Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2015

Real Estate Investments, Net [Abstract]

Disposal Groups, Including Discontinued Operations

The table below summarized disposition activity for the year ended December 31, 2015 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Ownership	Quarter in 2015	Sales Price		Gains
Pinnacle South Mountain	Phoenix, AZ	552	100	%	EPLP	Q1	$	63.8	$	4.7
Sharon Green	Menlo Park, CA	296	100	%	EPLP	Q4	245.0		40.2
Total 2015		848					$	308.8	$	44.9

The components of discontinued operations are outlined below and include the results of operations for the respective periods that the Company owned such assets, as described above ($ in thousands):

	2013
Revenues	$	4,454
Property operating expenses	(1,406		)
Depreciation and amortization	(1,098		)
Expenses	(2,504		)
Operating income from real estate sold	1,950
Gain on sale of real estate	29,223
Income from discontinued operations	$	31,173

Schedule of Real Estate Properties

The table below summarizes acquisition activity for the year ended December 31, 2015 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2015	Purchase Price
8th & Hope	Los Angeles, CA	290	100	%	Q1	$	200.0
The Huxley (1)	Los Angeles, CA	187	100	%	Q1	48.8
The Dylan (1)	Los Angeles, CA	184	100	%	Q1	51.3
Reveal (2)	Woodland Hills, CA	438	99.75	%	Q2	73.0
Avant	Los Angeles, CA	247	100	%	Q2	99.0
Avant II	Los Angeles, CA	193	100	%	Q4	73.0
Enso	San Jose, CA	183	100	%	Q4	93.0
Total 2015		1,722				$	638.1

⁽¹⁾  In March 2015, the Company purchased the joint venture partner's remaining membership interest in The Huxley and The Dylan co-investments for a purchase price of $100.1 million. The properties are now consolidated.

⁽²⁾  In April 2015, the Company purchased the joint venture partner's 49.5% membership interest in the Reveal co-investment for a purchase price of $73.0 million. The property is now consolidated.

Summary of Co Investment

The carrying values of the Company’s co-investments as of December 31, 2015 and 2014 are as follows ($ in thousands):

	Ownership		December 31,
	Percentage		2015		2014
Membership interest/Partnership interest in:
CPPIB	50%-55%		$	329,723	$	336,977
Wesco I, III and IV	50	%	218,902		256,790
BEXAEW	50	%	88,850		97,686
Palm Valley	50	%	68,525		70,186
Other	28%-55%		32,927		50,438
Total operating co-investments			738,927		812,077
Total development co-investments	50%-55%		190,808		121,655
Total preferred interest co-investments (includes related party investments of $35.8 million and $40.8 million as of December 31, 2015 and December 31, 2014, respectively)			106,312		108,691
Total co-investments			$	1,036,047	$	1,042,423

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,
	2015		2014
Combined balance sheets: (1)
Rental properties and real estate under development	$	3,360,360	$	3,426,574
Other assets	96,785		107,902
Total assets	$	3,457,145	$	3,534,476
Debt	$	1,499,601	$	1,568,398
Other liabilities	92,241		91,579
Equity	1,865,303		1,874,499
Total liabilities and equity	$	3,457,145	$	3,534,476
Company's share of equity	$	1,036,047	$	1,042,423

	Years ended December 31,
	2015			2014			2013
Combined statements of income: (1)
Property revenues	$	260,175		$	188,548		$	100,402
Property operating expenses	(93,067		)	(71,419		)	(37,518		)
Net operating income	167,108			117,129			62,884
Gain on sale of real estate	14			23,333			146,758
Interest expense	(44,834		)	(39,990		)	(24,155		)
General and administrative	(5,879		)	(6,321		)	(5,344		)
Equity income from co-investments (2)	—			26,798			18,703
Depreciation and amortization	(103,613		)	(74,657		)	(36,831		)
Net income	$	12,796		$	46,292		$	162,015
Company's share of net income (3)	$	21,861		$	39,893		$	55,865

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

⁽²⁾  Represents income from Wesco II's preferred equity investment in Park Merced.

⁽³⁾  Includes the Company's share of equity income from co-investments, income from preferred equity investments, gain on sale of co-investments, co-investment promote income, and income from early redemption of preferred equity investments. Includes income earned from investments with a related party of $3.7 million and $3.8 million for the years ended December 31, 2015 and 2014, respectively.