BEX IV	50	%	152,309		160,888
Other	47	%	27,635		20,351
Total operating and other co-investments, net			358,266		743,461
Total predevelopment and development co-investments	50	%	157,433		146,944
Total preferred interest co-investments (includes related party investments of $81.4 million and $73.2 million as of December 31, 2020 and December 31, 2019, respectively - Note 6 - Related Party Transactions for further discussion)			502,311		444,934
Total co-investments, net			$	1,018,010	$	1,335,339

(1)Weighted average Company ownership percentages are as of December 31, 2020.

(2)In January 2020, the Company purchased CPPIB's 45.0% interest in each of a land parcel and six communities totaling 2,020 apartment homes.

The combined summarized financial information of co-investments is as follows ($ in thousands):

	December 31,
	2020		2019
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,242,611	$	4,733,762
Other assets	200,777		139,562
Total assets	$	4,443,388	$	4,873,324
Debt	$	2,611,365	$	2,442,213
Other liabilities	189,515		117,160
Equity	1,642,508		2,313,951
Total liabilities and equity	$	4,443,388	$	4,873,324
Company's share of equity	$	1,018,010	$	1,335,339

	Years ended December 31,
	2020		2019		2018
Combined statements of income: (1)
Property revenues	$	300,624	$	336,922	$	332,164
Property operating expenses	(108,682)		(115,658)		(107,584)
Net operating income	191,942		221,264		224,580
Gain on sale of real estate	—		112,918		24,218
Interest expense	(78,962)		(65,665)		(63,913)
General and administrative	(17,079)		(9,575)		(6,379)
Depreciation and amortization	(117,836)		(121,006)		(126,485)
Net income	$	(21,935)	$	137,936	$	52,021
Company's share of net income (2)	$	66,512	$	112,136	$	89,132

(1)Includes preferred equity investments held by the Company.

(2)Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $8.6 million, $7.5 million, and $2.0 million for the years ended December 31, 2020, 2019, and 2018, respectively.

Operating Co-investments

As of December 31, 2020 and 2019, the Company, through several joint ventures, owned 8,652 and 10,672 apartment homes, respectively, in operating communities. The Company’s book value of these co-investments was $358.3 million and $743.5 million at December 31, 2020 and 2019, respectively.

Predevelopment and Development Co-investments

As of December 31, 2020 and 2019, the Company, through several joint ventures, owned 1,070 and 806 apartment homes in predevelopment and development communities, respectively. The Company’s book value of these co-investments was $157.4 million and $146.9 million at December 31, 2020 and 2019, respectively.

In 2020, the Company entered into a joint venture to develop Scripps Mesa Apartments, a multifamily community comprised of 264 apartment homes located in San Diego, CA. The Company has a 51% ownership interest in the development which has a projected total cost of $102.0 million. Construction began in the third quarter of 2020 and the community is expected to open in

the fourth quarter of 2022. The Company has a $5.9 million preferred equity investment in the project, which accrues an annualized preferred return of 10.0% until it is redeemed.

In 2017, the Company entered into a joint venture to develop Patina at Midtown (formerly known as Ohlone), a multifamily community comprised of 269 apartment homes located in San Jose, CA. The Company has a 50% ownership interest in the development which has a projected total cost of $148.0 million. The property began initial occupancy in the third quarter of 2020 and is expected to be fully stabilized by the second quarter of 2021. The Company has a $28.9 million preferred equity investment in the project, which accrues an initial annualized preferred return of 10.0% and matures in 2021.

In 2015, the Company entered into a joint venture to develop 500 Folsom, a multifamily community comprised of 537 apartment homes located in San Francisco, CA. The Company has a 50% ownership interest in the development which has a projected total cost of $415.0 million. The property began initial occupancy in the third quarter of 2019 and is expected to be fully stabilized by the first quarter of 2021. 

Preferred Equity Investments

As of December 31, 2020 and 2019, the Company held preferred equity investment interests in several joint ventures which own real estate. The Company’s book value of these preferred equity investments was $502.3 million and $444.9 million at December 31, 2020 and 2019, respectively, and is included in the co-investments line in the accompanying consolidated balance sheets.

During 2020, the Company made commitments to fund $191.3 million of preferred equity investment in seven preferred equity investments. The investments have initial preferred returns ranging from 9.0%-11.5%, with maturities ranging from March 2022 to February 2030. As of December 31, 2020, the Company had funded $55.1 million of the $191.3 million of commitments. The remaining committed amount is expected to be funded in 2021.

During 2019, the Company made commitments to fund $141.7 million of preferred equity investment in five preferred equity investments, some of which include related party sponsors. See Note 6, Related Party Transactions, for additional details. The investments have initial preferred returns ranging from 10.15%-11.3%, with maturities ranging from July 2022 to October 2024. As of December 31, 2020, the Company had fully funded $141.7 million of the commitments.

During 2018, the Company made commitments to fund $45.1 million of preferred equity investment in two preferred equity investments, some of which include related party sponsors. See Note 6, Related Party Transactions, for additional details. The investments have initial preferred returns ranging from 10.25%-12.0%, with maturities ranging from May 2023 to April 2024. As of December 31, 2020, the Company had funded $42.1 million of the $45.1 million of commitments. The remaining committed amount is expected to be funded when requested by the sponsors.

In March 2020, the Company received cash of $11.3 million, including an early redemption fee of $0.2 million, for the partial redemption of a preferred equity investment in a joint venture that holds property located in Southern California. In the fourth quarter of 2020, the Company subsequently received cash of $10.7 million for redemption of the remainder of this preferred equity investment.

In February and September 2020, the Company received cash of $13.4 million for the full redemption of a preferred equity investment in a property located in Southern California.

In December 2020, the Company received cash of $31.3 million for the full redemption of a preferred equity investment in two properties located in Southern California.

(e) Real Estate under Development

The Company defines development projects as new communities that are being constructed, or are newly constructed and are in a phase of lease-up and have not yet reached stabilized operations. As of December 31, 2020, the Company's development pipeline was comprised of three consolidated projects under development, three unconsolidated joint venture projects under development and various predevelopment projects, aggregating 1,853 apartment homes, with total incurred costs of $948.0 million.

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Revenues

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

Disaggregated Revenue

The following table presents the Company’s revenues disaggregated by revenue source ($ in thousands):

	2020		2019		2018
Rental income (1)	$	1,462,161	$	1,425,585	$	1,366,590
Other property (1)	23,989		25,043		24,280
Management and other fees from affiliates	9,598		9,527		9,183
Total revenues	$	1,495,748	$	1,460,155	$	1,400,053

(1)On January 1, 2019, the Company adopted ASU No. 2016-02 and ASU No. 2018-11. As a result of this adoption, certain amounts previously classified as other property revenue have been reclassified to rental income. Prior period amounts have been adjusted to conform to the current period's presentation.

The following table presents the Company’s rental and other property revenues disaggregated by geographic operating segment ($ in thousands):

	2020		2019		2018
Southern California	$	570,673	$	597,330	$	579,533
Northern California	610,867		557,139		520,117
Seattle Metro	243,900		243,060		234,138
Other real estate assets (1)	60,710		53,099		57,082
Total rental and other property revenues	$	1,486,150	$	1,450,628	$	1,390,870

(1)Other real estate assets consist of revenue generated from retail space, commercial properties, held for sale properties, disposition properties and straight-line rent adjustments for concessions. Executive management does not evaluate such operating performance geographically.

The following table presents the Company’s rental and other property revenues disaggregated by current property category status ($ in thousands):

	2020		2019		2018
Same-property (1)	$	1,286,686	$	1,338,690	$	1,288,771
Acquisitions (2)	78,666		7,704		—
Development (3)	20,050		7,675		2,741
Redevelopment	19,054		21,058		20,413
Non-residential/other, net (4)	59,838		75,501		78,945
Straight line rent concession (5)	21,856		—		—
Total rental and other property revenues	$	1,486,150	$	1,450,628	$	1,390,870

(1)Properties that have comparable stabilized results as of January 1, 2019 and are consolidated by the Company for the years ended December 31, 2020, 2019, and 2018. A community is generally considered to have reach stabilized operations once it achieves an initial occupancy of 90%.

(2)Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2019.

(3)Development includes properties developed which did not have stabilized results as of January 1, 2019.

(4)Non-residential/other, net consists of revenue generated from retail space, commercial properties, held for sale properties, disposition properties, student housing, properties undergoing significant construction activities that do not meet our redevelopment criteria, and three communities located in the California counties of Riverside, Santa Barbara, and Santa Cruz, which the Company does not consider its core markets.

(5)Same-property revenues reflect concessions on a cash basis. Total rental and other property revenues reflect concessions on a straight-line basis in accordance with U.S. GAAP.

Deferred Revenues and Remaining Performance Obligations

When cash payments are received or due in advance of the Company’s performance of contracts with customers, deferred revenue is recorded. The total deferred revenue balance related to such contracts was $3.1 million and $3.9 million as of December 31, 2020 and December 31, 2019, respectively, and was included in accounts payable and accrued liabilities within the accompanying consolidated balance sheets. The amount of revenue recognized for the year ended December 31, 2020 that was included in the December 31, 2019 deferred revenue balance was $0.8 million, which was included in interest and other income within the consolidated statements of income and comprehensive income.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue recognition accounting standard. As of December 31, 2020, the Company had $3.1 million of remaining performance obligations. The Company expects to recognize approximately 23% of these remaining performance obligations in 2021, an additional 45% through 2023, and the remaining balance thereafter.

Practical Expedients

The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less or when variable consideration is allocated entirely to a wholly unsatisfied performance obligation.

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Notes and Other Receivables

12 Months Ended

Dec. 31, 2020

Notes and Other Receivables [Abstract]

Notes and Other Receivables

Notes and Other Receivables

Notes and other receivables consist of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020		2019
Note receivable, secured, bearing interest at 9.00% due May 2021 (Originated May 2017) (1)	$	—	$	16,828
Note receivable, secured, bearing interest at 9.90%, due November 2021 (Originated November 2018)	14,216		12,838
Related party note receivable, secured, bearing variable rate interest, due February 2020 (Originated November 2019) (2)(3)	—		85,713
Notes receivable, secured, bearing interest at 10.50%, due February 2023 (Originated March 2020)	15,299		—
Note receivable, secured, bearing interest at 11.00%, due October 2023 (Originated April 2020)	25,461		—
Note receivable, secured, bearing interest at 9.00%, due December 2023 (Originated November 2020)	79,827		—
Note receivable, secured, bearing interest at 11.50%, due November 2024 (Originated November 2020)	15,423		—
Notes and other receivables from affiliates (4)	4,744		4,442
Straight line rent receivables (5)	25,214		6,083
Other receivables	15,671		8,461
Allowance for credit losses	(751)		—
Total notes and other receivables	$	195,104	$	134,365

(1)In January 2020, the Company received cash of $16.9 million from the payoff of this note receivable.

(2)See Note 6, Related Party Transactions, for additional details.

(3)In January 2020, the Company received cash of $85.8 million from the payoff of this note receivable.

(4)These amounts consist of short-term loans outstanding and due from various joint ventures as of December 31, 2020 and 2019, respectively. See Note 6, Related Party Transactions, for additional details.

(5)These amounts are receivables from lease concessions recorded on a straight-line basis for the Company's operating properties.

The following table presents the activity in the allowance for credit losses for notes and other receivables by loan type ($ in thousands):

	Mezzanine Loans		Bridge Loans		Total
Balance at December 31, 2019	$	—	$	—	$	—
Impact of adoption ASC 326	147		43		190
Provision for credit losses	604		(43)		561
Balance at December 31, 2020	$	751	$	—	$	751

No loans were placed on nonaccrual status or charged off during the year ended December 31, 2020 or 2019.

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Related Party Transactions

12 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company has adopted written related party transaction guidelines that are intended to cover transactions in which the Company (including entities it controls) is a party and in which any "related person" has a direct or indirect interest. A "related person" means any person who is or was (since the beginning of the last fiscal year) a Company director, director nominee, or executive officer, any beneficial owner of more than 5% of the Company’s outstanding common stock, and any immediate family member of any of the foregoing persons. A related person may be considered to have an indirect interest in a transaction if he or she (i) is an owner, director, officer or employee of or otherwise associated with another company that is engaging in a transaction with the Company, or (ii) otherwise, through one or more entities or arrangements, has an indirect financial interest in or personal benefit from the transaction.

The related person transaction review and approval process is intended to determine, among any other relevant issues, the dollar amount involved in the transaction; the nature and value of any related person’s direct or indirect interest (if any) in the transaction; and whether or not (i) a related person’s interest is material, (ii) the transaction is fair, reasonable, and serves the best interest of the Company and its shareholders, and (iii) whether the transaction or relationship should be entered into, continued or ended.

The Company’s Chairman and founder, Mr. George Marcus, is the Chairman of the Marcus & Millichap Company ("MMC"), which is a parent company of a diversified group of real estate service, investment, and development firms. Mr. Marcus is also the Co-Chairman of Marcus & Millichap, Inc. ("MMI"), and Mr. Marcus owns a controlling interest in MMI, a national brokerage firm listed on the NYSE that underwent its initial public offering in 2013. For the year ended December 31, 2020, the Company paid brokerage commissions of $0.2 million to MMC and its affiliates related to real estate transactions. For the years ended December 31, 2019 and 2018, there were no brokerage commissions paid by the Company to MMI or its affiliates.

The Company charges certain fees relating to its co-investments for asset management, property management, development and redevelopment services. These fees from affiliates totaled $11.3 million, $13.8 million, and $13.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. All of these fees are net of intercompany amounts eliminated by the Company. The Company netted development and redevelopment fees of $1.7 million, $4.3 million, and $4.8 million against general and administrative expenses for the years ended December 31, 2020, 2019 and 2018, respectively.

As described in Note 5, Notes and Other Receivables, the Company has provided short-term loans to affiliates. As of December 31, 2020 and 2019, $4.7 million and $4.4 million, respectively, of short-term loans remained outstanding due from joint venture affiliates and are classified within notes and other receivables in the accompanying consolidated balance sheets. In November 2016, the Company provided a $6.6 million mezzanine loan to a limited liability company in which MMC holds a significant ownership interest through subsidiaries. The mezzanine loan was classified within notes and other receivables in the accompanying consolidated balance sheets and was paid off in October 2019.

In November 2019, the Company provided an $85.5 million related party bridge loan to Wesco V as part of the acquisition of Velo and Ray. The note receivable accrued interest at LIBOR plus 1.30% and was scheduled to mature in February 2020, but was paid off in January 2020. The bridge loan was classified within notes and other receivables in the accompanying consolidated balance sheets.

In August 2019, the Company provided an $89.0 million related party bridge loan to Wesco V in connection with the acquisition of The Courtyards at 65th Street. The note receivable accrued interest at LIBOR plus 1.30% and was paid off in November 2019.

In August 2019, the Company provided a $44.4 million related party bridge loan to BEX IV in connection with the acquisition of 777 Hamilton. The note receivable accrued interest at 3.25%. In November 2019, the term of the bridge loan was extended to February 2020, but was paid off in December 2019.

In June 2019, the Company acquired Brio, a 300 unit apartment home community located in Walnut Creek, CA. The Company issued DownREIT units to an affiliate of MMC, based on a contract price of $164.9 million. The property was encumbered by $98.7 million of mortgage debt which was assumed by the Company at the time of acquisition. As a result of this transaction, the Company consolidated the property, based on a VIE analysis performed by the Company.

In February 2019, the Company funded a $24.5 million preferred equity investment in an entity whose sponsor is an affiliate of MMC, which owns a multifamily development community located in Mountain View, CA. The investment has an initial preferred return of 11.0% and is scheduled to mature in February 2024.

In October 2018, the Company funded a $18.6 million preferred equity investment in an entity whose sponsor is an affiliate of MMC. The entity wholly owns a 268 apartment home community development located in Burlingame, CA. This investment accrues interest based on an initial 12.0% preferred return. The investment is scheduled to mature in April 2024.

In May 2018, the Company made a commitment to fund a $26.5 million preferred equity investment in an entity whose sponsors include an affiliate of MMC. The entity wholly owns a 400 apartment home community located in Ventura, CA. This investment accrues interest based on a 10.25% preferred return. The investment is scheduled to mature in May 2023. As of December 31, 2020, the Company had funded $23.4 million of the commitment. The remaining committed amount is expected to be funded if and when requested by the sponsors.

In March 2017, the Company converted its existing $15.3 million preferred equity investment in Sage at Cupertino, a 230 apartment home community located in San Jose, CA, into a 40.5% common equity ownership interest in the property. The Company issued DownREIT units to the other members, including an MMC affiliate, based on an estimated property valuation of $90.0 million. At the time of the conversion, the property was encumbered by $52.0 million of mortgage debt. As a result of this transaction, the Company consolidates the property, based on a consolidation analysis performed by the Company.

In 2015, the Company made preferred equity investments totaling $20.0 million in three entities affiliated with MMC that own apartment communities in California. The Company earned a 9.5% preferred return on each such investment. One $5.0 million investment, which was scheduled to mature in 2022, was fully redeemed in 2017. Another $5.0 million investment, which was scheduled to mature in 2022, was fully redeemed in 2018. The remaining investment was fully redeemed in February 2019.

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Unsecured Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Unsecured Debt

Unsecured Debt

Essex does not have any indebtedness as all debt is incurred by the Operating Partnership. Essex guarantees the Operating Partnership’s unsecured debt including the revolving credit facilities up to the maximum amounts and for the full term of the facilities.

Unsecured debt consists of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020			2019			Weighted Average Maturity In Years
Unsecured bonds private placement - fixed rate	$	199,950		$	199,820		0.5
Term loan - variable rate	549,380			349,189			1.5
Bonds public offering - fixed rate	4,858,655			4,214,197			9.4
Unsecured debt, net (1)	5,607,985			4,763,206
Lines of credit (2)	—			55,000
Total unsecured debt	$	5,607,985		$	4,818,206
Weighted average interest rate on fixed rate unsecured bonds private placement and bonds public offering	3.4		%	3.8		%
Weighted average interest rate on variable rate term loan	1.7		%	2.7		%
Weighted average interest rate on lines of credit	1.0		%	2.5		%

(1)Includes unamortized discount, net of premiums, of $10.1 million and $12.2 million and unamortized debt issuance costs of $31.9 million and $24.5 million as of December 31, 2020 and 2019, respectively.

(2)Lines of credit, related to the Company's two lines of unsecured credit aggregating $1.24 billion, excludes unamortized debt issuance costs of $3.7 million and $3.8 million as of December 31, 2020 and 2019, respectively. These debt issuance costs are included in prepaid expenses and other assets on the consolidated balance sheets.

As of both December 31, 2020 and 2019, the Company had $200.0 million of private placement unsecured bonds outstanding at an average effective interest rate of 4.4%.

The following is a summary of the Company’s unsecured private placement bonds as of December 31, 2020 and 2019 ($ in thousands):

	Maturity	2020		2019		Coupon Rate
Senior unsecured private placement notes	April 2021	100,000		100,000		4.27	%
Senior unsecured private placement notes	June 2021	50,000		50,000		4.30	%
Senior unsecured private placement notes	August 2021	50,000		50,000		4.37	%
		$	200,000	$	200,000

As of December 31, 2020 and 2019, the Company had unsecured term loans outstanding of $550.0 million and $350.0 million, respectively, at an average interest rate of 1.7% and 2.7%, respectively. These loans are included in the line "Term loan - variable rate" in the table above, and as of December 31, 2020 and 2019, the carrying value, net of debt issuance costs, was $549.4 million and $349.2 million, respectively. $350.0 million of the term loan matures in February 2022 and $200.0 million of the term loan matures in April 2021 with two 12-month extension options, exercisable at the Company’s option. The Company had entered into five interest rate swap contracts, for a term of five years with a notional amount totaling $175.0 million, which will effectively convert the interest rate on $175.0 million of the term loan to a fixed rate of 2.3%. These interest rate swaps are accounted for as cash flow hedges.

In February 2020, the Operating Partnership issued $500.0 million of senior unsecured notes due on March 15, 2032, with a coupon rate of 2.650% (the "2032 Notes"), which are payable on March 15 and September 15 of each year, beginning on September 15, 2020. The 2032 Notes were offered to investors at a price of 99.628% of par value. The 2032 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay indebtedness under its unsecured lines of credit, which had been used to fund the buyout of CPPIB's 45.0% joint venture interests, as well as repay $100.3 million of secured debt during the quarter that ended March 31, 2020. In June 2020, the Operating Partnership issued an additional $150.0 million of the 2032 Notes at a price of 105.660% of par value, plus accrued interest from February 2020 up to, but not including, the date of delivery of the additional notes, with an effective yield of 2.093%. These additional notes have substantially identical terms as the 2032 Notes issued in February 2020. The proceeds were used to repay indebtedness under the Company's unsecured credit facilities and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, the carrying value of the 2032 Notes, net of premiums and debt issuance costs, was $650.7 million.

In April 2020, the Company obtained a $200.0 million unsecured term loan with a one-year maturity and two 12-month extension options, exercisable at the Company’s option. The unsecured term loan bears a variable interest rate of LIBOR plus 1.20% and the proceeds were used to repay all remaining consolidated debt maturing in 2020.

In August 2020, the Operating Partnership issued $600.0 million of senior unsecured notes, consisting of $300.0 million aggregate principal amount due on January 15, 2031 with a coupon rate of 1.650% (the “2031 Notes”) and $300.0 million aggregate principal amount due on September 1, 2050 with a coupon rate of 2.650% (the “2050 Notes” and together with the 2031 Notes, the “Notes”). The 2031 Notes were offered to investors at a price of 99.035% of par value and the 2050 Notes at 99.691% of par value. Interest is payable on the 2031 Notes semiannually on January 15 and July 15 of each year, beginning on January 15, 2021. Interest is payable on the 2050 Notes semiannually on March 1 and September 1 of each year, beginning on March 1, 2021. The Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. The Company used the net proceeds of this offering to repay debt maturities, including certain unsecured private placement notes, secured mortgage notes, and to fund the redemption of $300.0 million aggregate principal amount of

its outstanding 3.625% senior unsecured notes due August 2022, and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, the carrying value of the 2031 Notes and 2050 Notes, net of discount and debt issuance costs was $294.5 million and $295.7 million, respectively.

In August 2019, the Operating Partnership issued $400.0 million of senior unsecured notes due on January 15, 2030, with a coupon rate of 3.000% per annum (the "2030 Notes"), which are payable on January 15 and July 15 of each year, beginning on January 15, 2020. The 2030 Notes were offered to investors at a price of 98.632% of the principal amount thereof. The 2030 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex Property Trust, Inc. In October 2019, the Operating Partnership issued an additional $150.0 million of the 2030 notes at a price of 101.685% of the principal amount thereof. These additional notes have substantially identical terms as the 2030 Notes issued in August 2019. The Company used the net proceeds of these offerings to prepay, with no prepayment penalties, certain secured indebtedness under outstanding mortgage notes, to repay indebtedness under its unsecured lines of credit and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, and 2019, the carrying value of the 2030 Notes, net of discount and debt issuance costs, was $543.1 million and $542.3 million, respectively.

In February 2019, the Operating Partnership issued $350.0 million of senior unsecured notes due on March 1, 2029, with a coupon rate of 4.000% per annum (the "2029 Notes"), which are payable on March 1 and September 1 of each year, beginning on September 1, 2019. The 2029 Notes were offered to investors at a price of 99.188% of the principal amount thereof. The 2029 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex Property Trust, Inc. In March 2019, the Operating Partnership issued an additional $150.0 million of the 2029 Notes at a price of 100.717% of the principal amount thereof. These additional notes have substantially identical terms as the 2029 Notes issued in February 2019. The Company used the net proceeds of these offerings to repay indebtedness under its unsecured lines of credit and for other general corporate and working capital purposes. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020, and 2019, the carrying value of the 2029 Notes, net of discount and debt issuance costs was $494.8 million and $494.1 million, respectively.

In March 2018, the Operating Partnership issued $300.0 million of senior unsecured notes due on March 15, 2048 with a coupon rate of 4.500% per annum and are payable on March 15 and September 15 of each year, beginning on September 15, 2018 (the "2048 Notes"). The 2048 Notes were offered to investors at a price of 99.591% of par value. The 2048 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2048 Notes, net of discount and debt issuance costs was $295.8 million and $295.6 million, respectively.

In April 2017, the Operating Partnership issued $350.0 million of senior unsecured notes due on May 1, 2027 with a coupon rate of 3.625% per annum and are payable on May 1 and November 1 of each year, beginning on November 1, 2017 (the "2027 Notes"). The 2027 Notes were offered to investors at a price of 99.423% of par value. The 2027 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2027 Notes, net of discount and debt issuance costs was $346.8 million and $346.3 million, respectively.

In April 2016, the Operating Partnership issued $450.0 million of senior unsecured notes due on April 15, 2026 with a coupon rate of 3.375% per annum and are payable on April 15th and October 15th of each year, beginning October 15, 2016 (the "2026 Notes"). The 2026 Notes were offered to investors at a price of 99.386% of par value. The 2026 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2026 Notes, net of discount and debt issuance costs was $446.4 million and $445.7 million, respectively.

In March 2015, the Operating Partnership issued $500.0 million of senior unsecured notes due on April 1, 2025 with a coupon rate of 3.5% per annum and are payable on April 1st and October 1st of each year, beginning October 1, 2015 (the "2025 Notes"). The 2025 Notes were offered to investors at a price of 99.747% of par value. The 2025 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included

in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2025 Notes, net of discount and debt issuance costs was $497.6 million and $497.1 million, respectively.

In April 2014, the Company assumed $900.0 million aggregate principal amount of BRE Property Inc.’s 5.500% senior notes due 2017; 5.200% senior notes due 2021; and 3.375% senior notes due 2023 (together the "BRE Notes"). These notes are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the BRE Notes, plus unamortized premium was $296.8 million and $599.4 million, respectively. In December 2020, the Company paid off $300.0 million of 5.200% senior notes. In March 2017, the Company paid off $300.0 million of 5.500% senior notes, at maturity.

In April 2014, the Operating Partnership issued $400.0 million of senior unsecured notes due on May 1, 2024 with a coupon rate of 3.875% per annum and are payable on May 1st and November 1st of each year, beginning November 1, 2014 (the "2024 Notes"). The 2024 Notes were offered to investors at a price of 99.234% of par value. The 2024 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2024 Notes, net of discount and debt issuance costs was $397.8 million and $397.1 million, respectively.

In April 2013, the Operating Partnership issued $300.0 million of senior unsecured notes due on May 1, 2023 with a coupon rate of 3.25% per annum and are payable on May 1st and November 1st of each year, beginning November 1, 2013 (the "2023 Notes"). The 2023 Notes were offered to investors at a price of 99.152% of par value. The 2023 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are fully and unconditionally guaranteed by Essex Property Trust, Inc. These bonds are included in the line "Bonds public offering-fixed rate" in the table above, and as of December 31, 2020 and 2019, the carrying value of the 2023 Notes, net of discount and debt issuance costs was $298.7 million and $298.2 million, respectively.

The following is a summary of the Company’s senior unsecured notes as of December 31, 2020 and 2019 ($ in thousands):

	Maturity	2020		2019		Coupon Rate
Senior notes	March 2021	$	—	$	300,000	5.200	%
Senior notes	August 2022	—		300,000		3.625	%
Senior notes	January 2023	300,000		300,000		3.375	%
Senior notes	May 2023	300,000		300,000		3.250	%
Senior notes	May 2024	400,000		400,000		3.875	%
Senior notes	April 2025	500,000		500,000		3.500	%
Senior notes	April 2026	450,000		450,000		3.375	%
Senior notes	May 2027	350,000		350,000		3.625	%
Senior notes	March 2029	500,000		500,000		4.000	%
Senior notes	January 2030	550,000		550,000		3.000	%
Senior notes	January 2031	300,000		—		1.650	%
Senior notes	March 2032	650,000		—		2.650	%
Senior notes	March 2048	300,000		300,000		4.500	%
Senior notes	September 2050	300,000		—		2.650	%
		$	4,900,000	$	4,250,000

The aggregate scheduled principal payments of unsecured debt payable, excluding lines of credit, at December 31, 2020 are as follows ($ in thousands):

2021	$	—
2022	—
2023	600,000
2024	400,000
2025	500,000
Thereafter	3,400,000
	$	4,900,000

As of December 31, 2020, the Company had two unsecured lines of credit aggregating $1.24 billion, including a $1.2 billion unsecured line of credit and a $35.0 million working capital unsecured line of credit. As of December 31, 2020, there was no amount outstanding on the $1.2 billion unsecured line of credit. As of December 31, 2019, there was $55.0 million outstanding on this line. The interest rate is based on a tiered rate structure tied to the Company's credit ratings and was LIBOR plus 0.825% as of December 31, 2020. The $1.2 billion unsecured line of credit has a scheduled maturity date in December 2023 with one 18-month extension, exercisable at the Company's option. As of both December 31, 2020 and 2019, there was no amount outstanding on the Company's $35.0 million working capital unsecured line of credit. The interest rate on the amended line is based on a tiered rate structure tied to the Company's credit ratings and is currently at LIBOR plus 0.825%.

The Company’s unsecured lines of credit and unsecured debt agreements contain debt covenants related to limitations on indebtedness and liabilities, and maintenance of minimum levels of consolidated earnings before depreciation, interest and amortization. The Company was in compliance with the debt covenants as of December 31, 2020 and 2019.

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Mortgage Notes Payable

12 Months Ended

Dec. 31, 2020

Notes Payable [Abstract]

Mortgage Notes Payable

Mortgage Notes Payable

Essex does not have any indebtedness as all debt is incurred by the Operating Partnership. Mortgage notes payable consist of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020			2019
Fixed rate mortgage notes payable	$	419,323		$	736,490
Variable rate mortgage notes payable (1)	224,227			254,177
Total mortgage notes payable (2)	$	643,550		$	990,667
Number of properties securing mortgage notes	12			24
Remaining terms	1-26 years			1-27 years
Weighted average interest rate	2.7		%	4.1		%

The aggregate scheduled principal payments of mortgage notes payable at December 31, 2020 are as follows ($ in thousands):

2021	$	3,501
2022	43,188
2023	2,945
2024	3,109
2025	133,054
Thereafter	455,629
	$	641,426

(1)Variable rate mortgage notes payable, including $225.1 million in bonds that have been converted to variable rate through total return swap contracts, consists of multifamily housing mortgage revenue bonds secured by deeds of trust on rental properties and guaranteed by collateral pledge agreements, payable monthly at a variable rate as defined in the Loan Agreement (approximately 1.2% at December 2020 and 2.3% at December 2019) including credit enhancement and underwriting fees. Among the terms imposed on the properties, which are security for the bonds, is a requirement that 20% of the apartment homes are subject to tenant income criteria. Once the bonds have been repaid, the properties may no

longer be obligated to comply with such tenant income criteria. Principal balances are due in full at various maturity dates from December 2027 through December 2046. The Company had no interest rate cap agreements as of December 31, 2020 and 2019, respectively.

(2)Includes total unamortized premium, net of discounts, of $3.9 million and $5.9 million and reduced by unamortized debt issuance costs of $1.8 million and $2.6 million as of December 31, 2020 and 2019, respectively.

For the Company’s mortgage notes payable as of December 31, 2020, monthly interest expense and principal amortization, excluding balloon payments, totaled approximately $3.0 million and $0.5 million, respectively. Second deeds of trust accounted for none of the mortgage notes payable balance as of both December 31, 2020 and 2019. Repayment of debt before the scheduled maturity date could result in prepayment penalties. The prepayment penalty on the majority of the Company’s mortgage notes payable are computed by the greater of (a) 1% of the amount of the principal being prepaid or (b) the present value of the principal being prepaid multiplied by the difference between the interest rate of the mortgage note and the stated yield rate on a U.S. treasury security which generally has an equivalent remaining term as the mortgage note.

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Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Company uses interest rate swaps, interest rate caps, and total return swap contracts to manage certain interest rate risks. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps and total return swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements.

In November 2016, the Company replaced its $225.0 million term loan with a $350.0 million five-year term loan with a delayed draw feature that carries a variable interest rate of LIBOR plus 95 basis points. In 2016, the Company entered into four forward starting interest rate swaps (settlement payments commenced in March 2017) and in 2017, the Company entered into one forward starting interest rate swap (settlement payments commenced in March 2017) all related to the $350.0 million term loan. These five swaps, with a total notional amount of $175.0 million bear an average fixed interest rate of 2.3% and are scheduled to mature in February 2022. These derivatives qualify for hedge accounting.

As of December 31, 2020 and 2019, the Company had no interest rate caps.

As of December 31, 2020 and 2019, the aggregate carrying value of the interest rate swap contracts were a liability of $2.4 million and an asset of $0.8 million, respectively. As of December 31, 2020 and 2019, the swap contracts were presented in the consolidated balance sheets as an asset of zero and $1.0 million, respectively, and were in prepaid expenses and other assets on the consolidated balance sheets, and a liability of $2.4 million and $0.2 million, respectively, and were included in other liabilities on the consolidated balance sheets. The Company had no interest rate caps on the balance sheets as of December 31, 2020 and 2019.

Hedge ineffectiveness related to cash flow hedges, which is included in interest expense on the consolidated statements of income, was zero, a loss of $0.2 million, and a loss of $0.1 million for the years ended December 31, 2020, 2019, and 2018 respectively.

The Company has four total return swap contracts, with an aggregate notional amount of $254.8 million, that effectively convert $225.1 million of mortgage notes payable and $29.7 million of mortgage notes payable related to real estate held for sale that is included in liabilities associated with real estate held for sale on the consolidated balance sheet to a floating interest rate based on the Securities Industry and Financial Markets Association Municipal Swap Index ("SIFMA") plus a spread. The total return swaps provide fair market value protection on the mortgage notes payable to our counterparties during the initial period of the total return swap until the Company's option to call the mortgage notes at par can be exercised. The Company can currently call all four of the total return swaps with $254.8 million of the outstanding debt at par. These derivatives do not qualify for hedge accounting and had a carrying and fair value of zero at both December 31, 2020 and 2019, respectively. These total return swaps are scheduled to mature between November 2022 and December 2024. The realized gains of $10.7 million,

$8.4 million, and $8.7 million as of December 31, 2020, 2019, and 2018, respectively, were reported on the consolidated statements of income as total return swap income.

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Lease Agreements - Company as Lessor

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease Agreements - Company as Lessor

Lease Agreements - Company as Lessor

As of December 31, 2020, the Company is a lessor of apartment homes at all of its consolidated operating and lease-up communities, one commercial building, and commercial portions of mixed use communities. The apartment homes are rented under short-term leases (generally, lease terms of 9 to 12 months) while commercial lease terms typically range from 5 to 20 years. All such leases are classified as operating leases.

Although the majority of the Company’s apartment home and commercial leasing income is derived from fixed lease payments, some lease agreements also allow for variable payments. The primary driver of variable leasing income comes from utility reimbursements from apartment home leases and common area maintenance reimbursements from commercial leases. A small number of commercial leases contain provisions for lease payments based on a percentage of gross retail sales over set hurdles.

At the end of the term of apartment home leases, unless the lessee decides to renew the lease with the Company at the market rate or gives notice not to renew, the lease will be automatically renewed on a month-to-month term. Apartment home leases include an option to terminate the lease, however the lessee must pay the Company for expected or actual downtime to find a new tenant to lease the space or a lease-break fee specified in the lease agreement. Most commercial leases include options to renew, with the renewal periods extending the term of the lease for no greater than the same period of time as the original lease term. The initial option to renew for commercial leases will typically be based on a fixed price while any subsequent renewal options will generally be based on the current market rate at the time of the renewal. Certain commercial leases contain lease termination options that would require the lessee to pay termination fees based on the expected amount of time it would take the Company to re-lease the space.

The Company’s apartment home and commercial lease agreements do not contain residual value guarantees. As the Company is the lessor of real estate assets which tend to either hold their value or appreciate, residual value risk is not deemed to be substantial. Furthermore, the Company carries comprehensive liability, fire, extended coverage, and rental loss insurance for each of its communities as well as limited insurance coverage for certain types of extraordinary losses, such as, for example, losses from terrorism or earthquakes.

A maturity analysis of undiscounted future minimum non-cancelable base rent to be received under the above operating leases as of December 31, 2020 is summarized as follows ($ in thousands):

	Future Minimum Rent
2021	$	720,570
2022	34,240
2023	14,971
2024	13,619
2025	11,265
Thereafter	24,855
	$	819,520

Practical Expedients

The Company has elected to account for operating lease (e.g., fixed payments including rent) and non-lease components (e.g., utility reimbursements and common-area maintenance costs) as a single combined lease component under ASC 842 "Leases" as the lease components are the predominant elements of the combined components.

As part of the transition to ASC Topic 842, the Company has elected to use the modified retrospective transition method with the new standard being applied as of the January 1, 2019 adoption date. Additionally, the Company has elected, as of the

adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC Topic 842, and not to reassess whether existing or expired land easements meet the definition of a lease.

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Lease Agreements - Company as Lessee

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease Agreements - Company as Lessee

Lease Agreements - Company as Lessee

As of December 31, 2020, the Company is a lessee of corporate office space, ground leases and a parking lease associated with various consolidated properties, and equipment. Lease terms for the Company's office leases, in general, range between 5 to 10 years while ground leases and the parking lease have terms typically ranging from 20 to 85 years. The corporate office leases occasionally contain renewal options of approximately five years while certain ground leases contain renewal options that can extend the lease term from approximately 10 to 39 years.

A majority of the Company’s ground leases and the parking lease are subject to changes in the Consumer Price Index ("CPI"). Furthermore, certain of the Company’s ground leases include rental payments based on a percentage of gross or net income. While lease liabilities are not remeasured as a result of changes in the CPI or percentage of gross or net income, such changes are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred.

The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

As of December 31, 2020 and 2019, the Company had no material finance leases.

Supplemental consolidated balance sheet information related to leases as of December 31, 2020 and 2019 is as follows ($ in thousands):

	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	72,143	$	74,744
Total leased assets		$	72,143	$	74,744
Liabilities
Operating lease liabilities	Operating lease liabilities	74,037		76,740
Total lease liabilities		$	74,037	$	76,740

The components of lease expense for the years ended December 31, 2020 and 2019 were as follows ($ in thousands):

	December 31, 2020		December 31, 2019
Operating lease cost	$	6,749	$	6,745
Variable lease cost	1,436		783
Short-term lease cost	432		610
Sublease income	(438)		(436)
Total lease cost	$	8,179	$	7,702

A maturity analysis of lease liabilities as of December 31, 2020 is as follows ($ in thousands):

	Operating Leases
2021	$	6,963
2022	6,987
2023	6,962
2024	6,690
2025	6,310
Thereafter	140,417
Total lease payments	$	174,329
Less: Imputed interest	(100,292)
Present value of lease liabilities	$	74,037

Lease term and discount rate information for leases at December 31, 2020 and 2019 are as follows:

	December 31, 2020		December 31, 2019
Weighted-average of remaining lease terms (years)
Operating Leases	39		39
Weighted-average of discount rates
Operating Leases	5.00	%	4.99	%

Practical Expedients

As part of the transition to ASC Topic 842, the Company elected to use the modified retrospective transition method with the new standard being applied as of the January 1, 2019 adoption date. Additionally, the Company has elected, as of the adoption date, not to reassess whether expired or existing contracts contain leases under the new definition of a lease, not to reassess the lease classification for expired or existing leases, not to reassess whether previously capitalized initial direct costs would qualify for capitalization under ASC Topic 842, and not to reassess whether existing or expired land easements meet the definition of a lease.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes the lease expense for such leases on a straight-line basis over the lease term.

