Significant Transactions During the Third Quarter of 2013 and Subsequent Events	9 Months Ended
Sep. 30, 2013
Significant Transactions During the Third Quarter of 2013 and Subsequent Events [Abstract]
Significant Transactions During the Third Quarter of 2013 and Subsequent Events	(2) Significant Transactions During the Third Quarter of 2013 and Subsequent Events Acquisitions In September 2013, the Company purchased Slater 116, located in Kirkland, Washington for $29.6 million. Construction of the 108 apartment homes and 10,100 square feet of retail space was completed in August 2013. The community is currently 44% occupied or leased and is expected to have stabilized operations in early 2014. In October 2013, the Company purchased Vox Apartments, located in Seattle, Washington, for $22.2 million. The community was built in 2013 and contains 58 apartment homes. The property is stabilized. Vox Apartments is located in the Capital Hill district in close proximity to other Essex communities. Dispositions During the third quarter of 2013, the Essex Apartment Value Fund II L.P. (“Fund II”) of which the Company has a 28.2% ownership interest, sold four properties for gross proceeds of $294.0 million. In connection with the sale, Fund II incurred a prepayment penalty on debt of which the Company’s pro rata share was $0.2 million. The total GAAP gain on the sale was $137.8 million of which the Company’s share is $36.4 million, net of internal disposition costs. There are two remaining properties in the Fund II portfolio that are expected to be sold in 2014. In August 2013, the Company sold Linden Square, located in Seattle, Washington, for $25.3 million. The net proceeds from the sale were used as a 1031 exchange for the Slater 116 acquisition noted above. The total GAAP gain on the sale was $12.7 million. Secured Debt In August 2013, the Company replaced the construction loan on Expo, located in Seattle, Washington with a new 7 year, $45.0 million term loan. The loan has a variable interest rate of 150 basis points over LIBOR. The Company has entered into a $45.0 million swap to fix the effective rate at 3.7% for the entire seven year period. During the third quarter of 2013, the Company repaid a secured loan totaling $10.1 million. At the end of the quarter, the Company had $609.6 million in undrawn capacity on its unsecured credit facilities. Subsequent to the quarter end, the Company repaid a secured loan totaling $19.4 million. Structured Financing In August 2013, the Company made an $8.5 million preferred equity investment in a multifamily development project located in San Jose, California. The investment has a preferred return of 12% for a 3 year term. During the third quarter of 2013, the Company restructured the terms of a preferred equity investment on a property located in Anaheim, California, reducing the rate from 13% to 9%, while extending the maximum term by one year. The Company recorded $0.4 million of income related to the restructured investment.

(2) Significant Transactions During the Third Quarter of 2013 and Subsequent Events

Acquisitions

In September 2013, the Company purchased Slater 116, located in Kirkland, Washington for $29.6 million. Construction of the 108 apartment homes and 10,100 square feet of retail space was completed in August 2013. The community is currently 44% occupied or leased and is expected to have stabilized operations in early 2014.

In October 2013, the Company purchased Vox Apartments, located in Seattle, Washington, for $22.2 million. The community was built in 2013 and contains 58 apartment homes. The property is stabilized. Vox Apartments is located in the Capital Hill district in close proximity to other Essex communities.

Dispositions

During the third quarter of 2013, the Essex Apartment Value Fund II L.P. (“Fund II”) of which the Company has a 28.2% ownership interest, sold four properties for gross proceeds of $294.0 million. In connection with the sale, Fund II incurred a prepayment penalty on debt of which the Company’s pro rata share was $0.2 million. The total GAAP gain on the sale was $137.8 million of which the Company’s share is $36.4 million, net of internal disposition costs. There are two remaining properties in the Fund II portfolio that are expected to be sold in 2014.

In August 2013, the Company sold Linden Square, located in Seattle, Washington, for $25.3 million. The net proceeds from the sale were used as a 1031 exchange for the Slater 116 acquisition noted above. The total GAAP gain on the sale was $12.7 million.

Secured Debt

In August 2013, the Company replaced the construction loan on Expo, located in Seattle, Washington with a new 7 year, $45.0 million term loan. The loan has a variable interest rate of 150 basis points over LIBOR. The Company has entered into a $45.0 million swap to fix the effective rate at 3.7% for the entire seven year period.

During the third quarter of 2013, the Company repaid a secured loan totaling $10.1 million. At the end of the quarter, the Company had $609.6 million in undrawn capacity on its unsecured credit facilities. Subsequent to the quarter end, the Company repaid a secured loan totaling $19.4 million.

Structured Financing

In August 2013, the Company made an $8.5 million preferred equity investment in a multifamily development project located in San Jose, California. The investment has a preferred return of 12% for a 3 year term.

During the third quarter of 2013, the Company restructured the terms of a preferred equity investment on a property located in Anaheim, California, reducing the rate from 13% to 9%, while extending the maximum term by one year. The Company recorded $0.4 million of income related to the restructured investment.