
Property Name	Location	Apartment Homes	Essex Ownership Percentage	Contract Price at Pro Rata Share
BEXAEW Portfolio	CA and WA	1,480	100%	$	252.0	(1)
Maxwell Sunnyvale	CA	75	100%	46.6		(2)
ARLO Mountain View	CA	164	100%	101.1
Patina at Midtown	CA	269	100%	58.4		(3)
Century Towers	CA	376	100%	86.8		(4)
BEX II Portfolio	CA	871	100%	168.4		(5)
Beaumont	WA	344	100%	136.1
Total acquisitions		3,579		$	849.4

(1)In March 2024, the Company acquired its joint venture partner's 49.9% interest in the BEXAEW portfolio comprised of four communities for a total contract price of $505.0 million on a gross basis. Concurrent with the acquisition, the Company repaid $219.9 million of debt. The Company recorded $138.3 million as a gain on remeasurement of co-investments and $1.5 million promote income from co-investments in the consolidated statements of income.

(2)In April 2024, the Company accepted the third-party sponsor’s common equity interest affiliated with its $14.7 million preferred equity investment. The community was consolidated on the Company’s financial statements at a $46.6 million valuation.

(3)In July 2024, the Company acquired its joint venture partner's 49.9% common equity interest in Patina at Midtown for a total purchase price of $117.0 million on a gross basis. Concurrent with the acquisition, the Company repaid $95.0 million of debt and was fully redeemed on a preferred equity investment affiliated with the partnership. The Company recorded $2.2 million as a gain on remeasurement of co-investments in the consolidated statements of income.

(4)In September 2024, the Company acquired its joint venture partner's 50% common equity interest in Century Towers for a total purchase price of $173.5 million on a gross basis. As part of the acquisition, the Company issued 81,737 OP Units at an agreed upon price of $305 per unit. Concurrent with the acquisition, the Company repaid $110.5 million of debt and was fully redeemed on a preferred equity investment affiliated with the partnership. The Company recorded $29.4 million as a gain on remeasurement of co-investments in the consolidated statements of income.

(5)In October 2024, the Company acquired its joint venture partner’s 49.9% interest in the BEX II portfolio, comprised of four communities for a total contract price of $337.5 million on a gross basis. Concurrent with the acquisition, the Company assumed $95.0 million of debt. The Company recorded $40.6 million as a gain on remeasurement of co-investments in the consolidated statements of income.

The consolidated fair value of the acquisitions listed above was included on the Company’s consolidated balance sheets as follows: $231.6 million addition to land and land improvements, $1,178.0 million was included in buildings and improvements, $9.0 million addition to prepaid expenses and other assets, $26.3 million addition to real estate under development, and $106.0 million addition to mortgage notes payable. The fair value upon the acquisition of a controlling interest of a co-investment was determined using Level 2 inputs.

For the year ended December 31, 2023, the Company acquired an apartment community, Hacienda at Camarillo Oaks, consisting of 73 apartment homes for a total purchase price of $23.1 million. The consolidated fair value of the acquisition was included on the Company’s consolidated balance sheet as follows: $5.5 million addition to land and land improvements, $18.0 million addition to buildings and improvements, and a $0.1 million addition to prepaid expenses and other assets.

(1)In October 2024, the Company sold its 81.5% interest in a consolidated co-investment, Hillsdale Garden, a 697-unit apartment home community, for a contract price of $252.4 million on a gross basis ($205.7 million at pro rata), resulting in a $175.6 million gain on sale of real estate and land in the consolidated statements of income.

For the year ended December 31, 2023, the Company sold an apartment community consisting of 239 apartment homes for $91.7 million, resulting in a gain on sale of $54.5 million. Additionally the Company sold land that had been held for future development, for $8.7 million and recognized a gain on sale of $4.7 million.

For the year ended December 31, 2022, the Company sold an apartment community consisting of 250 apartment homes for $160.0 million, resulting in a gain on sale of $94.4 million.

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 typically own, operate, and develop apartment communities. Additionally, the Company has invested in five technology co-investments and as of December 31, 2024, the co-investment balance of these investments was $57.3 million and the aggregate commitment was $86.0 million.

As of December 31, 2023, the Company had five technology co-investments and the co-investment balance of these investments was $44.2 million and the aggregate commitment was $86.0 million.

