Item 2. Properties

The Company’s Portfolio as of December 31, 2014 (including communities owned by unconsolidated joint ventures, but excluding communities underlying preferred equity investments) was comprised of 239 apartment communities (comprising 57,455 apartment units), of which 27,125 units are located in Southern California, 17,604 units are located in the San Francisco Bay Area, and 12,174 units are located in the Seattle metropolitan area. The Company’s apartment communities accounted for 99.0% of the Company’s revenues for the year ended December 31, 2014.

Occupancy Rates

Financial occupancy is defined as the percentage resulting from dividing actual rental revenue by total possible rental revenue. When calculating actual rents for occupied units and market rents for vacant units, delinquencies and concessions are not taken into account. Total possible rental revenue represents the value of all apartment units, with occupied units valued at contractual

rental rates pursuant to leases and vacant units valued at estimated market rents. The Company believes that financial occupancy is a meaningful measure of occupancy because it considers the value of each vacant unit at its estimated market rate. Financial occupancy may not completely reflect short-term trends in physical occupancy and financial occupancy rates as disclosed by other REITs may not be comparable to the Company’s calculation of financial occupancy. Market rates are determined using a variety of factors such as effective rental rates at the property based on recently signed leases and asking rates for comparable properties in the market. The recently signed effective rates at the property are used as the starting point in the determination of the market rates of vacant units. The Company then increases or decreases these rates based on the supply and demand in the apartment community’s market. The Company will check the reasonableness of these rents based on its position within the market and compare the rents against the asking rents by comparable properties in the market.

For communities that are development properties in lease-up without stabilized occupancy figures, the Company believes the physical occupancy rate is the appropriate performance metric. While a community is in the lease-up phase, the Company’s primary motivation is to stabilize the property which may entail the use of rent concessions and other incentives, and thus financial occupancy which is based on contractual revenue is not considered the best metric to quantify occupancy.

Communities

The Company’s communities are primarily suburban garden-style communities and town homes comprising multiple clusters of two and three-story buildings situated on three to fifteen acres of land. As of December 31, 2014, the Company’s communities include 163 garden-style, 72 mid-rise, and 4 high-rise communities. The communities have an average of approximately 240 units, with a mix of studio, one, two and some three-bedroom units. A wide variety of amenities are available at the Company’s communities, including covered parking, fireplaces, swimming pools, clubhouses with fitness facilities, volleyball and playground areas and tennis courts.

The Company hires, trains and supervises on-site service and maintenance personnel. The Company believes that the following primary factors enhance the Company’s ability to retain tenants:

•	located near employment centers;

•	attractive communities that are well maintained; and

•	proactive customer service.

Commercial Buildings

The Company’s corporate headquarters is located in two office buildings with approximately 39,600 square feet located at 925/935 East Meadow Drive, Palo Alto, California. The Company owns an office building with approximately 107,720 square feet located in Irvine, California, of which the Company occupies approximately 5,000 square feet at December 31, 2014. The Company owns Essex-Hollywood, a 34,000 square foot commercial building and a 138,915 square foot retail site in Santa Clara, California as future development sites that are currently 100% leased.

The following tables describe the Company’s operating portfolio as of December 31, 2014. The first table describes the Company’s communities and the second table describes the Company’s other real estate assets. (See Note 7 of the Company’s consolidated financial statements for more information about the Company’s secured mortgage debt and Schedule III for a list of secured mortgage loans related to the Company’s Portfolio.)

							Rentable					Year
Communities (1)		Location		Units			Square Footage			Year Built		Acquired		Occupancy(2)
Southern California
Alpine Village		Alpine, CA		301			254,400			1971		2002		97%
Anavia		Anaheim, CA		250			312,343			2009		2010		96%
Barkley, The (3)(4)		Anaheim, CA		161			139,800			1984		2000		97%
Park Viridian		Anaheim, CA		320			254,600			2008		2014		96%
Bonita Cedars		Bonita, CA		120			120,800			1983		2002		97%
Camarillo Oaks		Camarillo, CA		564			459,000			1985		1996		96%
Camino Ruiz Square		Camarillo, CA		160			105,448			1990		2006		97%