The Company has elected to account for lease components (e.g., fixed payments including rent) and non-lease components (e.g., common-area maintenance costs) as a single combined lease component as the lease components are the predominant elements of the combined components.

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Equity Transactions

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Equity Transactions

Equity Transactions

Common Stock Offerings

In September 2018, the Company entered into an equity distribution agreement pursuant to which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $900.0 million (the "2018 ATM Program"). Upon entering into the 2018 ATM Program, the Company simultaneously terminated its existing equity distribution agreements, which were entered into in March 2016 in connection with its prior at-the-market equity offering program (the "2016 ATM Program").

In connection with the 2018 ATM Program, the Company may also enter into related forward sale agreements whereby, at the Company’s discretion, it may sell shares of its common stock under the 2018 ATM Program under forward sale agreements. The use of a forward sale agreement would allow the Company to lock in a share price on the sale of shares of its common stock at the time the agreement is executed, but defer receiving the proceeds from the sale of shares until a later date. The Company anticipates using the net proceeds, which are contributed to the Operating Partnership, to acquire, develop, or

redevelop properties, which primarily will be apartment communities, to make other investments and for working capital or general corporate purposes, which may include the repayment of indebtedness.

For the year ended December 31, 2020, the Company did not issue any shares of common stock through the 2018 ATM Program. For the year ended December 31, 2019, the Company issued 228,271 shares of common stock through the 2018 ATM Program at an average price of $321.56 per share for proceeds of $73.4 million. For the year ended December 31, 2018, the Company did not sell any shares of its common stock through the 2018 ATM Program or through the 2016 ATM Program. As of December 31, 2020, there were no outstanding forward sale agreements, and $826.6 million of shares remained available to be sold under this program.

Operating Partnership Units and Long-Term Incentive Plan ("LTIP") Units

As of December 31, 2020 and 2019, the Operating Partnership had outstanding 2,188,623 and 2,158,396 operating partnership units and 106,137 and 143,257 vested LTIP units, respectively. The Operating Partnership’s general partner, Essex, owned 96.6% of the partnership interests in the Operating Partnership as of both December 31, 2020 and 2019, and Essex is responsible for the management of the Operating Partnership’s business. As the general partner of the Operating Partnership, Essex effectively controls the ability to issue common stock of Essex upon a limited partner’s notice of redemption. Essex has generally acquired Operating Partnership limited partnership units ("OP Units") upon a limited partner’s notice of redemption in exchange for shares of its common stock. The redemption provisions of OP Units owned by limited partners that permit Essex to settle in either cash or common stock at the option of Essex were further evaluated in accordance with applicable accounting guidance to determine whether temporary or permanent equity classification on the balance sheet is appropriate. The Operating Partnership evaluated this guidance, including the requirement to settle in unregistered shares, and determined that, with few exceptions, these OP Units meet the requirements to qualify for presentation as permanent equity.

LTIP units represent an interest in the Operating Partnership for services rendered or to be rendered by the LTIP unitholder in its capacity as a partner, or in anticipation of becoming a partner, in the Operating Partnership. Upon the occurrence of specified events, LTIP units may over time achieve full parity with common units of the Operating Partnership for all purposes. Upon achieving full parity, LTIP units will be exchanged for an equal number of the OP Units.

The collective redemption value of OP Units and LTIP units owned by the limited partners, not including Essex, was approximately $544.8 million and $692.5 million based on the closing price of Essex's common stock as of December 31, 2020 and 2019, respectively.

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Net Income Per Common Share and Net Income Per Common Unit

12 Months Ended

Dec. 31, 2020

Net Income Per Common Share and Net Income Per Unit [Abstract]

Net Income Per Common Share and Net Income Per Common Unit

Net Income Per Common Share and Net Income Per Common Unit

Essex Property Trust, Inc.

Basic and diluted income per share is calculated as follows for the years ended December 31 ($ in thousands, except share and per share amounts):

	2020					2019					2018
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Net income available to common stockholders	$	568,870	65,454,057	$	8.69	$	439,286	65,840,422	$	6.67	$	390,153	66,041,058	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common stockholders	$	569,653	65,564,982	$	8.69	$	439,286	65,939,455	$	6.66	$	390,153	66,085,089	$	5.90

The table above excludes from the calculations of diluted earnings per share weighted average convertible OP Units of 2,296,608, 2,300,478, and 2,274,941, which include vested Series Z-1 Incentive Units, 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units, for the years ended December 31, 2020, 2019 and 2018, respectively, because they were anti-dilutive. The related income allocated to these convertible OP Units aggregated $20.0 million, $15.3 million, and $13.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Additionally, the table excludes all DownREIT units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

Stock options of 403,458, 115,066, and 160,039, for the years ended December 31, 2020, 2019, and 2018, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of such options plus the average unearned compensation were greater than the average market price of the common stock for the years ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.

Basic and diluted income per unit is calculated as follows for the years ended December 31 ($ in thousands, except unit and per unit amounts):

	2020					2019					2018
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Net income available to common unitholders	$	588,782	67,750,665	$	8.69	$	454,629	68,140,900	$	6.67	$	403,605	68,315,999	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common unitholders	$	589,565	67,861,590	$	8.69	$	454,629	68,239,933	$	6.66	$	403,605	68,360,030	$	5.90

Stock options of 403,458, 115,066, and 160,039, for the years ended December 31, 2020, 2019, and 2018, respectively, were excluded from the calculation of diluted earnings per unit because the assumed proceeds per unit of these options plus the average unearned compensation were greater than the average market price of the common unit for the years ended and, therefore, were anti-dilutive. Additionally, the table excludes all DownREIT units for which the Operating Partnership has the ability and intention to redeem the units for cash and does not consider them to be common stock equivalents.

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Equity Based Compensation Plans

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Equity Based Compensation Plans

Equity Based Compensation Plans

Stock Options and Restricted Stock

In May 2018, stockholders approved the Company’s 2018 Stock Award and Incentive Compensation Plan ("2018 Plan"). The 2018 Plan serves as the successor to the Company’s 2013 Stock Incentive Plan (the "2013 Plan"). The Company’s 2018 Plan provides incentives to attract and retain officers, directors and key employees. The 2018 Plan provides for the grant of stock-based awards to employees, directors and consultants of the Company and its affiliates. The aggregate number of shares of the Company’s common stock available for issuance pursuant to awards granted under the 2018 Plan is 2,000,000 shares, plus the number of shares authorized for grants and available for issuance under the 2013 Plan as of the effective date of the 2018 Plan and the number of shares subject to outstanding awards under the 2013 Plan that are forfeited or otherwise not issued under such awards. No further awards will be granted under the 2013 Plan and the shares that remained available for future issuance under the 2013 Plan as of the effective date of the 2018 Plan will be available for issuance under the 2018 Plan. In connection with the adoption of the 2018 Plan, the Board delegated to the Compensation Committee of the Board the authority to administer the 2018 Plan.

Equity-based compensation costs for options and restricted stock under the fair value method totaled $12.9 million, $11.4 million, and $12.1 million for years ended December 31, 2020, 2019 and 2018, respectively. For each of the years ended December 31, 2020, 2019 and 2018 equity-based compensation costs included $3.5 million related to restricted stock for bonuses awarded based on asset dispositions, which is recorded as a cost of real estate and land sold, respectively. Stock-based compensation for options and restricted stock related to recipients who are direct and incremental to projects under development were capitalized and totaled $1.3 million, $1.6 million, and $2.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. The intrinsic value of the options exercised totaled $7.4 million, $18.7 million, and $3.1 million, for the years ended December 31, 2020, 2019, and 2018 respectively. The intrinsic value of the options exercisable totaled $3.4 million and $23.5 million as of December 31, 2020 and 2019, respectively.

Total unrecognized compensation cost related to unvested stock options totaled $4.4 million as of December 31, 2020 and the unrecognized compensation cost is expected to be recognized over a period of 2.2 years.

The average fair value of stock options granted for the years ended December 31, 2020, 2019 and 2018 was $20.69, $24.02 and $26.13, respectively. Certain stock options granted in 2020, 2019, and 2018 included a $100 cap, $125 cap, or no cap on the appreciation of the market price over the exercise price. The fair value of stock options was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants:

	2020			2019			2018
Stock price	$	244.74		$	304.85		$	262.09
Risk-free interest rates	0.83		%	2.01		%	2.76		%
Expected lives	6 years			6 years			6 years
Volatility	25.72		%	19.56		%	24.89		%
Dividend yield	2.93		%	2.72		%	2.81		%

A summary of the status of the Company’s stock option plans as of December 31, 2020, 2019, and 2018 and changes during the years ended on those dates is presented below:

	2020			2019			2018
	Shares	Weighted- average exercise price		Shares	Weighted- average exercise price		Shares	Weighted- average exercise price
Outstanding at beginning of year	572,971	$	251.10	612,954	$	224.57	536,208	$	211.41
Granted	149,020	244.74		148,147	304.85		119,361	262.09
Exercised	(70,802)	208.57		(182,817)	205.25		(39,175)	159.05
Forfeited and canceled	(38,080)	228.64		(5,313)	257.87		(3,440)	221.80
Outstanding at end of year	613,109	255.86		572,971	251.10		612,954	224.57
Options exercisable at year end	361,985	245.83		305,379	223.90		322,837	206.63

The following table summarizes information about restricted stock outstanding as of December 31, 2020, 2019 and 2018 and changes during the years ended:

	2020			2019			2018
	Shares	Weighted- average grant price		Shares	Weighted- average grant price		Shares	Weighted- average grant price
Unvested at beginning of year	114,877	$	197.62	91,058	$	180.99	90,823	$	163.49
Granted	45,196	248.16		41,643	235.93		51,945	194.70
Vested	(15,116)	170.61		(13,222)	143.56		(48,212)	150.76
Forfeited and canceled	(12,354)	184.11		(4,602)	158.06		(3,498)	158.71
Unvested at end of year	132,603	214.34		114,877	197.62		91,058	180.99

The unrecognized compensation cost related to unvested restricted stock totaled $13.8 million as of December 31, 2020 and is expected to be recognized over a period of 2.3 years.

Long-Term Incentive Plans – LTIP Units

On December 9, 2014, the Operating Partnership issued 44,750 LTIP units under the 2015 Long-Term Incentive Plan Award agreements to executives of the Company. The 2015 Long-Term Incentive Plan Units (the "2015 LTIP Units") are subject to forfeiture based on performance-based and service based conditions. An additional 24,000 LTIP units were granted subject only to performance-based criteria and were fully vested on the date granted. The 2015 LTIP Units, that are subject to vesting, vested at 20% per year on each of the first five anniversaries of the initial grant date. The 2015 LTIP Units performance conditions measurement ended on December 9, 2015 and 95.75% of the units awarded were earned by the recipients. 2015 LTIP Units not earned based on the performance-based criteria were automatically forfeited by the recipients. The 2015 LTIP Units, once earned and vested, are convertible one-for-one into OP Units which, in turn, are convertible into common stock of the Company subject to a 10-year liquidity restriction.

In December 2013, the Operating Partnership issued 50,500 LTIP units under the 2014 Long-Term Incentive Plan Award agreements to executives of the Company. The 2014 Long-Term Incentive Plan Units (the "2014 LTIP Units") were subject to forfeiture based on performance-based conditions and are currently subject to service based vesting. The 2014 LTIP Units vested 25% per year on each of the first four anniversaries of the initial grant date. In December 2014, the Company achieved the performance criteria and all of the 2014 LTIP Units awarded were earned by the recipients, subject to satisfaction of service based vesting conditions. The 2014 LTIP Units are convertible one-for-one into OP Units which, in turn, are convertible into common stock of the Company subject to a ten year liquidity restriction.

The estimated fair value of the 2015 LTIP Units and 2014 LTIP Units were determined on the grant date using Monte Carlo simulations under a risk-neutral premise and considered Essex’s stock price on the date of grant, the unpaid dividends on unvested units and the discount factor for 10 years of illiquidity.

Prior to 2013, the Company issued Series Z Incentive Units and Series Z-1 Incentive Units (collectively referred to as "Z Units") of limited partnership interest in the Operating Partnership. Vesting in the Z Units is based on performance criteria established in the plan. The criteria can be revised by the Compensation Committee of the Board of Directors if the Committee deems that the plan's criterion is unachievable for any given year. The sale of Z Units is contractually prohibited. Z Units are convertible into Operating Partnership units which are exchangeable for shares of the Company’s common stock that have marketability restrictions. The estimated fair value of Z Units were determined on the grant date and considered the Company's stock price on the date of grant, the dividends that are not paid on unvested units and a marketability discount for the 8 to 15 years of illiquidity. Compensation expense is calculated by multiplying estimated vesting increases for the period by the estimated fair value as of the grant date.

During 2011 and 2010, the Operating Partnership issued 154,500 Series Z-1 Incentive Units (the "Z-1 Units") of limited partner interest to executives of the Company. The Z-1 Units are convertible one-for-one into common units of the Operating Partnership (which, in turn, are convertible into common stock of the Company) upon the earlier to occur of 100 percent vesting of the units or the year 2026. The conversion ratchet (accounted for as vesting) of the Z-1 Units into common units, is to increase consistent with the Company’s annual FFO growth, but is not to be less than zero or greater than 14 percent. Z-1 Unitholders are entitled to receive distributions, on vested units, that are now equal to dividends distributed to common stockholders.

Equity-based compensation costs for LTIP and Z Units under the fair value method totaled approximately zero, $0.9 million and $0.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Equity-based compensation costs related to LTIP Units attributable to recipients who are direct and incremental to these projects was capitalized to real estate under development and totaled approximately zero, $0.2 million, and $0.2 million, for the years ended December 31, 2020, 2019, and 2018, respectively. The intrinsic value of the vested and unvested LTIP Units totaled $25.2 million as of December 31, 2020. Total unrecognized compensation cost related to the unvested LTIP Units under the LTIP Units plans was zero as of December 31, 2020.

The following table summarizes information about the LTIP Units outstanding as of December 31, 2020:

	Long-Term Incentive Plan - LTIP Units
	Total Vested Units	Total Unvested Units	Total Outstanding Units	Weighted- average Grant-date Fair Value		Weighted- average Remaining Contractual Life (years)
Balance, December 31, 2017	213,300	23,212	236,512	$	75.03	7.5
Granted	—	—	—
Vested	12,051	(12,051)	—
Converted	(91,270)	—	(91,270)
Cancelled	—	—	—
Balance, December 31, 2018	134,081	11,161	145,242	$	75.03	6.5
Granted	—	—	—
Vested	9,176	(9,176)	—
Converted	—	—	—
Cancelled	—	(95)	(95)
Balance, December 31, 2019	143,257	1,890	145,147	$	75.03	5.2
Granted	—	—	—
Vested	1,890	(1,890)	—
Converted	(39,010)	—	(39,010)
Cancelled	—	—	—
Balance, December 31, 2020	106,137	—	106,137	$	84.47	3.6

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Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's segment disclosures present the measure used by the chief operating decision makers for purposes of assessing each segment's performance. The Company's chief operating decision makers are comprised of several members of its executive management team who use net operating income ("NOI") to assess the performance of the business for the Company's reportable operating segments. NOI represents total property revenues less direct property operating expenses.

The executive management team generally evaluates the Company's operating performance geographically. The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California and Seattle Metro. 

Excluded from segment revenues and NOI are management and other fees from affiliates and interest and other income. Non-segment revenues and NOI included in the following schedule also consist of revenues generated from commercial properties and properties that have been sold. Other non-segment assets include items such as real estate under development, co-investments, real estate held for sale, cash and cash equivalents, marketable securities, notes and other receivables, and prepaid expenses and other assets.

The revenues and NOI for each of the reportable operating segments are summarized as follows for the years ended December 31, 2020, 2019, and 2018 ($ in thousands):

	Years Ended December 31,
	2020		2019		2018
Revenues:
Southern California	$	570,673	$	597,330	$	579,533
Northern California	610,867		557,139		520,117
Seattle Metro	243,900		243,060		234,138
Other real estate assets	60,710		53,099		57,082
Total property revenues	$	1,486,150	$	1,450,628	$	1,390,870
Net operating income:
Southern California	$	393,776	$	425,882	$	412,517
Northern California	435,403		412,706		384,548
Seattle Metro	166,847		172,601		163,927
Other real estate assets	49,724		42,912		45,537
Total net operating income	1,045,750		1,054,101		1,006,529
Management and other fees from affiliates	9,598		9,527		9,183
Corporate-level property management expenses	(34,573)		(34,067)		(32,055)
Depreciation and amortization	(525,497)		(483,750)		(479,884)
General and administrative	(65,388)		(54,262)		(53,451)
Expensed acquisition and investment related costs	(1,591)		(168)		(194)
Impairment loss	(1,825)		(7,105)		—
Gain (loss) on sale of real estate and land	64,967		(3,164)		61,861
Interest expense	(220,633)		(217,339)		(220,492)
Total return swap income	10,733		8,446		8,707
Interest and other income	40,999		46,298		23,010
Equity income from co-investments	66,512		112,136		89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)		(1,457)		—
(Loss) Gain on early retirement of debt, net	(22,883)		3,717		—
Gain on remeasurement of co-investment	234,694		31,535		1,253
Net income	$	599,332	$	464,448	$	413,599

Total assets for each of the reportable operating segments are summarized as follows as of December 31, 2020 and 2019 ($ in thousands):

	As of December 31,
	2020		2019
Assets:
Southern California	$	3,993,275	$	4,139,104
Northern California	5,520,019		4,408,404
Seattle Metro	1,403,678		1,456,187
Other real estate assets	10,814		344,965
Net reportable operating segments - real estate assets	10,927,786		10,348,660
Real estate under development	386,047		546,075
Co-investments	1,018,010		1,335,339
Real estate held for sale	57,938		—
Cash and cash equivalents, including restricted cash	84,041		81,094
Marketable securities	147,768		144,193
Notes and other receivables	195,104		134,365
Operating lease right-of-use assets	72,143		74,744
Prepaid expenses and other assets	47,340		40,935
Total assets	$	12,936,177	$	12,705,405

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401(k) Plan

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

401(k) Plan

401(k) Plan

The Company has a 401(k) benefit plan (the "Plan") for all eligible employees. Employee contributions are limited by the maximum allowed under Section 401(k) of the Internal Revenue Code. The Company matches 50% of the employee contributions up to a specified maximum. Company contributions to the Plan were approximately $2.7 million, $2.4 million, and $2.1 million for the years ended December 31, 2020, 2019, and 2018, respectively.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company's total minimum lease payment commitments, under ground leases, parking leases, and operating leases are disclosed in Note 11, Lease Agreements - Company as Lessee.

To the extent that an environmental matter arises or is identified in the future that has other than a remote risk of having a material impact on the financial statements, the Company will disclose the estimated range of possible outcomes associated with it and, if an outcome is probable, accrue an appropriate liability for that matter. The Company will consider whether any such matter results in an impairment of value on the affected property and, if so, the impairment will be recognized.

The Company has no way of determining the magnitude of any potential liability to which it may be subject arising out of unknown environmental conditions with respect to the communities currently or formerly owned by the Company. No assurance can be given that: existing environmental assessments conducted with respect to any of these communities have revealed all environmental conditions or potential liabilities associated with such conditions; any prior owner or operator of a property did not create any material environmental condition not known to the Company; or a material unknown environmental condition does not otherwise exist as to any one or more of the communities. The Company has limited insurance coverage for some of the types of environmental conditions and associated liabilities described above.

The Company has entered into transactions that may require the Company to pay the tax liabilities of the partners or members in the Operating Partnership or in the DownREIT entities. These transactions are within the Company’s control. Although the Company plans to hold the contributed assets or defer recognition of gain on their sale pursuant to like-kind exchange rules under Section 1031 of the Internal Revenue Code, the Company can provide no assurance that it will be able to do so and if such tax liabilities were incurred they may have a material impact on the Company’s financial position.

There continue to be lawsuits against owners and managers of certain of the Company's apartment communities alleging personal injury and property damage caused by the presence of mold in the residential units and common areas of those communities. Some of these lawsuits have resulted in substantial monetary judgments or settlements in the past. The Company has been sued for mold related matters and has settled some, but not all, of such suits. Insurance carriers have reacted to the increase in mold related liability awards by excluding mold related claims from standard general liability policies and pricing mold endorsements at prohibitively high rates. The Company has, however, purchased pollution liability insurance which includes coverage for some mold claims. The Company has also adopted policies intended to promptly address and resolve reports of mold and to minimize any impact mold might have on tenants of its properties. The Company believes its mold policies and proactive response to address reported mold exposures reduces its risk of loss from mold claims. While no assurances can be given that the Company has identified and responded to all mold occurrences, the Company promptly addresses and responds to all known mold reports. Liabilities resulting from such mold related matters are not expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. As of December 31, 2020, potential liabilities for mold and other environmental liabilities are not quantifiable and an estimate of possible loss cannot be made.

The Company carries comprehensive liability, fire, extended coverage and rental loss insurance for each of the communities.  There are, however, certain types of extraordinary losses, such as, for example, losses from terrorism or earthquakes, for which the Company has limited insurance coverage. Substantially all of the communities are located in areas that are subject to earthquake activity. The Company has established a wholly-owned insurance subsidiary, Pacific Western Insurance LLC ("PWI"). Through PWI, the Company is self-insured for earthquake related losses. Additionally, since January 2008, PWI has provided property and casualty insurance coverage for the first $5.0 million of the Company’s property level insurance claims per incident. As of December 31, 2020, PWI has cash and marketable securities of approximately $152.8 million. These assets are consolidated in the Company’s financial statements. Beginning in 2013, the Company has obtained limited third party seismic insurance on selected assets in the Company's co-investments.

The Company is subject to various other legal and/or regulatory proceedings arising in the course of its business operations. The Company believes that, with respect to such matters that it is currently a party to, the ultimate disposition of any such matter will not result in a material adverse effect on the Company’s financial condition, results of operations or cash flows.

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Subsequent Events	12 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsIn February 2021, the Company repaid $100.0 million of unsecured debt due to mature in 2021 at an effective rate of 4.3%.

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SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

									Costs
					Initial cost				capitalized		Gross amount carried at close of period
	Apartment						Buildings and		subsequent to		Land and		Buildings and				Accumulated		Date of	Date	Lives
Property	Homes	Location	Encumbrance		Land		improvements		acquisition		improvements		improvements		Total (1)		depreciation		construction	acquired	(years)
Encumbered communities
Belmont Station	275	Los Angeles, CA	29,728		8,100		66,666		7,386		8,267		73,885		82,152		(33,891)		2009	Mar-09	3-30
Brio	300	Walnut Creek, CA	98,956		16,885		151,741		1,263		16,885		153,004		169,889		(8,559)		2015	Jun-19	3-30
Form 15	242	San Diego, CA	42,271		24,510		72,221		11,835		25,540		83,026		108,566		(13,807)		2014	Mar-16	3-30
Fountain Park	705	Playa Vista, CA	82,707		25,073		94,980		36,019		25,203		130,869		156,072		(80,772)		2002	Feb-04	3-30
Highridge	255	Rancho Palos Verdes, CA	69,345		5,419		18,347		33,311		6,073		51,004		57,077		(41,762)		1972	May-97	3-30
Magnolia Square/Magnolia Lane (2)	188	Sunnyvale, CA	52,303		8,190		24,736		18,553		8,191		43,288		51,479		(26,038)		1963	Sep-07	3-30
Marquis	166	San Jose, CA	44,077		20,495		47,823		178		20,495		48,001		68,496		(3,290)		2015	Dec-18	3-30
Sage at Cupertino	230	San Jose, CA	51,758		35,719		53,449		9,242		35,719		62,691		98,410		(9,454)		1971	Mar-17	3-30
The Barkley (3)	161	Anaheim, CA	14,873		—		8,520		7,659		2,353		13,826		16,179		(10,114)		1984	Apr-00	3-30
The Dylan	184	West Hollywood, CA	58,515		19,984		82,286		1,502		19,990		83,782		103,772		(18,368)		2015	Mar-15	3-30
The Huxley	187	West Hollywood, CA	53,277		19,362		75,641		1,710		19,371		77,342		96,713		(17,213)		2014	Mar-15	3-30
Township	132	Redwood City, CA	45,740		19,812		70,619		630		19,812		71,249		91,061		(3,199)		2014	Sep-19	3-30
	3,025		$	643,550	$	203,549	$	767,029	$	129,288	$	207,899	$	891,967	$	1,099,866	$	(266,467)
Unencumbered Communities
Agora	49	Walnut Creek, CA	—		4,932		60,423		187		4,934		60,608		65,542		(1,987)		2016	Jan-20	3-30
Alessio	624	Los Angeles, CA	—		32,136		128,543		14,335		32,136		142,878		175,014		(37,803)		2001	Apr-14	5-30
Allegro	97	Valley Village, CA	—		5,869		23,977		2,758		5,869		26,735		32,604		(11,343)		2010	Oct-10	3-30
Allure at Scripps Ranch	194	San Diego, CA	—		11,923		47,690		1,979		11,923		49,669		61,592		(12,386)		2002	Apr-14	5-30
Alpine Village	301	Alpine, CA	—		4,967		19,728		9,687		4,982		29,400		34,382		(18,364)		1971	Dec-02	3-30
Anavia	250	Anaheim, CA	—		15,925		63,712		9,732		15,925		73,444		89,369		(25,398)		2009	Dec-10	3-30
Annaliese	56	Seattle, WA	—		4,727		14,229		808		4,726		15,038		19,764		(4,182)		2009	Jan-13	3-30
Apex	366	Milpitas, CA	—		44,240		103,251		6,095		44,240		109,346		153,586		(23,316)		2014	Aug-14	3-30
Aqua Marina Del Rey	500	Marina Del Rey, CA	—		58,442		175,326		15,117		58,442		190,443		248,885		(52,469)		2001	Apr-14	5-30
Ascent	90	Kirkland, WA	—		3,924		11,862		2,286		3,924		14,148		18,072		(4,792)		1988	Oct-12	3-30
Ashton Sherman Village	264	Los Angeles, CA	—		23,550		93,811		1,536		23,550		95,347		118,897		(13,614)		2014	Dec-16	3-30
Avant	440	Los Angeles, CA	—		32,379		137,940		3,722		32,379		141,662		174,041		(26,788)		2014	Jun-15	3-30
Avenue 64	224	Emeryville, CA	—		27,235		64,403		16,322		27,235		80,725		107,960		(18,800)		2007	Apr-14	5-30
Aviara (4)	166	Mercer Island, WA	—		—		49,813		1,874		—		51,687		51,687		(13,707)		2013	Apr-14	5-30
Avondale at Warner Center	446	Woodland Hills, CA	—		10,536		24,522		25,418		10,601		49,875		60,476		(36,728)		1970	Jan-99	3-30

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Bel Air	462	San Ramon, CA	—	12,105	18,252	43,348	12,682	61,023	73,705	(43,768)	1988	Jan-95	3-30
Belcarra	296	Bellevue, WA	—	21,725	92,091	2,613	21,725	94,704	116,429	(23,150)	2009	Apr-14	5-30
Bella Villagio	231	San Jose, CA	—	17,247	40,343	4,651	17,247	44,994	62,241	(16,688)	2004	Sep-10	3-30
BellCentre	248	Bellevue, WA	—	16,197	67,207	5,644	16,197	72,851	89,048	(18,845)	2001	Apr-14	5-30
Bellerive	63	Los Angeles, CA	—	5,401	21,803	1,390	5,401	23,193	28,594	(8,573)	2011	Aug-11	3-30
Belmont Terrace	71	Belmont, CA	—	4,446	10,290	7,387	4,473	17,650	22,123	(10,455)	1974	Oct-06	3-30
Bennett Lofts	165	San Francisco, CA	—	21,771	50,800	30,939	28,371	75,139	103,510	(22,577)	2004	Dec-12	3-30
Bernardo Crest	216	San Diego, CA	—	10,802	43,209	5,214	10,802	48,423	59,225	(12,642)	1988	Apr-14	5-30
Bonita Cedars	120	Bonita, CA	—	2,496	9,913	5,834	2,503	15,740	18,243	(9,541)	1983	Dec-02	3-30
Boulevard	172	Fremont, CA	—	3,520	8,182	14,651	3,580	22,773	26,353	(18,916)	1978	Jan-96	3-30
Brookside Oaks	170	Sunnyvale, CA	—	7,301	16,310	27,349	10,328	40,632	50,960	(26,656)	1973	Jun-00	3-30
Bridle Trails	108	Kirkland, WA	—	1,500	5,930	6,690	1,531	12,589	14,120	(9,424)	1986	Oct-97	3-30
Brighton Ridge	264	Renton, WA	—	2,623	10,800	7,010	2,656	17,777	20,433	(13,419)	1986	Dec-96	3-30
Bristol Commons	188	Sunnyvale, CA	—	5,278	11,853	10,433	5,293	22,271	27,564	(16,949)	1989	Jan-95	3-30
Bunker Hill	456	Los Angeles, CA	—	11,498	27,871	96,132	11,639	123,862	135,501	(79,005)	1968	Mar-98	3-30
Camarillo Oaks	564	Camarillo, CA	—	10,953	25,254	8,869	11,075	34,001	45,076	(26,629)	1985	Jul-96	3-30
Cambridge Park	320	San Diego, CA	—	18,185	72,739	4,120	18,185	76,859	95,044	(19,617)	1998	Apr-14	5-30
Camino Ruiz Square	159	Camarillo, CA	—	6,871	26,119	2,543	6,931	28,602	35,533	(13,801)	1990	Dec-06	3-30
Canyon Oaks	250	San Ramon, CA	—	19,088	44,473	7,051	19,088	51,524	70,612	(23,554)	2005	May-07	3-30
Canyon Pointe	250	Bothell, WA	—	4,692	18,288	9,479	4,693	27,766	32,459	(17,295)	1990	Oct-03	3-30
Capri at Sunny Hills	102	Fullerton, CA	—	3,337	13,320	9,690	4,048	22,299	26,347	(15,327)	1961	Sep-01	3-30
Carmel Creek	348	San Diego, CA	—	26,842	107,368	8,308	26,842	115,676	142,518	(30,274)	2000	Apr-14	5-30
Carmel Landing	356	San Diego, CA	—	16,725	66,901	10,506	16,725	77,407	94,132	(20,335)	1989	Apr-14	5-30
Carmel Summit	246	San Diego, CA	—	14,968	59,871	4,545	14,968	64,416	79,384	(16,376)	1989	Apr-14	5-30
Castle Creek	216	Newcastle, WA	—	4,149	16,028	5,677	4,833	21,021	25,854	(15,908)	1998	Dec-98	3-30
Catalina Gardens	128	Los Angeles, CA	—	6,714	26,856	2,490	6,714	29,346	36,060	(7,343)	1987	Apr-14	5-30
CBC Apartments & The Sweeps	239	Goleta, CA	—	11,841	45,320	6,922	11,906	52,177	64,083	(28,445)	1962	Jan-06	3-30
Cedar Terrace	180	Bellevue, WA	—	5,543	16,442	8,601	5,652	24,934	30,586	(13,973)	1984	Jan-05	3-30
CentrePointe	224	San Diego, CA	—	3,405	7,743	22,335	3,442	30,041	33,483	(22,318)	1974	Jun-97	3-30
Chestnut Street Apartments	96	Santa Cruz, CA	—	6,582	15,689	2,277	6,582	17,966	24,548	(7,884)	2002	Jul-08	3-30
City View	572	Hayward, CA	—	9,883	37,670	32,941	10,350	70,144	80,494	(53,374)	1975	Mar-98	3-30
Collins on Pine	76	Seattle, WA	—	7,276	22,226	688	7,276	22,914	30,190	(5,180)	2013	May-14	3-30
Connolly Station	309	Dublin, CA	—	19,949	123,428	1,545	19,949	124,973	144,922	(4,139)	2014	Jan-20	3-30

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Corbella at Juanita Bay	169	Kirkland, WA	—	5,801	17,415	3,961	5,801	21,376	27,177	(8,273)	1978	Nov-10	3-30
Cortesia	308	Rancho Santa Margarita, CA	—	13,912	55,649	3,302	13,912	58,951	72,863	(14,944)	1999	Apr-14	5-30
Country Villas	180	Oceanside, CA	—	4,174	16,583	5,547	4,187	22,117	26,304	(13,934)	1976	Dec-02	3-30
Courtyard off Main	110	Bellevue, WA	—	7,465	21,405	5,047	7,465	26,452	33,917	(10,190)	2000	Oct-10	3-30
Crow Canyon	400	San Ramon, CA	—	37,579	87,685	12,923	37,579	100,608	138,187	(26,738)	1992	Apr-14	5-30
Deer Valley	171	San Rafael, CA	—	21,478	50,116	3,644	21,478	53,760	75,238	(13,744)	1996	Apr-14	5-30
Devonshire	276	Hemet, CA	—	3,470	13,786	6,533	3,482	20,307	23,789	(12,163)	1988	Dec-02	3-30
Domaine	92	Seattle, WA	—	9,059	27,177	1,545	9,059	28,722	37,781	(8,376)	2009	Sep-12	3-30
Elevation	158	Redmond, WA	—	4,758	14,285	7,372	4,757	21,658	26,415	(10,931)	1986	Jun-10	3-30
Ellington	220	Bellevue, WA	—	15,066	45,249	4,089	15,066	49,338	64,404	(11,978)	1994	Jul-14	3-30
Emerald Pointe	160	Diamond Bar, CA	—	8,458	33,832	2,404	8,458	36,236	44,694	(9,304)	1989	Apr-14	5-30
Emerald Ridge	180	Bellevue, WA	—	3,449	7,801	6,915	3,449	14,716	18,165	(11,762)	1987	Nov-94	3-30
Emerson Valley Village	144	Los Angeles, CA	—	13,378	53,240	1,349	13,378	54,589	67,967	(7,825)	2012	Dec-16	3-30
Emme	190	Emeryville, CA	—	15,039	80,532	357	15,039	80,889	95,928	(2,709)	2015	Jan-20	3-30
Enso	183	San Jose, CA	—	21,397	71,135	1,907	21,397	73,042	94,439	(13,258)	2014	Dec-15	3-30
Epic	769	San Jose, CA	—	89,111	307,769	509	89,111	308,278	397,389	(10,261)	2013	Jan-20	3-30
Esplanade	278	San Jose, CA	—	18,170	40,086	16,209	18,429	56,036	74,465	(32,656)	2002	Apr-04	3-30
Essex Skyline	350	Santa Ana, CA	—	21,537	146,099	12,601	21,537	158,700	180,237	(48,170)	2008	Apr-10	3-30
Evergreen Heights	200	Kirkland, WA	—	3,566	13,395	7,339	3,649	20,651	24,300	(15,822)	1990	Jun-97	3-30
Fairhaven Apartments	164	Santa Ana, CA	—	2,626	10,485	10,243	2,957	20,397	23,354	(13,581)	1970	Nov-01	3-30
Fairway Apartments at Big Canyon (5)	74	Newport Beach, CA	—	—	7,850	8,513	—	16,363	16,363	(12,710)	1972	Jun-99	3-28
Fairwood Pond	194	Renton, WA	—	5,296	15,564	4,599	5,297	20,162	25,459	(11,530)	1997	Oct-04	3-30
Foothill Commons	394	Bellevue, WA	—	2,435	9,821	41,978	2,440	51,794	54,234	(47,403)	1978	Mar-90	3-30
Foothill Gardens/Twin Creeks	176	San Ramon, CA	—	5,875	13,992	12,289	5,964	26,192	32,156	(19,884)	1985	Feb-97	3-30
Forest View	192	Renton, WA	—	3,731	14,530	3,713	3,731	18,243	21,974	(10,629)	1998	Oct-03	3-30
Foster's Landing	490	Foster City, CA	—	61,714	144,000	11,178	61,714	155,178	216,892	(41,241)	1987	Apr-14	5-30
Fountain Court	320	Seattle, WA	—	6,702	27,306	13,573	6,985	40,596	47,581	(29,905)	2000	Mar-00	3-30
Fountains at River Oaks	226	San Jose, CA	—	26,046	60,773	5,897	26,046	66,670	92,716	(17,559)	1990	Apr-14	3-30
Fourth & U	171	Berkeley, CA	—	8,879	52,351	4,337	8,879	56,688	65,567	(21,596)	2010	Apr-10	3-30
Fox Plaza	445	San Francisco, CA	—	39,731	92,706	39,712	39,731	132,418	172,149	(41,715)	1968	Feb-13	3-30
The Henley I/The Henley II	215	Glendale, CA	—	6,695	16,753	28,607	6,733	45,322	52,055	(30,235)	1970	Jun-99	3-30
Highlands at Wynhaven	333	Issaquah, WA	—	16,271	48,932	15,477	16,271	64,409	80,680	(30,874)	2000	Aug-08	3-30

