Item 2. Properties

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Item 2. Properties

The Company’s portfolio as of December 31, 2015 (including communities owned by unconsolidated joint ventures, but excluding communities underlying preferred equity investments) was comprised of 246 apartment communities (comprising 59,160 apartment homes), of which 28,039 apartment homes are located in Southern California, 18,924 apartment homes are located in the San Francisco Bay Area, and 12,197 apartment homes are located in the Seattle metropolitan area. The Company’s apartment communities accounted for 99.3% of the Company’s revenues for the year ended December 31, 2015.

Occupancy Rates

Financial occupancy is defined as the percentage resulting from dividing actual rental revenue by total potential rental revenue (actual rental revenue for occupied apartment homes plus market rent for vacant apartment homes). When calculating actual rents for occupied apartment homes and market rents for vacant apartment homes, delinquencies and concessions are not taken into account. Total possible rental revenue represents the value of all apartment homes, with occupied apartment homes valued at contractual rental rates pursuant to leases and vacant apartment homes 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 and the Company's calculation of financial occupancy may not be comparable to financial occupancy as disclosed by other REITs. 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 apartment homes. 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, 2015, the Company’s communities include 162 garden-style, 78 mid-rise, and 6 high-rise communities. The communities have an average of approximately 240 apartment homes, with a mix of studio, one, two and some three-bedroom apartment homes. 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 former corporate headquarters was located in two office buildings with approximately 39,600 square feet located at 925/935 East Meadow Drive, Palo Alto, California and was classified as held for sale at December 31, 2015. The Company owns an office building with approximately 106,564 square feet located in Irvine, California, of which the Company occupies approximately 8,000 square feet at December 31, 2015. 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, 2015. The first table describes the Company’s communities and the second table describes the Company’s other real estate assets. (See Note 8 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.)



		Apartment	Rentable	Year	Year
Communities (1)	Location	Homes	Square Footage	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%



		Apartment	Rentable	Year	Year
Communities (1)	Location	Homes	Square Footage	Built	Acquired	Occupancy(2)
Barkley, The (3)(4)	Anaheim, CA	161	139,800	1984	2000	98%
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%
Enclave at Town Square (21)	Chino Hills, CA	124	89,948	1987	2014	97%
The Heights I & II (21)	Chino Hills, CA	332	324,370	2004	2014	96%
The Summit (5)	Chino Hills, CA	125	98,420	1989	2014	98%
Pinnacle at Otay Ranch	Chula Vista, CA	364	384,192	2001	2014	95%
Mesa Village	Clairemont, CA	133	43,600	1963	2002	98%
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	97%
The Havens (21)	Fountain Valley, CA	440	414,040	1969	2014	96%
Valley Park (4)	Fountain Valley, CA	160	169,700	1969	2001	97%
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	96%
Hampton Court	Glendale, CA	83	71,500	1974	1999	93%
Hampton Place	Glendale, CA	132	141,500	1970	1999	93%
Devonshire	Hemet, CA	276	207,200	1988	2002	96%
Huntington Breakers	Huntington Beach, CA	342	241,700	1984	1997	95%
The Huntington	Huntington Beach, CA	276	202,256	1975	2012	97%
Axis 2300	Irvine, CA	115	170,714	2010	2010	97%
Hillsborough Park	La Habra, CA	235	215,500	1999	1999	97%
Village Green	La Habra, CA	272	175,762	1971	2014	97%
The Palms at Laguna Niguel	Laguna Niguel, CA	460	362,136	1988	2014	96%
Trabuco Villas	Lake Forest, CA	132	131,000	1985	1997	97%
Marbrisa	Long Beach, CA	202	122,800	1987	2002	96%
Pathways	Long Beach, CA	296	197,700	1975	1991	96%
8th & Hope	Los Angeles, CA	290	298,437	2014	2015	79%
5600 Wilshire	Los Angeles, CA	284	243,910	2008	2014	96%
Alessio	Los Angeles, CA	624	552,716	2001	2014	95%
Avant	Los Angeles, CA	440	305,989	2014	2015	95%
The Avery (4)	Los Angeles, CA	121	129,393	2014	2014	97%
Bellerive	Los Angeles, CA	63	79,296	2011	2011	97%
Belmont Station	Los Angeles, CA	275	225,000	2009	2009	97%
Bunker Hill	Los Angeles, CA	456	346,600	1968	1998	88%
Catalina Gardens	Los Angeles, CA	128	117,585	1987	2014	97%
Cochran Apartments	Los Angeles, CA	58	51,400	1989	1998	97%
Gas Company Lofts (5)	Los Angeles, CA	251	226,666	2004	2013	97%
Jefferson at Hollywood	Los Angeles, CA	270	238,119	2010	2014	94%
Kings Road	Los Angeles, CA	196	132,100	1979	1997	96%