							Rentable					Year
Communities (1)		Location		Units			Square Footage			Year Built		Acquired		Occupancy(2)
Enclave at Town Square (34)		Chino Hills, CA		124			89,948			1987		2014		97%
The Heights I & II (34)		Chino Hills, CA		332			324,370			2004		2014		96%
The Summit (5)		Chino Hills, CA		125			98,420			1989		2014		96%
Pinnacle at Otay Ranch		Chula Vista, CA		364			384,192			2001		2014		95%
Mesa Village		Clairemont, CA		133			43,600			1963		2002		97%
Villa Siena		Costa Mesa, CA		272			262,842			1974		2014		96%
Emerald Pointe		Diamond Bar, CA		160			134,816			1989		2014		96%
Regency at Encino		Encino, CA		75			78,487			1989		2009		96%
The Havens (34)		Fountain Valley, CA		440			414,040			1969		2014		96%
Valley Park		Fountain Valley, CA		160			169,700			1969		2001		98%
Capri at Sunny Hills (4)		Fullerton, CA		100			128,100			1961		2001		97%
Haver Hill (5)		Fullerton, CA		264			224,130			1973		2012		96%
Pinnacle at Fullerton		Fullerton, CA		192			174,336			2004		2014		96%
Wilshire Promenade		Fullerton, CA		149			128,000			1992		1997		96%
Montejo (4)		Garden Grove, CA		124			103,200			1974		2001		97%
CBC Apartments		Goleta, CA		148			91,538			1962		2006		97%
The Sweeps		Goleta, CA		91			88,370			1967		2006		97%
416 on Broadway		Glendale, CA		115			126,782			2009		2010		97%
Hampton Court		Glendale, CA		83			71,500			1974		1999		95%
Hampton Place		Glendale, CA		132			141,500			1970		1999		95%
Devonshire		Hemet, CA		276			207,200			1988		2002		96%
Jefferson at Hollywood		Hollywood, CA		270			238,119			2010		2014		94%
Huntington Breakers		Huntington Beach, CA		342			241,700			1984		1997		94%
The Huntington		Huntington Beach, CA		276			202,256			1975		2012		97%
Axis 2300		Irvine, CA		115			170,714			2010		2010		95%
Hillsborough Park		La Habra, CA		235			215,500			1999		1999		97%
Village Green		La Habra, CA		272			175,762			1971		2014		96%
The Palms at Laguna Niguel		Laguna Niguel, CA		460			362,136			1988		2014		96%
Trabuco Villas		Lake Forest, CA		132			131,000			1985		1997		98%
Madrid Apartments (6)		Mission Viejo, CA		230			228,099			2000		2012		97%
Marbrisa		Long Beach, CA		202			122,800			1987		2002		96%
Pathways		Long Beach, CA		296			197,700			1975 (7)		1991		96%
5600 Wilshire		Los Angeles, CA		284			243,910			2008		2014		95%
Alessio		Los Angeles, CA		624			552,716			2001		2014		95%
The Avery (4)		Los Angeles, CA		121			129,393			2014		2014		73%
Belmont Station		Los Angeles, CA		275			225,000			2008		2008		97%
Bellerive		Los Angeles, CA		63			79,296			2011		2011		97%
Bunker Hill		Los Angeles, CA		456			346,600			1968		1998		92%
Catalina Gardens		Los Angeles, CA		128			117,585			1987		2014		97%
Cochran Apartments		Los Angeles, CA		58			51,400			1989		1998		97%
Kings Road		Los Angeles, CA		196			132,100			1979		1997		95%
Gas Company Lofts (5)		Los Angeles, CA		251			226,666			2004		2013		96%
Marbella, The		Los Angeles, CA		60			50,108			1991		2005		97%
Pacific Electric Lofts (6)		Los Angeles, CA		314			277,980			2006		2012		94%