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Hillcrest Park	608	Newbury Park, CA	—	15,318	40,601	22,105	15,755	62,269	78,024	(45,189)	1973	Mar-98	3-30
Hillsdale Garden	697	San Mateo, CA	—	22,000	94,681	29,391	22,000	124,072	146,072	(64,193)	1948	Sep-06	3-30
Hope Ranch	108	Santa Barbara, CA	—	4,078	16,877	3,144	4,208	19,891	24,099	(9,564)	1965	Mar-07	3-30
Huntington Breakers	342	Huntington Beach, CA	—	9,306	22,720	22,039	9,315	44,750	54,065	(35,095)	1984	Oct-97	3-30
Inglenook Court	224	Bothell, WA	—	3,467	7,881	8,603	3,474	16,477	19,951	(13,915)	1985	Oct-94	3-30
Lafayette Highlands	150	Lafayette, CA	—	17,774	41,473	4,292	17,774	45,765	63,539	(11,649)	1973	Apr-14	5-30
Lakeshore Landing	308	San Mateo, CA	—	38,155	89,028	9,182	38,155	98,210	136,365	(26,612)	1988	Apr-14	5-30
Laurels at Mill Creek	164	Mill Creek, WA	—	1,559	6,430	8,586	1,595	14,980	16,575	(11,277)	1981	Dec-96	3-30
Lawrence Station	336	Sunnyvale, CA	—	45,532	106,735	2,494	45,532	109,229	154,761	(30,819)	2012	Apr-14	5-30
Le Parc	140	Santa Clara, CA	—	3,090	7,421	14,181	3,092	21,600	24,692	(17,358)	1975	Feb-94	3-30
Marbrisa	202	Long Beach, CA	—	4,700	18,605	10,150	4,760	28,695	33,455	(18,760)	1987	Sep-02	3-30
Marina City Club (6)	101	Marina Del Rey, CA	—	—	28,167	34,572	—	62,739	62,739	(31,601)	1971	Jan-04	3-30
Marina Cove (7)	292	Santa Clara, CA	—	5,320	16,431	16,263	5,324	32,690	38,014	(27,925)	1974	Jun-94	3-30
Mariner's Place	105	Oxnard, CA	—	1,555	6,103	2,679	1,562	8,775	10,337	(6,362)	1987	May-00	3-30
MB 360	360	San Francisco, CA	—	42,001	212,648	12,308	42,001	224,956	266,957	(50,304)	2014	Apr-14	3-30
Mesa Village	133	Clairemont, CA	—	1,888	7,498	2,734	1,894	10,226	12,120	(6,127)	1963	Dec-02	3-30
Mill Creek at Windermere	400	San Ramon, CA	—	29,551	69,032	7,370	29,551	76,402	105,953	(34,899)	2005	Sep-07	3-30
Mio	103	San Jose, CA	—	11,012	39,982	675	11,012	40,657	51,669	(7,166)	2015	Jan-16	3-30
Mirabella	188	Marina Del Rey, CA	—	6,180	26,673	17,242	6,270	43,825	50,095	(28,017)	2000	May-00	3-30
Mira Monte	354	Mira Mesa, CA	—	7,165	28,459	12,402	7,186	40,840	48,026	(26,833)	1982	Dec-02	3-30
Miracle Mile/Marbella	236	Los Angeles, CA	—	7,791	23,075	15,609	7,886	38,589	46,475	(29,348)	1988	Aug-97	3-30
Mission Hills	282	Oceanside, CA	—	10,099	38,778	11,525	10,167	50,235	60,402	(26,979)	1984	Jul-05	3-30
Mission Peaks	453	Fremont, CA	—	46,499	108,498	8,474	46,499	116,972	163,471	(29,818)	1995	Apr-14	5-30
Mission Peaks II	336	Fremont, CA	—	31,429	73,334	8,388	31,429	81,722	113,151	(21,416)	1989	Apr-14	5-30
Montanosa	472	San Diego, CA	—	26,697	106,787	7,521	26,697	114,308	141,005	(28,912)	1990	Apr-14	5-30
Montclaire	390	Sunnyvale, CA	—	4,842	19,776	28,355	4,997	47,976	52,973	(43,336)	1973	Dec-88	3-30
Montebello	248	Kirkland, WA	—	13,857	41,575	7,496	13,858	49,070	62,928	(15,854)	1996	Jul-12	3-30
Montejo Apartments	124	Garden Grove, CA	—	1,925	7,685	4,490	2,194	11,906	14,100	(7,588)	1974	Nov-01	3-30
Monterey Villas	122	Oxnard, CA	—	2,349	5,579	7,169	2,424	12,673	15,097	(9,150)	1974	Jul-97	3-30
Muse	152	North Hollywood, CA	—	7,822	33,436	3,659	7,823	37,094	44,917	(15,284)	2011	Feb-11	3-30
1000 Kiely	121	Santa Clara, CA	—	9,359	21,845	8,669	9,359	30,514	39,873	(13,890)	1971	Mar-11	3-30
Palm Valley	1,099	San Jose, CA	—	133,802	312,205	18,156	133,802	330,361	464,163	(48,807)	2008	Jan-17	3-30
Paragon Apartments	301	Fremont, CA	—	32,230	77,320	2,583	32,230	79,903	112,133	(17,735)	2013	Jul-14	3-30

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Park 20	197	San Mateo, CA	—	27,041	89,281	(1,340)	26,607	88,375	114,982	(2,983)	2015	Jan-20	3-30
Park Catalina	90	Los Angeles, CA	—	4,710	18,839	3,628	4,710	22,467	27,177	(8,035)	2002	Jun-12	3-30
Park Highland	250	Bellevue, WA	—	9,391	38,224	13,735	9,391	51,959	61,350	(16,898)	1993	Apr-14	5-30
Park Hill at Issaquah	245	Issaquah, WA	—	7,284	21,937	11,471	7,284	33,408	40,692	(18,428)	1999	Feb-99	3-30
Park Viridian	320	Anaheim, CA	—	15,894	63,574	4,541	15,894	68,115	84,009	(17,410)	2008	Apr-14	5-30
Park West	126	San Francisco, CA	—	9,424	21,988	12,712	9,424	34,700	44,124	(14,022)	1958	Sep-12	3-30
Parkwood at Mill Creek	240	Mill Creek, WA	—	10,680	42,722	3,545	10,680	46,267	56,947	(12,081)	1989	Apr-14	5-30
Patent 523	295	Seattle, WA	—	14,558	69,417	6,137	14,558	75,554	90,112	(29,643)	2010	Mar-10	3-30
Pathways at Bixby Village	296	Long Beach, CA	—	4,083	16,757	22,199	6,239	36,800	43,039	(33,133)	1975	Feb-91	3-30
Piedmont	396	Bellevue, WA	—	19,848	59,606	13,932	19,848	73,538	93,386	(20,426)	1969	May-14	3-30
Pinehurst (8)	28	Ventura, CA	—	—	1,711	756	—	2,467	2,467	(1,643)	1973	Dec-04	3-24
Pinnacle at Fullerton	192	Fullerton, CA	—	11,019	45,932	4,475	11,019	50,407	61,426	(13,250)	2004	Apr-14	5-30
Pinnacle on Lake Washington	180	Renton, WA	—	7,760	31,041	3,915	7,760	34,956	42,716	(9,138)	2001	Apr-14	5-30
Pinnacle at MacArthur Place	253	Santa Ana, CA	—	15,810	66,401	6,056	15,810	72,457	88,267	(18,585)	2002	Apr-14	5-30
Pinnacle at Otay Ranch I & II	364	Chula Vista, CA	—	17,023	68,093	4,828	17,023	72,921	89,944	(18,684)	2001	Apr-14	5-30
Pinnacle at Talega	362	San Clemente, CA	—	19,292	77,168	3,631	19,292	80,799	100,091	(20,288)	2002	Apr-14	5-30
Pinnacle Sonata	268	Bothell, WA	—	14,647	58,586	5,554	14,647	64,140	78,787	(16,211)	2000	Apr-14	5-30
Pointe at Cupertino	116	Cupertino, CA	—	4,505	17,605	12,918	4,505	30,523	35,028	(20,740)	1963	Aug-98	3-30
Pure Redmond	105	Redmond, WA	—	7,461	31,363	411	7,461	31,774	39,235	(1,195)	2016	Dec-19	3-30
Radius	264	Redwood City, CA	—	11,702	152,336	1,190	11,702	153,526	165,228	(39,220)	2015	Apr-14	3-30
Reed Square	100	Sunnyvale, CA	—	6,873	16,037	8,746	6,873	24,783	31,656	(11,387)	1970	Jan-12	3-30
Regency at Encino	75	Encino, CA	—	3,184	12,737	4,212	3,184	16,949	20,133	(7,710)	1989	Dec-09	3-30
Renaissance at Uptown Orange	460	Orange, CA	—	27,870	111,482	7,258	27,870	118,740	146,610	(29,992)	2007	Apr-14	5-30
Reveal	438	Woodland Hills, CA	—	25,073	121,314	3,656	25,073	124,970	150,043	(27,492)	2010	Apr-15	3-30
Salmon Run at Perry Creek	132	Bothell, WA	—	3,717	11,483	3,054	3,801	14,453	18,254	(9,519)	2000	Oct-00	3-30
Sammamish View	153	Bellevue, WA	—	3,324	7,501	7,530	3,331	15,024	18,355	(13,067)	1986	Nov-94	3-30
101 San Fernando	323	San Jose, CA	—	4,173	58,961	13,856	4,173	72,817	76,990	(30,215)	2001	Jul-10	3-30
San Marcos	432	Richmond, CA	—	15,563	36,204	33,980	22,866	62,881	85,747	(36,750)	2003	Nov-03	3-30
Santee Court/Santee Village	238	Los Angeles, CA	—	9,581	40,317	13,433	9,582	53,749	63,331	(19,802)	2004	Oct-10	3-30
Shadow Point	172	Spring Valley, CA	—	2,812	11,170	4,576	2,820	15,738	18,558	(9,638)	1983	Dec-02	3-30
Shadowbrook	418	Redmond, WA	—	19,292	77,168	6,131	19,292	83,299	102,591	(21,393)	1986	Apr-14	5-30
Slater 116	108	Kirkland, WA	—	7,379	22,138	1,323	7,379	23,461	30,840	(6,063)	2013	Sep-13	3-30
Solstice	280	Sunnyvale, CA	—	34,444	147,262	6,856	34,444	154,118	188,562	(42,130)	2014	Apr-14	5-30

						Costs
				Initial cost		capitalized	Gross amount carried at close of period
	Apartment				Buildings and	subsequent to	Land and	Buildings and		Accumulated	Date of	Date	Lives
Property	Homes	Location	Encumbrance	Land	improvements	acquisition	improvements	improvements	Total (1)	depreciation	construction	acquired	(years)
Station Park Green - Phases I, II, and III	492	San Mateo, CA	—	54,782	314,694	282	54,782	314,976	369,758	(21,497)	2018	Mar-18	3-30
Stevenson Place	200	Fremont, CA	—	996	5,582	14,268	1,001	19,845	20,846	(15,706)	1975	Apr-00	3-30
Stonehedge Village	196	Bothell, WA	—	3,167	12,603	9,180	3,201	21,749	24,950	(15,989)	1986	Oct-97	3-30
Summerhill Park	100	Sunnyvale, CA	—	2,654	4,918	11,257	2,656	16,173	18,829	(12,935)	1988	Sep-88	3-30
Summit Park	300	San Diego, CA	—	5,959	23,670	8,912	5,977	32,564	38,541	(19,893)	1972	Dec-02	3-30
Taylor 28	197	Seattle, WA	—	13,915	57,700	3,693	13,915	61,393	75,308	(15,413)	2008	Apr-14	5-30
The Audrey at Belltown	137	Seattle, WA	—	9,228	36,911	2,050	9,228	38,961	48,189	(9,456)	1992	Apr-14	5-30
The Avery	121	Los Angeles, CA	—	6,964	29,922	889	6,964	30,811	37,775	(7,071)	2014	Mar-14	3-30
The Bernard	63	Seattle, WA	—	3,699	11,345	884	3,689	12,239	15,928	(4,075)	2008	Sep-11	3-30
The Blake LA	196	Los Angeles, CA	—	4,023	9,527	24,135	4,031	33,654	37,685	(20,615)	1979	Jun-97	3-30
The Cairns	99	Seattle, WA	—	6,937	20,679	2,586	6,939	23,263	30,202	(10,874)	2006	Jun-07	3-30
The Commons	264	Campbell, CA	—	12,555	29,307	9,940	12,556	39,246	51,802	(16,958)	1973	Jul-10	3-30
The Elliot at Mukilteo	301	Mukilteo, WA	—	2,498	10,595	18,928	2,824	29,197	32,021	(22,866)	1981	Jan-97	3-30
The Galloway	506	Pleasanton, CA	—	32,966	184,499	488	32,966	184,987	217,953	(6,214)	2016	Jan-20	3-30
The Grand	243	Oakland, CA	—	4,531	89,208	7,518	4,531	96,726	101,257	(40,981)	2009	Jan-09	3-30
The Hallie	292	Pasadena, CA	—	2,202	4,794	55,653	8,385	54,264	62,649	(39,551)	1972	Apr-97	3-30
The Huntington	276	Huntington Beach, CA	—	10,374	41,495	7,036	10,374	48,531	58,905	(15,784)	1975	Jun-12	3-30
The Landing at Jack London Square	282	Oakland, CA	—	33,554	78,292	7,860	33,554	86,152	119,706	(23,251)	2001	Apr-14	5-30
The Lofts at Pinehurst	118	Ventura, CA	—	1,570	3,912	5,699	1,618	9,563	11,181	(6,616)	1971	Jun-97	3-30
The Palisades	192	Bellevue, WA	—	1,560	6,242	13,990	1,565	20,227	21,792	(18,275)	1977	May-90	3-30
The Palms at Laguna Niguel	460	Laguna Niguel, CA	—	23,584	94,334	12,080	23,584	106,414	129,998	(27,812)	1988	Apr-14	5-30
The Stuart	188	Pasadena, CA	—	13,574	54,298	3,098	13,574	57,396	70,970	(14,822)	2007	Apr-14	5-30
The Trails of Redmond	423	Redmond, WA	—	21,930	87,720	6,031	21,930	93,751	115,681	(23,961)	1985	Apr-14	5-30
The Waterford	238	San Jose, CA	—	11,808	24,500	17,968	15,165	39,111	54,276	(25,616)	2000	Jun-00	3-30
Tierra Vista	404	Oxnard, CA	—	13,652	53,336	7,831	13,661	61,158	74,819	(34,469)	2001	Jan-01	3-30
Tiffany Court	101	Los Angeles, CA	—	6,949	27,796	2,042	6,949	29,838	36,787	(7,574)	1987	Apr-14	5-30
Trabuco Villas	132	Lake Forest, CA	—	3,638	8,640	4,292	3,890	12,680	16,570	(9,358)	1985	Oct-97	3-30
Valley Park	160	Fountain Valley, CA	—	3,361	13,420	6,653	3,761	19,673	23,434	(12,488)	1969	Nov-01	3-30
Via	284	Sunnyvale, CA	—	22,000	82,270	3,630	22,016	85,884	107,900	(30,810)	2011	Jul-11	3-30
Villa Angelina	256	Placentia, CA	—	4,498	17,962	8,173	4,962	25,671	30,633	(16,856)	1970	Nov-01	3-30
Villa Granada	270	Santa Clara, CA	—	38,299	89,365	1,974	38,299	91,339	129,638	(22,819)	2010	Apr-14	5-30
Villa Siena	272	Costa Mesa, CA	—	13,842	55,367	9,356	13,842	64,723	78,565	(17,830)	1974	Apr-14	5-30

									Costs
					Initial cost				capitalized		Gross amount carried at close of period
	Apartment						Buildings and		subsequent to		Land and		Buildings and				Accumulated		Date of	Date	Lives
Property	Homes	Location	Encumbrance		Land		improvements		acquisition		improvements		improvements		Total (1)		depreciation		construction	acquired	(years)
Village Green	272	La Habra, CA	—		6,488		36,768		4,309		6,488		41,077		47,565		(11,151)		1971	Apr-14	5-30
Vista Belvedere	76	Tiburon, CA	—		5,573		11,901		9,031		5,573		20,932		26,505		(13,068)		1963	Aug-04	3-30
Vox Apartments	58	Seattle, WA	—		5,545		16,635		435		5,545		17,070		22,615		(4,158)		2013	Oct-13	3-30
Walnut Heights	163	Walnut, CA	—		4,858		19,168		5,868		4,887		25,007		29,894		(14,831)		1964	Oct-03	3-30
Wandering Creek	156	Kent, WA	—		1,285		4,980		5,345		1,296		10,314		11,610		(8,403)		1986	Nov-95	3-30
Wharfside Pointe	155	Seattle, WA	—		2,245		7,020		13,442		2,258		20,449		22,707		(15,891)		1990	Jun-94	3-30
Willow Lake	508	San Jose, CA	—		43,194		101,030		17,140		43,194		118,170		161,364		(37,680)		1989	Oct-12	3-30
5600 Wilshire	284	Los Angeles, CA	—		30,535		91,604		5,049		30,535		96,653		127,188		(23,763)		2008	Apr-14	5-30
Wilshire La Brea	478	Los Angeles, CA	—		56,932		211,998		11,972		56,932		223,970		280,902		(60,187)		2014	Apr-14	5-30
Wilshire Promenade	149	Fullerton, CA	—		3,118		7,385		12,572		3,797		19,278		23,075		(12,881)		1992	Jan-97	3-30
Windsor Ridge	216	Sunnyvale, CA	—		4,017		10,315		17,003		4,021		27,314		31,335		(23,963)		1989	Mar-89	3-30
Woodland Commons	302	Bellevue, WA	—		2,040		8,727		24,952		2,044		33,675		35,719		(24,474)		1978	Mar-90	3-30
Woodside Village	145	Ventura, CA	—		5,331		21,036		5,855		5,341		26,881		32,222		(14,838)		1987	Dec-04	3-30
	48,156		$	—	$	2,680,765	$	9,375,284	$	1,876,157	$	2,717,201	$	11,215,005	$	13,932,206	$	(3,848,633)

								Costs
				Initial cost				capitalized		Gross amount carried at close of period
						Buildings and		subsequent		Land and		Buildings and				Accumulated
	Property	Encumbrance		Land		improvements		to acquisition		improvements		improvements		Total(1)		depreciation
	Other real estate assets	—		3,079		12,315		14,279		3,909		25,764		29,673		(18,859)
		$	—	$	3,079	$	12,315	$	14,279	$	3,909	$	25,764	$	29,673	$	(18,859)
Total		$	643,550	$	2,887,393	$	10,154,628	$	2,019,724	$	2,929,009	$	12,132,736	$	15,061,745	$	(4,133,959)

(1) The aggregate cost for federal income tax purposes is approximately $11.6 billion (unaudited).

(2) A portion of land is leased pursuant to a ground lease expiring 2070.

(3) The land is leased pursuant to a ground lease expiring 2082.

(4) The land is leased pursuant to a ground lease expiring 2070.

(5) The land is leased pursuant to a ground lease expiring 2027.

(6) The land is leased pursuant to a ground lease expiring 2067.

(7) A portion of land is leased pursuant to a ground lease expiring in 2028.

(8) The land is leased pursuant to a ground lease expiring in 2028.

A summary of activity for rental properties and accumulated depreciation is as follows:

	2020		2019		2018			2020		2019		2018
Rental properties:							Accumulated depreciation:
Balance at beginning of year	$	14,038,142	$	13,366,101	$	13,362,073	Balance at beginning of year	$	3,689,482	$	3,209,548	$	2,769,297
Acquisition, development, and improvement of real estate	1,426,505		672,041		325,986		Depreciation expense	518,629		479,934		478,721
Disposition of real estate and other	(402,902)		—		(321,958)		Depreciation expense - Disposals and other	(74,152)		—		(38,470)
Balance at the end of year	$	15,061,745	$	14,038,142	$	13,366,101	Balance at the end of year	$	4,133,959	$	3,689,482	$	3,209,548

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Summary of Critical and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accounts of the Company, its controlled subsidiaries and the variable interest entities ("VIEs") in which it is the primary beneficiary are consolidated in the accompanying financial statements and prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). In the opinion of management, all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included and are normal and recurring in nature. All significant inter-company accounts and transactions have been eliminated.

Noncontrolling interest includes the 3.4% limited partner interests in the Operating Partnership not held by the Company at both December 31, 2020 and 2019. These percentages include the Operating Partnership’s vested long-term incentive plan units (see Note 14).

Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02 "Leases (Topic 842)" which requires an entity that is a lessee to classify leases as either finance or operating and to recognize a lease liability and a right-of-use asset for all leases that have a duration of greater than 12 months. Leases of 12 months or less are to be accounted for similar to prior leasing guidance (Topic 840) for operating leases. For lessors, accounting for leases under the new standard is substantially the same as prior leasing guidance for sales-type leases, direct financing leases, and operating leases, but eliminates current real estate specific provisions and changes the treatment of initial direct costs. In July 2018, the FASB issued ASU No. 2018-11 "Leases (Topic 842): Targeted Improvements," which includes a practical expedient that allows lessors to not separate nonlease components from the associated lease component. This provides the Company with the option of not bifurcating certain common area maintenance recoveries as a non-lease component, if certain requirements are met. The Company adopted ASU No. 2016-02 and ASU No. 2018-11 as of January 1, 2019 using the modified retrospective approach and elected a package of practical expedients. There was no adjustment to the opening balance of retained earnings as a result of the adoption. See Note 10, Lease Agreements - Company as Lessor, and Note 11, Lease Agreements - Company as Lessee, for further details.

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13 "Measurement of Credit Losses on Financial Instruments," which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables, available-for-sale securities, and other financial instruments. Generally, this amendment requires entities to establish a valuation allowance for the expected lifetime losses of these certain financial assets. Subsequent changes in the valuation allowance are recorded in current earnings and reversal of previous losses are permitted. Previously, U.S. GAAP required entities to write down credit losses only when losses were probable and loss reversals were not permitted. The FASB additionally issued various updates to clarify and amend the guidance provided in ASU No. 2016-13. In May 2019, the FASB issued ASU No. 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," which, with respect to credit losses, among other things, clarifies and addresses issues related to accrued interest, transfers between classifications of loans or debt securities, recoveries, and variable interest rates. Additionally, in May 2019, the FASB issued ASU No. 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which allows entities to irrevocably elect the fair value option on certain financial instruments. The Company adopted ASU No. 2016-13, ASU No. 2019-04, and ASU No. 2019-05 as of January 1, 2020, using the modified retrospective approach by applying a cumulative effect adjustment of $0.2 million representing estimated accumulated credit losses to the opening balance of retained earnings.

In August 2018, the FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which eliminates certain disclosure requirements affecting all levels of measurements, and modifies and adds new disclosure requirements for Level 3 measurements. The Company adopted ASU No. 2018-13 as of January 1, 2020. This adoption did not have a material impact on the Company's consolidated results of operations or financial position.

In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU No. 2020-04 is optional and may be elected over

time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

In April 2020, the FASB issued a Staff Question-and-Answer ("Q&A") to clarify whether lease concessions related to the effects of COVID-19 require the application of the lease modification guidance under Accounting Standards Codification ("ASC") Topic 842, Leases. The Q&A allows companies to not apply the lease modification guidance to rent concessions that result in deferred rent where the total cash flows required by the modified lease agreement are materially the same as the cash flows required under the original lease and the changes to the lease do not result in a substantial increase to the rights of the lessor or the obligations of the lessee. The Company adopted the guidance during the three months ended June 30, 2020 for eligible residential lease concessions. The lease concessions that met the criteria of the Q&A are treated as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. The amount of rent concessions subject to the Q&A were not material and this adoption did not have a material impact on the Company's consolidated results of operations or financial position.

Recent Accounting PronouncementsIn January 2021, the FASB issued ASU No. 2021-01 "Reference Rate Reform (Topic 848): Scope." The amendments in ASU No. 2021-01 provide optional expedients to the current guidance on contract modifications and hedge accounting from the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance generally can be applied to applicable contract modifications through December 31, 2022. The Company adopted this new guidance in January 2021 and will apply the guidance on a prospective basis. The Company is currently evaluating the impact of the transition from LIBOR to alternative reference rates and the application of optional expedients available in this guidance, but does not expect a material impact to its consolidated results of operations or financial position.

Real Estate Rental Properties

Real Estate Rental Properties

Significant expenditures, which improve or extend the life of an asset and have a useful life of greater than one year, are capitalized. Operating real estate assets are stated at cost and consist of land and land improvements, buildings and improvements, furniture, fixtures and equipment, and other costs incurred during their development, redevelopment and acquisition.  Expenditures for maintenance and repairs are charged to expense as incurred.

The depreciable life of various categories of fixed assets is as follows:

Computer software and equipment	3 - 5 years
Interior apartment home improvements	5 years
Furniture, fixtures and equipment	5 - 10 years
Land improvements and certain exterior components of real property	10 years
Real estate structures	30 years

The Company capitalizes all costs incurred with the predevelopment, development or redevelopment of real estate assets or are associated with the construction or expansion of real property. Such capitalized costs include land, land improvements, allocated costs of the Company’s project management staff, construction costs, as well as interest and related loan fees, property taxes and insurance. Capitalization begins for predevelopment, development, and redevelopment projects when activity commences. Capitalization ends when the apartment home is completed and the property is available for a new tenant or if the development activities cease.

The Company allocates the purchase price of real estate on a fair value basis to land and building including personal property, and identifiable intangible assets, such as the value of above, below and in-place leases. In making estimates of relative fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent land appraisals which consider comparable market transactions, its own analysis of recently acquired or developed comparable

properties in our portfolio for land comparables and building replacement costs, and other publicly available market data. In calculating the fair value of identified intangible assets of an acquired property, the in-place leases are valued based on in-place rent rates and amortized over the average remaining term of all acquired leases.

The values of the above and below market leases are amortized and recorded as either a decrease (in the case of above market leases) or an increase (in the case of below market leases) to rental revenue over the remaining term of the associated leases acquired. The value of acquired in-place leases are amortized to expense over the average remaining term of the leases acquired. The net carrying value of acquired in-place leases is $4.7 million and $1.2 million as of December 31, 2020 and 2019, respectively, and are included in prepaid expenses and other assets on the Company's consolidated balance sheets.

The Company periodically assesses the carrying value of its real estate investments for indicators of impairment. The judgments regarding the existence of impairment indicators are based on monitoring investment market conditions and performance compared to budget for operating properties including the net operating income for the most recent 12 month period, monitoring estimated costs for properties under development, the Company's ability to hold and its intent with regard to each asset, and each property's remaining useful life. Whenever events or changes in circumstances indicate that the carrying amount of a property held for investment may not be fully recoverable, the carrying amount is evaluated. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount (including intangible assets) of a property held for investment, then the Company will recognize an impairment loss equal to the excess of the carrying amount over the fair value of the property. Fair value of a property is determined using conventional real estate valuation methods, such as discounted cash flow, the property’s unleveraged yield in comparison to the unleveraged yields and/or sales prices of similar communities that have been recently sold, and other third party information, if available. Communities held for sale are carried at the lower of cost or fair value less estimated costs to sell. As of December 31, 2020, two properties were classified as held for sale. As of December 31, 2019, no properties were classified as held for sale. The Company recorded an impairment charge of $1.8 million for the year ended December 31, 2020 related to one of the Company's consolidated properties as a result of a change in the Company's intent to hold the property for its remaining useful life. The Company recorded an impairment charge of $7.1 million for the year ended December 31, 2019 on a parcel of land that was part of a consolidated co-investment with Canada Pension Plan Investment Board ("CPPIB" or "CPP"). The impairment charge resulted from the Company's acquisition of CPPIB's 45% interest in the co-investment. The impairment analysis over the parcel’s fair value was determined using internally developed models based on market assumptions. No impairment charges were recorded for the year ended December 31, 2018.

In the normal course of business, the Company will receive purchase offers for its communities, either solicited or unsolicited. For those offers that are accepted, the prospective buyer will usually require a due diligence period before consummation of the transaction. It is not unusual for matters to arise that result in the withdrawal or rejection of the offer during this process. The Company classifies real estate as "held for sale" when all criteria under the accounting standard for the disposals of long-lived assets have been met.

Co-investments

Co-investments

The Company owns investments in joint ventures in which it has significant influence, but its ownership interest does not meet the criteria for consolidation in accordance with U.S. GAAP. Therefore, the Company accounts for co-investments using the equity method of accounting. Under the equity method of accounting, the investment is carried at the cost of assets contributed, plus the Company’s equity in earnings less distributions received and the Company’s share of losses. The significant accounting policies of the Company’s co-investment entities are consistent with those of the Company in all material respects.

Upon the acquisition of a controlling interest of a co-investment, the co-investment entity is consolidated and a gain or loss is recognized upon the remeasurement of co-investments in the consolidated statement of income equal to the amount by which the fair value of the Company's previously owned co-investment interest exceeds its carrying value. A majority of the co-investments, excluding most preferred equity investments, compensate the Company for its asset management services and some of these investments may provide promote income if certain financial return benchmarks are achieved. Asset management fees are recognized when earned, and promote fees are recognized when the earnings events have occurred and the amount is determinable and collectible. Any promote fees are reflected in equity income from co-investments.

Revenues and Gains on Sale of Real Estate

Revenues and Gains on Sale of Real Estate

Revenues from tenants renting or leasing apartment homes are recorded when due from tenants and are recognized monthly as they are earned, which generally approximates a straight-line basis, else, adjustments are made to conform to a straight-line basis. Apartment homes are rented under short-term leases (generally, lease terms of 9 to 12 months). Revenues from tenants leasing commercial space are recorded on a straight-line basis over the life of the respective lease. See Note 4, Revenues, and Note 10, Lease Agreements - Company as Lessor, for additional information regarding such revenues.

The Company also generates other property-related revenue associated with the leasing of apartment homes, including storage income, pet rent, and other miscellaneous revenue. Similar to rental income, such revenues are recorded when due from tenants and recognized monthly as they are earned.

Apart from rental and other property-related revenue, revenues from contracts with customers are recognized as control of the promised services is passed to the customer. For customer contracts related to management and other fees from affiliates (which includes asset management and property management), the transaction price and amount of revenue to be recognized is determined each quarter based on the management fee calculated and earned for that month or quarter. The contract will contain a description of the service and the fee percentage for management services. Payments from such services are one month or one quarter in arrears of the service performed.

The Company recognizes any gains on sales of real estate when it transfers control of a property and when it is probable that the Company will collect substantially all of the related consideration.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted CashHighly liquid investments with original maturities of three months or less when purchased are classified as cash equivalents. Restricted cash balances relate primarily to reserve requirements for capital replacement at certain communities in connection with the Company’s mortgage debt.

Marketable Securities

Marketable Securities

The Company reports its equity securities and available for sale debt securities at fair value, based on quoted market prices (Level 1 for the common stock and investment funds, Level 2 for the unsecured debt and Level 3 for investments in mortgage backed securities, as defined by the FASB standard for fair value measurements as discussed later in Note 2). As of December 31, 2020 and 2019, $2.5 million and $3.6 million, respectively, of equity securities presented within common stock and stock funds in the tables below represent investments measured at fair value, using net asset value as a practical expedient, and are not categorized in the fair value hierarchy.

Any unrealized gain or loss in debt securities classified as available for sale is recorded as other comprehensive income. There were no other than temporary impairment charges for the years ended December 31, 2020, 2019, and 2018. Unrealized gains

and losses in equity securities, realized gains and losses in debt securities, interest income, and amortization of purchase discounts are included in interest and other income on the consolidated statements of income.

As of December 31, 2020 and 2019, equity securities and available for sale debt securities consisted primarily of investment-grade unsecured debt, U.S. treasury securities, and common stock and stock funds. As of December 31, 2019, the Company classified its mortgage backed securities as held to maturity, and accordingly, the securities were stated at their amortized cost. One of the investments in mortgage backed securities matured in November 2019 and the other matured in December 2020.

The Company uses the specific identification method to determine the cost basis of a debt security sold and to reclassify amounts from accumulated other comprehensive loss for such securities.

Notes Receivable

Notes Receivable

Notes receivable relate to real estate financing arrangements including mezzanine and bridge loans. Interest is recognized over the life of the note as interest income.

Each note is analyzed to determine if it is impaired. A note is impaired if it is probable that the Company will not collect all contractually due principal and interest. The Company does not accrue interest when a note is considered impaired and an allowance is recorded for any principal and previously accrued interest that are not believed to be collectible. All cash receipts on impaired notes are applied to reduce the principal amount of such notes until the principal has been recovered and, thereafter, are recognized as interest income. As of December 31, 2020 and 2019, no notes were impaired.

In the normal course of business, the Company originates and holds two types of loans: mezzanine loans issued to entities that are pursuing apartment development and short-term bridge loans issued to joint ventures with the Company.

The Company categorizes development project mezzanine loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as: current financial information, credit documentation, public information, and previous experience with the borrower. The Company initially analyzes each mezzanine loan individually to classify the credit risk of the loan. On a periodic basis the Company evaluates and performs site visits of the development projects associated with the mezzanine loans to confirm whether they are on budget and whether there are any delays in development that could impact the Company's assessment of credit loss.

All bridge loans that the Company issues are, by their nature, short-term and meant only to provide time for the Company’s joint ventures to obtain long-term funding for newly acquired communities. As the Company is a partner in the joint ventures that are borrowing such funds and has performed a detailed review of each community as part of the acquisition process, there is little to no credit risk associated with such loans. As such, the Company does not review credit quality indicators for bridge loans on an ongoing basis.The Company estimates the allowance for credit losses for each loan type using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made, if necessary, for differences in current loan-specific risk characteristics. For example, in the case of mezzanine loans, adjustments may be made due to differences in track record and experience of the mezzanine loan sponsor as well as the percent of equity that the sponsor has contributed to the project.

Capitalization Policy

Capitalization PolicyThe Company capitalizes all direct and certain indirect costs, including interest, real estate taxes and insurance, incurred during development and redevelopment activities. Interest is capitalized on real estate assets that require a period of time to get them ready for their intended use. The amount of interest capitalized is based upon the average amount of accumulated development expenditures during the reporting period. Included in capitalized costs are management’s estimates of the direct and incremental personnel costs and indirect project costs associated with the Company's development and redevelopment activities. Indirect project costs consist primarily of personnel costs associated with construction administration and development, including accounting, legal fees, and various corporate and community onsite costs that clearly relate to projects under development. Those costs, inclusive of capitalized interest, as well as capitalized development and redevelopment fees totaled $31.4 million, $42.1 million and $37.3 million for the years ended December 31, 2020, 2019 and 2018, respectively, most of which relates to development projects. The Company capitalizes leasing costs associated with the lease-up of development communities and amortizes the costs over the life of the leases. The amounts capitalized are immaterial for all periods presented.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company values its financial instruments based on the fair value hierarchy of valuation techniques described in the FASB’s accounting standard for fair value measurements. Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. The Company uses Level 1 inputs for the fair values of its cash equivalents and its marketable securities except for unsecured bonds and mortgage backed securities. The Company uses Level 2 inputs for its investments in unsecured debt, notes receivable, notes payable, and derivative assets/liabilities. These inputs include interest rates for similar financial instruments. The Company’s valuation methodology for derivatives is described in Note 9. The Company uses Level 3 inputs to estimate the fair value of its mortgage backed securities. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Management believes that the carrying amounts of the outstanding balances under its lines of credit, and notes and other receivables approximate fair value as of December 31, 2020 and 2019, because interest rates, yields and other terms for these instruments are consistent with interest rates, yields and other terms currently available for similar instruments. Management has estimated that the fair value of fixed rate debt with a carrying value of $5.5 billion and $5.2 billion at December 31, 2020 and 2019, respectively, to be $6.0 billion and $5.4 billion at December 31, 2020 and 2019, respectively. Management has estimated the fair value of the Company’s $775.1 million and $660.4 million of variable rate debt at December 31, 2020 and 2019, respectively, to be $770.1 million and $655.8 million at December 31, 2020 and 2019, respectively, based on the terms of existing mortgage notes payable, unsecured debt, and variable rate demand notes compared to those available in the marketplace. Management believes that the carrying amounts of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities, construction payables, other liabilities and dividends payable approximate fair value as of December 31, 2020 and 2019 due to the short-term maturity of these instruments. Marketable securities, except mortgage backed securities, are carried at fair value as of December 31, 2020 and 2019.

At December 31, 2020 and 2019, the Company’s investments in mortgage backed securities had a carrying value of zero and $72.7 million, respectively. In November 2019, the Company received cash proceeds of $83.1 million from the maturity of an

investment in a mortgage backed security. Additionally, during 2020, the Company received cash proceeds of $91.7 million from the maturity of the remaining investment in a mortgage backed security. The Company estimated the fair value of its investment in mortgage backed securities at December 31, 2020 and 2019 to be approximately zero and $72.7 million, respectively. The Company determines the fair value of the mortgage backed securities based on unobservable inputs (Level 3 of the fair value hierarchy) considering the assumptions that market participants would make in valuing these securities. Assumptions such as estimated default rates and discount rates are used to determine expected, discounted cash flows to estimate the fair value.

Interest Rate Protection, Swap, and Forward Contracts

Interest Rate Protection, Swap, and Forward Contracts

The Company uses interest rate swaps, interest rate caps, and total return swap contracts to manage interest rate risks. The Company’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements or other identified risks. To accomplish this objective, the Company uses interest rate swaps as part of its cash flow hedging strategy. 

The Company records all derivatives on its consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.

For derivatives designated for accounting purposes as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. For derivatives designated for accounting purposes as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the initial and ongoing effectiveness of each hedging relationship by comparing the changes in fair value or cash flows of the derivative hedging instrument with the changes in fair value or cash flows of the designated hedged item or transaction.

For derivatives not designated for accounting purposes as cash flow hedges, changes in fair value are recognized in earnings. All of the Company’s interest rate swaps are considered cash flow hedges.

Income Taxes

Income Taxes

Generally in any year in which Essex qualifies as a real estate investment trust ("REIT") under the Internal Revenue Code (the "IRC"), it is not subject to federal income tax on that portion of its income that it distributes to stockholders. No provision for federal income taxes, other than the taxable REIT subsidiaries discussed below, has been made in the accompanying consolidated financial statements for each of the years in the three-year period ended December 31, 2020 as Essex has elected to be and believes it qualifies under the IRC as a REIT and has made distributions during the periods in amounts to preclude Essex from paying federal income tax.

In order to maintain compliance with REIT tax rules, the Company utilizes taxable REIT subsidiaries for various revenue generating or investment activities. The taxable REIT subsidiaries are consolidated by the Company. In general, the activities and tax related provisions, assets and liabilities are not material.

As a partnership, the Operating Partnership is not subject to federal or state income taxes, except that in order to maintain Essex's compliance with REIT tax rules that are applicable to Essex, the Operating Partnership utilizes taxable REIT subsidiaries for various revenue generating or investment activities. The taxable REIT subsidiaries are consolidated by the Operating Partnership.

Equity-based Compensation

Equity-based CompensationThe cost of share- and unit-based compensation awards is measured at the grant date based on the estimated fair value of the awards. The estimated fair value of stock options and restricted stock granted by the Company are being amortized over the vesting period. The estimated grant date fair values of the long-term incentive plan units (discussed in Note 14) are being amortized over the expected service periods.

Changes in Accumulated Other Comprehensive Loss, by Component

Amounts reclassified from accumulated other comprehensive loss in connection with derivatives are recorded in interest expense on the consolidated statements of income. Realized gains and losses on available for sale debt securities are included in interest and other income on the consolidated statements of income.

Accounting Estimates

Accounting EstimatesThe preparation of consolidated financial statements, in accordance with U.S. GAAP, requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate portfolio, its investments in and advances to joint ventures and affiliates, and its notes receivable. The Company bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions.

Variable Interest Entities

Variable Interest Entities

In accordance with accounting standards for consolidation of VIEs, the Company consolidates the Operating Partnership, 17 DownREIT entities (comprising nine communities), and five co-investments as of December 31, 2020. As of December 31, 2019, the Company consolidated the Operating Partnership, 17 DownREIT entities (comprising nine communities), and six co-investments. The Company consolidates these entities because it is deemed the primary beneficiary. The Company has no assets or liabilities other than its investment in the Operating Partnership. The consolidated total assets and liabilities related to the above consolidated co-investments and DownREIT entities, net of intercompany eliminations, were approximately $898.5 million and $326.8 million, respectively, as of December 31, 2020, and $1.0 billion and $364.3 million, respectively, as of December 31, 2019. Noncontrolling interests in these entities were $120.8 million and $122.5 million as of December 31, 2020 and 2019, respectively. The Company's financial risk in each VIE is limited to its equity investment in the VIE.