The carrying values of the Company’s co-investments as of December 31, 2024 and 2023 was as follows ($ in thousands, except in parenthetical):


	Weighted Average Essex Ownership Percentage (1)	December 31,
		2024		2023
Ownership interest in:
Wesco I, Wesco III, Wesco IV, Wesco V and Wesco VI (2)	54%	$	147,232	$	144,766
BEXAEW (3), BEX II (4), BEX IV and 500 Folsom	50%	146,142		224,119
Other (5) (6)	53%	86,089		68,493
Total operating and other co-investments, net		379,463		437,378
Total development co-investments	—%	—		14,605
Total preferred equity co-investments (includes related party investments of $48.1 million and $42.7 million as of December 31, 2024 and 2023, respectively. See Note 6, Related Party Transactions, for further discussion)		476,278		544,262
Total co-investments, net		$	855,741	$	996,245

(2)As of December 31, 2024 and 2023, the Company’s investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $77.2 million and $61.8 million, respectively, due to distributions received in excess of the Company’s investment.

(5)In the third quarter of 2024, the Company acquired its joint venture partner's interest of 49.9% in Patina at Midtown comprising 269 apartment homes, followed by the acquisition of its joint venture partner's interest of 50% in Century Towers comprising 376 apartment homes.

(6)As of December 31, 2024 the Company’s investment in Expo was classified as a liability of $2.0 million due to distributions received in excess of the Company’s investment. As of December 31, 2023 the Company’s investments in Expo and Century Towers were classified as a liability of $3.7 million due to distributions received in excess of the Company’s investment. The weighted average Essex ownership percentage excludes the Company’s investments in non-core technology co-investments which are carried at fair value.

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


	December 31,
	2024		2023
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,094,826	$	5,123,164
Other assets	277,420		279,237
Total assets	$	4,372,246	$	5,402,401
Debt	$	3,001,303	$	3,622,609
Other liabilities	235,111		317,208
Equity	1,135,832		1,462,584
Total liabilities and equity	$	4,372,246	$	5,402,401


	Year Ended December 31,
	2024		2023		2022
Combined statements of income: (1)
Property revenues	$	390,850	$	409,910	$	373,074
Property operating expenses	(154,245)		(158,520)		(140,175)
Net operating income	236,605		251,390		232,899

Interest expense	(142,601)		(154,038)		(100,913)
General and administrative	(21,157)		(20,594)		(20,579)

Depreciation and amortization	(167,875)		(174,028)		(164,186)
Net loss	$	(95,028)	$	(97,270)	$	(52,779)
Company’s share of net income (2)	$	48,206	$	10,561	$	26,030

(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 $4.6 million, $7.6 million and $7.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024 and 2023, the Company, through several co-investments, owned 7,694 and 10,425 apartment homes, respectively, in operating communities. The Company’s book value of these co-investments was $379.5 million and $437.4 million as of December 31, 2024 and 2023, respectively.

As of December 31, 2024 the Company did not have any projects in unconsolidated predevelopment or development communities. As of December 31, 2023, the Company, through its co-investments, owned 264 apartment homes in predevelopment and development communities. The Company’s book value of these co-investments was $14.6 million as of December 31, 2023.

As of December 31, 2024 and 2023, 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 $476.3 million and $544.3 million as of December 31, 2024 and 2023, respectively, and is included in the co-investments line in the accompanying consolidated balance sheets.

As of December 31, 2024, the Company had 19 preferred equity investments with total commitments of $399.4 million, of which $364.4 million had been funded, with maturities ranging from January 2025 to September 2032, and a weighted average rate of return on the outstanding balances of 9.0%.

The Company recorded a $3.7 million and $33.7 million impairment loss from unconsolidated co-investments for the years ended December 31, 2024 and 2023, respectively, as a result of an other-than-temporary decrease in the fair value of the underlying real estate investment and is included in the equity income from co-investments line in the accompanying consolidated statements of income. The valuation for the underlying real estate investment was estimated using an income approach valuation technique.

During 2024, the Company received cash proceeds of $58.8 million for the full redemption of two preferred equity investment and partial redemption of one preferred equity investments in joint ventures that hold properties located in Washington and California.

During 2023, the Company made commitments to fund $18.8 million of preferred equity investment in two real estate ventures and received cash proceeds of $72.3 million, including an early redemption fee of $0.3 million, for the full redemption of two preferred equity investments and partial redemption of two preferred equity investments in joint ventures that hold properties located in California.

During 2022, the Company made commitments to fund $84.9 million of preferred equity investment in seven real estate ventures, including one with a related party. See Note 6, Related Party Transactions, for additional details. During 2022, the Company received cash proceeds of $132.6 million, including an early redemption fee of $0.9 million, for the full redemption of three preferred equity investments and partial redemption of two preferred equity investments in joint ventures that hold properties located in California.

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, 2024, the Company’s development pipeline was comprised of various consolidated predevelopment projects, with total incurred costs of $52.7 million.