							Rentable					Year
Communities (1)		Location		Units			Square Footage			Year Built		Acquired		Occupancy(2)
Park Catalina		Los Angeles, CA		90			72,864			2002		2012		96%
Park Place		Los Angeles, CA		60			48,000			1988		1997		97%
Regency Palm Court (5)		Los Angeles, CA		116			54,844			1987		2014		96%
Santee Court		Los Angeles, CA		165			132,040			2004		2010		97%
Santee Village		Los Angeles, CA		73			69,817			2011		2011		97%
Tiffany Court		Los Angeles, CA		101			74,538			1987		2014		98%
Wilshire La Brea		Los Angeles, CA		478			354,972			2014		2014		65%
Windsor Court (5)		Los Angeles, CA		95			51,266			1987		2014		96%
Windsor Court		Los Angeles, CA		58			46,600			1988		1997		97%
Aqua at Marina Del Rey		Marina Del Rey, CA		500			479,312			2001		2014		95%
Marina City Club (8)		Marina Del Rey, CA		101			127,200			1971		2004		97%
Mirabella		Marina Del Rey, CA		188			176,800			2000		2000		97%
Mira Monte		Mira Mesa, CA		355			262,600			1982		2002		96%
Hillcrest Park		Newbury Park, CA		608			521,900			1973		1998		96%
Fairways (9)		Newport Beach, CA		74			107,100			1972		1999		95%
Muse		North Hollywood, CA		152			135,292			2011		2011		97%
Candlewood North		Northridge, CA		189			166,910			1964		2014		97%
Canyon Creek (34)		Northridge, CA		200			148,150			1986		2014		95%
Country Villas		Oceanside, CA		180			179,700			1976		2002		96%
Mission Hills		Oceanside, CA		282			244,000			1984		2005		97%
Renaissance at Uptown Orange		Orange, CA		460			432,836			2007		2014		96%
Mariners Place		Oxnard, CA		105			77,200			1987		2000		98%
Monterey Villas		Oxnard, CA		122			122,100			1974		1997		96%
Tierra Vista		Oxnard, CA		404			387,100			2001		2001		96%
Arbors Parc Rose (6)		Oxnard, CA		373			503,196			2001		2011		95%
Monterra del Mar		Pasadena, CA		123			74,400			1972		1997		92%
Monterra del Rey		Pasadena, CA		84			73,100			1972		1999		92%
Monterra del Sol		Pasadena, CA		85			69,200			1972		1999		92%
Stuart at Sierra Madre Villa		Pasadena, CA		188			168,630			2007		2014		95%
Villa Angelina		Placentia, CA		256			217,600			1970		2001		96%
Fountain Park		Playa Vista, CA		705			608,900			2002		2004		97%
Highridge (4)		Rancho Palos Verdes, CA		255			290,200			1972 (10)		1997		95%
Cortesia at Rancho Santa Margarita		Rancho Santa Margarita, CA		308			277,580			1999		2014		95%
Pinnacle at Talega		San Clemente, CA		362			355,764			2002		2014		96%
Allure at Scripps Ranch		San Diego, CA		194			207,052			2002		2014		97%
Bernardo Crest		San Diego, CA		216			205,548			1988		2014		97%
Cambridge Park		San Diego, CA		320			317,958			1998		2014		96%
Carmel Creek		San Diego, CA		348			384,216			2000		2014		96%
Carmel Landing		San Diego, CA		356			283,426			1989		2014		96%
Carmel Summit		San Diego, CA		246			225,880			1989		2014		97%
CentrePointe		San Diego, CA		224			126,700			1974 (11)		1997		94%
Domain		San Diego, CA		379			345,044			2013		2013		93%
Esplanade (34)		San Diego, CA		616			479,600			1986		2014		96%
Montanosa		San Diego, CA		472			414,968			1990		2014		96%