The DownREIT VIEs collectively own nine apartment communities in which the Company is the general partner or manager of the DownREIT entity, the Operating Partnership is a special limited partner or member, and the other limited partners or members were granted rights of redemption for their interests. Such limited partners or members can request to be redeemed and the Company, subject to certain restrictions, can elect to redeem their rights for cash or by issuing shares of its common stock on a one share per unit basis. Conversion values will be based on the market value of the Company's common stock at the time of redemption multiplied by the number of units stipulated under various arrangements, as noted above. The other limited partners or members receive distributions based on the Company's current dividend rate times the number of units held. Total DownREIT units outstanding were 1,017,460 and 1,033,907 as of December 31, 2020 and 2019, respectively, and the redemption value of the units, based on the closing price of the Company’s common stock totaled approximately $241.6 million and $311.1 million, as of December 31, 2020 and 2019, respectively. The carrying value of redeemable noncontrolling interest in the accompanying balance sheets was $32.2 million and $37.4 million as of December 31, 2020 and 2019, respectively. Of these amounts, $11.9 million and $13.0 million as of December 31, 2020 and 2019, respectively, represent units of limited partners' or members' interests in DownREIT VIEs as to which it is outside of the Company’s control to redeem the DownREIT units with Company common stock and may potentially be redeemed for cash, and are presented at either their redemption value or historical cost, depending on the limited partner's or members' right to redeem their units as of the balance sheet date. The carrying value of DownREIT units as to which it is within the control of the Company to redeem the units with its common

stock was $97.4 million and $97.7 million as of December 31, 2020 and 2019, respectively, and is classified within noncontrolling interests in the accompanying consolidated balance sheets.

Interest holders in VIEs consolidated by the Company are allocated a priority of net income equal to the cash payments made to those interest holders or distributions from cash flow. The remaining results of operations are generally allocated to the Company.

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Summary of Critical and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Critical and Significant Accounting Policies [Abstract]

Summary of Depreciable Life of Various Categories of Fixed Assets

The depreciable life of various categories of fixed assets is as follows:

Computer software and equipment	3 - 5 years
Interior apartment home improvements	5 years
Furniture, fixtures and equipment	5 - 10 years
Land improvements and certain exterior components of real property	10 years
Real estate structures	30 years

Schedule of Cash and Cash Equivalents Reconciliation

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows ($ in thousands):

	2020		2019		2018
Cash and cash equivalents - unrestricted	$	73,629	$	70,087	$	134,465
Cash and cash equivalents - restricted	10,412		11,007		16,930
Total unrestricted and restricted cash and cash equivalents shown in the consolidated statements of cash flows	$	84,041	$	81,094	$	151,395

Schedule of Restricted Cash Reconciliation

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows ($ in thousands):

	2020		2019		2018
Cash and cash equivalents - unrestricted	$	73,629	$	70,087	$	134,465
Cash and cash equivalents - restricted	10,412		11,007		16,930
Total unrestricted and restricted cash and cash equivalents shown in the consolidated statements of cash flows	$	84,041	$	81,094	$	151,395

Components of Marketable Securities

As of December 31, 2020 and 2019, marketable securities consist of the following ($ in thousands):

	December 31, 2020
	Amortized Cost		Gross Unrealized Gain		Carrying Value		Allowance for Credit Losses
Equity securities:
Investment funds - debt securities	$	49,646	$	985	$	50,631	$	—
Common stock and stock funds	81,074		15,001		96,075		—
Debt securities:
Available for sale
Investment-grade unsecured debt	1,050		12		1,062		—
Total - Marketable securities	$	131,770	$	15,998	$	147,768	$	—

	December 31, 2019
	Amortized Cost		Gross Unrealized Gain		Carrying Value
Equity securities:
Investment funds - debt securities	$	29,588	$	544	$	30,132
Common stock and stock funds	34,941		2,927		37,868
Debt securities:
Available for sale
U.S. Treasury securities	2,421		13		2,434
Investment-grade unsecured debt	1,048		60		1,108
Held to maturity:
Mortgage backed securities	72,651		—		72,651
Total - Marketable securities	$	140,649	$	3,544	$	144,193

Schedule of Allowance For Credit Losses

The following table presents the allowance for credit losses rollforward for the mortgage backed security ($ in thousands):

Balance at December 31, 2019	$	—
Impact of adoption ASC 326 (1)	13,644
Reversal of provision for credit losses	(13,644)
Balance at December 31, 2020	$	—

(1) As part of the adoption of ASC 326, effective January 1, 2020, the Company recorded a gross up of the mortgage backed security and related allowance for credit losses of $13.6 million. The allowance was reversed upon maturity of the mortgage backed security in December 2020. The Company recorded $11.8 million of accelerated interest income related to this maturity.

The following table presents the activity in the allowance for credit losses for notes and other receivables by loan type ($ in thousands):

	Mezzanine Loans		Bridge Loans		Total
Balance at December 31, 2019	$	—	$	—	$	—
Impact of adoption ASC 326	147		43		190
Provision for credit losses	604		(43)		561
Balance at December 31, 2020	$	751	$	—	$	751

Summary of Status of Cash Dividends Distributed

The status of cash dividends distributed for the years ended December 31, 2020, 2019, and 2018 related to common stock are classified for tax purposes as follows:

	2020		2019		2018
Common Stock
Ordinary income	85.23	%	83.81	%	79.72	%
Capital gain	10.68	%	13.78	%	15.35	%
Unrecaptured section 1250 capital gain	4.09	%	2.41	%	4.93	%
	100.00	%	100.00	%	100.00	%

Changes in Accumulated Other Comprehensive Income (Loss), Net by Component

Changes in Accumulated Other Comprehensive Loss, Net, by Component

Essex Property Trust, Inc. ($ in thousands)

	Change in fair value and amortization of swap settlements		Unrealized gain (loss) on available for sale securities		Total
Balance at December 31, 2019	$	(13,989)	$	101	$	(13,888)
Other comprehensive income before reclassification	4,274		(59)		4,215
Amounts reclassified from accumulated other comprehensive loss	(5,056)		—		(5,056)
Other comprehensive loss	(782)		(59)		(841)
Balance at December 31, 2020	$	(14,771)	$	42	$	(14,729)

Changes in the Redemption Value of Redeemable Noncontrolling Interests

The changes in the redemption value of redeemable noncontrolling interests for the years ended December 31, 2020, 2019, and 2018 are as follows:

	2020		2019		2018
Balance at January 1,	$	37,410	$	35,475	$	39,206
Reclassifications due to change in redemption value and other	(4,299)		2,008		1,164
Redemptions	(872)		(73)		(4,895)
Balance at December 31,	$	32,239	$	37,410	$	35,475

Essex Portfolio, L.P.

Summary of Critical and Significant Accounting Policies [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss), Net by Component

Changes in Accumulated Other Comprehensive Loss, by Component

Essex Portfolio, L.P. ($ in thousands)

	Change in fair value and amortization of swap settlements		Unrealized gain (loss) on available for sale securities		Total
Balance at December 31, 2019	$	(10,536)	$	104	$	(10,432)
Other comprehensive income before reclassification	4,424		(61)		4,363
Amounts reclassified from accumulated other comprehensive loss	(5,234)		—		(5,234)
Other comprehensive loss	(810)		(61)		(871)
Balance at December 31, 2020	$	(11,346)	$	43	$	(11,303)

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Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2020

Real Estate Investments, Net [Abstract]

Schedule of Real Estate Properties

The table below summarizes acquisition activity for the year ended December 31, 2020 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2020	Purchase Price
CPPIB Portfolio	Various	2,020	100	%	Q1	$	463.4
Total 2020		2,020				$	463.4

Summary of Co-Investment

The carrying values of the Company’s co-investments as of December 31, 2020 and 2019 are as follows ($ in thousands, except in parenthetical):

	Weighted Average Essex Ownership		December 31,
	Percentage (1)		2020		2019
Ownership interest in:
CPPIB (2)	—	%	$	—	$	345,466
Wesco I, Wesco III, Wesco IV, and Wesco V	51	%	178,322		216,756
BEXAEW, BEX II, BEX III, and BEX IV	50	%	152,309		160,888
Other	47	%	27,635		20,351
Total operating and other co-investments, net			358,266		743,461
Total predevelopment and development co-investments	50	%	157,433		146,944
Total preferred interest co-investments (includes related party investments of $81.4 million and $73.2 million as of December 31, 2020 and December 31, 2019, respectively - Note 6 - Related Party Transactions for further discussion)			502,311		444,934
Total co-investments, net			$	1,018,010	$	1,335,339

(1)Weighted average Company ownership percentages are as of December 31, 2020.

(2)In January 2020, the Company purchased CPPIB's 45.0% interest in each of a land parcel and six communities totaling 2,020 apartment homes.

Summarized Financial Statement for Co-Investment Accounted for Under the Equity Method

The combined summarized financial information of co-investments is as follows ($ in thousands):

	December 31,
	2020		2019
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,242,611	$	4,733,762
Other assets	200,777		139,562
Total assets	$	4,443,388	$	4,873,324
Debt	$	2,611,365	$	2,442,213
Other liabilities	189,515		117,160
Equity	1,642,508		2,313,951
Total liabilities and equity	$	4,443,388	$	4,873,324
Company's share of equity	$	1,018,010	$	1,335,339

	Years ended December 31,
	2020		2019		2018
Combined statements of income: (1)
Property revenues	$	300,624	$	336,922	$	332,164
Property operating expenses	(108,682)		(115,658)		(107,584)
Net operating income	191,942		221,264		224,580
Gain on sale of real estate	—		112,918		24,218
Interest expense	(78,962)		(65,665)		(63,913)
General and administrative	(17,079)		(9,575)		(6,379)
Depreciation and amortization	(117,836)		(121,006)		(126,485)
Net income	$	(21,935)	$	137,936	$	52,021
Company's share of net income (2)	$	66,512	$	112,136	$	89,132

(1)Includes preferred equity investments held by the Company.

(2)Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $8.6 million, $7.5 million, and $2.0 million for the years ended December 31, 2020, 2019, and 2018, respectively.

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Revenues (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Summary of Disaggregation of Revenue

The following table presents the Company’s revenues disaggregated by revenue source ($ in thousands):

	2020		2019		2018
Rental income (1)	$	1,462,161	$	1,425,585	$	1,366,590
Other property (1)	23,989		25,043		24,280
Management and other fees from affiliates	9,598		9,527		9,183
Total revenues	$	1,495,748	$	1,460,155	$	1,400,053

(1)On January 1, 2019, the Company adopted ASU No. 2016-02 and ASU No. 2018-11. As a result of this adoption, certain amounts previously classified as other property revenue have been reclassified to rental income. Prior period amounts have been adjusted to conform to the current period's presentation.

The following table presents the Company’s rental and other property revenues disaggregated by geographic operating segment ($ in thousands):

	2020		2019		2018
Southern California	$	570,673	$	597,330	$	579,533
Northern California	610,867		557,139		520,117
Seattle Metro	243,900		243,060		234,138
Other real estate assets (1)	60,710		53,099		57,082
Total rental and other property revenues	$	1,486,150	$	1,450,628	$	1,390,870

(1)Other real estate assets consist of revenue generated from retail space, commercial properties, held for sale properties, disposition properties and straight-line rent adjustments for concessions. Executive management does not evaluate such operating performance geographically.

The following table presents the Company’s rental and other property revenues disaggregated by current property category status ($ in thousands):

	2020		2019		2018
Same-property (1)	$	1,286,686	$	1,338,690	$	1,288,771
Acquisitions (2)	78,666		7,704		—
Development (3)	20,050		7,675		2,741
Redevelopment	19,054		21,058		20,413
Non-residential/other, net (4)	59,838		75,501		78,945
Straight line rent concession (5)	21,856		—		—
Total rental and other property revenues	$	1,486,150	$	1,450,628	$	1,390,870

(1)Properties that have comparable stabilized results as of January 1, 2019 and are consolidated by the Company for the years ended December 31, 2020, 2019, and 2018. A community is generally considered to have reach stabilized operations once it achieves an initial occupancy of 90%.

(2)Acquisitions include properties acquired which did not have comparable stabilized results as of January 1, 2019.

(3)Development includes properties developed which did not have stabilized results as of January 1, 2019.

(4)Non-residential/other, net consists of revenue generated from retail space, commercial properties, held for sale properties, disposition properties, student housing, properties undergoing significant construction activities that do not meet our redevelopment criteria, and three communities located in the California counties of Riverside, Santa Barbara, and Santa Cruz, which the Company does not consider its core markets.

(5)Same-property revenues reflect concessions on a cash basis. Total rental and other property revenues reflect concessions on a straight-line basis in accordance with U.S. GAAP.

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Notes and Other Receivables (Tables)

12 Months Ended

Dec. 31, 2020

Notes and Other Receivables [Abstract]

Notes and other receivables

Notes and other receivables consist of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020		2019
Note receivable, secured, bearing interest at 9.00% due May 2021 (Originated May 2017) (1)	$	—	$	16,828
Note receivable, secured, bearing interest at 9.90%, due November 2021 (Originated November 2018)	14,216		12,838
Related party note receivable, secured, bearing variable rate interest, due February 2020 (Originated November 2019) (2)(3)	—		85,713
Notes receivable, secured, bearing interest at 10.50%, due February 2023 (Originated March 2020)	15,299		—
Note receivable, secured, bearing interest at 11.00%, due October 2023 (Originated April 2020)	25,461		—
Note receivable, secured, bearing interest at 9.00%, due December 2023 (Originated November 2020)	79,827		—
Note receivable, secured, bearing interest at 11.50%, due November 2024 (Originated November 2020)	15,423		—
Notes and other receivables from affiliates (4)	4,744		4,442
Straight line rent receivables (5)	25,214		6,083
Other receivables	15,671		8,461
Allowance for credit losses	(751)		—
Total notes and other receivables	$	195,104	$	134,365

(1)In January 2020, the Company received cash of $16.9 million from the payoff of this note receivable.

(2)See Note 6, Related Party Transactions, for additional details.

(3)In January 2020, the Company received cash of $85.8 million from the payoff of this note receivable.

(4)These amounts consist of short-term loans outstanding and due from various joint ventures as of December 31, 2020 and 2019, respectively. See Note 6, Related Party Transactions, for additional details.

(5)These amounts are receivables from lease concessions recorded on a straight-line basis for the Company's operating properties.

Schedule of Allowance For Credit Losses

The following table presents the allowance for credit losses rollforward for the mortgage backed security ($ in thousands):

Balance at December 31, 2019	$	—
Impact of adoption ASC 326 (1)	13,644
Reversal of provision for credit losses	(13,644)
Balance at December 31, 2020	$	—

(1) As part of the adoption of ASC 326, effective January 1, 2020, the Company recorded a gross up of the mortgage backed security and related allowance for credit losses of $13.6 million. The allowance was reversed upon maturity of the mortgage backed security in December 2020. The Company recorded $11.8 million of accelerated interest income related to this maturity.

The following table presents the activity in the allowance for credit losses for notes and other receivables by loan type ($ in thousands):

	Mezzanine Loans		Bridge Loans		Total
Balance at December 31, 2019	$	—	$	—	$	—
Impact of adoption ASC 326	147		43		190
Provision for credit losses	604		(43)		561
Balance at December 31, 2020	$	751	$	—	$	751

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Unsecured Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Unsecured Debt

Unsecured debt consists of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020			2019			Weighted Average Maturity In Years
Unsecured bonds private placement - fixed rate	$	199,950		$	199,820		0.5
Term loan - variable rate	549,380			349,189			1.5
Bonds public offering - fixed rate	4,858,655			4,214,197			9.4
Unsecured debt, net (1)	5,607,985			4,763,206
Lines of credit (2)	—			55,000
Total unsecured debt	$	5,607,985		$	4,818,206
Weighted average interest rate on fixed rate unsecured bonds private placement and bonds public offering	3.4		%	3.8		%
Weighted average interest rate on variable rate term loan	1.7		%	2.7		%
Weighted average interest rate on lines of credit	1.0		%	2.5		%

(1)Includes unamortized discount, net of premiums, of $10.1 million and $12.2 million and unamortized debt issuance costs of $31.9 million and $24.5 million as of December 31, 2020 and 2019, respectively.

(2)Lines of credit, related to the Company's two lines of unsecured credit aggregating $1.24 billion, excludes unamortized debt issuance costs of $3.7 million and $3.8 million as of December 31, 2020 and 2019, respectively. These debt issuance costs are included in prepaid expenses and other assets on the consolidated balance sheets.

Summary of Unsecured Private Placement Bonds

The following is a summary of the Company’s unsecured private placement bonds as of December 31, 2020 and 2019 ($ in thousands):

	Maturity	2020		2019		Coupon Rate
Senior unsecured private placement notes	April 2021	100,000		100,000		4.27	%
Senior unsecured private placement notes	June 2021	50,000		50,000		4.30	%
Senior unsecured private placement notes	August 2021	50,000		50,000		4.37	%
		$	200,000	$	200,000

Summary of Senior Unsecured Notes

The following is a summary of the Company’s senior unsecured notes as of December 31, 2020 and 2019 ($ in thousands):

	Maturity	2020		2019		Coupon Rate
Senior notes	March 2021	$	—	$	300,000	5.200	%
Senior notes	August 2022	—		300,000		3.625	%
Senior notes	January 2023	300,000		300,000		3.375	%
Senior notes	May 2023	300,000		300,000		3.250	%
Senior notes	May 2024	400,000		400,000		3.875	%
Senior notes	April 2025	500,000		500,000		3.500	%
Senior notes	April 2026	450,000		450,000		3.375	%
Senior notes	May 2027	350,000		350,000		3.625	%
Senior notes	March 2029	500,000		500,000		4.000	%
Senior notes	January 2030	550,000		550,000		3.000	%
Senior notes	January 2031	300,000		—		1.650	%
Senior notes	March 2032	650,000		—		2.650	%
Senior notes	March 2048	300,000		300,000		4.500	%
Senior notes	September 2050	300,000		—		2.650	%
		$	4,900,000	$	4,250,000

Mortgage notes payable consist of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020			2019
Fixed rate mortgage notes payable	$	419,323		$	736,490
Variable rate mortgage notes payable (1)	224,227			254,177
Total mortgage notes payable (2)	$	643,550		$	990,667
Number of properties securing mortgage notes	12			24
Remaining terms	1-26 years			1-27 years
Weighted average interest rate	2.7		%	4.1		%

Schedule of Unsecured Debt Principal Payments Excluding Lines of Credit

The aggregate scheduled principal payments of unsecured debt payable, excluding lines of credit, at December 31, 2020 are as follows ($ in thousands):

2021	$	—
2022	—
2023	600,000
2024	400,000
2025	500,000
Thereafter	3,400,000
	$	4,900,000

The aggregate scheduled principal payments of mortgage notes payable at December 31, 2020 are as follows ($ in thousands):

2021	$	3,501
2022	43,188
2023	2,945
2024	3,109
2025	133,054
Thereafter	455,629
	$	641,426

(1)Variable rate mortgage notes payable, including $225.1 million in bonds that have been converted to variable rate through total return swap contracts, consists of multifamily housing mortgage revenue bonds secured by deeds of trust on rental properties and guaranteed by collateral pledge agreements, payable monthly at a variable rate as defined in the Loan Agreement (approximately 1.2% at December 2020 and 2.3% at December 2019) including credit enhancement and underwriting fees. Among the terms imposed on the properties, which are security for the bonds, is a requirement that 20% of the apartment homes are subject to tenant income criteria. Once the bonds have been repaid, the properties may no

longer be obligated to comply with such tenant income criteria. Principal balances are due in full at various maturity dates from December 2027 through December 2046. The Company had no interest rate cap agreements as of December 31, 2020 and 2019, respectively.

(2)Includes total unamortized premium, net of discounts, of $3.9 million and $5.9 million and reduced by unamortized debt issuance costs of $1.8 million and $2.6 million as of December 31, 2020 and 2019, respectively.

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Mortgage Notes Payable (Tables)

12 Months Ended

Dec. 31, 2020

Notes Payable [Abstract]

Summary of Mortgages Notes Payable

The following is a summary of the Company’s senior unsecured notes as of December 31, 2020 and 2019 ($ in thousands):

	Maturity	2020		2019		Coupon Rate
Senior notes	March 2021	$	—	$	300,000	5.200	%
Senior notes	August 2022	—		300,000		3.625	%
Senior notes	January 2023	300,000		300,000		3.375	%
Senior notes	May 2023	300,000		300,000		3.250	%
Senior notes	May 2024	400,000		400,000		3.875	%
Senior notes	April 2025	500,000		500,000		3.500	%
Senior notes	April 2026	450,000		450,000		3.375	%
Senior notes	May 2027	350,000		350,000		3.625	%
Senior notes	March 2029	500,000		500,000		4.000	%
Senior notes	January 2030	550,000		550,000		3.000	%
Senior notes	January 2031	300,000		—		1.650	%
Senior notes	March 2032	650,000		—		2.650	%
Senior notes	March 2048	300,000		300,000		4.500	%
Senior notes	September 2050	300,000		—		2.650	%
		$	4,900,000	$	4,250,000

Mortgage notes payable consist of the following as of December 31, 2020 and 2019 ($ in thousands):

	2020			2019
Fixed rate mortgage notes payable	$	419,323		$	736,490
Variable rate mortgage notes payable (1)	224,227			254,177
Total mortgage notes payable (2)	$	643,550		$	990,667
Number of properties securing mortgage notes	12			24
Remaining terms	1-26 years			1-27 years
Weighted average interest rate	2.7		%	4.1		%

Aggregate Scheduled Principal Payments of Mortgage Notes Payable

The aggregate scheduled principal payments of unsecured debt payable, excluding lines of credit, at December 31, 2020 are as follows ($ in thousands):

2021	$	—
2022	—
2023	600,000
2024	400,000
2025	500,000
Thereafter	3,400,000
	$	4,900,000

The aggregate scheduled principal payments of mortgage notes payable at December 31, 2020 are as follows ($ in thousands):

2021	$	3,501
2022	43,188
2023	2,945
2024	3,109
2025	133,054
Thereafter	455,629
	$	641,426

(1)Variable rate mortgage notes payable, including $225.1 million in bonds that have been converted to variable rate through total return swap contracts, consists of multifamily housing mortgage revenue bonds secured by deeds of trust on rental properties and guaranteed by collateral pledge agreements, payable monthly at a variable rate as defined in the Loan Agreement (approximately 1.2% at December 2020 and 2.3% at December 2019) including credit enhancement and underwriting fees. Among the terms imposed on the properties, which are security for the bonds, is a requirement that 20% of the apartment homes are subject to tenant income criteria. Once the bonds have been repaid, the properties may no

longer be obligated to comply with such tenant income criteria. Principal balances are due in full at various maturity dates from December 2027 through December 2046. The Company had no interest rate cap agreements as of December 31, 2020 and 2019, respectively.

(2)Includes total unamortized premium, net of discounts, of $3.9 million and $5.9 million and reduced by unamortized debt issuance costs of $1.8 million and $2.6 million as of December 31, 2020 and 2019, respectively.

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Lease Agreements - Company as Lessor (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Summary of Lessor Future Minimum Base Rent

A maturity analysis of undiscounted future minimum non-cancelable base rent to be received under the above operating leases as of December 31, 2020 is summarized as follows ($ in thousands):

	Future Minimum Rent
2021	$	720,570
2022	34,240
2023	14,971
2024	13,619
2025	11,265
Thereafter	24,855
	$	819,520

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Lease Agreements - Company as Lessee (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of Balance Sheet Information Related to Leases

Supplemental consolidated balance sheet information related to leases as of December 31, 2020 and 2019 is as follows ($ in thousands):

	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	72,143	$	74,744
Total leased assets		$	72,143	$	74,744
Liabilities
Operating lease liabilities	Operating lease liabilities	74,037		76,740
Total lease liabilities		$	74,037	$	76,740

Schedule of Components of Lease Expense/Discount Rate Information

The components of lease expense for the years ended December 31, 2020 and 2019 were as follows ($ in thousands):

	December 31, 2020		December 31, 2019
Operating lease cost	$	6,749	$	6,745
Variable lease cost	1,436		783
Short-term lease cost	432		610
Sublease income	(438)		(436)
Total lease cost	$	8,179	$	7,702

Lease term and discount rate information for leases at December 31, 2020 and 2019 are as follows:

	December 31, 2020		December 31, 2019
Weighted-average of remaining lease terms (years)
Operating Leases	39		39
Weighted-average of discount rates
Operating Leases	5.00	%	4.99	%

Schedule of Maturity Analysis of Operating Lease Liabilities

A maturity analysis of lease liabilities as of December 31, 2020 is as follows ($ in thousands):

	Operating Leases
2021	$	6,963
2022	6,987
2023	6,962
2024	6,690
2025	6,310
Thereafter	140,417
Total lease payments	$	174,329
Less: Imputed interest	(100,292)
Present value of lease liabilities	$	74,037

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Net Income Per Common Share and Net Income Per Common Unit (Tables)

12 Months Ended

Dec. 31, 2020

Net Income Per Share and Net Income Per Unit [Line Items]

Schedule of Net Income Per Common Share and Net Income Per Unit

Basic and diluted income per share is calculated as follows for the years ended December 31 ($ in thousands, except share and per share amounts):

	2020					2019					2018
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Net income available to common stockholders	$	568,870	65,454,057	$	8.69	$	439,286	65,840,422	$	6.67	$	390,153	66,041,058	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common stockholders	$	569,653	65,564,982	$	8.69	$	439,286	65,939,455	$	6.66	$	390,153	66,085,089	$	5.90

Essex Portfolio, L.P.

Net Income Per Share and Net Income Per Unit [Line Items]

Schedule of Net Income Per Common Share and Net Income Per Unit

Basic and diluted income per unit is calculated as follows for the years ended December 31 ($ in thousands, except unit and per unit amounts):

	2020					2019					2018
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Net income available to common unitholders	$	588,782	67,750,665	$	8.69	$	454,629	68,140,900	$	6.67	$	403,605	68,315,999	$	5.91
Effect of Dilutive Securities
Stock options	—		16,678			—		99,033			—		44,031
DownREIT units	783		94,247			—		—			—		—
Diluted:
Net income available to common unitholders	$	589,565	67,861,590	$	8.69	$	454,629	68,239,933	$	6.66	$	403,605	68,360,030	$	5.90

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Equity Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Weighted Average Assumptions Used to Estimate Fair Value of Stock Options

The fair value of stock options was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants:

	2020			2019			2018
Stock price	$	244.74		$	304.85		$	262.09
Risk-free interest rates	0.83		%	2.01		%	2.76		%
Expected lives	6 years			6 years			6 years
Volatility	25.72		%	19.56		%	24.89		%
Dividend yield	2.93		%	2.72		%	2.81		%

Summary of Stock Options Activity

A summary of the status of the Company’s stock option plans as of December 31, 2020, 2019, and 2018 and changes during the years ended on those dates is presented below:

	2020			2019			2018
	Shares	Weighted- average exercise price		Shares	Weighted- average exercise price		Shares	Weighted- average exercise price
Outstanding at beginning of year	572,971	$	251.10	612,954	$	224.57	536,208	$	211.41
Granted	149,020	244.74		148,147	304.85		119,361	262.09
Exercised	(70,802)	208.57		(182,817)	205.25		(39,175)	159.05
Forfeited and canceled	(38,080)	228.64		(5,313)	257.87		(3,440)	221.80
Outstanding at end of year	613,109	255.86		572,971	251.10		612,954	224.57
Options exercisable at year end	361,985	245.83		305,379	223.90		322,837	206.63

Summary of Restricted Stock Activity

The following table summarizes information about restricted stock outstanding as of December 31, 2020, 2019 and 2018 and changes during the years ended:

	2020			2019			2018
	Shares	Weighted- average grant price		Shares	Weighted- average grant price		Shares	Weighted- average grant price
Unvested at beginning of year	114,877	$	197.62	91,058	$	180.99	90,823	$	163.49
Granted	45,196	248.16		41,643	235.93		51,945	194.70
Vested	(15,116)	170.61		(13,222)	143.56		(48,212)	150.76
Forfeited and canceled	(12,354)	184.11		(4,602)	158.06		(3,498)	158.71
Unvested at end of year	132,603	214.34		114,877	197.62		91,058	180.99

Summary of Long Term Incentive Plan - Z Units

The following table summarizes information about the LTIP Units outstanding as of December 31, 2020:

	Long-Term Incentive Plan - LTIP Units
	Total Vested Units	Total Unvested Units	Total Outstanding Units	Weighted- average Grant-date Fair Value		Weighted- average Remaining Contractual Life (years)
Balance, December 31, 2017	213,300	23,212	236,512	$	75.03	7.5
Granted	—	—	—
Vested	12,051	(12,051)	—
Converted	(91,270)	—	(91,270)
Cancelled	—	—	—
Balance, December 31, 2018	134,081	11,161	145,242	$	75.03	6.5
Granted	—	—	—
Vested	9,176	(9,176)	—
Converted	—	—	—
Cancelled	—	(95)	(95)
Balance, December 31, 2019	143,257	1,890	145,147	$	75.03	5.2
Granted	—	—	—
Vested	1,890	(1,890)	—
Converted	(39,010)	—	(39,010)
Cancelled	—	—	—
Balance, December 31, 2020	106,137	—	106,137	$	84.47	3.6

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Summary of Reportable Operating Segments of Revenue and NOI

The revenues and NOI for each of the reportable operating segments are summarized as follows for the years ended December 31, 2020, 2019, and 2018 ($ in thousands):

	Years Ended December 31,
	2020		2019		2018
Revenues:
Southern California	$	570,673	$	597,330	$	579,533
Northern California	610,867		557,139		520,117
Seattle Metro	243,900		243,060		234,138
Other real estate assets	60,710		53,099		57,082
Total property revenues	$	1,486,150	$	1,450,628	$	1,390,870
Net operating income:
Southern California	$	393,776	$	425,882	$	412,517
Northern California	435,403		412,706		384,548
Seattle Metro	166,847		172,601		163,927
Other real estate assets	49,724		42,912		45,537
Total net operating income	1,045,750		1,054,101		1,006,529
Management and other fees from affiliates	9,598		9,527		9,183
Corporate-level property management expenses	(34,573)		(34,067)		(32,055)
Depreciation and amortization	(525,497)		(483,750)		(479,884)
General and administrative	(65,388)		(54,262)		(53,451)
Expensed acquisition and investment related costs	(1,591)		(168)		(194)
Impairment loss	(1,825)		(7,105)		—
Gain (loss) on sale of real estate and land	64,967		(3,164)		61,861
Interest expense	(220,633)		(217,339)		(220,492)
Total return swap income	10,733		8,446		8,707
Interest and other income	40,999		46,298		23,010
Equity income from co-investments	66,512		112,136		89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)		(1,457)		—
(Loss) Gain on early retirement of debt, net	(22,883)		3,717		—
Gain on remeasurement of co-investment	234,694		31,535		1,253
Net income	$	599,332	$	464,448	$	413,599

Summary of Total Assets from Reportable Operating Segments

Total assets for each of the reportable operating segments are summarized as follows as of December 31, 2020 and 2019 ($ in thousands):

	As of December 31,
	2020		2019
Assets:
Southern California	$	3,993,275	$	4,139,104
Northern California	5,520,019		4,408,404
Seattle Metro	1,403,678		1,456,187
Other real estate assets	10,814		344,965
Net reportable operating segments - real estate assets	10,927,786		10,348,660
Real estate under development	386,047		546,075
Co-investments	1,018,010		1,335,339
Real estate held for sale	57,938		—
Cash and cash equivalents, including restricted cash	84,041		81,094
Marketable securities	147,768		144,193
Notes and other receivables	195,104		134,365
Operating lease right-of-use assets	72,143		74,744
Prepaid expenses and other assets	47,340		40,935
Total assets	$	12,936,177	$	12,705,405

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Organization (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2020 shares	Dec. 31, 2020 USD ($)	Dec. 31, 2020 community	Dec. 31, 2020 apartment	Dec. 31, 2020 building	Dec. 31, 2020 investment	Dec. 31, 2020 project	Dec. 31, 2019 USD ($) shares
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Limited partner - ownership percentage	3.40%								3.40%
Operating Partnership units outstanding (in shares) | shares		2,294,760							2,301,653
Redemption value of operating partnership units outstanding | $			$ 544.8						$ 692.5
Number of apartment communities owned				246	2
Number of apartment units owned | apartment					60,272
Ownership interests, number of commercial buildings | building						1
Ownership interests, number of consolidated projects | project								3
Ownership Interests, number of unconsolidated projects | investment							3
Operating Partnership
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
General partner ownership interest	96.60%

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Summary of Critical and Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) community partnership investment shares	Dec. 31, 2019 USD ($) investment community partnership shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Property, Plant and Equipment [Line Items]
Noncontrolling interest in operating partnership	3.40%	3.40%
Cumulative effect upon adoption	$ 6,183,192	$ 6,403,504	$ 6,393,844	$ 6,396,825
Real Estate Rental Properties [Abstract]
Minimum threshold useful life of assets for capitalization	1 year
Depreciable life of various categories of fixed assets [Abstract]
Acquired in-place lease value, net	$ 4,700	$ 1,200
Number of communities held-for-sale | community	2	0
Asset impairment charges	$ 1,825	$ 7,105	0
Other-than-temporary impairment		11,500
Revenues and Gains on Sale of Real Estate [Abstract]
Lease terms, minimum	9 months
Lease terms, maximum	12 months
Cash Equivalents and Restricted Cash [Abstract]
Original maturities of highly liquid investments to be classified as cash equivalents, maximum	3 months
Cash and cash equivalents - unrestricted	$ 73,629	70,087	134,465
Cash and cash equivalents - restricted	10,412	11,007	16,930
Total unrestricted and restricted cash and cash equivalents shown in the consolidated statements of cash flows	84,041	81,094	151,395	61,126
Capitalization
Capitalized internal costs related to development and redevelopment projects	31,400	42,100	37,300
Fair Value of Financial Instruments
Fixed rate debt carrying amount	5,500,000	5,200,000
Fixed rate debt fair value	6,000,000	5,400,000
Variable rate debt carrying amount	775,100	660,400
Variable rate debt fair value	770,100	655,800
Mortgage-backed-securities available-for-sale fair value	$ 0	$ 72,700
Status of cash dividends distributed
Number of DownREIT limited partnerships | partnership	17	17
Number of communities in DownREIT Partnerships | community	9	9
Number of consolidated co-investments that now meet the definition of a VIE | investment	5	6
Assets related to VIE, net intercompany eliminations	$ 898,500	$ 1,000,000
Liabilities related to VIE, net intercompany eliminations	326,800	364,300
Noncontrolling interests in VIE	$ 120,800	$ 122,500
Total DownREIT units outstanding (in shares) | shares	1,017,460	1,033,907
Redemption value of the variable interest entities	$ 241,600	$ 311,100
Redeemable noncontrolling interest	32,239	37,410	35,475	39,206
Redeemable noncontrolling interest, units of limited partners' interests in DownREIT VIEs	11,900	13,000
Noncontrolling interest in limited partnerships	97,400	97,700
Distributions in excess of accumulated earnings
Property, Plant and Equipment [Line Items]
Cumulative effect upon adoption	$ (861,193)	(887,619)	$ (812,796)	$ (833,726)
Cumulative Effect, Period of Adoption, Adjusted Balance | Distributions in excess of accumulated earnings
Property, Plant and Equipment [Line Items]
Cumulative effect upon adoption		200
CPPIB
Depreciable life of various categories of fixed assets [Abstract]
Asset impairment charges		$ 7,100
Equity method investment, ownership percentage		45.00%
Computer Software and Equipment | Minimum
Depreciable life of various categories of fixed assets [Abstract]
Depreciable life, average	3 years
Computer Software and Equipment | Maximum
Depreciable life of various categories of fixed assets [Abstract]
Depreciable life, average	5 years
Interior Apartment Home Improvements
Depreciable life of various categories of fixed assets [Abstract]
Depreciable life, average	5 years
Furniture, Fixtures and Equipment | Minimum
Depreciable life of various categories of fixed assets [Abstract]
Depreciable life, average	5 years
Furniture, Fixtures and Equipment | Maximum
Depreciable life of various categories of fixed assets [Abstract]
Depreciable life, average	10 years
Land Improvements and Certain Exterior Components of Real Property
Depreciable life of various categories of fixed assets [Abstract]
Depreciable life, average	10 years
Real Estate Structures
Depreciable life of various categories of fixed assets [Abstract]
Depreciable life, average	30 years
Common stock
Status of cash dividends distributed
Ordinary income	85.23%	83.81%	79.72%
Capital gain	10.68%	13.78%	15.35%
Unrecaptured section 1250 capital gain	4.09%	2.41%	4.93%
Total cash dividends distributed, percentage	100.00%	100.00%	100.00%
Mortgage Backed Securities
Fair Value of Financial Instruments
Mortgage-backed-securities held-to-maturity carrying value	$ 0	$ 72,651

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Summary of Critical and Significant Accounting Policies - Marketable Securities (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Marketable Securities [Line Items]
Carrying Value		$ 2,500	$ 3,600
Equity securities:
Gross Unrealized Gain		12,515	5,710	$ (5,159)
Carrying Value		2,500	3,600
Held to maturity:
Total - Marketable securities, amortized cost		131,770	140,649
Total - Marketable securities, gross unrealized gain (loss)		15,998	3,544
Total - Marketable securities, carrying value		147,768	144,193
Marketable securities, allowance for credit loss		0	0
Proceeds from maturity of mortgage backed security	$ 83,100	91,700	83,100
Accelerated interest income		11,800	7,000
Proceeds from sale and maturities of marketable securities		113,500	147,500	31,500
Marketable securities, realized gain (loss)		2,100	1,300	700
Unrealized gain (loss) on equity securities recognized through income		12,515	5,710	$ (5,159)
Interest and Other Income
Equity securities:
Gross Unrealized Gain		12,500	5,700
Held to maturity:
Unrealized gain (loss) on equity securities recognized through income		12,500	5,700
Investment Funds - Debt Securities
Marketable Securities [Line Items]
Carrying Value		50,631	30,132
Equity securities:
Amortized Cost		49,646	29,588
Gross Unrealized Gain		985	544
Carrying Value		50,631	30,132
Held to maturity:
Unrealized gain (loss) on equity securities recognized through income		985	544
Common Stock and Stock Funds
Marketable Securities [Line Items]
Carrying Value		96,075	37,868
Equity securities:
Amortized Cost		81,074	34,941
Gross Unrealized Gain		15,001	2,927
Carrying Value		96,075	37,868
Held to maturity:
Unrealized gain (loss) on equity securities recognized through income		15,001	2,927
U.S. Treasury Securities
Available for sale
Available-for-sale, amortized cost			2,421
Available-for-sale, gross unrealized gain (Loss)			13
Available-for-sale, carrying value			2,434
Investment-Grade Unsecured Debt
Available for sale
Available-for-sale, amortized cost		1,050	1,048
Available-for-sale, gross unrealized gain (Loss)		12	60
Available-for-sale, carrying value		1,062	1,108
Allowance for Credit Losses		0
Mortgage Backed Securities
Held to maturity:
Held to maturity, amortized cost			72,651
Held to maturity, gross unrealized gain (loss)			0
Held to maturity carrying value		$ 0	$ 72,651

