(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):

	March 31,		December 31,
	2013		2012


Membership interest in Wesco I	$	143,051	$	143,874
Partnership interest in Fund II		27,121		53,601
Membership interest in a limited liability company that owns Expo		18,714		18,752
Membership interest in Wesco III		9,821		9,941
Total operating co-investments		198,707		226,168

Membership interests in limited liability companies that own and are developing Epic, Connolly Station, Mosso I. & II. , and Elkhorn		221,247		186,362
Membership interests in limited liability companies that own and are developing The Huxley and The Dylan		16,928		16,552
Total development co-investments		238,175		202,914

Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a preferred return of 10.1%		92,550		91,843
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5%		15,055		14,438
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 13%		13,232		13,175
Preferred interest in limited liability company that owns an apartment community in downtown Los Angeles with a preferred return 10%		13,068		13,068
Preferred interest in related limited liability company that owns an apartment development in Redwood City with a preferred return of 9.5%		8,867		-
Preferred interests in limited liability companies that owns in downtown Los Angeles with preferred returns of 9% repaid in March 2013		-		9,739
Total preferred interest investments		142,772		142,263

Total co-investments	$	579,654	$	571,345

In January 2013, the Company invested $8.6 million as a preferred equity interest investment in an apartment development in Redwood City, California. The investment has a preferred return of 9.5% and matures in January 2016.

In March 2013, the Company received the redemption of $9.7 million of preferred equity related to two properties located in downtown Los Angeles. The Company recorded $0.4 million in redemption penalties due to the early redemption of these preferred equity investments.

The combined summarized balance sheet and statements of operations for co-investments are as follows (dollars in thousands).

	March 31,		December 31,
	2013		2012
Balance sheets:
Rental properties and real estate under development	$	1,709,065	$	1,745,147
Other assets		85,039		168,061

Total assets	$	1,794,104	$	1,913,208

Debt	$	785,459	$	820,895
Other liabilities		54,877		91,922
Equity		953,768		1,000,391

Total liabilities and equity	$	1,794,104	$	1,913,208

Company's share of equity	$	579,654	$	571,345

`	Three Months Ended
	March 31,
	2013			2012
Statements of operations:
Property revenues	$	27,859		$	34,323
Property operating expenses		(9,828	)		(13,137	)
Net property operating income		18,031			21,186

Interest expense		(6,778	)		(8,545	)
General and administrative		(1,514	)		(796	)
Depreciation and amortization		(11,019	)		(13,896	)

Net loss	$	(1,280	)	$	(2,051	)

Company's share of net income	$	4,211		$	2,340