							Rentable					Year
Communities (1)		Location		Units			Square Footage			Year Built		Acquired		Occupancy(2)
Summit Park		San Diego, CA		300			229,400			1972		2002		96%
Essex Skyline at MacArthur Place (12)		Santa Ana, CA		349			512,791			2008		2012		96%
Fairhaven (4)		Santa Ana, CA		164			135,700			1970		2001		97%
Parkside Court (34)		Santa Ana, CA		210			152,400			1986		2014		96%
Hope Ranch Collection		Santa Barbara, CA		108			126,700			1965&73		2007		98%
Bridgeport Coast (35)		Santa Clarita, CA		188			168,198			2006		2014		95%
Hidden Valley (13)		Simi Valley, CA		324			310,900			2004		2004		97%
Meadowood		Simi Valley, CA		320			264,500			1986		1996		96%
Pinnacle at MacArthur Place		South Coast Metro, CA		253			262,867			2002		2014		97%
Shadow Point		Spring Valley, CA		172			131,200			1983		2002		96%
The Fairways at Westridge (35)		Valencia, CA		234			223,330			2004		2014		96%
Vistas of West Hills (35)		Valencia, CA		220			221,119			2009		2014		96%
Allegro		Valley Village, CA		97			127,812			2010		2010		96%
Lofts at Pinehurst, The		Ventura, CA		118			71,100			1971		1997		98%
Pinehurst (14)		Ventura, CA		28			21,200			1973		2004		97%
Woodside Village		Ventura, CA		145			136,500			1987		2004		97%
Walnut Heights		Walnut, CA		163			146,700			1964		2003		97%
The Huxley (29)		West Hollywood, CA		187			154,776			2014		2014		67%
Reveal (6)		Woodland Hills, CA		438			414,892			2010		2011		95%
Avondale at Warner Center		Woodland Hills, CA		446			331,000			1970 (15)		1997		97%
				27,125			24,095,190							95%
Northern California
Belmont Terrace		Belmont, CA		71			72,951			1974		2006		95%
Fourth & U		Berkeley, CA		171			146,255			2010		2010		96%
The Commons		Campbell, CA		264			153,168			1973		2010		96%
The Pointe at Cupertino (17)		Cupertino, CA		116			135,200			1963		1998		94%
Connolly Station (36)		Dublin, CA		309			286,348			2014		2014		93%
Avenue 64		Emeryville, CA		224			196,896			2007		2014		95%
Foster's Landing		Foster City, CA		490			415,130			1987		2014		95%
Stevenson Place		Fremont, CA		200			146,200			1971		1983		97%
Mission Peaks		Fremont, CA		453			404,034			1995		2014		96%
Mission Peaks II		Fremont, CA		336			294,720			1989		2014		96%
Paragon Apartments		Fremont, CA		301			267,047			2013		2014		97%
Boulevard		Fremont, CA		172			131,200			1978 (18)		1996		97%
Briarwood (6)		Fremont, CA		160			111,160			1978		2011		96%
The Woods (6)		Fremont, CA		160			105,280			1978		2011		96%
City Centre (35)		Hayward, CA		192			175,420			2000		2014		97%
City View		Hayward, CA		572			462,400			1975 (19)		1998		97%
Lafayette Highlands		Lafayette, CA		150			151,790			1973		2014		96%
Sharon Green		Menlo Park, CA		296			328,024			1970		2014		95%
Apex		Milpitas, CA		366			350,961			2014		2014		96%
Regency at Mountain View (5)		Mountain View, CA		142			127,600			1970		2013		95%
Bridgeport		Newark, CA		184			139,000			1987 (20)		1987		97%
The Landing Jack London Sq		Oakland, CA		282			257,796			2001		2014		95%
The Grand		Oakland, CA		243			205,026			2009		2009		97%