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Summary of Critical and Significant Accounting Policies - Allowance For Credit Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0
Impact of adoption ASC 326	0	$ 0
Reversal of provision for credit losses	687	0	$ 0
Ending balance	0	0
Accelerated interest income	11,800	7,000
Mortgage Backed Securities
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	0
Impact of adoption ASC 326	0	0
Reversal of provision for credit losses	(13,644)
Ending balance	$ 0	$ 0
Cumulative Effect, Period of Adoption, Adjustment | Mortgage Backed Securities
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Impact of adoption ASC 326				$ 13,644

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Summary of Critical and Significant Accounting Policies - AOCI (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2019	$ 6,220,427
Other comprehensive income before reclassification	4,215
Amounts reclassified from accumulated other comprehensive loss	(5,056)
Other comprehensive loss	(841)
Balance at December 31, 2020	6,000,410
Change in Fair Value and Amortization of Swap Agreements
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2019	(13,989)
Other comprehensive income before reclassification	4,274
Amounts reclassified from accumulated other comprehensive loss	(5,056)
Other comprehensive loss	(782)
Balance at December 31, 2020	(14,771)
Unrealized Gains on Available for Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2019	101
Other comprehensive income before reclassification	(59)
Amounts reclassified from accumulated other comprehensive loss	0
Other comprehensive loss	(59)
Balance at December 31, 2020	42
Accumulated other comprehensive loss, net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2019	(13,888)
Balance at December 31, 2020	(14,729)
Essex Portfolio, L.P.
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Other comprehensive income before reclassification	4,363
Amounts reclassified from accumulated other comprehensive loss	(5,234)
Other comprehensive loss	(871)
Essex Portfolio, L.P. | Change in Fair Value and Amortization of Swap Agreements
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2019	(10,536)
Other comprehensive income before reclassification	4,424
Amounts reclassified from accumulated other comprehensive loss	(5,234)
Other comprehensive loss	(810)
Balance at December 31, 2020	(11,346)
Essex Portfolio, L.P. | Unrealized Gains on Available for Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2019	104
Other comprehensive income before reclassification	(61)
Amounts reclassified from accumulated other comprehensive loss	0
Other comprehensive loss	(61)
Balance at December 31, 2020	43
Essex Portfolio, L.P. | Accumulated other comprehensive loss, net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at December 31, 2019	(10,432)
Balance at December 31, 2020	$ (11,303)

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Summary of Critical and Significant Accounting Policies - Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Redeemable noncontrolling interest	$ 37,410	$ 35,475	$ 35,475
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance at January 1,	37,410	35,475	39,206
Reclassifications due to change in redemption value and other	(4,299)	2,008	1,164
Redemptions	(872)	(73)	(4,895)
Balance at December 31,	$ 32,239	$ 37,410	$ 35,475

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Real Estate Investments - Acquisitions (Details)	1 Months Ended		12 Months Ended
	Jan. 31, 2020 USD ($) community apartment	Dec. 31, 2019 USD ($) unit	Dec. 31, 2020 USD ($) unit	Dec. 31, 2019 USD ($) community apartment	Dec. 31, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of units acquired | unit			2,020
Purchase Price			$ 463,400,000	$ 373,300,000
Gain on remeasurement of co-investment			234,694,000	31,535,000	$ 1,253,000
Investment in real estate			15,061,745,000
Encumbrance			643,550,000
CPPIB Interest
Schedule of Equity Method Investments [Line Items]
Investment interest acquired	45.00%
Value of property held by acquired investment	$ 1,000,000,000.0
Gain on remeasurement of co-investment	234,700,000
Promote income	$ 6,500,000
Land and Land Improvements
Schedule of Equity Method Investments [Line Items]
Purchase Price			189,000,000.0
Building and Improvements
Schedule of Equity Method Investments [Line Items]
Purchase Price			846,000,000.0
Prepaid Expenses and Other Assets
Schedule of Equity Method Investments [Line Items]
Purchase Price			$ 10,000,000.0
Hidden Valley
Schedule of Equity Method Investments [Line Items]
Purchase Price		$ 24,200,000
Limited partnership interest		25.00%
Investment in real estate		$ 97,000,000.0		97,000,000.0
Encumbrance		$ 29,700,000		$ 29,700,000
Apartment Building
Schedule of Equity Method Investments [Line Items]
Number of communities held by acquired investment | community				4
Number of units held by acquired investment | apartment				849
Apartment Building | CPPIB Interest
Schedule of Equity Method Investments [Line Items]
Number of units acquired | unit			2,020
Essex Ownership Percentage			100.00%
Purchase Price			$ 463,400,000
Number of communities held by acquired investment | community	6
Number of units held by acquired investment | apartment	2,020
Apartment Building | Hidden Valley
Schedule of Equity Method Investments [Line Items]
Number of units acquired | unit		324

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Real Estate Investments - Sales of Real Estate Investments (Details) $ in Thousands	1 Months Ended			12 Months Ended
	Oct. 31, 2020 USD ($) apartment	Jul. 31, 2020 USD ($) apartment	Jun. 30, 2020 USD ($) apartment community	Dec. 31, 2020 USD ($) apartment community	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($) community unit	Dec. 31, 2020 apartment
Real Estate Properties [Line Items]
Number of apartment units | apartment				439
Total property revenues				$ 9,598	$ 9,527	$ 9,183
Apartment communities owned (in communities)				246			2
One South Market And Museum Park
Real Estate Properties [Line Items]
Total property revenues			$ 232,000
Gain (loss) on sale of properties			$ 16,600
Delano, Redmond, WA
Real Estate Properties [Line Items]
Total property revenues		$ 51,500
Gain (loss) on sale of properties		$ 22,700
Glendale, CA
Real Estate Properties [Line Items]
Total property revenues	$ 60,000
Gain (loss) on sale of properties	$ 25,700
Apartment Building | One South Market And Museum Park
Real Estate Properties [Line Items]
Number of units sold | community			2
Number of apartment units | apartment			429
Apartment Building | Delano, Redmond, WA
Real Estate Properties [Line Items]
Number of apartment units | apartment		126
Apartment Building | Glendale, CA
Real Estate Properties [Line Items]
Number of apartment units | apartment	115
Communities Sold in 2019 | Santa Mateo, CA
Real Estate Properties [Line Items]
Gain (loss) on sale of properties					(3,200)
Communities Sold in 2019 | Rental and Other Property | Santa Clara, CA
Real Estate Properties [Line Items]
Total property revenues					10,800
Communities Sold in 2019 | Rental and Other Property | Santa Mateo, CA
Real Estate Properties [Line Items]
Total property revenues					$ 12,500
Communities Sold in 2018
Real Estate Properties [Line Items]
Number of units sold | unit						669
Gain (loss) on sale of properties						$ 61,900
Number of communities sold | community						2
Communities Sold in 2018 | Rental and Other Property
Real Estate Properties [Line Items]
Total property revenues						$ 352,000

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Real Estate Investments - Co-Investments (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2020 community apartment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) community apartment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 1,018,010	$ 1,335,339
Membership Combined Balance Sheets [Abstract]
Rental properties and real estate under development		386,047	546,075
Total assets		12,936,177	12,705,405
Debt		6,720,746	6,264,491
Other liabilities		39,140	36,565
Equity		6,183,192	6,403,504	$ 6,393,844	$ 6,396,825
Total liabilities and equity/capital		12,936,177	12,705,405
Membership Combined Statements Of Income [Abstract]
Revenues		1,495,748	1,460,155	1,400,053
Interest expense		(220,633)	(217,339)	(220,492)
General and administrative		(65,388)	(54,262)	(53,451)
Net income		599,332	464,448	413,599
Equity income from co-investments		66,512	$ 112,136	89,132
Apartment Building
Business Acquisition [Line Items]
Number of communities held by acquired investment | community			4
Number of units held by acquired investment | apartment			849
Total Co Investment
Membership Combined Balance Sheets [Abstract]
Rental properties and real estate under development		4,242,611	$ 4,733,762
Other assets		200,777	139,562
Total assets		4,443,388	4,873,324
Debt		2,611,365	2,442,213
Other liabilities		189,515	117,160
Equity		1,642,508	2,313,951
Total liabilities and equity/capital		4,443,388	4,873,324
Company's share of equity		1,018,010	1,335,339
Membership Combined Statements Of Income [Abstract]
Revenues		300,624	336,922	332,164
Property operating expenses		(108,682)	(115,658)	(107,584)
Net operating income		191,942	221,264	224,580
Gain on sale of real estate		0	112,918	24,218
Interest expense		(78,962)	(65,665)	(63,913)
General and administrative		(17,079)	(9,575)	(6,379)
Depreciation and amortization		(117,836)	(121,006)	(126,485)
Net income		(21,935)	137,936	52,021
Company's share of net income		66,512	112,136	89,132
Investments with Related Parties
Membership Combined Statements Of Income [Abstract]
Equity income from co-investments		$ 8,600	7,500	$ 2,000
CPPIB
Business Acquisition [Line Items]
Ownership percentage		0.00%
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 0	345,466
Wesco I, III, IV and V
Business Acquisition [Line Items]
Ownership percentage		51.00%
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 178,322	216,756
BEXAEW, BEX II, BEX III, and BEX IV
Business Acquisition [Line Items]
Ownership percentage		50.00%
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 152,309	160,888
Other
Business Acquisition [Line Items]
Ownership percentage		47.00%
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 27,635	20,351
Total Operating Co-investments
Business Acquisition [Line Items]
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 358,266	743,461
Total Development Co-Investments
Business Acquisition [Line Items]
Ownership percentage		50.00%
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 157,433	146,944
Total Preferred Interest Investments
Business Acquisition [Line Items]
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		502,311	444,934
Total Preferred Interest Investments | Investments in Majority-Owned Subsidiaries
Business Acquisition [Line Items]
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures		$ 81,400	$ 73,200
CPPIB Interest
Business Acquisition [Line Items]
Investment interest acquired	45.00%
CPPIB Interest | Apartment Building
Business Acquisition [Line Items]
Number of communities held by acquired investment | community	6
Number of units held by acquired investment | apartment	2,020

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Real Estate Investments - Operating, Pre-Development, and Development Co-Investments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) unit	Dec. 31, 2017 USD ($) unit	Dec. 31, 2019 USD ($) unit	Dec. 31, 2015 USD ($) unit
Real Estate Properties [Line Items]
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures	$ 1,018,010		$ 1,335,339
Number of units to be developed | unit	1,853
Total Operating Co-investments
Real Estate Properties [Line Items]
Number of apartments owned through joint ventures | unit	8,652		10,672
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures	$ 358,266		$ 743,461
Total Development Co-Investments
Real Estate Properties [Line Items]
Number of apartments owned through joint ventures | unit	1,070		806
Investments in (distributions in excess of investments in) and advance to affiliates, subsidiaries, associates and joint ventures	$ 157,433		$ 146,944
Mesa Village
Real Estate Properties [Line Items]
Number of units to be developed | unit	264
Equity method investment, ownership percentage	51.00%
Estimated cost active development projects	$ 102,000
Purchase commitment, funded amount	$ 5,900
Annualized preferred return rate	10.00%
Ohlone Multi-Family Community
Real Estate Properties [Line Items]
Number of units to be developed | unit		269
Equity method investment, ownership percentage		50.00%
Estimated cost active development projects		$ 148,000
Purchase commitment, funded amount		$ 28,900
Annualized preferred return rate		10.00%
Folsom 500
Real Estate Properties [Line Items]
Number of units to be developed | unit				537
Equity method investment, ownership percentage				50.00%
Estimated cost active development projects				$ 415,000

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Real Estate Investments - Preferred Equity Investments and Real Estate Under Development (Details) $ in Thousands	1 Months Ended				3 Months Ended	12 Months Ended
	Dec. 31, 2020 USD ($) property investment project unit	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Dec. 31, 2020 USD ($) property investment project unit	Dec. 31, 2020 USD ($) property investment project unit	Dec. 31, 2019 USD ($) investment	Dec. 31, 2018 USD ($) investment
Schedule of Equity Method Investments [Line Items]
Co-investment	$ 1,018,010				$ 1,018,010	$ 1,018,010	$ 1,335,339
Ownership interests, number of consolidated projects | project	3				3	3
Ownership Interests, number of unconsolidated projects | investment	3				3	3
Number of units to be developed | unit	1,853				1,853	1,853
Real Estate Predevelopment Projects
Schedule of Equity Method Investments [Line Items]
Actual cost of active development projects						$ 948,000
Minimum
Schedule of Equity Method Investments [Line Items]
Annualized preferred return rate						9.00%	10.15%	10.25%
Maximum
Schedule of Equity Method Investments [Line Items]
Annualized preferred return rate						11.50%	11.30%	12.00%
Equity Method Investments
Schedule of Equity Method Investments [Line Items]
Commitment to fund preferred equity investment in the project						$ 191,300	$ 141,700	$ 45,100
Number of investments with a commitment to fund | investment						7	5	2
Equity method investment, funded amount	$ 55,100				$ 55,100	$ 55,100		$ 42,100
Total Preferred Interest Investments
Schedule of Equity Method Investments [Line Items]
Co-investment	502,300				502,300	$ 502,300	$ 444,900
Joint Venture That Holds Property In Los Angeles, CA
Schedule of Equity Method Investments [Line Items]
Proceeds from partial redemption of co-investment			$ 11,300		$ 10,700
Early redemption fee			$ 200
Preferred Equity Investment Property In Southern California
Schedule of Equity Method Investments [Line Items]
Proceeds from partial redemption of co-investment	$ 31,300	$ 13,400		$ 13,400
Number of properties | property	2				2	2

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Revenues - (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) community	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2020 apartment	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Rental and other property	$ 1,486,150	$ 1,450,628	$ 1,390,870
Management and other fees from affiliates	9,598	9,527	9,183
Revenues	$ 1,495,748	1,460,155	1,400,053
Occupancy threshold for classification as stabilized					90.00%
Apartment communities owned (in communities)	246			2
Rental
Disaggregation of Revenue [Line Items]
Rental and other property	$ 1,462,161	1,425,585	1,366,590
Other Property Leasing Revenue
Disaggregation of Revenue [Line Items]
Rental and other property	23,989	25,043	24,280
Rental and Other Property
Disaggregation of Revenue [Line Items]
Rental and other property	1,486,150	1,450,628	1,390,870
Rental and Other Property | Same Property
Disaggregation of Revenue [Line Items]
Rental and other property	1,286,686	1,338,690	1,288,771
Rental and Other Property | Acquisitions
Disaggregation of Revenue [Line Items]
Rental and other property	78,666	7,704	0
Rental and Other Property | Development
Disaggregation of Revenue [Line Items]
Rental and other property	20,050	7,675	2,741
Rental and Other Property | Redevelopment
Disaggregation of Revenue [Line Items]
Rental and other property	19,054	21,058	20,413
Rental and Other Property | Non-residential/other, net
Disaggregation of Revenue [Line Items]
Rental and other property	$ 59,838	75,501	78,945
Apartment communities owned (in communities) | community	3
Rental and Other Property | Straight line rent concession
Disaggregation of Revenue [Line Items]
Rental and other property	$ 21,856	0	0
Rental and Other Property | Operating Segments | Southern California
Disaggregation of Revenue [Line Items]
Rental and other property	570,673	597,330	579,533
Rental and Other Property | Operating Segments | Northern California
Disaggregation of Revenue [Line Items]
Rental and other property	610,867	557,139	520,117
Rental and Other Property | Operating Segments | Seattle Metro
Disaggregation of Revenue [Line Items]
Rental and other property	243,900	243,060	234,138
Rental and Other Property | Other Real Estate Assets
Disaggregation of Revenue [Line Items]
Rental and other property	$ 60,710	$ 53,099	$ 57,082

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Revenues - Deferred Revenues and Remaining Performance Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 3.1	$ 3.9
Deferred revenue, revenue recognized	0.8
Deferred revenue balance from contracts with remaining performance obligations	$ 3.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of remaining performance obligations due per period	23.00%
Expected timing of performance obligation satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of remaining performance obligations due per period	45.00%
Expected timing of performance obligation satisfaction, period	2 years

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Notes and Other Receivables (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 195,104	$ 134,365
Allowance for credit losses		(751)	0
Notes receivable, secured, bearing interest at 9.00%, due May 2021 (Originated May 2017)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 0	16,828
Stated interest rate		9.00%
Notes receivable, secured, bearing interest at 9.00%, due May 2021 (Originated May 2017) | Affiliated Entity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash received from collection of note receivable	$ 16,900
Note receivable, secured, bearing interest at 9.90%, due November 2021 (Originated November 2018)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 14,216	12,838
Stated interest rate		9.90%
Related party note receivable, secured, bearing variable rate interest, due February 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 0	85,713
Related party note receivable, secured, bearing variable rate interest, due February 2020 | Affiliated Entity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash received from collection of note receivable	$ 85,800
Notes receivable, secured, bearing interest at 10.50%, due February 2023 (Originated March 2020)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 15,299	0
Stated interest rate		10.50%
Note receivable, secured, bearing interest at 11.00%, due October 2023 (Originated April 2020)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 25,461	0
Stated interest rate		11.00%
Note receivable, secured, bearing interest at 9.00%, due December 2023 (Originated November 2020)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 79,827	0
Stated interest rate		9.00%
Note receivable, secured, bearing interest at 11.50%, due November 2024 (Originated November 2020)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 15,423	0
Stated interest rate		11.50%
Notes and other receivables from affiliates
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 4,744	4,442
Straight line rent receivables (5)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		25,214	6,083
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable		$ 15,671	$ 8,461

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Notes and Other Receivables - Allowance for credit loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0
Impact of adoption ASC 326	0	$ 0
Provision for credit losses	(687)	0	$ 0
Ending balance	751	0
Mezzanine Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	0
Impact of adoption ASC 326	751	0
Provision for credit losses	604
Ending balance	751	0
Bridge Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	0
Impact of adoption ASC 326	0	0
Provision for credit losses	(43)
Ending balance	0	0
Mezzanine and Bridge Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	0
Impact of adoption ASC 326	751	0
Provision for credit losses	561
Ending balance	751	0
Cumulative Effect, Period of Adoption, Adjustment | Mezzanine Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	147
Impact of adoption ASC 326	147	147
Ending balance		147
Cumulative Effect, Period of Adoption, Adjustment | Bridge Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	43
Impact of adoption ASC 326	43	43
Ending balance		43
Cumulative Effect, Period of Adoption, Adjustment | Mezzanine and Bridge Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	190
Impact of adoption ASC 326	$ 190	190
Ending balance		$ 190

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Related Party Transactions (Details)	1 Months Ended							12 Months Ended					32 Months Ended
	Nov. 30, 2019 USD ($)	Aug. 31, 2019 USD ($)	Jun. 30, 2019 USD ($) apartment	Feb. 28, 2019 USD ($)	Oct. 31, 2018 USD ($) apartment	May 31, 2018 USD ($) apartment	Mar. 31, 2017 USD ($) unit	Dec. 31, 2020 USD ($) unit	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($) investment	Dec. 31, 2020 USD ($)	Nov. 30, 2016 USD ($)
Related Party Transaction [Line Items]
Management and other fees from affiliates								$ 11,300,000	$ 13,800,000	$ 13,900,000
Revenues from development and redevelopment fees								1,700,000	4,300,000	4,800,000
Notes receivable								$ 195,104,000	134,365,000				$ 195,104,000
Number of units acquired | unit								2,020
Purchase price								$ 463,400,000	373,300,000
Debt assumed in connection with acquisition								0	143,006,000	45,804,000
Payments to acquire equity method investments								114,017,000	402,284,000	162,437,000
Co-investments								1,018,010,000	1,335,339,000				1,018,010,000
Encumbrance								643,550,000					643,550,000
Redeemed equity method investment										5,000,000.0	$ 5,000,000.0
Brio
Related Party Transaction [Line Items]
Number of units acquired | apartment			300
Purchase price			$ 164,900,000
Debt assumed in connection with acquisition			$ 98,700,000
Apartment Home Community in Ventura, California
Related Party Transaction [Line Items]
Number of units acquired | apartment						400
Annualized preferred return rate						10.25%
Preferred equity investment, commitment to fund						$ 26,500,000
Purchase commitment, funded amount													23,400,000
Membership Interest in Sage at Cupertino
Related Party Transaction [Line Items]
Number of units acquired | unit							230
Co-investments							$ 15,300,000
Investment interest acquired							40.50%
Contract price							$ 90,000,000.0
Encumbrance							$ 52,000,000.0
Related Party Bridge Loans on Property Acquired by Wesco V
Related Party Transaction [Line Items]
Notes receivable								0	85,713,000				0
Marcus and Millichamp Company TMMC Affiliate | Related Party Note Receivable, Secured, Bearing Interest at 9.5%, Due October 2019
Related Party Transaction [Line Items]
Notes receivable														$ 6,600,000
Affiliated Entity
Related Party Transaction [Line Items]
Due from Affiliates								4,700,000	4,400,000				$ 4,700,000
Affiliated Entity | Multifamily Development in Mountain View, California
Related Party Transaction [Line Items]
Payments to acquire equity method investments				$ 24,500,000
Annualized preferred return rate				11.00%
Affiliated Entity | Home Community Development in Burlingame, California
Related Party Transaction [Line Items]
Number of units acquired | apartment					268
Payments to acquire equity method investments					$ 18,600,000
Annualized preferred return rate					12.00%
Affiliated Entity | Related Party Bridge Loans on Property Acquired by Wesco V
Related Party Transaction [Line Items]
Notes receivable, related parties	$ 85,500,000	$ 89,000,000.0
Interest rate	1.30%	1.30%
Affiliated Entity | Related Party Bridge Loan on Property Acquired by Bex Iv
Related Party Transaction [Line Items]
Notes receivable, related parties		$ 44,400,000
Interest rate		3.25%
Limited Liability Company
Related Party Transaction [Line Items]
Payments to acquire equity method investments												$ 20,000,000.0
Number of equity method investments acquired during the period | investment												3
Cumulative dividend rate												9.50%
Disposition of Multi-family Properties | Marcus and Millichamp Company TMMC Affiliate
Related Party Transaction [Line Items]
Payments for brokerage fees								$ 200,000	$ 0	$ 0

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Unsecured Debt - Summary (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) line_of_credit	Dec. 31, 2019 USD ($)	Nov. 30, 2016 USD ($)	Oct. 31, 2016 USD ($)
Debt Instrument [Line Items]
Unsecured debt, net	$ 5,607,985,000	$ 4,763,206,000
Lines of credit	0	55,000,000
Total unsecured debt	5,607,985,000	4,818,206,000
Unamortized debt issuance expense	$ 1,800,000	2,600,000
Number of outstanding lines of credit | line_of_credit	2
Unsecured bonds private placement - fixed rate
Debt Instrument [Line Items]
Unsecured debt, net	$ 199,950,000	199,820,000
Weighted Average Maturity In Years	6 months
Term loan - variable rate
Debt Instrument [Line Items]
Unsecured debt, net	$ 550,000,000.0	$ 350,000,000.0	$ 350,000,000.0	$ 225,000,000.0
Weighted average interest rate	1.70%	2.70%
Weighted Average Maturity In Years	1 year 6 months
Term loan - variable rate | Carrying Value
Debt Instrument [Line Items]
Unsecured debt, net	$ 549,380,000	$ 349,189,000
Bonds public offering - fixed rate
Debt Instrument [Line Items]
Unsecured debt, net	$ 4,858,655,000	$ 4,214,197,000
Weighted average interest rate	3.40%	3.80%
Weighted Average Maturity In Years	9 years 4 months 24 days
Unsecured Line of Credit
Debt Instrument [Line Items]
Lines of credit	$ 0	$ 55,000,000
Weighted average interest rate	1.00%	2.50%
Unsecured Debt
Debt Instrument [Line Items]
Debt instrument, unamortized premium	$ 10,100,000	$ 12,200,000
Unamortized debt issuance expense	31,900,000	24,500,000
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	1,240,000,000
Unsecured Line of Credit | Line of Credit
Debt Instrument [Line Items]
Lines of credit	0	55,000,000.0
Unamortized debt issuance expense	3,700,000	$ 3,800,000
Maximum borrowing capacity	$ 1,200,000,000

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Unsecured Debt - Narrative (Details)	1 Months Ended					3 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($)	Apr. 30, 2020 USD ($) extension	Jan. 31, 2020	Nov. 30, 2016 USD ($)	Apr. 30, 2013 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) extension instrument line_of_credit	Dec. 31, 2019 USD ($)	Aug. 31, 2020 USD ($)	Feb. 29, 2020 USD ($)	Oct. 31, 2019 USD ($)	Aug. 31, 2019 USD ($)	Mar. 31, 2019 USD ($)	Feb. 28, 2019 USD ($)	Mar. 31, 2018 USD ($)	Apr. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Oct. 31, 2016 USD ($)	Apr. 30, 2016	Mar. 31, 2015 USD ($)	Apr. 30, 2014 USD ($)
Debt Instrument [Line Items]
Senior notes							$ 200,000,000	$ 200,000,000.0
Effective interest rate							4.40%	4.40%
Unsecured debt, net							$ 5,607,985,000	$ 4,763,206,000
Debt instrument face amount							$ 4,900,000,000	4,250,000,000
Number of lines of credit | line_of_credit							2
Lines of credit							$ 0	55,000,000
CPPIB Interest
Debt Instrument [Line Items]
Investment interest acquired			45.00%
Essex Portfolio, L.P.
Debt Instrument [Line Items]
Unsecured debt, net							5,607,985,000	4,763,206,000
Lines of credit							0	55,000,000
Unsecured Bonds 2.650%
Debt Instrument [Line Items]
Debt instrument face amount							650,000,000	0
Unsecured Bonds 1.650%
Debt Instrument [Line Items]
Debt instrument face amount							300,000,000	0
Unsecured Bonds 2.650%
Debt Instrument [Line Items]
Debt instrument face amount							300,000,000	0
Unsecured Bonds 3.000%
Debt Instrument [Line Items]
Debt instrument face amount							550,000,000	550,000,000
Unsecured Bonds 4.000%
Debt Instrument [Line Items]
Debt instrument face amount							500,000,000	500,000,000
Unsecured Bonds 4.500%
Debt Instrument [Line Items]
Debt instrument face amount							300,000,000	300,000,000
Unsecured Bonds 3.625%
Debt Instrument [Line Items]
Debt instrument face amount							350,000,000	350,000,000
Unsecured Bonds 3.375%, Due April 2026
Debt Instrument [Line Items]
Debt instrument face amount							450,000,000.0	450,000,000
Unsecured Bonds 5.200%
Debt Instrument [Line Items]
Debt instrument face amount							0	300,000,000
Unsecured Bonds 3.375%
Debt Instrument [Line Items]
Debt instrument face amount							300,000,000	300,000,000
Unsecured Bonds 3.875%
Debt Instrument [Line Items]
Debt instrument face amount							400,000,000	400,000,000
Unsecured Bonds 3.250%
Debt Instrument [Line Items]
Debt instrument face amount							300,000,000	300,000,000
Unsecured Bonds 3.625%
Debt Instrument [Line Items]
Debt instrument face amount							0	300,000,000
Variable Rate Term Loan
Debt Instrument [Line Items]
Unsecured debt, net				$ 350,000,000.0			$ 550,000,000.0	$ 350,000,000.0										$ 225,000,000.0
Weighted average interest rate							1.70%	2.70%
Basis spread on rate				0.95%
Variable Rate Term Loan | February 2022
Debt Instrument [Line Items]
Unsecured debt, net							$ 350,000,000.0
Variable Rate Term Loan | April 2021
Debt Instrument [Line Items]
Unsecured debt, net							$ 200,000,000.0
Number of extension options | extension							2
Term extension period							12 years
Variable Rate Term Loan | Carrying Value
Debt Instrument [Line Items]
Unsecured debt, net							$ 549,380,000	$ 349,189,000
Senior Notes | Essex Portfolio, L.P.
Debt Instrument [Line Items]
Debt instrument face amount									$ 600,000,000.0
Senior Notes | BRE Properties, Inc.
Debt Instrument [Line Items]
Unsecured debt, net							296,800,000	599,400,000
Long-term debt acquired																					$ 900,000,000.0
Senior Notes | Unsecured Bonds 2.650%
Debt Instrument [Line Items]
Unsecured debt, net							$ 650,700,000
Debt instrument face amount	$ 150,000,000.0
Coupon rate							2.65%
Debt offering price	105.66%
Reoffer yield percentage	2.093%
Senior Notes | Unsecured Bonds 2.650% | Essex Portfolio, L.P.
Debt Instrument [Line Items]
Debt instrument face amount										$ 500,000,000.0
Coupon rate										2.65%
Debt offering price										99.628%
Repayments of secured debt						$ 100,300,000
Senior Notes | Unsecured Bonds 1.650%
Debt Instrument [Line Items]
Coupon rate							1.65%
Debt offering price									99.035%
Senior Notes | Unsecured Bonds 1.650% | Essex Portfolio, L.P.
Debt Instrument [Line Items]
Unsecured debt, net							$ 294,500,000
Debt instrument face amount									$ 300,000,000.0
Coupon rate									1.65%
Senior Notes | Unsecured Bonds 2.650%
Debt Instrument [Line Items]
Coupon rate							2.65%
Debt offering price									99.691%
Senior Notes | Unsecured Bonds 2.650% | Essex Portfolio, L.P.
Debt Instrument [Line Items]
Unsecured debt, net							$ 295,700,000
Debt instrument face amount									$ 300,000,000.0
Coupon rate									2.65%
Senior Notes | Unsecured Bonds 3.000%
Debt Instrument [Line Items]
Unsecured debt, net							$ 543,100,000	542,300,000
Debt instrument face amount											$ 150,000,000.0	$ 400,000,000.0
Coupon rate							3.00%					3.00%
Debt offering price											101.685%	98.632%
Senior Notes | Unsecured Bonds 4.000%
Debt Instrument [Line Items]
Unsecured debt, net							$ 494,800,000	494,100,000
Debt instrument face amount													$ 150,000,000.0	$ 350,000,000.0
Coupon rate							4.00%							4.00%
Debt offering price													100.717%	99.188%
Senior Notes | Unsecured Bonds 4.500%
Debt Instrument [Line Items]
Unsecured debt, net							$ 295,800,000	295,600,000
Debt instrument face amount															$ 300,000,000.0
Coupon rate							4.50%								4.50%
Debt offering price															99.591%
Senior Notes | Unsecured Bonds 3.625%
Debt Instrument [Line Items]
Unsecured debt, net							$ 346,800,000	346,300,000
Debt instrument face amount																$ 350,000,000.0
Coupon rate							3.625%
Debt offering price																99.423%
Senior Notes | Unsecured Bonds 3.375%, Due April 2026
Debt Instrument [Line Items]
Unsecured debt, net							$ 446,400,000	445,700,000
Coupon rate							3.375%
Debt offering price																			99.386%
Senior Notes | Unsecured Bonds 5.500%
Debt Instrument [Line Items]
Coupon rate																					5.50%
Face amount of debt paid off																	$ 300,000,000.0
Senior Notes | Unsecured Bonds 5.200%
Debt Instrument [Line Items]
Coupon rate							5.20%
Face amount of debt paid off							$ 300,000,000.0
Senior Notes | Unsecured Bonds 3.375%
Debt Instrument [Line Items]
Coupon rate							3.375%
Senior Notes | Unsecured Bonds 3.875%
Debt Instrument [Line Items]
Unsecured debt, net							$ 397,800,000	397,100,000
Debt instrument face amount																					$ 400,000,000.0
Coupon rate							3.875%														3.875%
Debt offering price																					99.234%
Senior Notes | Unsecured Bonds 3.250%
Debt Instrument [Line Items]
Coupon rate					3.25%		3.25%
Debt offering price					99.152%
Proceeds from issuance of unsecured debt					$ 300,000,000.0
Long-term debt, gross							$ 298,700,000	298,200,000
Senior Notes | Unsecured Bonds 3.625%
Debt Instrument [Line Items]
Debt instrument face amount									$ 300,000,000.0
Coupon rate							3.625%		3.625%
Term Loan
Debt Instrument [Line Items]
Number of extension options | extension		2
Term extension period		12 months
Debt instrument face amount		$ 200,000,000.0
Term Loan | LIBOR
Debt Instrument [Line Items]
Basis spread on rate		1.20%
Unsecured Debt | Senior Unsecured Notes Maturing April 1, 2025
Debt Instrument [Line Items]
Senior notes							$ 497,600,000	$ 497,100,000
Debt instrument face amount																				$ 500,000,000.0
Coupon rate																				3.50%
Debt offering price																				99.747%
Unsecured Line of Credit
Debt Instrument [Line Items]
Weighted average interest rate							1.00%	2.50%
Lines of credit							$ 0	$ 55,000,000
Unsecured Line of Credit | Line of Credit Working Capital
Debt Instrument [Line Items]
Lines of credit							0	0
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity							1,240,000,000
Line of Credit | Line of Credit Working Capital
Debt Instrument [Line Items]
Maximum borrowing capacity							35,000,000.0
Line of Credit | Unsecured Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity							1,200,000,000
Lines of credit							$ 0	$ 55,000,000.0
Line of Credit | Unsecured Line of Credit | LIBOR
Debt Instrument [Line Items]
Basis spread on rate							0.825%
Line of Credit | Working Capital Unsecured Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity							$ 35,000,000.0
Interest Rate Swap | Variable Rate Term Loan
Debt Instrument [Line Items]
Number of derivative instruments held | instrument							5
Term of loan							5 years
Interest Rate Swap | Variable Rate Term Loan | Variable Term Loan, Tranche One
Debt Instrument [Line Items]
Derivative notional amount							$ 175,000,000.0
Derivative, fixed interest rate							2.30%

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Unsecured Debt - Unsecured Private Placement Bonds (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Senior notes	$ 200,000	$ 200,000
Unsecured Bonds 4.27%
Debt Instrument [Line Items]
Senior notes	$ 100,000	100,000
Coupon Rate	4.27%
Unsecured Bonds 4.30%
Debt Instrument [Line Items]
Senior notes	$ 50,000	50,000
Coupon Rate	4.30%
Unsecured Bonds 4.37%
Debt Instrument [Line Items]
Senior notes	$ 50,000	$ 50,000
Coupon Rate	4.37%

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Unsecured Debt - Senior Unsecured Notes (Details) - USD ($)	Dec. 31, 2020	Aug. 31, 2020	Jun. 30, 2020	Dec. 31, 2019	Oct. 31, 2019	Aug. 31, 2019	Mar. 31, 2019	Feb. 28, 2019	Mar. 31, 2018	Apr. 30, 2017	Apr. 30, 2014	Apr. 30, 2013
Debt Instrument [Line Items]
Debt instrument face amount	$ 4,900,000,000			$ 4,250,000,000
Unsecured Bonds 5.200%
Debt Instrument [Line Items]
Debt instrument face amount	$ 0			300,000,000
Unsecured Bonds 5.200% | Senior Notes
Debt Instrument [Line Items]
Coupon Rate	5.20%
Unsecured Bonds 3.625%
Debt Instrument [Line Items]
Debt instrument face amount	$ 0			300,000,000
Unsecured Bonds 3.625% | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount		$ 300,000,000.0
Coupon Rate	3.625%	3.625%
Unsecured Bonds 3.375%
Debt Instrument [Line Items]
Debt instrument face amount	$ 300,000,000			300,000,000
Unsecured Bonds 3.375% | Senior Notes
Debt Instrument [Line Items]
Coupon Rate	3.375%
Unsecured Bonds 3.250%
Debt Instrument [Line Items]
Debt instrument face amount	$ 300,000,000			300,000,000
Unsecured Bonds 3.250% | Senior Notes
Debt Instrument [Line Items]
Coupon Rate	3.25%											3.25%
Unsecured Bonds 3.875%
Debt Instrument [Line Items]
Debt instrument face amount	$ 400,000,000			400,000,000
Unsecured Bonds 3.875% | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount											$ 400,000,000.0
Coupon Rate	3.875%										3.875%
Unsecured Bonds 3.500%
Debt Instrument [Line Items]
Debt instrument face amount	$ 500,000,000			500,000,000
Unsecured Bonds 3.500% | Senior Notes
Debt Instrument [Line Items]
Coupon Rate	3.50%
Unsecured Bonds 3.375%
Debt Instrument [Line Items]
Debt instrument face amount	$ 450,000,000.0			450,000,000
Unsecured Bonds 3.375% | Senior Notes
Debt Instrument [Line Items]
Coupon Rate	3.375%
Unsecured Bonds 3.625%
Debt Instrument [Line Items]
Debt instrument face amount	$ 350,000,000			350,000,000
Unsecured Bonds 3.625% | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount										$ 350,000,000.0
Coupon Rate	3.625%
Unsecured Bonds 4.000%
Debt Instrument [Line Items]
Debt instrument face amount	$ 500,000,000			500,000,000
Unsecured Bonds 4.000% | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount							$ 150,000,000.0	$ 350,000,000.0
Coupon Rate	4.00%							4.00%
Unsecured Bonds 3.000%
Debt Instrument [Line Items]
Debt instrument face amount	$ 550,000,000			550,000,000
Unsecured Bonds 3.000% | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount					$ 150,000,000.0	$ 400,000,000.0
Coupon Rate	3.00%					3.00%
Unsecured Bonds 1.650%
Debt Instrument [Line Items]
Debt instrument face amount	$ 300,000,000			0
Unsecured Bonds 1.650% | Senior Notes
Debt Instrument [Line Items]
Coupon Rate	1.65%
Unsecured Bonds 2.650%
Debt Instrument [Line Items]
Debt instrument face amount	$ 650,000,000			0
Unsecured Bonds 2.650% | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount			$ 150,000,000.0
Coupon Rate	2.65%
Unsecured Bonds 4.500%
Debt Instrument [Line Items]
Debt instrument face amount	$ 300,000,000			300,000,000
Unsecured Bonds 4.500% | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount									$ 300,000,000.0
Coupon Rate	4.50%								4.50%
Unsecured Bonds 2.650%
Debt Instrument [Line Items]
Debt instrument face amount	$ 300,000,000			$ 0
Unsecured Bonds 2.650% | Senior Notes
Debt Instrument [Line Items]
Coupon Rate	2.65%

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Unsecured Debt - Future Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total Debt	$ 643,550	$ 990,667
Unsecured Debt
Debt Instrument [Line Items]
2021	0
2022	0
2023	600,000
2024	400,000
2025	500,000
Thereafter	3,400,000
Total Debt	$ 4,900,000

