(3)	Co-investments

The Company has co-investments, which are accounted for under the equity method. The co-investments own, operate and develop apartment communities.

The following table details the Company's co-investments (dollars in thousands):

	September 30,		December 31,
	2012		2011
Investments in joint ventures accounted for under the equity method of accounting:

Membership interest in Wesco I	$	83,006	$	75,588
Partnership interest in Fund II		60,225		64,294
Membership interest in a limited liability company that owns Essex Skyline at MacArthur Place		-		24,063
Total operating co-investments		143,231		163,945

Membership interests in limited liability companies that own and are developing Epic, Lync, Elkhorn, and Folsom and Fifth		158,786		62,897

Membership interest in a limited liability company that owns and is developing Expo		18,759		17,981
Membership interests in limited liability companies that own and are developing Fountain at La Brea and Santa Monica at La Brea		16,189		15,194
Total development co-investments		193,734		96,072

Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a perferred return of 10.1%		90,910		88,075
Preferred interests in limited liability companies that own apartment communities in downtown Los Angeles with preferred returns of 9% and 10%		22,807		22,792
Preferred interests in related party limited liability companies that owns Sage at Cupertino with a preferred return of 9.5%		14,320		-
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 13%		12,965		12,528
Total preferred interest investments		141,002		123,395
Total co-investments	$	477,967	$	383,412

The combined summarized balance sheet and statements of operations for co-investments, which are accounted for under the equity method, are as follows (dollars in thousands).

	September 30,		December 31,
	2012		2011
Balance sheets:
Rental properties and real estate under development	$	1,788,959	$	1,659,078
Other assets		61,215		63,847

Total assets	$	1,850,174	$	1,722,925

Debt	$	928,204	$	900,095
Other liabilities		67,540		48,518
Equity		854,430		774,312

Total liabilities and equity	$	1,850,174	$	1,722,925

Company's share of equity	$	477,967	$	383,412

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Statements of operations:
Property revenues	$	34,425		$	28,286		$	96,981		$	70,882
Property operating expenses		(12,686	)		(11,699	)		(35,852	)		(29,394	)
Net property operating income		21,739			16,587			61,129			41,488

Interest expense		(9,453	)		(7,354	)		(25,790	)		(22,764	)
General and administrative		(916	)		(82	)		(2,632	)		(1,104	)
Depreciation and amortization		(12,821	)		(11,957	)		(35,593	)		(29,963	)

Net loss	$	(1,451	)	$	(2,806	)	$	(2,886	)	$	(12,343	)
Company's share of net income (loss)	$	3,547		$	317		$	8,998		$	(330	)