							Rentable					Year
Communities (1)		Location		Units			Square Footage			Year Built		Acquired		Occupancy(2)
San Marcos		Richmond, CA		432			407,600			2003		2003		97%
Bennett Lofts		San Francisco, CA		165			184,713			2004		2012		86%
Fox Plaza		San Francisco, CA		443			230,017			1968		2013		95%
Mosso I		San Francisco, CA		181			223,222			2014		2014		32%
Park West		San Francisco, CA		126			90,060			1958		2012		94%
101 San Fernando		San Jose, CA		323			296,078			2001		2010		97%
Bella Villagio		San Jose, CA		231			227,511			2004		2010		97%
Epic - Phase I & II (21)		San Jose, CA		569			472,236			2013		2013		86%
Esplanade		San Jose, CA		278			279,000			2002		2004		96%
Fountains at River Oaks		San Jose, CA		226			209,954			1990		2014		96%
Museum Park		San Jose, CA		117			121,329			2002		2014		96%
Palm Valley (29)		San Jose, CA		1,098			1,132,284			2008		2014		97%
The Carlyle		San Jose, CA		132			129,200			2000		2000		97%
The Waterford		San Jose, CA		238			219,600			2000		2000		97%
Willow Lake		San Jose, CA		508			471,744			1989		2012		95%
Lakeshore Landing		San Mateo, CA		308			223,972			1988		2014		95%
Hillsdale Garden		San Mateo, CA		697			611,505			1948		2006		97%
Deer Valley		San Rafael, CA		171			167,238			1996		2014		97%
Bel Air		San Ramon, CA		462			391,000			1988		1995		96%
Canyon Oaks		San Ramon, CA		250			237,894			2005		2007		97%
Crow Canyon		San Ramon, CA		400			337,064			1992		2014		96%
Foothill/Twins Creeks		San Ramon, CA		132			155,100			1985		1997		95%
Mill Creek at Windermere		San Ramon, CA		400			381,060			2005		2007		97%
Twin Creeks/Foothill		San Ramon, CA		44			51,700			1985		1997		95%
1000 Kiely		Santa Clara, CA		121			128,486			1971		2011		96%
Le Parc		Santa Clara, CA		140			113,200			1975		1994		96%
Marina Cove (22)		Santa Clara, CA		292			250,200			1974 (23)		1994		96%
Riley Square (6)		Santa Clara, CA		156			126,900			1972		2012		95%
Villa Granada		Santa Clara, CA		270			238,841			2010		2014		96%
Chestnut Street Apartments		Santa Cruz, CA		96			87,640			2002		2008		98%
Harvest Park		Santa Rosa, CA		104			116,628			2004		2007		96%
Bristol Commons		Sunnyvale, CA		188			142,600			1989		1995		96%
Brookside Oaks (4)		Sunnyvale, CA		170			119,900			1973		2000		95%
Lawrence Station		Sunnyvale, CA		336			297,188			2012		2014		97%
Magnolia Lane (24)		Sunnyvale, CA		32			31,541			2001		2007		95%
Magnolia Square (4)		Sunnyvale, CA		156			110,824			1969		2007		95%
Montclaire		Sunnyvale, CA		390			294,100			1973 (25)		1988		97%
Reed Square		Sunnyvale, CA		100			95,440			1970		2011		95%
Solstice		Sunnyvale, CA		280			571,466			2014		2014		87%
Summerhill Park		Sunnyvale, CA		100			78,500			1988		1988		94%
Via		Sunnyvale, CA		284			309,421			2011		2011		96%
Windsor Ridge		Sunnyvale, CA		216			161,800			1989		1989		97%
Vista Belvedere		Tiburon, CA		76			78,300			1963		2004		95%
Tuscana		Tracy, CA		30			29,088			2007		2007		99%
Verandas (35)		Union City, CA		282			199,092			1989		2014		97%
				17,604			15,895,842							95%
Seattle, Washington Metropolitan Area