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Mortgage Notes Payable (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) property	Dec. 31, 2019 USD ($) property
Debt Instrument [Line Items]
Mortgage notes payable	$ 643,550,000	$ 990,667,000
Number of properties securing mortgage notes | property	12	24
Weighted average interest rate	2.70%	4.10%
Unamortized debt issuance expense	$ 1,800,000	$ 2,600,000
Monthly interest expense	3,000,000.0
Monthly principal amortization	500,000
Mortgage notes payable, net	$ 643,550,000	$ 990,667,000
Repayment of debt before the scheduled maturity date, prepayment penalties	The prepayment penalty on the majority of the Company’s mortgage notes payable are computed by the greater of (a) 1% of the amount of the principal being prepaid or (b) the present value of the principal being prepaid multiplied by the difference between the interest rate of the mortgage note and the stated yield rate on a U.S. treasury security which generally has an equivalent remaining term as the mortgage note.
Minimum
Debt Instrument [Line Items]
Remaining terms	1 year	1 year
Maximum
Debt Instrument [Line Items]
Remaining terms	26 years	27 years
Fixed Rate Mortgage Notes Payable
Debt Instrument [Line Items]
Mortgage notes payable	$ 419,323,000	$ 736,490,000
Prepayment penalty, percent of principal prepaid	1.00%
Fixed Rate Mortgage Notes Payable | Total Return Swap Callable | Not Designated as Hedging Instrument
Debt Instrument [Line Items]
Derivative notional amount	$ 225,100,000
Variable Rate Mortgage Notes Payable
Debt Instrument [Line Items]
Mortgage notes payable	224,227,000	$ 254,177,000
Derivative notional amount	$ 254,800,000
Multifamily housing mortgage revenue bonds, variable interest rate (in hundredths)	1.20%	2.30%
Percentage of units subject to tenant income criteria (in hundredths)	20.00%
Secured Debt
Debt Instrument [Line Items]
Mortgage notes payable	$ 641,426,000
Debt instrument, unamortized premium	3,900,000	$ 5,900,000
Secured Deeds of Trust
Debt Instrument [Line Items]
Mortgage notes payable, net	$ 0	$ 0

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Mortgage Notes Payable - Future Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total Debt	$ 643,550	$ 990,667
Secured Debt
Debt Instrument [Line Items]
2021	3,501
2022	43,188
2023	2,945
2024	3,109
2025	133,054
Thereafter	455,629
Total Debt	$ 641,426

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Derivative Instruments and Hedging Activities (Details)	1 Months Ended	12 Months Ended
	Nov. 30, 2016 USD ($)	Dec. 31, 2020 USD ($) instrument	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 instrument	Dec. 31, 2016 instrument	Oct. 31, 2016 USD ($)
Derivative [Line Items]
Unsecured debt, net		$ 5,607,985,000	$ 4,763,206,000
Hedge ineffectiveness related to cash flow hedges		(4,148,000)	(2,948,000)	$ 7,824,000
Total return swap income		10,733,000	8,446,000	8,707,000
Designated as Hedging Instrument
Derivative [Line Items]
Hedge ineffectiveness related to cash flow hedges		0	(200,000)	(100,000)
Not Designated as Hedging Instrument
Derivative [Line Items]
Total return swap income		$ 10,700,000	8,400,000	$ 8,700,000
Interest Rate Swap | Designated as Hedging Instrument
Derivative [Line Items]
Number of derivative instruments held | instrument		5			1	4
Average fixed interest rate		2.30%
Derivative fair value		$ (2,400,000)	800,000
Aggregate carrying value of the interest rate swap contracts		2,400,000	200,000
Interest Rate Swap | Designated as Hedging Instrument | Prepaid Expenses and Other Assets
Derivative [Line Items]
Derivative fair value		0	1,000,000.0
Interest Rate Cap | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount		0	0
Derivative fair value		$ 0	0
Total Return Swap Callable | Not Designated as Hedging Instrument
Derivative [Line Items]
Number of derivative instruments held | instrument		4
Total Return Swap | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative fair value		$ 0
Variable Rate Term Loan
Derivative [Line Items]
Unsecured debt, net	$ 350,000,000.0	$ 550,000,000.0	$ 350,000,000.0				$ 225,000,000.0
Debt instrument, term	5 years
Basis spread on rate	0.95%
Variable Rate Term Loan | Interest Rate Swap
Derivative [Line Items]
Number of derivative instruments held | instrument		5
Variable Rate Term Loan | Interest Rate Swap | Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount		$ 175,000,000.0
Variable Rate Mortgage Notes Payable
Derivative [Line Items]
Derivative notional amount		254,800,000
Bond subject to interest rate caps		254,800,000
Mortgage Notes Payable | Total Return Swap Callable | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount		225,100,000
Mortgage Notes Payable, Real Estate Held-For-Sale | Total Return Swap Callable | Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative notional amount		$ 29,700,000

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Lease Agreements - Company as Lessor (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) building
Lessor, Lease, Description [Line Items]
Number of commercial buildings under lease agreements | building	1
Future Minimum Rent
2021	$ 720,570
2022	34,240
2023	14,971
2024	13,619
2025	11,265
Thereafter	24,855
Operating leases	$ 819,520
Minimum
Lessor, Lease, Description [Line Items]
Short-term lease terms	9 months
Commercial lease terms	5 years
Maximum
Lessor, Lease, Description [Line Items]
Short-term lease terms	12 months
Commercial lease terms	20 years

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Lease Agreements - Company as Lessee - Narrative and Components of Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Office lease, renewal term	5 years
Operating lease right-of-use assets	$ 72,143	$ 74,744
Total leased assets	72,143	74,744
Operating lease liabilities	74,037	76,740
Total lease liabilities	74,037	76,740
Lease, Cost [Abstract]
Operating lease cost	6,749	6,745
Variable lease cost	1,436	783
Short-term lease cost	432	610
Sublease income	(438)	(436)
Total lease cost	8,179	7,702
Operating lease right-of-use assets
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	72,143	74,744
Operating lease liabilities
Lessee, Lease, Description [Line Items]
Operating lease liabilities	$ 74,037	$ 76,740
Minimum
Lessee, Lease, Description [Line Items]
Office lease term of contract	5 years
Ground lease term	20 years
Ground lease, renewal term	10 years
Maximum
Lessee, Lease, Description [Line Items]
Office lease term of contract	10 years
Ground lease term	85 years
Ground lease, renewal term	39 years

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Lease Agreements - Company as Lessee - Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2021	$ 6,963
2022	6,987
2023	6,962
2024	6,690
2025	6,310
Thereafter	140,417
Total lease payments	174,329
Less: Imputed interest	(100,292)
Present value of lease liabilities	$ 74,037	$ 76,740

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Lease Agreements - Company as Lessee - Additional Information (Details)	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted-average of remaining lease terms (years)	39 years	39 years
Weighted-average of discount rates	5.00%	4.99%

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Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Class of Stock [Line Items]
Common stock, shares authorized	670,000,000	670,000,000
Proceeds from issuance from common stock	$ (296)	$ 72,539	$ (919)
Redemption value of operating partnership units outstanding	$ 544,800	$ 692,500
Operating Partnership
Class of Stock [Line Items]
General partner ownership interest	96.60%
ATM Program, 2018
Class of Stock [Line Items]
Common stock, shares authorized	826,600,000			900,000,000.0
Sale of common stock, net (in shares)		228,271
Share issued, price per share (in dollars per share)		$ 321.56
Proceeds from issuance from common stock		$ 73,400
Operating Partnership Units
Class of Stock [Line Items]
Number of shares outstanding	2,188,623	2,158,396
Long Term Incentive Plan 2014 Units
Class of Stock [Line Items]
Number of shares outstanding	106,137	143,257

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Net Income Per Common Share and Net Income Per Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Basic:
Net income available to common stockholders	$ 568,870	$ 439,286	$ 390,153
Income from continuing operations available to common stockholders (in shares)	65,454,057	65,840,422	66,041,058
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.67	$ 5.91
Diluted:
Net income available to common stockholders	$ 569,653	$ 439,286	$ 390,153
Income from continuing operations available to common stockholders (in shares)	65,564,982	65,939,455	66,085,089
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.66	$ 5.90
Stock Options
Basic:
Income effect of dilutive securities	$ 0	$ 0	$ 0
Effect of dilutive securities (in shares)	16,678	99,033	44,031
Convertible Limited Partnership Units
Diluted:
Anti-dilutive securities (in shares)	2,296,608	2,300,478	2,274,941
Antidilutive securities excluded from computation of earnings per share	$ 20,000	$ 15,300	$ 13,500
DownREIT units
Basic:
Income effect of dilutive securities	$ 783	$ 0	$ 0
Effect of dilutive securities (in shares)	94,247	0	0
Essex Portfolio, L.P.
Basic:
Net income available to common stockholders	$ 588,782	$ 454,629	$ 403,605
Income from continuing operations available to common stockholders (in shares)	67,750,665	68,140,900	68,315,999
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.67	$ 5.91
Diluted:
Net income available to common stockholders	$ 589,565	$ 454,629	$ 403,605
Income from continuing operations available to common stockholders (in shares)	67,861,590	68,239,933	68,360,030
Net income available to common stockholders/unitholders (in dollars per share)	$ 8.69	$ 6.66	$ 5.90
Essex Portfolio, L.P. | Stock Options
Basic:
Income effect of dilutive securities	$ 0	$ 0	$ 0
Effect of dilutive securities (in shares)	16,678	99,033	44,031
Diluted:
Anti-dilutive securities (in shares)	403,458	115,066	160,039
Essex Portfolio, L.P. | DownREIT units
Basic:
Income effect of dilutive securities	$ 783	$ 0	$ 0
Effect of dilutive securities (in shares)	94,247	0	0

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Equity Based Compensation Plans - Narrative (Details)		1 Months Ended	12 Months Ended				24 Months Ended
	Dec. 09, 2014 shares	Dec. 31, 2013 shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 09, 2015	Dec. 31, 2011 shares	May 31, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized | shares								2,000,000
Accelerated share-based compensation cost			$ 3,500,000	$ 3,500,000	$ 3,500,000
Intrinsic value of the options outstanding and fully vested			$ 3,400,000	$ 23,500,000
Average fair value of stock options granted (in dollars per share) | $ / shares			$ 20.69	$ 24.02	$ 26.13
Cap on the appreciation of the market price over the exercise price, option 1			$ 100	$ 100	$ 100
Cap on the appreciation of the market price over the exercise price, option 2			125	125	125
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense			12,900,000	11,400,000	12,100,000
Stock-based compensation capitalized			1,300,000	1,600,000	2,000,000.0
Intrinsic value of options exercised			7,400,000	$ 18,700,000	$ 3,100,000
Unrecognized compensation cost			$ 4,400,000
Unrecognized compensation cost, period for recognition			2 years 2 months 12 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost			$ 13,800,000
Unrecognized compensation cost, period for recognition			2 years 3 months 18 days
Granted (in shares) | shares			45,196	41,643	51,945
2015 LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	44,750
Units issued subject only to performance measurement | shares	24,000
Vesting percentage of units per year	20.00%
Option grants to officers and employees vesting period	5 years
Percent of awards earned						95.75%
Conversion ratio, incentive units			1
Liquidity measurement period			10 years
Measurement period			10 years
Series Z Incentive Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares		50,500					154,500
Option grants to officers and employees vesting period		4 years
Conversion ratio, incentive units							1
Incentive units conversion ratio							one-for-one
Series Z Incentive Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of units per year							0.00%
Option grants to officers and employees vesting period			8 years
Series Z Incentive Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of units per year							14.00%
Option grants to officers and employees vesting period			15 years
Long Term Incentive Plan 2014 Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of units per year		25.00%
Conversion ratio, incentive units			1
Liquidity measurement period			10 years
Measurement period			10 years
Vesting percentage for 2011 Z 1 Units to be convertible							100.00%
Long Term Incentive Plans - Z Units and 2014 LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense			$ 0	$ 900,000	$ 800,000
Stock-based compensation capitalized			0	$ 200,000	$ 200,000
Unrecognized compensation cost			$ 0
Granted (in shares) | shares			0	0	0
Intrinsic value of vested and unvested LTIP units			$ 25,200,000

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Equity Based Compensation Plans - Weighted Average Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Weighted average assumptions used to estimate fair value of stock options [Abstract]
Stock price (in dollars per share)	$ 244.74	$ 304.85	$ 262.09
Risk-free interest rates	0.83%	2.01%	2.76%
Expected lives	6 years	6 years	6 years
Volatility	25.72%	19.56%	24.89%
Dividend yield	2.93%	2.72%	2.81%

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Equity Based Compensation Plans - Summary of Stock Options Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Shares
Outstanding at beginning of year (in shares)	572,971	612,954	536,208
Granted (in shares)	149,020	148,147	119,361
Exercised (in shares)	(70,802)	(182,817)	(39,175)
Forfeited and canceled (in shares)	(38,080)	(5,313)	(3,440)
Outstanding at end of year (in shares)	613,109	572,971	612,954
Options exercisable at year end (in shares)	361,985	305,379	322,837
Weighted- average exercise price
Outstanding at beginning of year (in dollars per share)	$ 251.10	$ 224.57	$ 211.41
Granted (in dollars per share)	244.74	304.85	262.09
Exercised (in dollars per share)	208.57	205.25	159.05
Forfeited and canceled (in dollars per share)	228.64	257.87	221.80
Outstanding at end of year (in dollars per share)	255.86	251.10	224.57
Options exercisable at year end (in dollars per share)	$ 245.83	$ 223.90	$ 206.63

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Equity Based Compensation Plans - Restricted Stock Activity and LITP Units (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restricted Stock
Total Unvested Units
Unvested at beginning of year (in shares)	132,603	114,877	91,058	90,823
Granted (in shares)	45,196	41,643	51,945
Vested (in shares)	(15,116)	(13,222)	(48,212)
Forfeited and canceled (in shares)	(12,354)	(4,602)	(3,498)
Unvested at end of year (in shares)	132,603	114,877	91,058	90,823
Weighted- average grant price
Unvested at beginning of year (in dollars per share)	$ 197.62	$ 180.99	$ 163.49
Granted (in dollars per share)	248.16	235.93	194.70
Vested (in dollars per share)	170.61	143.56	150.76
Forfeited and canceled (in dollars per share)	184.11	158.06	158.71
Unvested at end of year (in dollars per share)	$ 214.34	$ 197.62	$ 180.99	$ 163.49
Long Term Incentive Plans - Z Units and 2014 LTIP Units
Total Unvested Units
Unvested at beginning of year (in shares)	0	1,890	11,161	23,212
Granted (in shares)	0	0	0
Vested (in shares)	(1,890)	(9,176)	(12,051)
Converted (in shares)	0	0	0
Forfeited and canceled (in shares)	0	(95)	0
Unvested at end of year (in shares)	0	1,890	11,161	23,212
Weighted- average grant price
Unvested at beginning of year (in dollars per share)	$ 75.03	$ 75.03	$ 75.03
Unvested at end of year (in dollars per share)	$ 84.47	$ 75.03	$ 75.03	$ 75.03
Total Vested Units
Vested, beginning balance (in shares)	143,257	134,081	213,300
Vested, units granted (in shares)	0	0	0
Vested, units vested (in shares)	1,890	9,176	12,051
Converted (in shares)	(39,010)	0	(91,270)
Cancelled (in shares)	0	0	0
Vested, ending balance (in shares)	106,137	143,257	134,081	213,300
Total Outstanding Units
Total outstanding units, beginning balance (in shares)	145,147	145,242	236,512
Total outstanding units, granted (in shares)	0	0	0
Total outstanding units, vested (in shares)	0	0	0
Total outstanding units, converted (in shares)	(39,010)	0	(91,270)
Total outstanding units, cancelled (in shares)	0	(95)	0
Total outstanding units, ending balance (in shares)	106,137	145,147	145,242	236,512
Weighted- average Remaining Contractual Life (years)	3 years 7 months 6 days	5 years 2 months 12 days	6 years 6 months	7 years 6 months

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Segment Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting [Abstract]
Number of reportable operating segments defined by geographical regions | segment	3
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property revenues	$ 1,486,150	$ 1,450,628	$ 1,390,870
Total net operating income	1,045,750	1,054,101	1,006,529
Management and other fees from affiliates	9,598	9,527	9,183
Corporate-level property management expenses	(34,573)	(34,067)	(32,055)
Depreciation and amortization	(525,497)	(483,750)	(479,884)
General and administrative	(65,388)	(54,262)	(53,451)
Expensed acquisition and investment related costs	(1,591)	(168)	(194)
Impairment loss	(1,825)	(7,105)	0
Gain (loss) on sale of real estate and land	64,967	(3,164)	61,861
Interest expense	(220,633)	(217,339)	(220,492)
Total return swap income	10,733	8,446	8,707
Interest and other income	40,999	46,298	23,010
Equity income from co-investments	66,512	112,136	89,132
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,531)	(1,457)	0
(Loss) gain on early retirement of debt, net	(22,883)	3,717	0
Gain on remeasurement of co-investment	234,694	31,535	1,253
Net income	599,332	464,448	413,599
Assets:
Net reportable operating segments - real estate assets	10,927,786	10,348,660
Real estate under development	386,047	546,075
Co-investments	1,018,010	1,335,339
Real estate held for sale	57,938	0
Cash and cash equivalents, including restricted cash	84,041	81,094
Marketable securities	147,768	144,193
Notes receivable	195,104	134,365
Operating lease right-of-use assets	72,143	74,744
Prepaid expenses and other assets	47,340	40,935
Total assets	12,936,177	12,705,405
Rental and Other Property
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property revenues	1,486,150	1,450,628	1,390,870
Management and Other Fees from Affiliates
Revenues from External Customers and Long-Lived Assets [Line Items]
Management and other fees from affiliates	9,598	9,527	9,183
Operating Segments | Southern California
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net operating income	393,776	425,882	412,517
Assets:
Net reportable operating segments - real estate assets	3,993,275	4,139,104
Operating Segments | Southern California | Rental and Other Property
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property revenues	570,673	597,330	579,533
Operating Segments | Northern California
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net operating income	435,403	412,706	384,548
Assets:
Net reportable operating segments - real estate assets	5,520,019	4,408,404
Operating Segments | Northern California | Rental and Other Property
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property revenues	610,867	557,139	520,117
Operating Segments | Seattle Metro
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net operating income	166,847	172,601	163,927
Assets:
Net reportable operating segments - real estate assets	1,403,678	1,456,187
Operating Segments | Seattle Metro | Rental and Other Property
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property revenues	243,900	243,060	234,138
Other Real Estate Assets
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net operating income	49,724	42,912	45,537
Assets:
Net reportable operating segments - real estate assets	10,814	344,965
Other Real Estate Assets | Rental and Other Property
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property revenues	$ 60,710	$ 53,099	$ 57,082

XML

401(k) Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Employer matching contribution, percent	50.00%
Company contributions to benefit plan	$ 2.7	$ 2.4	$ 2.1

XML

Commitments and Contingencies (Details)	Dec. 31, 2020 USD ($)
Guarantor Obligations [Line Items]
Property casualty insurance deductible per incident	$ 5,000,000.0
Pacific Western Insurance LLC
Guarantor Obligations [Line Items]
Cash and marketable securities	$ 152,800,000

XML

Subsequent Events (Details) - Unsecured Bonds 4.30% - USD ($) $ in Millions	1 Months Ended
	Feb. 28, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Effective rate (as a percentage)		4.30%
Subsequent Event
Subsequent Event [Line Items]
Repayments of unsecured debt	$ 100.0
Effective rate (as a percentage)	4.30%

