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Significant Transactions During the Three Months Ended March 31, 2025 and Subsequent Events
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Significant Transactions During the Three Months Ended March 31, 2025 and Subsequent Events Significant Transactions During the Three Months Ended March 31, 2025 and Subsequent Events
Significant Transactions

Acquisition of Real Estate Interests

Property NameLocationApartment HomesEssex Ownership PercentageContract Price at Pro Rata Share
The PlazaCA307100%$161.4 
One Hundred GrandCA166N/A105.3 
(1)
ROEN Menlo ParkCA146100%78.8 
Total acquisitions619 $345.5 

(1)    One Hundred Grand replaced Highridge, an apartment community owned by DownREIT entities that are consolidated by the Company, within the DownREIT structures of those entities pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended (“Section 1031 Exchange”).
Disposition of Real Estate Interests

Property NameLocationApartment HomesSale Price at Pro Rata Share
HighridgeCA255$127.0 
(1)
Total dispositions255$127.0 

(1)    Highridge, an apartment community owned by DownREIT entities that are consolidated by the Company, was replaced by One Hundred Grand within the DownREIT structures of those entities pursuant to a Section 1031 Exchange. The Company recognized a $111.0 million gain on sale of real estate and land in the condensed consolidated statements of income and comprehensive income. In conjunction with the sale, $69.6 million in debt associated with the property was paid off and the Company recorded a $0.8 million loss on early extinguishment of debt.

Real Estate Assets Held for Sale

As of March 31, 2025, one community comprised of 350 apartment homes was classified as held for sale.

Preferred Equity Investments

In the fourth quarter of 2024, the Company repaid a $72.0 million senior mortgage associated with a $22.7 million preferred equity investment in Artizan, a 241-unit stabilized apartment home community located in Oakland, CA, and subsequently issued a default notice to the third-party sponsor in January 2025, assumed full managerial control and consolidated the property based on a valuation of $95.0 million. The Company recorded $0.3 million as a gain on remeasurement of co-investment in the condensed consolidated statements of income and comprehensive income.

In March 2025, the Company received cash of $9.9 million for the full redemption of a preferred equity investment in a joint venture that holds property located in California.

Senior Unsecured Debt

In February 2025, the Operating Partnership issued $400.0 million of senior unsecured notes due on April 1, 2035 with a coupon rate of 5.375% per annum (the “2035 Notes”), which are payable on April 1 and October 1 of each year, beginning on October 1, 2025. The 2035 Notes were offered to investors at a price of 99.604% of the principal amount. The 2035 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.

Subsequent events

Subsequent to quarter end, the Company sold the held for sale property noted above for a contract price of $239.6 million.

In April 2025, the Company repaid its $500.0 million unsecured notes at maturity.