							Rentable					Year
Communities (1)		Location		Units			Square Footage			Year Built		Acquired		Occupancy(2)
Belcarra		Bellevue, WA		296			241,567			2009		2014		96%
BellCentre		Bellevue, WA		248			181,288			2001		2014		96%
Cedar Terrace		Bellevue, WA		180			174,200			1984		2005		97%
Courtyard off Main		Bellevue, WA		109			108,388			2000		2010		96%
Ellington at Bellevue		Bellevue, WA		220			165,794			1994		2014		95%
Emerald Ridge		Bellevue, WA		180			144,000			1987		1994		96%
Foothill Commons		Bellevue, WA		388			288,300			1978 (26)		1990		95%
Palisades, The		Bellevue, WA		192			159,700			1977		1990		97%
Park Highland		Bellevue, WA		250			224,750			1993		2014		94%
Piedmont		Bellevue, WA		396			348,969			1969		2014		94%
Sammamish View		Bellevue, WA		153			133,500			1986		1994		97%
Woodland Commons		Bellevue, WA		302			217,878			1978 (27)		1990		95%
Bothell Ridge (34)		Bothell, WA		214			167,370			1988		2014		96%
Canyon Pointe		Bothell, WA		250			210,400			1990		2003		95%
Inglenook Court		Bothell, WA		224			183,600			1985		1994		96%
Pinnacle Sonata		Bothell, WA		268			343,095			2000		2014		96%
Salmon Run at Perry Creek		Bothell, WA		132			117,100			2000		2000		98%
Stonehedge Village		Bothell, WA		196			214,800			1986		1997		97%
Highlands at Wynhaven		Issaquah, WA		333			424,674			2000		2008		95%
Park Hill at Issaquah		Issaquah, WA		245			277,700			1999		1999		97%
Wandering Creek		Kent, WA		156			124,300			1986		1995		97%
Ascent		Kirkland, WA		90			75,840			1988		2012		96%
Bridle Trails		Kirkland, WA		108			99,700			1986 (28)		1997		97%
Corbella at Juanita Bay		Kirkland, WA		169			103,339			1978		2010		96%
Evergreen Heights		Kirkland, WA		200			188,300			1990		1997		95%
Slater 116		Kirkland, WA		108			81,415			2013		2013		93%
Montebello		Kirkland, WA		248			272,734			1996		2012		95%
Aviara (16)		Mercer Island, WA		166			147,033			2013		2014		94%
Laurels at Mill Creek		Mill Creek, WA		164			134,300			1981		1996		97%
Parkwood at Mill Creek		Mill Creek, WA		240			257,160			1989		2014		96%
The Elliot at Mukilteo (4)		Mukilteo, WA		301			245,900			1981		1997		97%
Castle Creek		Newcastle, WA		216			191,900			1995		1995		96%
Delano/Bon Terra		Redmond, WA		126			116,340			2005		2011		98%
Elevation		Redmond, WA		157			138,916			1986		2010		97%
Redmond Hill West (6)		Redmond, WA		442			350,275			1985		2011		95%
Shadowbrook		Redmond, WA		416			338,880			1986		2014		96%
The Trails of Redmond		Redmond, WA		423			376,000			1985		2014		96%
Vesta (6)		Redmond, WA		440			381,675			1998		2011		95%
Brighton Ridge		Renton, WA		264			201,300			1986		1996		97%
Fairwood Pond		Renton, WA		194			189,200			1997		2004		96%
Forest View		Renton, WA		192			182,500			1998		2003		97%
Pinnacle on Lake Washington		Renton, WA		180			190,908			2001		2014		96%
Annaliese		Seattle, WA		56			48,216			2009		2013		95%
The Audrey at Belltown		Seattle, WA		137			94,119			1992		2014		96%
Ballinger Commons (34)		Seattle, WA		485			407,253			1989		2014		96%
The Bernard		Seattle, WA		63			43,151			2008		2011		96%
Cairns, The		Seattle, WA		100			70,806			2006		2007		96%

							Rentable					Year
Communities (1)		Location		Units			Square Footage			Year Built		Acquired		Occupancy(2)
Citywalk (34)		Seattle, WA		102			92,010			1988		2014		96%
Collins on Pine		Seattle, WA		76			53,474			2013		2014		98%
Domaine		Seattle, WA		92			79,421			2009		2012		96%
Expo (29)		Seattle, WA		275			190,176			2012		2012		95%
Fountain Court		Seattle, WA		320			207,000			2000		2000		95%
Joule (30)		Seattle, WA		295			191,109			2010		2010		96%
Taylor 28		Seattle, WA		197			155,630			2008		2014		97%
Vox		Seattle, WA		58			42,173			2013		2013		95%
Wharfside Pointe		Seattle, WA		142			119,200			1990		1994		93%
				12,174			10,508,726							96%
Pinnacle South Mountain (36)		Phoenix, AZ		552			569,876			1988		2014		94%
Total/Weighted Average				57,455			51,069,634							95%

						Square			Year		Year
Other real estate assets (1)		Location		Tenants		Footage			Built		Acquired		Occupancy (2)
925 / 935 East Meadow Drive (31)		Palo Alto, CA		1		39,600			1988 / 1962		1997 / 2007		100%
6230 Sunset Blvd (32)		Los Angeles, CA		1		34,000			1938		2006		100%
17461 Derian Ave (33)		Irvine, CA		8		107,720			1983		2000		98%
Santa Clara Retail		Santa Clara, CA		3		138,915			1970		2011		100%
				13		320,235							99%

Footnotes to the Company’s Portfolio Listing as of December 31, 2014

(1)	Unless otherwise specified, the Company has a 100% ownership interest in each community.