XML

SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) apartment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2020 USD ($)
Real Estate and Accumulated Depreciation [Line Items]
Encumbrance				$ 643,550
Initial cost
Land				2,887,393
Buildings and improvements				10,154,628
Costs capitalized subsequent to acquisition				2,019,724
Gross amount carried at close of period
Land and improvements				2,929,009
Buildings and improvements				12,132,736
Total	$ 15,061,745			15,061,745
Accumulated depreciation	(4,133,959)	$ (3,209,548)	$ (3,209,548)	(4,133,959)
Aggregate cost for federal income tax purpose	11,600,000
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Acquisition, development, and improvement of real estate	1,426,505	672,041	325,986
Disposition of real estate and other	(402,902)	0	(321,958)
Balance at the end of year	15,061,745
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at beginning of year	3,689,482	3,209,548	2,769,297
Depreciation expense	518,629	479,934	478,721
Depreciation expense - Disposals and other	(74,152)	0	(38,470)
Balance at the end of year	$ 4,133,959	3,689,482	3,209,548
Encumbered Apartment Communities
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	3,025
Encumbrance				643,550
Initial cost
Land				203,549
Buildings and improvements				767,029
Costs capitalized subsequent to acquisition				129,288
Gross amount carried at close of period
Land and improvements				207,899
Buildings and improvements				891,967
Total	$ 1,099,866			1,099,866
Accumulated depreciation	(266,467)			(266,467)
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	1,099,866
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 266,467
Encumbered Apartment Communities | Belmont Station
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	275
Encumbrance				29,728
Initial cost
Land				8,100
Buildings and improvements				66,666
Costs capitalized subsequent to acquisition				7,386
Gross amount carried at close of period
Land and improvements				8,267
Buildings and improvements				73,885
Total	$ 82,152			82,152
Accumulated depreciation	$ (33,891)			(33,891)
Date of construction	2009
Date acquired	Mar-09
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 82,152
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 33,891
Encumbered Apartment Communities | Belmont Station | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Belmont Station | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Brio
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	300
Encumbrance				98,956
Initial cost
Land				16,885
Buildings and improvements				151,741
Costs capitalized subsequent to acquisition				1,263
Gross amount carried at close of period
Land and improvements				16,885
Buildings and improvements				153,004
Total	$ 169,889			169,889
Accumulated depreciation	$ (8,559)			(8,559)
Date of construction	2015
Date acquired	Jun-19
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 169,889
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 8,559
Encumbered Apartment Communities | Brio | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Brio | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Form 15
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	242
Encumbrance				42,271
Initial cost
Land				24,510
Buildings and improvements				72,221
Costs capitalized subsequent to acquisition				11,835
Gross amount carried at close of period
Land and improvements				25,540
Buildings and improvements				83,026
Total	$ 108,566			108,566
Accumulated depreciation	$ (13,807)			(13,807)
Date of construction	2014
Date acquired	Mar-16
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 108,566
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,807
Encumbered Apartment Communities | Form 15 | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Form 15 | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Fountain Park
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	705
Encumbrance				82,707
Initial cost
Land				25,073
Buildings and improvements				94,980
Costs capitalized subsequent to acquisition				36,019
Gross amount carried at close of period
Land and improvements				25,203
Buildings and improvements				130,869
Total	$ 156,072			156,072
Accumulated depreciation	$ (80,772)			(80,772)
Date of construction	2002
Date acquired	Feb-04
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 156,072
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 80,772
Encumbered Apartment Communities | Fountain Park | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Fountain Park | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Highridge
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	255
Encumbrance				69,345
Initial cost
Land				5,419
Buildings and improvements				18,347
Costs capitalized subsequent to acquisition				33,311
Gross amount carried at close of period
Land and improvements				6,073
Buildings and improvements				51,004
Total	$ 57,077			57,077
Accumulated depreciation	$ (41,762)			(41,762)
Date of construction	1972
Date acquired	May-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 57,077
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 41,762
Encumbered Apartment Communities | Highridge | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Highridge | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Magnolia Square/Magnolia Lane
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	188
Encumbrance				52,303
Initial cost
Land				8,190
Buildings and improvements				24,736
Costs capitalized subsequent to acquisition				18,553
Gross amount carried at close of period
Land and improvements				8,191
Buildings and improvements				43,288
Total	$ 51,479			51,479
Accumulated depreciation	$ (26,038)			(26,038)
Date of construction	1963
Date acquired	Sep-07
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 51,479
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,038
Encumbered Apartment Communities | Magnolia Square/Magnolia Lane | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Magnolia Square/Magnolia Lane | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Marquis
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	166
Encumbrance				44,077
Initial cost
Land				20,495
Buildings and improvements				47,823
Costs capitalized subsequent to acquisition				178
Gross amount carried at close of period
Land and improvements				20,495
Buildings and improvements				48,001
Total	$ 68,496			68,496
Accumulated depreciation	$ (3,290)			(3,290)
Date of construction	2015
Date acquired	Dec-18
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 68,496
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 3,290
Encumbered Apartment Communities | Marquis | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Marquis | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Sage At Cupertino
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	230
Encumbrance				51,758
Initial cost
Land				35,719
Buildings and improvements				53,449
Costs capitalized subsequent to acquisition				9,242
Gross amount carried at close of period
Land and improvements				35,719
Buildings and improvements				62,691
Total	$ 98,410			98,410
Accumulated depreciation	$ (9,454)			(9,454)
Date of construction	1971
Date acquired	Mar-17
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 98,410
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,454
Encumbered Apartment Communities | Sage At Cupertino | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Sage At Cupertino | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | The Barkley
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	161
Encumbrance				14,873
Initial cost
Land				0
Buildings and improvements				8,520
Costs capitalized subsequent to acquisition				7,659
Gross amount carried at close of period
Land and improvements				2,353
Buildings and improvements				13,826
Total	$ 16,179			16,179
Accumulated depreciation	$ (10,114)			(10,114)
Date of construction	1984
Date acquired	Apr-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 16,179
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 10,114
Encumbered Apartment Communities | The Barkley | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | The Barkley | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | The Dylan
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	184
Encumbrance				58,515
Initial cost
Land				19,984
Buildings and improvements				82,286
Costs capitalized subsequent to acquisition				1,502
Gross amount carried at close of period
Land and improvements				19,990
Buildings and improvements				83,782
Total	$ 103,772			103,772
Accumulated depreciation	$ (18,368)			(18,368)
Date of construction	2015
Date acquired	Mar-15
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 103,772
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,368
Encumbered Apartment Communities | The Dylan | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | The Dylan | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | The Huxley
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	187
Encumbrance				53,277
Initial cost
Land				19,362
Buildings and improvements				75,641
Costs capitalized subsequent to acquisition				1,710
Gross amount carried at close of period
Land and improvements				19,371
Buildings and improvements				77,342
Total	$ 96,713			96,713
Accumulated depreciation	$ (17,213)			(17,213)
Date of construction	2014
Date acquired	Mar-15
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 96,713
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 17,213
Encumbered Apartment Communities | The Huxley | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | The Huxley | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Township
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	132
Encumbrance				45,740
Initial cost
Land				19,812
Buildings and improvements				70,619
Costs capitalized subsequent to acquisition				630
Gross amount carried at close of period
Land and improvements				19,812
Buildings and improvements				71,249
Total	$ 91,061			91,061
Accumulated depreciation	$ (3,199)			(3,199)
Date of construction	2014
Date acquired	Sep-19
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 91,061
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 3,199
Encumbered Apartment Communities | Township | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Township | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Brookside Oaks | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Brookside Oaks | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | City View | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | City View | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Domaine | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Domaine | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Fairhaven Apartments | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Fairhaven Apartments | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Foster's Landing | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Encumbered Apartment Communities | Foster's Landing | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Montarosa | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Encumbered Apartment Communities | Montarosa | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Montebello | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Montebello | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Montejo | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Montejo | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | 1000 Kiely | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | 1000 Kiely | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Valley Park | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Valley Park | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Encumbered Apartment Communities | Villa Angelina | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Encumbered Apartment Communities | Villa Angelina | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	48,156
Initial cost
Land				2,680,765
Buildings and improvements				9,375,284
Costs capitalized subsequent to acquisition				1,876,157
Gross amount carried at close of period
Land and improvements				2,717,201
Buildings and improvements				11,215,005
Total	$ 13,932,206			13,932,206
Accumulated depreciation	(3,848,633)			(3,848,633)
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	13,932,206
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 3,848,633
Unencumbered Apartment Communities | Agora
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	49
Initial cost
Land				4,932
Buildings and improvements				60,423
Costs capitalized subsequent to acquisition				187
Gross amount carried at close of period
Land and improvements				4,934
Buildings and improvements				60,608
Total	$ 65,542			65,542
Accumulated depreciation	$ (1,987)			(1,987)
Date of construction	2016
Date acquired	Jan-20
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 65,542
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 1,987
Unencumbered Apartment Communities | Agora | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Agora | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Alessio
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	624
Initial cost
Land				32,136
Buildings and improvements				128,543
Costs capitalized subsequent to acquisition				14,335
Gross amount carried at close of period
Land and improvements				32,136
Buildings and improvements				142,878
Total	$ 175,014			175,014
Accumulated depreciation	$ (37,803)			(37,803)
Date of construction	2001
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 175,014
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 37,803
Unencumbered Apartment Communities | Alessio | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Alessio | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Allegro
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	97
Initial cost
Land				5,869
Buildings and improvements				23,977
Costs capitalized subsequent to acquisition				2,758
Gross amount carried at close of period
Land and improvements				5,869
Buildings and improvements				26,735
Total	$ 32,604			32,604
Accumulated depreciation	$ (11,343)			(11,343)
Date of construction	2010
Date acquired	Oct-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 32,604
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,343
Unencumbered Apartment Communities | Allegro | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Allegro | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Allure at Scripps Ranch
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	194
Initial cost
Land				11,923
Buildings and improvements				47,690
Costs capitalized subsequent to acquisition				1,979
Gross amount carried at close of period
Land and improvements				11,923
Buildings and improvements				49,669
Total	$ 61,592			61,592
Accumulated depreciation	$ (12,386)			(12,386)
Date of construction	2002
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 61,592
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,386
Unencumbered Apartment Communities | Allure at Scripps Ranch | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Allure at Scripps Ranch | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Alpine Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	301
Initial cost
Land				4,967
Buildings and improvements				19,728
Costs capitalized subsequent to acquisition				9,687
Gross amount carried at close of period
Land and improvements				4,982
Buildings and improvements				29,400
Total	$ 34,382			34,382
Accumulated depreciation	$ (18,364)			(18,364)
Date of construction	1971
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 34,382
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,364
Unencumbered Apartment Communities | Alpine Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Alpine Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Anavia
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	250
Initial cost
Land				15,925
Buildings and improvements				63,712
Costs capitalized subsequent to acquisition				9,732
Gross amount carried at close of period
Land and improvements				15,925
Buildings and improvements				73,444
Total	$ 89,369			89,369
Accumulated depreciation	$ (25,398)			(25,398)
Date of construction	2009
Date acquired	Dec-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 89,369
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 25,398
Unencumbered Apartment Communities | Anavia | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Anavia | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Annaliese
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	56
Initial cost
Land				4,727
Buildings and improvements				14,229
Costs capitalized subsequent to acquisition				808
Gross amount carried at close of period
Land and improvements				4,726
Buildings and improvements				15,038
Total	$ 19,764			19,764
Accumulated depreciation	$ (4,182)			(4,182)
Date of construction	2009
Date acquired	Jan-13
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 19,764
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 4,182
Unencumbered Apartment Communities | Annaliese | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Annaliese | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Apex
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	366
Initial cost
Land				44,240
Buildings and improvements				103,251
Costs capitalized subsequent to acquisition				6,095
Gross amount carried at close of period
Land and improvements				44,240
Buildings and improvements				109,346
Total	$ 153,586			153,586
Accumulated depreciation	$ (23,316)			(23,316)
Date of construction	2014
Date acquired	Aug-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 153,586
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 23,316
Unencumbered Apartment Communities | Apex | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Apex | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Aqua at Marina Del Rey
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	500
Initial cost
Land				58,442
Buildings and improvements				175,326
Costs capitalized subsequent to acquisition				15,117
Gross amount carried at close of period
Land and improvements				58,442
Buildings and improvements				190,443
Total	$ 248,885			248,885
Accumulated depreciation	$ (52,469)			(52,469)
Date of construction	2001
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 248,885
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 52,469
Unencumbered Apartment Communities | Aqua at Marina Del Rey | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Aqua at Marina Del Rey | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Ascent
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	90
Initial cost
Land				3,924
Buildings and improvements				11,862
Costs capitalized subsequent to acquisition				2,286
Gross amount carried at close of period
Land and improvements				3,924
Buildings and improvements				14,148
Total	$ 18,072			18,072
Accumulated depreciation	$ (4,792)			(4,792)
Date of construction	1988
Date acquired	Oct-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 18,072
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 4,792
Unencumbered Apartment Communities | Ascent | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Ascent | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Ashton Sherman Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	264
Initial cost
Land				23,550
Buildings and improvements				93,811
Costs capitalized subsequent to acquisition				1,536
Gross amount carried at close of period
Land and improvements				23,550
Buildings and improvements				95,347
Total	$ 118,897			118,897
Accumulated depreciation	$ (13,614)			(13,614)
Date of construction	2014
Date acquired	Dec-16
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 118,897
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,614
Unencumbered Apartment Communities | Ashton Sherman Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Ashton Sherman Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Avant
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	440
Initial cost
Land				32,379
Buildings and improvements				137,940
Costs capitalized subsequent to acquisition				3,722
Gross amount carried at close of period
Land and improvements				32,379
Buildings and improvements				141,662
Total	$ 174,041			174,041
Accumulated depreciation	$ (26,788)			(26,788)
Date of construction	2014
Date acquired	Jun-15
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 174,041
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,788
Unencumbered Apartment Communities | Avant | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Avant | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Avenue 64
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	224
Initial cost
Land				27,235
Buildings and improvements				64,403
Costs capitalized subsequent to acquisition				16,322
Gross amount carried at close of period
Land and improvements				27,235
Buildings and improvements				80,725
Total	$ 107,960			107,960
Accumulated depreciation	$ (18,800)			(18,800)
Date of construction	2007
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 107,960
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,800
Unencumbered Apartment Communities | Avenue 64 | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Avenue 64 | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Aviara
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	166
Initial cost
Land				0
Buildings and improvements				49,813
Costs capitalized subsequent to acquisition				1,874
Gross amount carried at close of period
Land and improvements				0
Buildings and improvements				51,687
Total	$ 51,687			51,687
Accumulated depreciation	$ (13,707)			(13,707)
Date of construction	2013
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 51,687
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,707
Unencumbered Apartment Communities | Aviara | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Aviara | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Avondale at Warner Center
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	446
Initial cost
Land				10,536
Buildings and improvements				24,522
Costs capitalized subsequent to acquisition				25,418
Gross amount carried at close of period
Land and improvements				10,601
Buildings and improvements				49,875
Total	$ 60,476			60,476
Accumulated depreciation	$ (36,728)			(36,728)
Date of construction	1970
Date acquired	Jan-99
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 60,476
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 36,728
Unencumbered Apartment Communities | Avondale at Warner Center | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Avondale at Warner Center | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bel Air
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	462
Initial cost
Land				12,105
Buildings and improvements				18,252
Costs capitalized subsequent to acquisition				43,348
Gross amount carried at close of period
Land and improvements				12,682
Buildings and improvements				61,023
Total	$ 73,705			73,705
Accumulated depreciation	$ (43,768)			(43,768)
Date of construction	1988
Date acquired	Jan-95
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 73,705
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 43,768
Unencumbered Apartment Communities | Bel Air | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bel Air | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Belcarra
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	296
Initial cost
Land				21,725
Buildings and improvements				92,091
Costs capitalized subsequent to acquisition				2,613
Gross amount carried at close of period
Land and improvements				21,725
Buildings and improvements				94,704
Total	$ 116,429			116,429
Accumulated depreciation	$ (23,150)			(23,150)
Date of construction	2009
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 116,429
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 23,150
Unencumbered Apartment Communities | Belcarra | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Belcarra | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bella Villagio
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	231
Initial cost
Land				17,247
Buildings and improvements				40,343
Costs capitalized subsequent to acquisition				4,651
Gross amount carried at close of period
Land and improvements				17,247
Buildings and improvements				44,994
Total	$ 62,241			62,241
Accumulated depreciation	$ (16,688)			(16,688)
Date of construction	2004
Date acquired	Sep-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 62,241
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 16,688
Unencumbered Apartment Communities | Bella Villagio | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bella Villagio | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | BellCentre
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	248
Initial cost
Land				16,197
Buildings and improvements				67,207
Costs capitalized subsequent to acquisition				5,644
Gross amount carried at close of period
Land and improvements				16,197
Buildings and improvements				72,851
Total	$ 89,048			89,048
Accumulated depreciation	$ (18,845)			(18,845)
Date of construction	2001
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 89,048
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,845
Unencumbered Apartment Communities | BellCentre | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | BellCentre | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bellerive
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	63
Initial cost
Land				5,401
Buildings and improvements				21,803
Costs capitalized subsequent to acquisition				1,390
Gross amount carried at close of period
Land and improvements				5,401
Buildings and improvements				23,193
Total	$ 28,594			28,594
Accumulated depreciation	$ (8,573)			(8,573)
Date of construction	2011
Date acquired	Aug-11
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 28,594
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 8,573
Unencumbered Apartment Communities | Bellerive | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bellerive | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Belmont Terrace
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	71
Initial cost
Land				4,446
Buildings and improvements				10,290
Costs capitalized subsequent to acquisition				7,387
Gross amount carried at close of period
Land and improvements				4,473
Buildings and improvements				17,650
Total	$ 22,123			22,123
Accumulated depreciation	$ (10,455)			(10,455)
Date of construction	1974
Date acquired	Oct-06
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 22,123
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 10,455
Unencumbered Apartment Communities | Belmont Terrace | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Belmont Terrace | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bennett Lofts
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	165
Initial cost
Land				21,771
Buildings and improvements				50,800
Costs capitalized subsequent to acquisition				30,939
Gross amount carried at close of period
Land and improvements				28,371
Buildings and improvements				75,139
Total	$ 103,510			103,510
Accumulated depreciation	$ (22,577)			(22,577)
Date of construction	2004
Date acquired	Dec-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 103,510
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 22,577
Unencumbered Apartment Communities | Bennett Lofts | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bennett Lofts | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bernardo Crest
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	216
Initial cost
Land				10,802
Buildings and improvements				43,209
Costs capitalized subsequent to acquisition				5,214
Gross amount carried at close of period
Land and improvements				10,802
Buildings and improvements				48,423
Total	$ 59,225			59,225
Accumulated depreciation	$ (12,642)			(12,642)
Date of construction	1988
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 59,225
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,642
Unencumbered Apartment Communities | Bernardo Crest | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Bernardo Crest | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bonita Cedars
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	120
Initial cost
Land				2,496
Buildings and improvements				9,913
Costs capitalized subsequent to acquisition				5,834
Gross amount carried at close of period
Land and improvements				2,503
Buildings and improvements				15,740
Total	$ 18,243			18,243
Accumulated depreciation	$ (9,541)			(9,541)
Date of construction	1983
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 18,243
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,541
Unencumbered Apartment Communities | Bonita Cedars | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bonita Cedars | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Boulevard
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	172
Initial cost
Land				3,520
Buildings and improvements				8,182
Costs capitalized subsequent to acquisition				14,651
Gross amount carried at close of period
Land and improvements				3,580
Buildings and improvements				22,773
Total	$ 26,353			26,353
Accumulated depreciation	$ (18,916)			(18,916)
Date of construction	1978
Date acquired	Jan-96
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 26,353
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,916
Unencumbered Apartment Communities | Boulevard | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Boulevard | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Brookside Oaks
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	170
Initial cost
Land				7,301
Buildings and improvements				16,310
Costs capitalized subsequent to acquisition				27,349
Gross amount carried at close of period
Land and improvements				10,328
Buildings and improvements				40,632
Total	$ 50,960			50,960
Accumulated depreciation	$ (26,656)			(26,656)
Date of construction	1973
Date acquired	Jun-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 50,960
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,656
Unencumbered Apartment Communities | Bridle Trails
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	108
Initial cost
Land				1,500
Buildings and improvements				5,930
Costs capitalized subsequent to acquisition				6,690
Gross amount carried at close of period
Land and improvements				1,531
Buildings and improvements				12,589
Total	$ 14,120			14,120
Accumulated depreciation	$ (9,424)			(9,424)
Date of construction	1986
Date acquired	Oct-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 14,120
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,424
Unencumbered Apartment Communities | Bridle Trails | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bridle Trails | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Brighton Ridge
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	264
Initial cost
Land				2,623
Buildings and improvements				10,800
Costs capitalized subsequent to acquisition				7,010
Gross amount carried at close of period
Land and improvements				2,656
Buildings and improvements				17,777
Total	$ 20,433			20,433
Accumulated depreciation	$ (13,419)			(13,419)
Date of construction	1986
Date acquired	Dec-96
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 20,433
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,419
Unencumbered Apartment Communities | Brighton Ridge | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Brighton Ridge | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bristol Commons
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	188
Initial cost
Land				5,278
Buildings and improvements				11,853
Costs capitalized subsequent to acquisition				10,433
Gross amount carried at close of period
Land and improvements				5,293
Buildings and improvements				22,271
Total	$ 27,564			27,564
Accumulated depreciation	$ (16,949)			(16,949)
Date of construction	1989
Date acquired	Jan-95
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 27,564
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 16,949
Unencumbered Apartment Communities | Bristol Commons | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bristol Commons | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Bunker Hill
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	456
Initial cost
Land				11,498
Buildings and improvements				27,871
Costs capitalized subsequent to acquisition				96,132
Gross amount carried at close of period
Land and improvements				11,639
Buildings and improvements				123,862
Total	$ 135,501			135,501
Accumulated depreciation	$ (79,005)			(79,005)
Date of construction	1968
Date acquired	Mar-98
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 135,501
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 79,005
Unencumbered Apartment Communities | Bunker Hill | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Bunker Hill | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Camarillo Oaks
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	564
Initial cost
Land				10,953
Buildings and improvements				25,254
Costs capitalized subsequent to acquisition				8,869
Gross amount carried at close of period
Land and improvements				11,075
Buildings and improvements				34,001
Total	$ 45,076			45,076
Accumulated depreciation	$ (26,629)			(26,629)
Date of construction	1985
Date acquired	Jul-96
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 45,076
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,629
Unencumbered Apartment Communities | Camarillo Oaks | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Camarillo Oaks | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Cambridge Park
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	320
Initial cost
Land				18,185
Buildings and improvements				72,739
Costs capitalized subsequent to acquisition				4,120
Gross amount carried at close of period
Land and improvements				18,185
Buildings and improvements				76,859
Total	$ 95,044			95,044
Accumulated depreciation	$ (19,617)			(19,617)
Date of construction	1998
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 95,044
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 19,617
Unencumbered Apartment Communities | Cambridge Park | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Cambridge Park | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Camino Ruiz Square
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	159
Initial cost
Land				6,871
Buildings and improvements				26,119
Costs capitalized subsequent to acquisition				2,543
Gross amount carried at close of period
Land and improvements				6,931
Buildings and improvements				28,602
Total	$ 35,533			35,533
Accumulated depreciation	$ (13,801)			(13,801)
Date of construction	1990
Date acquired	Dec-06
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 35,533
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,801
Unencumbered Apartment Communities | Camino Ruiz Square | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Camino Ruiz Square | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Canyon Oaks
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	250
Initial cost
Land				19,088
Buildings and improvements				44,473
Costs capitalized subsequent to acquisition				7,051
Gross amount carried at close of period
Land and improvements				19,088
Buildings and improvements				51,524
Total	$ 70,612			70,612
Accumulated depreciation	$ (23,554)			(23,554)
Date of construction	2005
Date acquired	May-07
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 70,612
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 23,554
Unencumbered Apartment Communities | Canyon Oaks | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Canyon Oaks | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Canyon Pointe
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	250
Initial cost
Land				4,692
Buildings and improvements				18,288
Costs capitalized subsequent to acquisition				9,479
Gross amount carried at close of period
Land and improvements				4,693
Buildings and improvements				27,766
Total	$ 32,459			32,459
Accumulated depreciation	$ (17,295)			(17,295)
Date of construction	1990
Date acquired	Oct-03
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 32,459
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 17,295
Unencumbered Apartment Communities | Canyon Pointe | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Canyon Pointe | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Capri at Sunny Hills
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	102
Initial cost
Land				3,337
Buildings and improvements				13,320
Costs capitalized subsequent to acquisition				9,690
Gross amount carried at close of period
Land and improvements				4,048
Buildings and improvements				22,299
Total	$ 26,347			26,347
Accumulated depreciation	$ (15,327)			(15,327)
Date of construction	1961
Date acquired	Sep-01
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 26,347
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,327
Unencumbered Apartment Communities | Capri at Sunny Hills | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Capri at Sunny Hills | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Carmel Creek
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	348
Initial cost
Land				26,842
Buildings and improvements				107,368
Costs capitalized subsequent to acquisition				8,308
Gross amount carried at close of period
Land and improvements				26,842
Buildings and improvements				115,676
Total	$ 142,518			142,518
Accumulated depreciation	$ (30,274)			(30,274)
Date of construction	2000
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 142,518
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 30,274
Unencumbered Apartment Communities | Carmel Creek | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Carmel Creek | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Carnel Landing
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	356
Initial cost
Land				16,725
Buildings and improvements				66,901
Costs capitalized subsequent to acquisition				10,506
Gross amount carried at close of period
Land and improvements				16,725
Buildings and improvements				77,407
Total	$ 94,132			94,132
Accumulated depreciation	$ (20,335)			(20,335)
Date of construction	1989
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 94,132
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 20,335
Unencumbered Apartment Communities | Carnel Landing | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Carnel Landing | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Carnel Summit
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	246
Initial cost
Land				14,968
Buildings and improvements				59,871
Costs capitalized subsequent to acquisition				4,545
Gross amount carried at close of period
Land and improvements				14,968
Buildings and improvements				64,416
Total	$ 79,384			79,384
Accumulated depreciation	$ (16,376)			(16,376)
Date of construction	1989
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 79,384
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 16,376
Unencumbered Apartment Communities | Carnel Summit | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Carnel Summit | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Castle Creek
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	216
Initial cost
Land				4,149
Buildings and improvements				16,028
Costs capitalized subsequent to acquisition				5,677
Gross amount carried at close of period
Land and improvements				4,833
Buildings and improvements				21,021
Total	$ 25,854			25,854
Accumulated depreciation	$ (15,908)			(15,908)
Date of construction	1998
Date acquired	Dec-98
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 25,854
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,908
Unencumbered Apartment Communities | Castle Creek | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Castle Creek | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Catalina Gardens
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	128
Initial cost
Land				6,714
Buildings and improvements				26,856
Costs capitalized subsequent to acquisition				2,490
Gross amount carried at close of period
Land and improvements				6,714
Buildings and improvements				29,346
Total	$ 36,060			36,060
Accumulated depreciation	$ (7,343)			(7,343)
Date of construction	1987
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 36,060
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,343
Unencumbered Apartment Communities | Catalina Gardens | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Catalina Gardens | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | CBC Apartments and The Sweeps
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	239
Initial cost
Land				11,841
Buildings and improvements				45,320
Costs capitalized subsequent to acquisition				6,922
Gross amount carried at close of period
Land and improvements				11,906
Buildings and improvements				52,177
Total	$ 64,083			64,083
Accumulated depreciation	$ (28,445)			(28,445)
Date of construction	1962
Date acquired	Jan-06
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 64,083
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 28,445
Unencumbered Apartment Communities | CBC Apartments and The Sweeps | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | CBC Apartments and The Sweeps | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Cedar Terrace
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	180
Initial cost
Land				5,543
Buildings and improvements				16,442
Costs capitalized subsequent to acquisition				8,601
Gross amount carried at close of period
Land and improvements				5,652
Buildings and improvements				24,934
Total	$ 30,586			30,586
Accumulated depreciation	$ (13,973)			(13,973)
Date of construction	1984
Date acquired	Jan-05
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 30,586
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,973
Unencumbered Apartment Communities | Cedar Terrace | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Cedar Terrace | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | CentrePointe
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	224
Initial cost
Land				3,405
Buildings and improvements				7,743
Costs capitalized subsequent to acquisition				22,335
Gross amount carried at close of period
Land and improvements				3,442
Buildings and improvements				30,041
Total	$ 33,483			33,483
Accumulated depreciation	$ (22,318)			(22,318)
Date of construction	1974
Date acquired	Jun-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 33,483
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 22,318
Unencumbered Apartment Communities | CentrePointe | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | CentrePointe | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Chestnut Street Apartments
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	96
Initial cost
Land				6,582
Buildings and improvements				15,689
Costs capitalized subsequent to acquisition				2,277
Gross amount carried at close of period
Land and improvements				6,582
Buildings and improvements				17,966
Total	$ 24,548			24,548
Accumulated depreciation	$ (7,884)			(7,884)
Date of construction	2002
Date acquired	Jul-08
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 24,548
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,884
Unencumbered Apartment Communities | Chestnut Street Apartments | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Chestnut Street Apartments | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | City View
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	572
Initial cost
Land				9,883
Buildings and improvements				37,670
Costs capitalized subsequent to acquisition				32,941
Gross amount carried at close of period
Land and improvements				10,350
Buildings and improvements				70,144
Total	$ 80,494			80,494
Accumulated depreciation	$ (53,374)			(53,374)
Date of construction	1975
Date acquired	Mar-98
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 80,494
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 53,374
Unencumbered Apartment Communities | Collins on Pine
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	76
Initial cost
Land				7,276
Buildings and improvements				22,226
Costs capitalized subsequent to acquisition				688
Gross amount carried at close of period
Land and improvements				7,276
Buildings and improvements				22,914
Total	$ 30,190			30,190
Accumulated depreciation	$ (5,180)			(5,180)
Date of construction	2013
Date acquired	May-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 30,190
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 5,180
Unencumbered Apartment Communities | Collins on Pine | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Collins on Pine | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Connolly Station
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	309
Initial cost
Land				19,949
Buildings and improvements				123,428
Costs capitalized subsequent to acquisition				1,545
Gross amount carried at close of period
Land and improvements				19,949
Buildings and improvements				124,973
Total	$ 144,922			144,922
Accumulated depreciation	$ (4,139)			(4,139)
Date of construction	2014
Date acquired	Jan-20
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 144,922
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 4,139
Unencumbered Apartment Communities | Connolly Station | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Connolly Station | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Corbella at Juanita Bay
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	169
Initial cost
Land				5,801
Buildings and improvements				17,415
Costs capitalized subsequent to acquisition				3,961
Gross amount carried at close of period
Land and improvements				5,801
Buildings and improvements				21,376
Total	$ 27,177			27,177
Accumulated depreciation	$ (8,273)			(8,273)
Date of construction	1978
Date acquired	Nov-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 27,177
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 8,273
Unencumbered Apartment Communities | Corbella at Juanita Bay | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Corbella at Juanita Bay | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Cortesia
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	308
Initial cost
Land				13,912
Buildings and improvements				55,649
Costs capitalized subsequent to acquisition				3,302
Gross amount carried at close of period
Land and improvements				13,912
Buildings and improvements				58,951
Total	$ 72,863			72,863
Accumulated depreciation	$ (14,944)			(14,944)
Date of construction	1999
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 72,863
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 14,944
Unencumbered Apartment Communities | Cortesia | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Cortesia | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Country Villas
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	180
Initial cost
Land				4,174
Buildings and improvements				16,583
Costs capitalized subsequent to acquisition				5,547
Gross amount carried at close of period
Land and improvements				4,187
Buildings and improvements				22,117
Total	$ 26,304			26,304
Accumulated depreciation	$ (13,934)			(13,934)
Date of construction	1976
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 26,304
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,934
Unencumbered Apartment Communities | Country Villas | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Country Villas | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Courtyard off Main
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	110
Initial cost
Land				7,465
Buildings and improvements				21,405
Costs capitalized subsequent to acquisition				5,047
Gross amount carried at close of period
Land and improvements				7,465
Buildings and improvements				26,452
Total	$ 33,917			33,917
Accumulated depreciation	$ (10,190)			(10,190)
Date of construction	2000
Date acquired	Oct-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 33,917
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 10,190
Unencumbered Apartment Communities | Courtyard off Main | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Courtyard off Main | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Crow Canyon
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	400
Initial cost
Land				37,579
Buildings and improvements				87,685
Costs capitalized subsequent to acquisition				12,923
Gross amount carried at close of period
Land and improvements				37,579
Buildings and improvements				100,608
Total	$ 138,187			138,187
Accumulated depreciation	$ (26,738)			(26,738)
Date of construction	1992
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 138,187
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,738
Unencumbered Apartment Communities | Crow Canyon | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Crow Canyon | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Deer Valley
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	171
Initial cost
Land				21,478
Buildings and improvements				50,116
Costs capitalized subsequent to acquisition				3,644
Gross amount carried at close of period
Land and improvements				21,478
Buildings and improvements				53,760
Total	$ 75,238			75,238
Accumulated depreciation	$ (13,744)			(13,744)
Date of construction	1996
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 75,238
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,744
Unencumbered Apartment Communities | Deer Valley | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Deer Valley | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Devonshire
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	276
Initial cost
Land				3,470
Buildings and improvements				13,786
Costs capitalized subsequent to acquisition				6,533
Gross amount carried at close of period
Land and improvements				3,482
Buildings and improvements				20,307
Total	$ 23,789			23,789
Accumulated depreciation	$ (12,163)			(12,163)
Date of construction	1988
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 23,789
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,163
Unencumbered Apartment Communities | Devonshire | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Devonshire | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Domaine
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	92
Initial cost
Land				9,059
Buildings and improvements				27,177
Costs capitalized subsequent to acquisition				1,545
Gross amount carried at close of period
Land and improvements				9,059
Buildings and improvements				28,722
Total	$ 37,781			37,781
Accumulated depreciation	$ (8,376)			(8,376)
Date of construction	2009
Date acquired	Sep-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 37,781
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 8,376
Unencumbered Apartment Communities | Elevation
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	158
Initial cost
Land				4,758
Buildings and improvements				14,285
Costs capitalized subsequent to acquisition				7,372
Gross amount carried at close of period
Land and improvements				4,757
Buildings and improvements				21,658
Total	$ 26,415			26,415
Accumulated depreciation	$ (10,931)			(10,931)
Date of construction	1986
Date acquired	Jun-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 26,415
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 10,931
Unencumbered Apartment Communities | Elevation | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Elevation | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Ellington
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	220
Initial cost
Land				15,066
Buildings and improvements				45,249
Costs capitalized subsequent to acquisition				4,089
Gross amount carried at close of period
Land and improvements				15,066
Buildings and improvements				49,338
Total	$ 64,404			64,404
Accumulated depreciation	$ (11,978)			(11,978)
Date of construction	1994
Date acquired	Jul-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 64,404
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,978
Unencumbered Apartment Communities | Ellington | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Ellington | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Emerald Pointe
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	160
Initial cost
Land				8,458
Buildings and improvements				33,832
Costs capitalized subsequent to acquisition				2,404
Gross amount carried at close of period
Land and improvements				8,458
Buildings and improvements				36,236
Total	$ 44,694			44,694
Accumulated depreciation	$ (9,304)			(9,304)
Date of construction	1989
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 44,694
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,304
Unencumbered Apartment Communities | Emerald Pointe | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Emerald Pointe | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Emerald Ridge
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	180
Initial cost
Land				3,449
Buildings and improvements				7,801
Costs capitalized subsequent to acquisition				6,915
Gross amount carried at close of period
Land and improvements				3,449
Buildings and improvements				14,716
Total	$ 18,165			18,165
Accumulated depreciation	$ (11,762)			(11,762)
Date of construction	1987
Date acquired	Nov-94
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 18,165
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,762
Unencumbered Apartment Communities | Emerald Ridge | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Emerald Ridge | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Emerson Valley Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	144
Initial cost
Land				13,378
Buildings and improvements				53,240
Costs capitalized subsequent to acquisition				1,349
Gross amount carried at close of period
Land and improvements				13,378
Buildings and improvements				54,589
Total	$ 67,967			67,967
Accumulated depreciation	$ (7,825)			(7,825)
Date of construction	2012
Date acquired	Dec-16
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 67,967
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,825
Unencumbered Apartment Communities | Emerson Valley Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Emerson Valley Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Emme
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	190
Initial cost
Land				15,039
Buildings and improvements				80,532
Costs capitalized subsequent to acquisition				357
Gross amount carried at close of period
Land and improvements				15,039
Buildings and improvements				80,889
Total	$ 95,928			95,928
Accumulated depreciation	$ (2,709)			(2,709)
Date of construction	2015
Date acquired	Jan-20
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 95,928
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 2,709
Unencumbered Apartment Communities | Emme | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Emme | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Enso
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	183
Initial cost
Land				21,397
Buildings and improvements				71,135
Costs capitalized subsequent to acquisition				1,907
Gross amount carried at close of period
Land and improvements				21,397
Buildings and improvements				73,042
Total	$ 94,439			94,439
Accumulated depreciation	$ (13,258)			(13,258)
Date of construction	2014
Date acquired	Dec-15
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 94,439
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,258
Unencumbered Apartment Communities | Enso | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Enso | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Epic
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	769
Initial cost
Land				89,111
Buildings and improvements				307,769
Costs capitalized subsequent to acquisition				509
Gross amount carried at close of period
Land and improvements				89,111
Buildings and improvements				308,278
Total	$ 397,389			397,389
Accumulated depreciation	$ (10,261)			(10,261)
Date of construction	2013
Date acquired	Jan-20
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 397,389
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 10,261
Unencumbered Apartment Communities | Epic | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Epic | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Esplanade
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	278
Initial cost
Land				18,170
Buildings and improvements				40,086
Costs capitalized subsequent to acquisition				16,209
Gross amount carried at close of period
Land and improvements				18,429
Buildings and improvements				56,036
Total	$ 74,465			74,465
Accumulated depreciation	$ (32,656)			(32,656)
Date of construction	2002
Date acquired	Apr-04
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 74,465
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 32,656
Unencumbered Apartment Communities | Esplanade | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Esplanade | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Essex Skyline
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	350
Initial cost
Land				21,537
Buildings and improvements				146,099
Costs capitalized subsequent to acquisition				12,601
Gross amount carried at close of period
Land and improvements				21,537
Buildings and improvements				158,700
Total	$ 180,237			180,237
Accumulated depreciation	$ (48,170)			(48,170)
Date of construction	2008
Date acquired	Apr-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 180,237
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 48,170
Unencumbered Apartment Communities | Essex Skyline | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Essex Skyline | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Evergreen Heights
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	200
Initial cost
Land				3,566
Buildings and improvements				13,395
Costs capitalized subsequent to acquisition				7,339
Gross amount carried at close of period
Land and improvements				3,649
Buildings and improvements				20,651
Total	$ 24,300			24,300
Accumulated depreciation	$ (15,822)			(15,822)
Date of construction	1990
Date acquired	Jun-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 24,300
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,822
Unencumbered Apartment Communities | Evergreen Heights | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Evergreen Heights | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Fairhaven Apartments
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	164
Initial cost
Land				2,626
Buildings and improvements				10,485
Costs capitalized subsequent to acquisition				10,243
Gross amount carried at close of period
Land and improvements				2,957
Buildings and improvements				20,397
Total	$ 23,354			23,354
Accumulated depreciation	$ (13,581)			(13,581)
Date of construction	1970
Date acquired	Nov-01
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 23,354
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,581
Unencumbered Apartment Communities | Fairway Apartments at Big Canyon
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	74
Initial cost
Land				0
Buildings and improvements				7,850
Costs capitalized subsequent to acquisition				8,513
Gross amount carried at close of period
Land and improvements				0
Buildings and improvements				16,363
Total	$ 16,363			16,363
Accumulated depreciation	$ (12,710)			(12,710)
Date of construction	1972
Date acquired	Jun-99
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 16,363
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,710
Unencumbered Apartment Communities | Fairway Apartments at Big Canyon | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Fairway Apartments at Big Canyon | Maximum
Gross amount carried at close of period
Life used for depreciation	28 years
Unencumbered Apartment Communities | Fairwood Pond
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	194
Initial cost
Land				5,296
Buildings and improvements				15,564
Costs capitalized subsequent to acquisition				4,599
Gross amount carried at close of period
Land and improvements				5,297
Buildings and improvements				20,162
Total	$ 25,459			25,459
Accumulated depreciation	$ (11,530)			(11,530)
Date of construction	1997
Date acquired	Oct-04
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 25,459
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,530
Unencumbered Apartment Communities | Fairwood Pond | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Fairwood Pond | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Foothill Commons
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	394
Initial cost
Land				2,435
Buildings and improvements				9,821
Costs capitalized subsequent to acquisition				41,978
Gross amount carried at close of period
Land and improvements				2,440
Buildings and improvements				51,794
Total	$ 54,234			54,234
Accumulated depreciation	$ (47,403)			(47,403)
Date of construction	1978
Date acquired	Mar-90
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 54,234
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 47,403
Unencumbered Apartment Communities | Foothill Commons | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Foothill Commons | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Foothill Gardens/Twin Creeks
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	176
Initial cost
Land				5,875
Buildings and improvements				13,992
Costs capitalized subsequent to acquisition				12,289
Gross amount carried at close of period
Land and improvements				5,964
Buildings and improvements				26,192
Total	$ 32,156			32,156
Accumulated depreciation	$ (19,884)			(19,884)
Date of construction	1985
Date acquired	Feb-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 32,156
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 19,884
Unencumbered Apartment Communities | Foothill Gardens/Twin Creeks | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Foothill Gardens/Twin Creeks | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Forest View
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	192
Initial cost
Land				3,731
Buildings and improvements				14,530
Costs capitalized subsequent to acquisition				3,713
Gross amount carried at close of period
Land and improvements				3,731
Buildings and improvements				18,243
Total	$ 21,974			21,974
Accumulated depreciation	$ (10,629)			(10,629)
Date of construction	1998
Date acquired	Oct-03
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 21,974
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 10,629
Unencumbered Apartment Communities | Forest View | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Forest View | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Foster's Landing
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	490
Initial cost
Land				61,714
Buildings and improvements				144,000
Costs capitalized subsequent to acquisition				11,178
Gross amount carried at close of period
Land and improvements				61,714
Buildings and improvements				155,178
Total	$ 216,892			216,892
Accumulated depreciation	$ (41,241)			(41,241)
Date of construction	1987
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 216,892
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 41,241
Unencumbered Apartment Communities | Fountain Court
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	320
Initial cost
Land				6,702
Buildings and improvements				27,306
Costs capitalized subsequent to acquisition				13,573
Gross amount carried at close of period
Land and improvements				6,985
Buildings and improvements				40,596
Total	$ 47,581			47,581
Accumulated depreciation	$ (29,905)			(29,905)
Date of construction	2000
Date acquired	Mar-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 47,581
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 29,905
Unencumbered Apartment Communities | Fountain Court | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Fountain Court | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Fountain At Riveroaks
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	226
Initial cost
Land				26,046
Buildings and improvements				60,773
Costs capitalized subsequent to acquisition				5,897
Gross amount carried at close of period
Land and improvements				26,046
Buildings and improvements				66,670
Total	$ 92,716			92,716
Accumulated depreciation	$ (17,559)			(17,559)
Date of construction	1990
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 92,716
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 17,559
Unencumbered Apartment Communities | Fountain At Riveroaks | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Fountain At Riveroaks | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Fourth & U
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	171
Initial cost
Land				8,879
Buildings and improvements				52,351
Costs capitalized subsequent to acquisition				4,337
Gross amount carried at close of period
Land and improvements				8,879
Buildings and improvements				56,688
Total	$ 65,567			65,567
Accumulated depreciation	$ (21,596)			(21,596)
Date of construction	2010
Date acquired	Apr-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 65,567
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 21,596
Unencumbered Apartment Communities | Fourth & U | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Fourth & U | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Fox Plaza
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	445
Initial cost
Land				39,731
Buildings and improvements				92,706
Costs capitalized subsequent to acquisition				39,712
Gross amount carried at close of period
Land and improvements				39,731
Buildings and improvements				132,418
Total	$ 172,149			172,149
Accumulated depreciation	$ (41,715)			(41,715)
Date of construction	1968
Date acquired	Feb-13
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 172,149
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 41,715
Unencumbered Apartment Communities | Fox Plaza | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Fox Plaza | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Henley I/The Henley II
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	215
Initial cost
Land				6,695
Buildings and improvements				16,753
Costs capitalized subsequent to acquisition				28,607
Gross amount carried at close of period
Land and improvements				6,733
Buildings and improvements				45,322
Total	$ 52,055			52,055
Accumulated depreciation	$ (30,235)			(30,235)
Date of construction	1970
Date acquired	Jun-99
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 52,055
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 30,235
Unencumbered Apartment Communities | The Henley I/The Henley II | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Henley I/The Henley II | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Highlands at Wynhaven
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	333
Initial cost
Land				16,271
Buildings and improvements				48,932
Costs capitalized subsequent to acquisition				15,477
Gross amount carried at close of period
Land and improvements				16,271
Buildings and improvements				64,409
Total	$ 80,680			80,680
Accumulated depreciation	$ (30,874)			(30,874)
Date of construction	2000
Date acquired	Aug-08
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 80,680
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 30,874
Unencumbered Apartment Communities | Highlands at Wynhaven | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Highlands at Wynhaven | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Hillcrest Park
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	608
Initial cost
Land				15,318
Buildings and improvements				40,601
Costs capitalized subsequent to acquisition				22,105
Gross amount carried at close of period
Land and improvements				15,755
Buildings and improvements				62,269
Total	$ 78,024			78,024
Accumulated depreciation	$ (45,189)			(45,189)
Date of construction	1973
Date acquired	Mar-98
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 78,024
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 45,189
Unencumbered Apartment Communities | Hillcrest Park | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Hillcrest Park | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Hillsdale Garden
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	697
Initial cost
Land				22,000
Buildings and improvements				94,681
Costs capitalized subsequent to acquisition				29,391
Gross amount carried at close of period
Land and improvements				22,000
Buildings and improvements				124,072
Total	$ 146,072			146,072
Accumulated depreciation	$ (64,193)			(64,193)
Date of construction	1948
Date acquired	Sep-06
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 146,072
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 64,193
Unencumbered Apartment Communities | Hillsdale Garden | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Hillsdale Garden | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Hope Ranch
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	108
Initial cost
Land				4,078
Buildings and improvements				16,877
Costs capitalized subsequent to acquisition				3,144
Gross amount carried at close of period
Land and improvements				4,208
Buildings and improvements				19,891
Total	$ 24,099			24,099
Accumulated depreciation	$ (9,564)			(9,564)
Date of construction	1965
Date acquired	Mar-07
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 24,099
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,564
Unencumbered Apartment Communities | Hope Ranch | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Hope Ranch | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Huntington Breakers
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	342
Initial cost
Land				9,306
Buildings and improvements				22,720
Costs capitalized subsequent to acquisition				22,039
Gross amount carried at close of period
Land and improvements				9,315
Buildings and improvements				44,750
Total	$ 54,065			54,065
Accumulated depreciation	$ (35,095)			(35,095)
Date of construction	1984
Date acquired	Oct-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 54,065
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 35,095
Unencumbered Apartment Communities | Huntington Breakers | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Huntington Breakers | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Inglenook Court
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	224
Initial cost
Land				3,467
Buildings and improvements				7,881
Costs capitalized subsequent to acquisition				8,603
Gross amount carried at close of period
Land and improvements				3,474
Buildings and improvements				16,477
Total	$ 19,951			19,951
Accumulated depreciation	$ (13,915)			(13,915)
Date of construction	1985
Date acquired	Oct-94
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 19,951
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,915
Unencumbered Apartment Communities | Inglenook Court | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Inglenook Court | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Lafayette Highlands
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	150
Initial cost
Land				17,774
Buildings and improvements				41,473
Costs capitalized subsequent to acquisition				4,292
Gross amount carried at close of period
Land and improvements				17,774
Buildings and improvements				45,765
Total	$ 63,539			63,539
Accumulated depreciation	$ (11,649)			(11,649)
Date of construction	1973
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 63,539
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,649
Unencumbered Apartment Communities | Lafayette Highlands | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Lafayette Highlands | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Lakeshore Landing
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	308
Initial cost
Land				38,155
Buildings and improvements				89,028
Costs capitalized subsequent to acquisition				9,182
Gross amount carried at close of period
Land and improvements				38,155
Buildings and improvements				98,210
Total	$ 136,365			136,365
Accumulated depreciation	$ (26,612)			(26,612)
Date of construction	1988
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 136,365
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,612
Unencumbered Apartment Communities | Lakeshore Landing | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Lakeshore Landing | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Laurels at Mill Creek
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	164
Initial cost
Land				1,559
Buildings and improvements				6,430
Costs capitalized subsequent to acquisition				8,586
Gross amount carried at close of period
Land and improvements				1,595
Buildings and improvements				14,980
Total	$ 16,575			16,575
Accumulated depreciation	$ (11,277)			(11,277)
Date of construction	1981
Date acquired	Dec-96
