Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2016

Real Estate Investments, Net [Abstract]

Schedule of Real Estate Properties

The table below summarizes acquisition activity for the year ended December 31, 2016 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2016	Purchase Price
Mio	San Jose, CA	103	100	%	Q1	$	51.3
Form 15	San Diego, CA	242	100	%	Q1	97.4
Emerson Valley Village	Los Angeles, CA	144	100	%	Q4	67.0
Ashton Sherman Village	Los Angeles, CA	264	100	%	Q4	118.0
Total 2016		753				$	333.7

Disposal Groups, Including Discontinued Operations

The table below summarizes disposition activity for the year ended December 31, 2016 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Ownership	Quarter in 2016	Sales Price		Gains
Harvest Park	Santa Rosa, CA	104	100	%	EPLP	Q1	$	30.5	$	6.4	(1)
Tuscana	Tracy, CA	30	100	%	EPLP	Q4	6.7		0.3		(2)
Candlewood North	Northridge, CA	189	100	%	EPLP	Q4	43.6		7.3
Total 2016		323					$	80.8	$	14.0

⁽¹⁾  Net of $4.3 million deferred tax on gain on sale of real estate.

⁽²⁾  Net of $0.1 million deferred tax on gain on sale of real estate.

Summary of Co Investment

The carrying values of the Company’s co-investments as of December 31, 2016 and 2015 are as follows ($ in thousands):

	Ownership		December 31,
	Percentage		2016		2015
Membership interest/Partnership interest in:
CPPIB	50%-55%		$	422,068	$	422,317
Wesco I, III and IV	50	%	180,687		218,902
Palm Valley	50	%	68,396		68,525
BEXAEW	50	%	47,963		88,850
BEX II	50	%	19,078		—
Other	50%-55%		43,713		32,927
Total operating co-investments			781,905		831,521
Total development co-investments	50%-55%		157,317		98,214
Total preferred interest co-investments (includes related party investments of $35.9 million and $35.8 million as of December 31, 2016 and December 31, 2015, respectively - FN 5 - Related Party Transactions for further discussion)			222,053		106,312
Total co-investments			$	1,161,275	$	1,036,047

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,
	2016		2015
Combined balance sheets: (1)
Rental properties and real estate under development	$	3,807,245	$	3,360,360
Other assets	121,505		96,785
Total assets	$	3,928,750	$	3,457,145
Debt	$	1,617,639	$	1,499,601
Other liabilities	74,607		92,241
Equity	2,236,504		1,865,303
Total liabilities and equity	$	3,928,750	$	3,457,145
Company's share of equity	$	1,161,275	$	1,036,047

	Years ended December 31,
	2016			2015			2014
Combined statements of income: (1)
Property revenues	$	289,011		$	260,175		$	188,548
Property operating expenses	(99,637		)	(93,067		)	(71,419		)
Net operating income	189,374			167,108			117,129
Gain on sale of real estate	28,291			14			23,333
Interest expense	(46,894		)	(44,834		)	(39,990		)
General and administrative	(7,448		)	(5,879		)	(6,321		)
Equity income from co-investments (2)	—			—			26,798
Depreciation and amortization	(103,986		)	(103,613		)	(74,657		)
Net income	$	59,337		$	12,796		$	46,292
Company's share of net income (3)	$	48,698		$	21,861		$	39,893

⁽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 $3.4 million and $3.7 million for the years ended December 31, 2016 and 2015, respectively.