(2)

For communities, occupancy rates are based on financial occupancy for the year ended December 31, 2014; for the commercial buildings or properties which have not yet stabilized, or have insufficient operating history, occupancy rates are based on physical occupancy as of December 31, 2014. For an explanation of how financial occupancy and physical occupancy are calculated, see “Properties-Occupancy Rates” in this Item 2.

(3)	The community is subject to a ground lease, which, unless extended, will expire in 2082.

(4)

The Company holds a 1% special limited partner interest in the partnerships which own these apartment communities. These investments were made under arrangements whereby EMC became the 1% sole general partner and the other limited partners were granted the right to require the applicable partnership to redeem their interest for cash. Subject to certain conditions, the Company may, however, elect to deliver an equivalent number of shares of the Company’s common stock in satisfaction of the applicable partnership’s cash redemption obligation.

(5)	This community is owned by Wesco III. The Company has a 50% interest in Wesco III which is accounted for using the equity method of accounting.

(6)	This community is owned by Wesco I. The Company has a 50% interest in Wesco I which is accounted for using the equity method of accounting.

(7)	The Company completed a $10.8 million redevelopment in 2009.

(8)	This community is subject to a ground lease, which, unless extended, will expire in 2067.

(9)	This community is subject to a ground lease, which, unless extended, will expire in 2027.

(10)	The Company completed a $16.6 million redevelopment in 2010.

(11)	The Company is in the late phases of performing a $13.0 million redevelopment.

(12)	The Company has a 97% interest and an executive vice president of the Company has a 3% interest in this community.

(13)	The Company has a 75% member interest.

(14)	The community is subject to a ground lease, which, unless extended, will expire in 2028.

(15)	The Company completed a $12.0 million redevelopment in 2008.

(16)	This community is subject to a ground lease, which, unless extended, will expire in 2030.

(17)	The Company is in the process of performing a $10.0 million redevelopment.

(18)	The Company completed an $8.9 million redevelopment in 2008.

(19)	The Company completed a $9.4 million redevelopment in 2009.

(20)	The Company completed a $4.6 million redevelopment in 2009.

(21)	The Company has 55% ownership in this community. The community is being developed in three phases with one remaining phase currently under development.

(22)	A portion of this community on which 84 units are presently located is subject to a ground lease, which, unless extended, will expire in 2028.

(23)	The Company is in the process of performing a $14.1 million redevelopment.

(24)	The community is subject to a ground lease, which, unless extended, will expire in 2070.

(25)	The Company completed a $12.5 million redevelopment in 2009.

(26)	The Company completed a $36.3 million redevelopment in 2012, which included the construction of 28 in-fill units in 2009.

(27)	The Company completed the construction of 66 additional apartment homes in 2012 and is in the process of performing a redevelopment for a total cost of $15.4 million.

(28)	The Company completed a $5.1 million redevelopment and completed construction of 16 units of the community’s 108 units in 2006.

(29)	The Company has 50% ownership in each of these communities which is accounted for using the equity method of accounting.

(30)	The Company has 99% ownership in this community.

(31)	The Company occupies 100% of this property.

(32)	The property is leased through July 2015 to a single tenant.

(33)	The Company occupies 5% of space in this property.

(34)	This community is owned by BEXAEW. The Company has a 50% interest in BEXAEW which is accounted for using the equity method of accounting.

(35)	This community is owned by Wesco IV. The Company has a 50% interest in Wesco IV which is accounted for using the equity method of accounting.

(36)	The Company has a 55% ownership in this community.