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Real Estate Investments (Tables)
 12 Months Ended
Dec. 31, 2024
Real Estate Investments, Net [Abstract]  
Schedule of Real Estate Properties
The table below summarizes acquisition activity for the year ended December 31, 2024 ($ in millions):

Property NameLocationApartment HomesEssex Ownership PercentageContract Price at Pro Rata Share
BEXAEW PortfolioCA and WA1,480 100%$252.0 
(1)
Maxwell SunnyvaleCA75 100%46.6
(2)
ARLO Mountain ViewCA164 100%101.1
Patina at MidtownCA269 100%58.4
(3)
Century TowersCA376 100%86.8
(4)
BEX II PortfolioCA871 100%168.4
(5)
BeaumontWA344 100%136.1
Total acquisitions3,579  $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 $40.6 million as a gain on remeasurement of co-investments in the consolidated statements of income.
Sales of Real Estate Investments
The table below summarizes the disposition activity for the year ended December 31, 2024 ($ in millions):

Property NameLocationApartment HomesSale Price at Pro Rata Share
Hillsdale GardenCA697 $205.7 
(1)
Total dispositions697 $205.7 
(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 $175.6 million gain on sale of real estate and land in the consolidated statements of income.
Summary of Co-Investment
The carrying values of the Company’s co-investments as of December 31, 2024 and 2023 was as follows ($ in thousands, except in parenthetical):
Weighted Average Essex Ownership Percentage (1)
December 31,
 20242023
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, net379,463 437,378 
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 

(1)Weighted average Company ownership percentages are as of December 31, 2024.
(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.
(3)In March 2024, the Company acquired BEXAEW's 49.9% interest in four apartment communities consisting of 1,480 apartment homes.
(4)In October 2024, the Company acquired BEX II LLC's 49.9% interest in four communities totaling 871 apartment homes.
(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 $3.7 million due to distributions received in excess of the Company’s investment. The weighted average Essex ownership percentage excludes the Company’s investments in non-core technology co-investments which are carried at fair value.
Summarized Financial Statement for Co-Investment Accounted for Under the Equity Method
The combined summarized financial information of co-investments was as follows ($ in thousands):
 December 31,
 20242023
Combined balance sheets: (1)
Rental properties and real estate under development$4,094,826 $5,123,164 
Other assets277,420 279,237 
Total assets$4,372,246 $5,402,401 
Debt$3,001,303 $3,622,609 
Other liabilities235,111 317,208 
Equity1,135,832 1,462,584 
Total liabilities and equity$4,372,246 $5,402,401 

Year Ended December 31,
 202420232022
Combined statements of income: (1)
Property revenues$390,850 $409,910 $373,074 
Property operating expenses(154,245)(158,520)(140,175)
Net operating income236,605 251,390 232,899 
Interest expense(142,601)(154,038)(100,913)
General and administrative(21,157)(20,594)(20,579)
Depreciation and amortization(167,875)(174,028)(164,186)
Net loss$(95,028)$(97,270)$(52,779)
Company’s share of net income (2)
$48,206 $10,561 $26,030 

(1)Includes preferred equity investments held by the Company and excludes investments in technology co-investments.
(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.