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 16,575
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,277
Unencumbered Apartment Communities | Laurels at Mill Creek | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Laurels at Mill Creek | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Lawrence Station
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	336
Initial cost
Land				45,532
Buildings and improvements				106,735
Costs capitalized subsequent to acquisition				2,494
Gross amount carried at close of period
Land and improvements				45,532
Buildings and improvements				109,229
Total	$ 154,761			154,761
Accumulated depreciation	$ (30,819)			(30,819)
Date of construction	2012
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 154,761
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 30,819
Unencumbered Apartment Communities | Lawrence Station | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Lawrence Station | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Le Parc
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	140
Initial cost
Land				3,090
Buildings and improvements				7,421
Costs capitalized subsequent to acquisition				14,181
Gross amount carried at close of period
Land and improvements				3,092
Buildings and improvements				21,600
Total	$ 24,692			24,692
Accumulated depreciation	$ (17,358)			(17,358)
Date of construction	1975
Date acquired	Feb-94
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 24,692
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 17,358
Unencumbered Apartment Communities | Le Parc | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Le Parc | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Marbrisa
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	202
Initial cost
Land				4,700
Buildings and improvements				18,605
Costs capitalized subsequent to acquisition				10,150
Gross amount carried at close of period
Land and improvements				4,760
Buildings and improvements				28,695
Total	$ 33,455			33,455
Accumulated depreciation	$ (18,760)			(18,760)
Date of construction	1987
Date acquired	Sep-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 33,455
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,760
Unencumbered Apartment Communities | Marbrisa | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Marbrisa | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Marina City Club
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	101
Initial cost
Land				0
Buildings and improvements				28,167
Costs capitalized subsequent to acquisition				34,572
Gross amount carried at close of period
Land and improvements				0
Buildings and improvements				62,739
Total	$ 62,739			62,739
Accumulated depreciation	$ (31,601)			(31,601)
Date of construction	1971
Date acquired	Jan-04
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 62,739
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 31,601
Unencumbered Apartment Communities | Marina City Club | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Marina City Club | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Marina Cove
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	292
Initial cost
Land				5,320
Buildings and improvements				16,431
Costs capitalized subsequent to acquisition				16,263
Gross amount carried at close of period
Land and improvements				5,324
Buildings and improvements				32,690
Total	$ 38,014			38,014
Accumulated depreciation	$ (27,925)			(27,925)
Date of construction	1974
Date acquired	Jun-94
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 38,014
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 27,925
Unencumbered Apartment Communities | Marina Cove | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Marina Cove | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mariner's Place
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	105
Initial cost
Land				1,555
Buildings and improvements				6,103
Costs capitalized subsequent to acquisition				2,679
Gross amount carried at close of period
Land and improvements				1,562
Buildings and improvements				8,775
Total	$ 10,337			10,337
Accumulated depreciation	$ (6,362)			(6,362)
Date of construction	1987
Date acquired	May-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 10,337
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 6,362
Unencumbered Apartment Communities | Mariner's Place | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Mariner's Place | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | MB 360
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	360
Initial cost
Land				42,001
Buildings and improvements				212,648
Costs capitalized subsequent to acquisition				12,308
Gross amount carried at close of period
Land and improvements				42,001
Buildings and improvements				224,956
Total	$ 266,957			266,957
Accumulated depreciation	$ (50,304)			(50,304)
Date of construction	2014
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 266,957
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 50,304
Unencumbered Apartment Communities | MB 360 | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | MB 360 | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mesa Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	133
Initial cost
Land				1,888
Buildings and improvements				7,498
Costs capitalized subsequent to acquisition				2,734
Gross amount carried at close of period
Land and improvements				1,894
Buildings and improvements				10,226
Total	$ 12,120			12,120
Accumulated depreciation	$ (6,127)			(6,127)
Date of construction	1963
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 12,120
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 6,127
Unencumbered Apartment Communities | Mesa Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Mesa Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mill Creek at Windermere
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	400
Initial cost
Land				29,551
Buildings and improvements				69,032
Costs capitalized subsequent to acquisition				7,370
Gross amount carried at close of period
Land and improvements				29,551
Buildings and improvements				76,402
Total	$ 105,953			105,953
Accumulated depreciation	$ (34,899)			(34,899)
Date of construction	2005
Date acquired	Sep-07
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 105,953
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 34,899
Unencumbered Apartment Communities | Mill Creek at Windermere | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Mill Creek at Windermere | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mio
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	103
Initial cost
Land				11,012
Buildings and improvements				39,982
Costs capitalized subsequent to acquisition				675
Gross amount carried at close of period
Land and improvements				11,012
Buildings and improvements				40,657
Total	$ 51,669			51,669
Accumulated depreciation	$ (7,166)			(7,166)
Date of construction	2015
Date acquired	Jan-16
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 51,669
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,166
Unencumbered Apartment Communities | Mio | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Mio | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mirabella
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	188
Initial cost
Land				6,180
Buildings and improvements				26,673
Costs capitalized subsequent to acquisition				17,242
Gross amount carried at close of period
Land and improvements				6,270
Buildings and improvements				43,825
Total	$ 50,095			50,095
Accumulated depreciation	$ (28,017)			(28,017)
Date of construction	2000
Date acquired	May-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 50,095
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 28,017
Unencumbered Apartment Communities | Mirabella | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Mirabella | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mira Monte
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	354
Initial cost
Land				7,165
Buildings and improvements				28,459
Costs capitalized subsequent to acquisition				12,402
Gross amount carried at close of period
Land and improvements				7,186
Buildings and improvements				40,840
Total	$ 48,026			48,026
Accumulated depreciation	$ (26,833)			(26,833)
Date of construction	1982
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 48,026
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,833
Unencumbered Apartment Communities | Mira Monte | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Mira Monte | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Miracle Mile Marbella
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	236
Initial cost
Land				7,791
Buildings and improvements				23,075
Costs capitalized subsequent to acquisition				15,609
Gross amount carried at close of period
Land and improvements				7,886
Buildings and improvements				38,589
Total	$ 46,475			46,475
Accumulated depreciation	$ (29,348)			(29,348)
Date of construction	1988
Date acquired	Aug-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 46,475
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 29,348
Unencumbered Apartment Communities | Miracle Mile Marbella | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Miracle Mile Marbella | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mission Hills
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	282
Initial cost
Land				10,099
Buildings and improvements				38,778
Costs capitalized subsequent to acquisition				11,525
Gross amount carried at close of period
Land and improvements				10,167
Buildings and improvements				50,235
Total	$ 60,402			60,402
Accumulated depreciation	$ (26,979)			(26,979)
Date of construction	1984
Date acquired	Jul-05
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 60,402
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 26,979
Unencumbered Apartment Communities | Mission Hills | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Mission Hills | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mission Peaks
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	453
Initial cost
Land				46,499
Buildings and improvements				108,498
Costs capitalized subsequent to acquisition				8,474
Gross amount carried at close of period
Land and improvements				46,499
Buildings and improvements				116,972
Total	$ 163,471			163,471
Accumulated depreciation	$ (29,818)			(29,818)
Date of construction	1995
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 163,471
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 29,818
Unencumbered Apartment Communities | Mission Peaks | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Mission Peaks | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Mission Peaks II
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	336
Initial cost
Land				31,429
Buildings and improvements				73,334
Costs capitalized subsequent to acquisition				8,388
Gross amount carried at close of period
Land and improvements				31,429
Buildings and improvements				81,722
Total	$ 113,151			113,151
Accumulated depreciation	$ (21,416)			(21,416)
Date of construction	1989
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 113,151
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 21,416
Unencumbered Apartment Communities | Mission Peaks II | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Mission Peaks II | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Montarosa
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	472
Initial cost
Land				26,697
Buildings and improvements				106,787
Costs capitalized subsequent to acquisition				7,521
Gross amount carried at close of period
Land and improvements				26,697
Buildings and improvements				114,308
Total	$ 141,005			141,005
Accumulated depreciation	$ (28,912)			(28,912)
Date of construction	1990
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 141,005
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 28,912
Unencumbered Apartment Communities | Montclaire
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	390
Initial cost
Land				4,842
Buildings and improvements				19,776
Costs capitalized subsequent to acquisition				28,355
Gross amount carried at close of period
Land and improvements				4,997
Buildings and improvements				47,976
Total	$ 52,973			52,973
Accumulated depreciation	$ (43,336)			(43,336)
Date of construction	1973
Date acquired	Dec-88
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 52,973
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 43,336
Unencumbered Apartment Communities | Montclaire | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Montclaire | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Montebello
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	248
Initial cost
Land				13,857
Buildings and improvements				41,575
Costs capitalized subsequent to acquisition				7,496
Gross amount carried at close of period
Land and improvements				13,858
Buildings and improvements				49,070
Total	$ 62,928			62,928
Accumulated depreciation	$ (15,854)			(15,854)
Date of construction	1996
Date acquired	Jul-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 62,928
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,854
Unencumbered Apartment Communities | Montejo
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	124
Initial cost
Land				1,925
Buildings and improvements				7,685
Costs capitalized subsequent to acquisition				4,490
Gross amount carried at close of period
Land and improvements				2,194
Buildings and improvements				11,906
Total	$ 14,100			14,100
Accumulated depreciation	$ (7,588)			(7,588)
Date of construction	1974
Date acquired	Nov-01
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 14,100
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,588
Unencumbered Apartment Communities | Monterey Villas
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	122
Initial cost
Land				2,349
Buildings and improvements				5,579
Costs capitalized subsequent to acquisition				7,169
Gross amount carried at close of period
Land and improvements				2,424
Buildings and improvements				12,673
Total	$ 15,097			15,097
Accumulated depreciation	$ (9,150)			(9,150)
Date of construction	1974
Date acquired	Jul-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 15,097
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,150
Unencumbered Apartment Communities | Monterey Villas | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Monterey Villas | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Muse
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	152
Initial cost
Land				7,822
Buildings and improvements				33,436
Costs capitalized subsequent to acquisition				3,659
Gross amount carried at close of period
Land and improvements				7,823
Buildings and improvements				37,094
Total	$ 44,917			44,917
Accumulated depreciation	$ (15,284)			(15,284)
Date of construction	2011
Date acquired	Feb-11
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 44,917
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,284
Unencumbered Apartment Communities | Muse | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Muse | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | 1000 Kiely
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	121
Initial cost
Land				9,359
Buildings and improvements				21,845
Costs capitalized subsequent to acquisition				8,669
Gross amount carried at close of period
Land and improvements				9,359
Buildings and improvements				30,514
Total	$ 39,873			39,873
Accumulated depreciation	$ (13,890)			(13,890)
Date of construction	1971
Date acquired	Mar-11
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 39,873
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,890
Unencumbered Apartment Communities | Palm Valley
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	1,099
Initial cost
Land				133,802
Buildings and improvements				312,205
Costs capitalized subsequent to acquisition				18,156
Gross amount carried at close of period
Land and improvements				133,802
Buildings and improvements				330,361
Total	$ 464,163			464,163
Accumulated depreciation	$ (48,807)			(48,807)
Date of construction	2008
Date acquired	Jan-17
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 464,163
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 48,807
Unencumbered Apartment Communities | Palm Valley | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Palm Valley | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Paragon Apartments
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	301
Initial cost
Land				32,230
Buildings and improvements				77,320
Costs capitalized subsequent to acquisition				2,583
Gross amount carried at close of period
Land and improvements				32,230
Buildings and improvements				79,903
Total	$ 112,133			112,133
Accumulated depreciation	$ (17,735)			(17,735)
Date of construction	2013
Date acquired	Jul-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 112,133
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 17,735
Unencumbered Apartment Communities | Paragon Apartments | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Paragon Apartments | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Park 20
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	197
Initial cost
Land				27,041
Buildings and improvements				89,281
Costs capitalized subsequent to acquisition				(1,340)
Gross amount carried at close of period
Land and improvements				26,607
Buildings and improvements				88,375
Total	$ 114,982			114,982
Accumulated depreciation	$ (2,983)			(2,983)
Date of construction	2015
Date acquired	Jan-20
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 114,982
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 2,983
Unencumbered Apartment Communities | Park 20 | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Park 20 | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Park Catalina
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	90
Initial cost
Land				4,710
Buildings and improvements				18,839
Costs capitalized subsequent to acquisition				3,628
Gross amount carried at close of period
Land and improvements				4,710
Buildings and improvements				22,467
Total	$ 27,177			27,177
Accumulated depreciation	$ (8,035)			(8,035)
Date of construction	2002
Date acquired	Jun-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 27,177
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 8,035
Unencumbered Apartment Communities | Park Catalina | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Park Catalina | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Park Highland
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	250
Initial cost
Land				9,391
Buildings and improvements				38,224
Costs capitalized subsequent to acquisition				13,735
Gross amount carried at close of period
Land and improvements				9,391
Buildings and improvements				51,959
Total	$ 61,350			61,350
Accumulated depreciation	$ (16,898)			(16,898)
Date of construction	1993
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 61,350
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 16,898
Unencumbered Apartment Communities | Park Highland | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Park Highland | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Park Hill at Issaquah
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	245
Initial cost
Land				7,284
Buildings and improvements				21,937
Costs capitalized subsequent to acquisition				11,471
Gross amount carried at close of period
Land and improvements				7,284
Buildings and improvements				33,408
Total	$ 40,692			40,692
Accumulated depreciation	$ (18,428)			(18,428)
Date of construction	1999
Date acquired	Feb-99
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 40,692
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,428
Unencumbered Apartment Communities | Park Hill at Issaquah | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Park Hill at Issaquah | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Park Viridian
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	320
Initial cost
Land				15,894
Buildings and improvements				63,574
Costs capitalized subsequent to acquisition				4,541
Gross amount carried at close of period
Land and improvements				15,894
Buildings and improvements				68,115
Total	$ 84,009			84,009
Accumulated depreciation	$ (17,410)			(17,410)
Date of construction	2008
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 84,009
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 17,410
Unencumbered Apartment Communities | Park Viridian | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Park Viridian | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Park West
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	126
Initial cost
Land				9,424
Buildings and improvements				21,988
Costs capitalized subsequent to acquisition				12,712
Gross amount carried at close of period
Land and improvements				9,424
Buildings and improvements				34,700
Total	$ 44,124			44,124
Accumulated depreciation	$ (14,022)			(14,022)
Date of construction	1958
Date acquired	Sep-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 44,124
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 14,022
Unencumbered Apartment Communities | Park West | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Park West | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Parkwood at Mill Creek
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	240
Initial cost
Land				10,680
Buildings and improvements				42,722
Costs capitalized subsequent to acquisition				3,545
Gross amount carried at close of period
Land and improvements				10,680
Buildings and improvements				46,267
Total	$ 56,947			56,947
Accumulated depreciation	$ (12,081)			(12,081)
Date of construction	1989
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 56,947
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,081
Unencumbered Apartment Communities | Parkwood at Mill Creek | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Parkwood at Mill Creek | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Patent 523
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	295
Initial cost
Land				14,558
Buildings and improvements				69,417
Costs capitalized subsequent to acquisition				6,137
Gross amount carried at close of period
Land and improvements				14,558
Buildings and improvements				75,554
Total	$ 90,112			90,112
Accumulated depreciation	$ (29,643)			(29,643)
Date of construction	2010
Date acquired	Mar-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 90,112
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 29,643
Unencumbered Apartment Communities | Patent 523 | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Patent 523 | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pathways at Bixby Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	296
Initial cost
Land				4,083
Buildings and improvements				16,757
Costs capitalized subsequent to acquisition				22,199
Gross amount carried at close of period
Land and improvements				6,239
Buildings and improvements				36,800
Total	$ 43,039			43,039
Accumulated depreciation	$ (33,133)			(33,133)
Date of construction	1975
Date acquired	Feb-91
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 43,039
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 33,133
Unencumbered Apartment Communities | Pathways at Bixby Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Pathways at Bixby Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Piedmont
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	396
Initial cost
Land				19,848
Buildings and improvements				59,606
Costs capitalized subsequent to acquisition				13,932
Gross amount carried at close of period
Land and improvements				19,848
Buildings and improvements				73,538
Total	$ 93,386			93,386
Accumulated depreciation	$ (20,426)			(20,426)
Date of construction	1969
Date acquired	May-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 93,386
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 20,426
Unencumbered Apartment Communities | Piedmont | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Piedmont | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pinehurst
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	28
Initial cost
Land				0
Buildings and improvements				1,711
Costs capitalized subsequent to acquisition				756
Gross amount carried at close of period
Land and improvements				0
Buildings and improvements				2,467
Total	$ 2,467			2,467
Accumulated depreciation	$ (1,643)			(1,643)
Date of construction	1973
Date acquired	Dec-04
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 2,467
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 1,643
Unencumbered Apartment Communities | Pinehurst | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Pinehurst | Maximum
Gross amount carried at close of period
Life used for depreciation	24 years
Unencumbered Apartment Communities | Pinnacle at Fullerton
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	192
Initial cost
Land				11,019
Buildings and improvements				45,932
Costs capitalized subsequent to acquisition				4,475
Gross amount carried at close of period
Land and improvements				11,019
Buildings and improvements				50,407
Total	$ 61,426			61,426
Accumulated depreciation	$ (13,250)			(13,250)
Date of construction	2004
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 61,426
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,250
Unencumbered Apartment Communities | Pinnacle at Fullerton | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Pinnacle at Fullerton | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pinnacle on Lake Washington
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	180
Initial cost
Land				7,760
Buildings and improvements				31,041
Costs capitalized subsequent to acquisition				3,915
Gross amount carried at close of period
Land and improvements				7,760
Buildings and improvements				34,956
Total	$ 42,716			42,716
Accumulated depreciation	$ (9,138)			(9,138)
Date of construction	2001
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 42,716
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,138
Unencumbered Apartment Communities | Pinnacle on Lake Washington | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Pinnacle on Lake Washington | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pinnacle at MacArthur Place
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	253
Initial cost
Land				15,810
Buildings and improvements				66,401
Costs capitalized subsequent to acquisition				6,056
Gross amount carried at close of period
Land and improvements				15,810
Buildings and improvements				72,457
Total	$ 88,267			88,267
Accumulated depreciation	$ (18,585)			(18,585)
Date of construction	2002
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 88,267
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,585
Unencumbered Apartment Communities | Pinnacle at MacArthur Place | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Pinnacle at MacArthur Place | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pinnacle at Otay Ranch I & II
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	364
Initial cost
Land				17,023
Buildings and improvements				68,093
Costs capitalized subsequent to acquisition				4,828
Gross amount carried at close of period
Land and improvements				17,023
Buildings and improvements				72,921
Total	$ 89,944			89,944
Accumulated depreciation	$ (18,684)			(18,684)
Date of construction	2001
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 89,944
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,684
Unencumbered Apartment Communities | Pinnacle at Otay Ranch I & II | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Pinnacle at Otay Ranch I & II | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pinnacle at Talega
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	362
Initial cost
Land				19,292
Buildings and improvements				77,168
Costs capitalized subsequent to acquisition				3,631
Gross amount carried at close of period
Land and improvements				19,292
Buildings and improvements				80,799
Total	$ 100,091			100,091
Accumulated depreciation	$ (20,288)			(20,288)
Date of construction	2002
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 100,091
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 20,288
Unencumbered Apartment Communities | Pinnacle at Talega | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Pinnacle at Talega | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pinnacle Sonata
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	268
Initial cost
Land				14,647
Buildings and improvements				58,586
Costs capitalized subsequent to acquisition				5,554
Gross amount carried at close of period
Land and improvements				14,647
Buildings and improvements				64,140
Total	$ 78,787			78,787
Accumulated depreciation	$ (16,211)			(16,211)
Date of construction	2000
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 78,787
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 16,211
Unencumbered Apartment Communities | Pinnacle Sonata | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Pinnacle Sonata | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pointe at Cupertino
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	116
Initial cost
Land				4,505
Buildings and improvements				17,605
Costs capitalized subsequent to acquisition				12,918
Gross amount carried at close of period
Land and improvements				4,505
Buildings and improvements				30,523
Total	$ 35,028			35,028
Accumulated depreciation	$ (20,740)			(20,740)
Date of construction	1963
Date acquired	Aug-98
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 35,028
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 20,740
Unencumbered Apartment Communities | Pointe at Cupertino | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Pointe at Cupertino | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Pure Redmond
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	105
Initial cost
Land				7,461
Buildings and improvements				31,363
Costs capitalized subsequent to acquisition				411
Gross amount carried at close of period
Land and improvements				7,461
Buildings and improvements				31,774
Total	$ 39,235			39,235
Accumulated depreciation	$ (1,195)			(1,195)
Date of construction	2016
Date acquired	Dec-19
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 39,235
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 1,195
Unencumbered Apartment Communities | Pure Redmond | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Pure Redmond | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Radius
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	264
Initial cost
Land				11,702
Buildings and improvements				152,336
Costs capitalized subsequent to acquisition				1,190
Gross amount carried at close of period
Land and improvements				11,702
Buildings and improvements				153,526
Total	$ 165,228			165,228
Accumulated depreciation	$ (39,220)			(39,220)
Date of construction	2015
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 165,228
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 39,220
Unencumbered Apartment Communities | Radius | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Radius | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Reed Square
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	100
Initial cost
Land				6,873
Buildings and improvements				16,037
Costs capitalized subsequent to acquisition				8,746
Gross amount carried at close of period
Land and improvements				6,873
Buildings and improvements				24,783
Total	$ 31,656			31,656
Accumulated depreciation	$ (11,387)			(11,387)
Date of construction	1970
Date acquired	Jan-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 31,656
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,387
Unencumbered Apartment Communities | Reed Square | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Reed Square | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Regency at Encino
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	75
Initial cost
Land				3,184
Buildings and improvements				12,737
Costs capitalized subsequent to acquisition				4,212
Gross amount carried at close of period
Land and improvements				3,184
Buildings and improvements				16,949
Total	$ 20,133			20,133
Accumulated depreciation	$ (7,710)			(7,710)
Date of construction	1989
Date acquired	Dec-09
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 20,133
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,710
Unencumbered Apartment Communities | Regency at Encino | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Regency at Encino | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Renaissance at Uptown Orange
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	460
Initial cost
Land				27,870
Buildings and improvements				111,482
Costs capitalized subsequent to acquisition				7,258
Gross amount carried at close of period
Land and improvements				27,870
Buildings and improvements				118,740
Total	$ 146,610			146,610
Accumulated depreciation	$ (29,992)			(29,992)
Date of construction	2007
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 146,610
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 29,992
Unencumbered Apartment Communities | Renaissance at Uptown Orange | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Renaissance at Uptown Orange | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Reveal
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	438
Initial cost
Land				25,073
Buildings and improvements				121,314
Costs capitalized subsequent to acquisition				3,656
Gross amount carried at close of period
Land and improvements				25,073
Buildings and improvements				124,970
Total	$ 150,043			150,043
Accumulated depreciation	$ (27,492)			(27,492)
Date of construction	2010
Date acquired	Apr-15
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 150,043
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 27,492
Unencumbered Apartment Communities | The Reveal | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Reveal | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Salmon Run at Perry Creek
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	132
Initial cost
Land				3,717
Buildings and improvements				11,483
Costs capitalized subsequent to acquisition				3,054
Gross amount carried at close of period
Land and improvements				3,801
Buildings and improvements				14,453
Total	$ 18,254			18,254
Accumulated depreciation	$ (9,519)			(9,519)
Date of construction	2000
Date acquired	Oct-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 18,254
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,519
Unencumbered Apartment Communities | Salmon Run at Perry Creek | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Salmon Run at Perry Creek | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Sammamish View
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	153
Initial cost
Land				3,324
Buildings and improvements				7,501
Costs capitalized subsequent to acquisition				7,530
Gross amount carried at close of period
Land and improvements				3,331
Buildings and improvements				15,024
Total	$ 18,355			18,355
Accumulated depreciation	$ (13,067)			(13,067)
Date of construction	1986
Date acquired	Nov-94
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 18,355
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,067
Unencumbered Apartment Communities | Sammamish View | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Sammamish View | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | 101 San Fernando
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	323
Initial cost
Land				4,173
Buildings and improvements				58,961
Costs capitalized subsequent to acquisition				13,856
Gross amount carried at close of period
Land and improvements				4,173
Buildings and improvements				72,817
Total	$ 76,990			76,990
Accumulated depreciation	$ (30,215)			(30,215)
Date of construction	2001
Date acquired	Jul-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 76,990
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 30,215
Unencumbered Apartment Communities | 101 San Fernando | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | 101 San Fernando | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | San Marcos
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	432
Initial cost
Land				15,563
Buildings and improvements				36,204
Costs capitalized subsequent to acquisition				33,980
Gross amount carried at close of period
Land and improvements				22,866
Buildings and improvements				62,881
Total	$ 85,747			85,747
Accumulated depreciation	$ (36,750)			(36,750)
Date of construction	2003
Date acquired	Nov-03
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 85,747
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 36,750
Unencumbered Apartment Communities | San Marcos | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | San Marcos | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Santee Court/Santee Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	238
Initial cost
Land				9,581
Buildings and improvements				40,317
Costs capitalized subsequent to acquisition				13,433
Gross amount carried at close of period
Land and improvements				9,582
Buildings and improvements				53,749
Total	$ 63,331			63,331
Accumulated depreciation	$ (19,802)			(19,802)
Date of construction	2004
Date acquired	Oct-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 63,331
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 19,802
Unencumbered Apartment Communities | Santee Court/Santee Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Santee Court/Santee Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Shadow Point
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	172
Initial cost
Land				2,812
Buildings and improvements				11,170
Costs capitalized subsequent to acquisition				4,576
Gross amount carried at close of period
Land and improvements				2,820
Buildings and improvements				15,738
Total	$ 18,558			18,558
Accumulated depreciation	$ (9,638)			(9,638)
Date of construction	1983
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 18,558
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,638
Unencumbered Apartment Communities | Shadow Point | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Shadow Point | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Shadowbrook
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	418
Initial cost
Land				19,292
Buildings and improvements				77,168
Costs capitalized subsequent to acquisition				6,131
Gross amount carried at close of period
Land and improvements				19,292
Buildings and improvements				83,299
Total	$ 102,591			102,591
Accumulated depreciation	$ (21,393)			(21,393)
Date of construction	1986
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 102,591
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 21,393
Unencumbered Apartment Communities | Shadowbrook | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Shadowbrook | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Slater 116
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	108
Initial cost
Land				7,379
Buildings and improvements				22,138
Costs capitalized subsequent to acquisition				1,323
Gross amount carried at close of period
Land and improvements				7,379
Buildings and improvements				23,461
Total	$ 30,840			30,840
Accumulated depreciation	$ (6,063)			(6,063)
Date of construction	2013
Date acquired	Sep-13
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 30,840
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 6,063
Unencumbered Apartment Communities | Slater 116 | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Slater 116 | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Solstice
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	280
Initial cost
Land				34,444
Buildings and improvements				147,262
Costs capitalized subsequent to acquisition				6,856
Gross amount carried at close of period
Land and improvements				34,444
Buildings and improvements				154,118
Total	$ 188,562			188,562
Accumulated depreciation	$ (42,130)			(42,130)
Date of construction	2014
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 188,562
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 42,130
Unencumbered Apartment Communities | Solstice | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Solstice | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Station Park Green - Phases I, II, and III
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	492
Initial cost
Land				54,782
Buildings and improvements				314,694
Costs capitalized subsequent to acquisition				282
Gross amount carried at close of period
Land and improvements				54,782
Buildings and improvements				314,976
Total	$ 369,758			369,758
Accumulated depreciation	$ (21,497)			(21,497)
Date of construction	2018
Date acquired	Mar-18
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 369,758
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 21,497
Unencumbered Apartment Communities | Station Park Green - Phases I, II, and III | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Station Park Green - Phases I, II, and III | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Stevenson Place
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	200
Initial cost
Land				996
Buildings and improvements				5,582
Costs capitalized subsequent to acquisition				14,268
Gross amount carried at close of period
Land and improvements				1,001
Buildings and improvements				19,845
Total	$ 20,846			20,846
Accumulated depreciation	$ (15,706)			(15,706)
Date of construction	1975
Date acquired	Apr-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 20,846
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,706
Unencumbered Apartment Communities | Stevenson Place | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Stevenson Place | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Stonehedge Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	196
Initial cost
Land				3,167
Buildings and improvements				12,603
Costs capitalized subsequent to acquisition				9,180
Gross amount carried at close of period
Land and improvements				3,201
Buildings and improvements				21,749
Total	$ 24,950			24,950
Accumulated depreciation	$ (15,989)			(15,989)
Date of construction	1986
Date acquired	Oct-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 24,950
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,989
Unencumbered Apartment Communities | Stonehedge Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Stonehedge Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Summerhill Park
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	100
Initial cost
Land				2,654
Buildings and improvements				4,918
Costs capitalized subsequent to acquisition				11,257
Gross amount carried at close of period
Land and improvements				2,656
Buildings and improvements				16,173
Total	$ 18,829			18,829
Accumulated depreciation	$ (12,935)			(12,935)
Date of construction	1988
Date acquired	Sep-88
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 18,829
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,935
Unencumbered Apartment Communities | Summerhill Park | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Summerhill Park | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Summit Park
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	300
Initial cost
Land				5,959
Buildings and improvements				23,670
Costs capitalized subsequent to acquisition				8,912
Gross amount carried at close of period
Land and improvements				5,977
Buildings and improvements				32,564
Total	$ 38,541			38,541
Accumulated depreciation	$ (19,893)			(19,893)
Date of construction	1972
Date acquired	Dec-02
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 38,541
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 19,893
Unencumbered Apartment Communities | Summit Park | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Summit Park | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Taylor 28
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	197
Initial cost
Land				13,915
Buildings and improvements				57,700
Costs capitalized subsequent to acquisition				3,693
Gross amount carried at close of period
Land and improvements				13,915
Buildings and improvements				61,393
Total	$ 75,308			75,308
Accumulated depreciation	$ (15,413)			(15,413)
Date of construction	2008
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 75,308
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,413
Unencumbered Apartment Communities | Taylor 28 | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Taylor 28 | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Audrey at Belltown
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	137
Initial cost
Land				9,228
Buildings and improvements				36,911
Costs capitalized subsequent to acquisition				2,050
Gross amount carried at close of period
Land and improvements				9,228
Buildings and improvements				38,961
Total	$ 48,189			48,189
Accumulated depreciation	$ (9,456)			(9,456)
Date of construction	1992
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 48,189
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,456
Unencumbered Apartment Communities | The Audrey at Belltown | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | The Audrey at Belltown | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Avery
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	121
Initial cost
Land				6,964
Buildings and improvements				29,922
Costs capitalized subsequent to acquisition				889
Gross amount carried at close of period
Land and improvements				6,964
Buildings and improvements				30,811
Total	$ 37,775			37,775
Accumulated depreciation	$ (7,071)			(7,071)
Date of construction	2014
Date acquired	Mar-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 37,775
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,071
Unencumbered Apartment Communities | The Avery | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Avery | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Bernard
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	63
Initial cost
Land				3,699
Buildings and improvements				11,345
Costs capitalized subsequent to acquisition				884
Gross amount carried at close of period
Land and improvements				3,689
Buildings and improvements				12,239
Total	$ 15,928			15,928
Accumulated depreciation	$ (4,075)			(4,075)
Date of construction	2008
Date acquired	Sep-11
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 15,928
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 4,075
Unencumbered Apartment Communities | The Bernard | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Bernard | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Blake LA
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	196
Initial cost
Land				4,023
Buildings and improvements				9,527
Costs capitalized subsequent to acquisition				24,135
Gross amount carried at close of period
Land and improvements				4,031
Buildings and improvements				33,654
Total	$ 37,685			37,685
Accumulated depreciation	$ (20,615)			(20,615)
Date of construction	1979
Date acquired	Jun-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 37,685
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 20,615
Unencumbered Apartment Communities | The Blake LA | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Blake LA | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Cairns
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	99
Initial cost
Land				6,937
Buildings and improvements				20,679
Costs capitalized subsequent to acquisition				2,586
Gross amount carried at close of period
Land and improvements				6,939
Buildings and improvements				23,263
Total	$ 30,202			30,202
Accumulated depreciation	$ (10,874)			(10,874)
Date of construction	2006
Date acquired	Jun-07
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 30,202
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 10,874
Unencumbered Apartment Communities | The Cairns | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Cairns | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Commons
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	264
Initial cost
Land				12,555
Buildings and improvements				29,307
Costs capitalized subsequent to acquisition				9,940
Gross amount carried at close of period
Land and improvements				12,556
Buildings and improvements				39,246
Total	$ 51,802			51,802
Accumulated depreciation	$ (16,958)			(16,958)
Date of construction	1973
Date acquired	Jul-10
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 51,802
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 16,958
Unencumbered Apartment Communities | The Commons | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Commons | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Elliot at Mukilteo
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	301
Initial cost
Land				2,498
Buildings and improvements				10,595
Costs capitalized subsequent to acquisition				18,928
Gross amount carried at close of period
Land and improvements				2,824
Buildings and improvements				29,197
Total	$ 32,021			32,021
Accumulated depreciation	$ (22,866)			(22,866)
Date of construction	1981
Date acquired	Jan-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 32,021
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 22,866
Unencumbered Apartment Communities | The Elliot at Mukilteo | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Elliot at Mukilteo | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Galloway
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	506
Initial cost
Land				32,966
Buildings and improvements				184,499
Costs capitalized subsequent to acquisition				488
Gross amount carried at close of period
Land and improvements				32,966
Buildings and improvements				184,987
Total	$ 217,953			217,953
Accumulated depreciation	$ (6,214)			(6,214)
Date of construction	2016
Date acquired	Jan-20
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 217,953
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 6,214
Unencumbered Apartment Communities | The Galloway | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Galloway | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Grand
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	243
Initial cost
Land				4,531
Buildings and improvements				89,208
Costs capitalized subsequent to acquisition				7,518
Gross amount carried at close of period
Land and improvements				4,531
Buildings and improvements				96,726
Total	$ 101,257			101,257
Accumulated depreciation	$ (40,981)			(40,981)
Date of construction	2009
Date acquired	Jan-09
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 101,257
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 40,981
Unencumbered Apartment Communities | The Grand | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Grand | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Hallie
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	292
Initial cost
Land				2,202
Buildings and improvements				4,794
Costs capitalized subsequent to acquisition				55,653
Gross amount carried at close of period
Land and improvements				8,385
Buildings and improvements				54,264
Total	$ 62,649			62,649
Accumulated depreciation	$ (39,551)			(39,551)
Date of construction	1972
Date acquired	Apr-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 62,649
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 39,551
Unencumbered Apartment Communities | The Hallie | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Hallie | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Huntington
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	276
Initial cost
Land				10,374
Buildings and improvements				41,495
Costs capitalized subsequent to acquisition				7,036
Gross amount carried at close of period
Land and improvements				10,374
Buildings and improvements				48,531
Total	$ 58,905			58,905
Accumulated depreciation	$ (15,784)			(15,784)
Date of construction	1975
Date acquired	Jun-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 58,905
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,784
Unencumbered Apartment Communities | The Huntington | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Huntington | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Landing at Jack London Square
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	282
Initial cost
Land				33,554
Buildings and improvements				78,292
Costs capitalized subsequent to acquisition				7,860
Gross amount carried at close of period
Land and improvements				33,554
Buildings and improvements				86,152
Total	$ 119,706			119,706
Accumulated depreciation	$ (23,251)			(23,251)
Date of construction	2001
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 119,706
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 23,251
Unencumbered Apartment Communities | The Landing at Jack London Square | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | The Landing at Jack London Square | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Lofts at Pinehurst
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	118
Initial cost
Land				1,570
Buildings and improvements				3,912
Costs capitalized subsequent to acquisition				5,699
Gross amount carried at close of period
Land and improvements				1,618
Buildings and improvements				9,563
Total	$ 11,181			11,181
Accumulated depreciation	$ (6,616)			(6,616)
Date of construction	1971
Date acquired	Jun-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 11,181
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 6,616
Unencumbered Apartment Communities | The Lofts at Pinehurst | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Lofts at Pinehurst | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Palisades
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	192
Initial cost
Land				1,560
Buildings and improvements				6,242
Costs capitalized subsequent to acquisition				13,990
Gross amount carried at close of period
Land and improvements				1,565
Buildings and improvements				20,227
Total	$ 21,792			21,792
Accumulated depreciation	$ (18,275)			(18,275)
Date of construction	1977
Date acquired	May-90
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 21,792
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 18,275
Unencumbered Apartment Communities | The Palisades | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Palisades | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Palms at Laguna Niguel
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	460
Initial cost
Land				23,584
Buildings and improvements				94,334
Costs capitalized subsequent to acquisition				12,080
Gross amount carried at close of period
Land and improvements				23,584
Buildings and improvements				106,414
Total	$ 129,998			129,998
Accumulated depreciation	$ (27,812)			(27,812)
Date of construction	1988
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 129,998
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 27,812
Unencumbered Apartment Communities | The Palms at Laguna Niguel | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | The Palms at Laguna Niguel | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Stuart
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	188
Initial cost
Land				13,574
Buildings and improvements				54,298
Costs capitalized subsequent to acquisition				3,098
Gross amount carried at close of period
Land and improvements				13,574
Buildings and improvements				57,396
Total	$ 70,970			70,970
Accumulated depreciation	$ (14,822)			(14,822)
Date of construction	2007
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 70,970
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 14,822
Unencumbered Apartment Communities | The Stuart | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | The Stuart | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Trails of Redmond
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	423
Initial cost
Land				21,930
Buildings and improvements				87,720
Costs capitalized subsequent to acquisition				6,031
Gross amount carried at close of period
Land and improvements				21,930
Buildings and improvements				93,751
Total	$ 115,681			115,681
Accumulated depreciation	$ (23,961)			(23,961)
Date of construction	1985
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 115,681
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 23,961
Unencumbered Apartment Communities | The Trails of Redmond | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | The Trails of Redmond | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | The Waterford
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	238
Initial cost
Land				11,808
Buildings and improvements				24,500
Costs capitalized subsequent to acquisition				17,968
Gross amount carried at close of period
Land and improvements				15,165
Buildings and improvements				39,111
Total	$ 54,276			54,276
Accumulated depreciation	$ (25,616)			(25,616)
Date of construction	2000
Date acquired	Jun-00
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 54,276
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 25,616
Unencumbered Apartment Communities | The Waterford | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | The Waterford | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Tierra Vista
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	404
Initial cost
Land				13,652
Buildings and improvements				53,336
Costs capitalized subsequent to acquisition				7,831
Gross amount carried at close of period
Land and improvements				13,661
Buildings and improvements				61,158
Total	$ 74,819			74,819
Accumulated depreciation	$ (34,469)			(34,469)
Date of construction	2001
Date acquired	Jan-01
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 74,819
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 34,469
Unencumbered Apartment Communities | Tierra Vista | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Tierra Vista | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Tiffany Court
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	101
Initial cost
Land				6,949
Buildings and improvements				27,796
Costs capitalized subsequent to acquisition				2,042
Gross amount carried at close of period
Land and improvements				6,949
Buildings and improvements				29,838
Total	$ 36,787			36,787
Accumulated depreciation	$ (7,574)			(7,574)
Date of construction	1987
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 36,787
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 7,574
Unencumbered Apartment Communities | Tiffany Court | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Tiffany Court | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Trabucco Villas
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	132
Initial cost
Land				3,638
Buildings and improvements				8,640
Costs capitalized subsequent to acquisition				4,292
Gross amount carried at close of period
Land and improvements				3,890
Buildings and improvements				12,680
Total	$ 16,570			16,570
Accumulated depreciation	$ (9,358)			(9,358)
Date of construction	1985
Date acquired	Oct-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 16,570
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 9,358
Unencumbered Apartment Communities | Trabucco Villas | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Trabucco Villas | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Valley Park
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	160
Initial cost
Land				3,361
Buildings and improvements				13,420
Costs capitalized subsequent to acquisition				6,653
Gross amount carried at close of period
Land and improvements				3,761
Buildings and improvements				19,673
Total	$ 23,434			23,434
Accumulated depreciation	$ (12,488)			(12,488)
Date of construction	1969
Date acquired	Nov-01
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 23,434
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,488
Unencumbered Apartment Communities | Via
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	284
Initial cost
Land				22,000
Buildings and improvements				82,270
Costs capitalized subsequent to acquisition				3,630
Gross amount carried at close of period
Land and improvements				22,016
Buildings and improvements				85,884
Total	$ 107,900			107,900
Accumulated depreciation	$ (30,810)			(30,810)
Date of construction	2011
Date acquired	Jul-11
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 107,900
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 30,810
Unencumbered Apartment Communities | Via | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Via | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Villa Angelina
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	256
Initial cost
Land				4,498
Buildings and improvements				17,962
Costs capitalized subsequent to acquisition				8,173
Gross amount carried at close of period
Land and improvements				4,962
Buildings and improvements				25,671
Total	$ 30,633			30,633
Accumulated depreciation	$ (16,856)			(16,856)
Date of construction	1970
Date acquired	Nov-01
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 30,633
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 16,856
Unencumbered Apartment Communities | Villa Granada
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	270
Initial cost
Land				38,299
Buildings and improvements				89,365
Costs capitalized subsequent to acquisition				1,974
Gross amount carried at close of period
Land and improvements				38,299
Buildings and improvements				91,339
Total	$ 129,638			129,638
Accumulated depreciation	$ (22,819)			(22,819)
Date of construction	2010
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 129,638
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 22,819
Unencumbered Apartment Communities | Villa Granada | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Villa Granada | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Villa Siena
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	272
Initial cost
Land				13,842
Buildings and improvements				55,367
Costs capitalized subsequent to acquisition				9,356
Gross amount carried at close of period
Land and improvements				13,842
Buildings and improvements				64,723
Total	$ 78,565			78,565
Accumulated depreciation	$ (17,830)			(17,830)
Date of construction	1974
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 78,565
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 17,830
Unencumbered Apartment Communities | Villa Siena | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Villa Siena | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Village Green
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	272
Initial cost
Land				6,488
Buildings and improvements				36,768
Costs capitalized subsequent to acquisition				4,309
Gross amount carried at close of period
Land and improvements				6,488
Buildings and improvements				41,077
Total	$ 47,565			47,565
Accumulated depreciation	$ (11,151)			(11,151)
Date of construction	1971
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 47,565
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 11,151
Unencumbered Apartment Communities | Village Green | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Village Green | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Vista Belvedere
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	76
Initial cost
Land				5,573
Buildings and improvements				11,901
Costs capitalized subsequent to acquisition				9,031
Gross amount carried at close of period
Land and improvements				5,573
Buildings and improvements				20,932
Total	$ 26,505			26,505
Accumulated depreciation	$ (13,068)			(13,068)
Date of construction	1963
Date acquired	Aug-04
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 26,505
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 13,068
Unencumbered Apartment Communities | Vista Belvedere | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Vista Belvedere | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Vox Apartments
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	58
Initial cost
Land				5,545
Buildings and improvements				16,635
Costs capitalized subsequent to acquisition				435
Gross amount carried at close of period
Land and improvements				5,545
Buildings and improvements				17,070
Total	$ 22,615			22,615
Accumulated depreciation	$ (4,158)			(4,158)
Date of construction	2013
Date acquired	Oct-13
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 22,615
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 4,158
Unencumbered Apartment Communities | Vox Apartments | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Vox Apartments | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Walnut Heights
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	163
Initial cost
Land				4,858
Buildings and improvements				19,168
Costs capitalized subsequent to acquisition				5,868
Gross amount carried at close of period
Land and improvements				4,887
Buildings and improvements				25,007
Total	$ 29,894			29,894
Accumulated depreciation	$ (14,831)			(14,831)
Date of construction	1964
Date acquired	Oct-03
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 29,894
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 14,831
Unencumbered Apartment Communities | Walnut Heights | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Walnut Heights | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Wandering Creek
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	156
Initial cost
Land				1,285
Buildings and improvements				4,980
Costs capitalized subsequent to acquisition				5,345
Gross amount carried at close of period
Land and improvements				1,296
Buildings and improvements				10,314
Total	$ 11,610			11,610
Accumulated depreciation	$ (8,403)			(8,403)
Date of construction	1986
Date acquired	Nov-95
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 11,610
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 8,403
Unencumbered Apartment Communities | Wandering Creek | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Wandering Creek | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Wharfside Pointe
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	155
Initial cost
Land				2,245
Buildings and improvements				7,020
Costs capitalized subsequent to acquisition				13,442
Gross amount carried at close of period
Land and improvements				2,258
Buildings and improvements				20,449
Total	$ 22,707			22,707
Accumulated depreciation	$ (15,891)			(15,891)
Date of construction	1990
Date acquired	Jun-94
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 22,707
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 15,891
Unencumbered Apartment Communities | Wharfside Pointe | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Wharfside Pointe | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Willow Lake
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	508
Initial cost
Land				43,194
Buildings and improvements				101,030
Costs capitalized subsequent to acquisition				17,140
Gross amount carried at close of period
Land and improvements				43,194
Buildings and improvements				118,170
Total	$ 161,364			161,364
Accumulated depreciation	$ (37,680)			(37,680)
Date of construction	1989
Date acquired	Oct-12
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 161,364
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 37,680
Unencumbered Apartment Communities | Willow Lake | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Willow Lake | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | 5600 Wilshire
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	284
Initial cost
Land				30,535
Buildings and improvements				91,604
Costs capitalized subsequent to acquisition				5,049
Gross amount carried at close of period
Land and improvements				30,535
Buildings and improvements				96,653
Total	$ 127,188			127,188
Accumulated depreciation	$ (23,763)			(23,763)
Date of construction	2008
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 127,188
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 23,763
Unencumbered Apartment Communities | 5600 Wilshire | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | 5600 Wilshire | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Wilshire La Brea
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	478
Initial cost
Land				56,932
Buildings and improvements				211,998
Costs capitalized subsequent to acquisition				11,972
Gross amount carried at close of period
Land and improvements				56,932
Buildings and improvements				223,970
Total	$ 280,902			280,902
Accumulated depreciation	$ (60,187)			(60,187)
Date of construction	2014
Date acquired	Apr-14
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 280,902
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 60,187
Unencumbered Apartment Communities | Wilshire La Brea | Minimum
Gross amount carried at close of period
Life used for depreciation	5 years
Unencumbered Apartment Communities | Wilshire La Brea | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Wilshire Promenade
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	149
Initial cost
Land				3,118
Buildings and improvements				7,385
Costs capitalized subsequent to acquisition				12,572
Gross amount carried at close of period
Land and improvements				3,797
Buildings and improvements				19,278
Total	$ 23,075			23,075
Accumulated depreciation	$ (12,881)			(12,881)
Date of construction	1992
Date acquired	Jan-97
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 23,075
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 12,881
Unencumbered Apartment Communities | Wilshire Promenade | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Wilshire Promenade | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Windsor Ridge
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	216
Initial cost
Land				4,017
Buildings and improvements				10,315
Costs capitalized subsequent to acquisition				17,003
Gross amount carried at close of period
Land and improvements				4,021
Buildings and improvements				27,314
Total	$ 31,335			31,335
Accumulated depreciation	$ (23,963)			(23,963)
Date of construction	1989
Date acquired	Mar-89
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 31,335
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 23,963
Unencumbered Apartment Communities | Windsor Ridge | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Windsor Ridge | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Woodland Commons
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	302
Initial cost
Land				2,040
Buildings and improvements				8,727
Costs capitalized subsequent to acquisition				24,952
Gross amount carried at close of period
Land and improvements				2,044
Buildings and improvements				33,675
Total	$ 35,719			35,719
Accumulated depreciation	$ (24,474)			(24,474)
Date of construction	1978
Date acquired	Mar-90
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 35,719
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 24,474
Unencumbered Apartment Communities | Woodland Commons | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Woodland Commons | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Unencumbered Apartment Communities | Woodside Village
Real Estate and Accumulated Depreciation [Line Items]
Units | apartment	145
Initial cost
Land				5,331
Buildings and improvements				21,036
Costs capitalized subsequent to acquisition				5,855
Gross amount carried at close of period
Land and improvements				5,341
Buildings and improvements				26,881
Total	$ 32,222			32,222
Accumulated depreciation	$ (14,838)			(14,838)
Date of construction	1987
Date acquired	Dec-04
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	$ 32,222
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	$ 14,838
Unencumbered Apartment Communities | Woodside Village | Minimum
Gross amount carried at close of period
Life used for depreciation	3 years
Unencumbered Apartment Communities | Woodside Village | Maximum
Gross amount carried at close of period
Life used for depreciation	30 years
Other Property
Initial cost
Land				3,079
Buildings and improvements				12,315
Costs capitalized subsequent to acquisition				14,279
Gross amount carried at close of period
Land and improvements				3,909
Buildings and improvements				25,764
Total	$ 29,673			29,673
Accumulated depreciation	(18,859)			(18,859)
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	29,673
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	18,859
Other Property | Other real estate assets
Initial cost
Land				3,079
Buildings and improvements				12,315
Costs capitalized subsequent to acquisition				14,279
Gross amount carried at close of period
Land and improvements				3,909
Buildings and improvements				25,764
Total	29,673			29,673
Accumulated depreciation	(18,859)			(18,859)
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the end of year	29,673
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the end of year	18,859
Real Estate Rental Property
Gross amount carried at close of period
Total	14,038,142	13,366,101	13,366,101	$ 15,061,745
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at beginning of year	14,038,142	13,366,101	13,362,073
Balance at the end of year	$ 15,061,745	$ 14,038,142	$ 13,366,101