		Apartment	Rentable	Year	Year
Communities (1)	Location	Homes	Square Footage	Built	Acquired	Occupancy(2)
Marbella	Los Angeles, CA	60	50,108	1991	2005	97%
Muse	Los Angeles, CA	152	135,292	2011	2011	97%
Pacific Electric Lofts (6)	Los Angeles, CA	314	277,980	2006	2012	94%
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	95%
Windsor Court (5)	Los Angeles, CA	95	51,266	1987	2014	95%
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 (7)	Marina Del Rey, CA	101	127,200	1971	2004	96%
Mirabella	Marina Del Rey, CA	188	176,800	2000	2000	97%
Mira Monte	Mira Mesa, CA	355	262,600	1982	2002	96%
Madrid Apartments (6)	Mission Viejo, CA	230	228,099	2000	2012	97%
Hillcrest Park	Newbury Park, CA	608	521,900	1973	1998	96%
Fairways (8)	Newport Beach, CA	74	107,100	1972	1999	96%
Candlewood North	Northridge, CA	189	166,910	1964	2014	96%
Canyon Creek (21)	Northridge, CA	200	148,150	1986	2014	96%
Country Villas	Oceanside, CA	180	179,700	1976	2002	96%
Mission Hills	Oceanside, CA	282	244,000	1984	2005	96%
Renaissance at Uptown Orange	Orange, CA	460	432,836	2007	2014	96%
Mariner's Place	Oxnard, CA	105	77,200	1987	2000	97%
Monterey Villas	Oxnard, CA	122	122,100	1974	1997	97%
Tierra Vista	Oxnard, CA	404	387,100	2001	2001	96%
Arbors Parc Rose (6)	Oxnard, CA	373	503,196	2001	2011	95%
The Hallie del Mar	Pasadena, CA	123	74,400	1972	1997	92%
The Hallie del Rey	Pasadena, CA	84	73,100	1972	1999	92%
The Hallie del Sol	Pasadena, CA	85	69,200	1972	1999	92%
Stuart at Sierra Madre Villa	Pasadena, CA	188	168,630	2007	2014	96%
Villa Angelina (4)	Placentia, CA	256	217,600	1970	2001	97%
Fountain Park	Playa Vista, CA	705	608,900	2002	2004	97%
Highridge (4)	Rancho Palos Verdes, CA	255	290,200	1972	1997	98%
Cortesia at Rancho Santa Margarita	Rancho Santa Margarita, CA	308	277,580	1999	2014	96%
Pinnacle at Talega	San Clemente, CA	362	355,764	2002	2014	96%
Allure at Scripps Ranch	San Diego, CA	194	207,052	2002	2014	96%
Bernardo Crest	San Diego, CA	216	205,548	1988	2014	96%
Cambridge Park	San Diego, CA	320	317,958	1998	2014	95%
Carmel Creek	San Diego, CA	348	384,216	2000	2014	96%
Carmel Landing	San Diego, CA	356	283,426	1989	2014	94%
Carmel Summit	San Diego, CA	246	225,880	1989	2014	97%
CentrePointe	San Diego, CA	224	126,700	1974	1997	94%
Domain	San Diego, CA	379	345,044	2013	2013	94%
Esplanade (21)	San Diego, CA	616	479,600	1986	2014	96%



		Apartment	Rentable	Year	Year
Communities (1)	Location	Homes	Square Footage	Built	Acquired	Occupancy(2)
Montanosa	San Diego, CA	472	414,968	1990	2014	96%
Summit Park	San Diego, CA	300	229,400	1972	2002	96%
Essex Skyline at MacArthur Place (9)	Santa Ana, CA	349	512,791	2008	2010	96%
Fairhaven (4)	Santa Ana, CA	164	135,700	1970	2001	98%
Parkside Court (21)	Santa Ana, CA	210	152,400	1986	2014	97%
Pinnacle at MacArthur Place	Santa Ana, CA	253	262,867	2002	2014	96%
Hope Ranch	Santa Barbara, CA	108	126,700	1965 / 1973	2007	98%
Bridgeport Coast (22)	Santa Clarita, CA	188	168,198	2006	2014	97%
Hidden Valley (10)	Simi Valley, CA	324	310,900	2004	2004	97%
Meadowood	Simi Valley, CA	320	264,500	1986	1996	96%
Shadow Point	Spring Valley, CA	172	131,200	1983	2002	96%
The Fairways at Westridge (22)	Valencia, CA	234	223,330	2004	2014	96%
Vistas of West Hills (22)	Valencia, CA	220	221,119	2009	2014	96%
Allegro	Valley Village, CA	97	127,812	2010	2010	97%
Lofts at Pinehurst, The	Ventura, CA	118	71,100	1971	1997	97%
Pinehurst (11)	Ventura, CA	28	21,200	1973	2004	98%
Woodside Village	Ventura, CA	145	136,500	1987	2004	97%
Walnut Heights	Walnut, CA	163	146,700	1964	2003	95%
The Dylan	West Hollywood, CA	184	150,678	2014	2014	92%
The Huxley	West Hollywood, CA	187	154,776	2014	2014	93%
Reveal	Woodland Hills, CA	438	414,892	2010	2011	95%
Avondale at Warner Center	Woodland Hills, CA	446	331,000	1970	1999	96%
		28,039	24,850,294			96%
Northern California
Belmont Terrace	Belmont, CA	71	72,951	1974	2006	94%
Fourth & U	Berkeley, CA	171	146,255	2010	2010	96%
The Commons	Campbell, CA	264	153,168	1973	2010	97%
The Pointe at Cupertino	Cupertino, CA	116	135,200	1963	1998	98%
Connolly Station (23)	Dublin, CA	309	286,348	2014	2014	96%
Avenue 64	Emeryville, CA	224	196,896	2007	2014	94%
Emme (23)	Emeryville, CA	190	148,935	2015	2015	81%
Foster's Landing	Foster City, CA	490	415,130	1987	2014	96%
Stevenson Place	Fremont, CA	200	146,200	1975	2000	95%
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	94%
Boulevard	Fremont, CA	172	131,200	1978	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 (22)	Hayward, CA	192	175,420	2000	2014	97%
City View	Hayward, CA	572	462,400	1975	1998	97%
Lafayette Highlands	Lafayette, CA	150	151,790	1973	2014	97%
Apex	Milpitas, CA	366	350,961	2014	2014	96%
Regency at Mountain View (5)	Mountain View, CA	142	127,600	1970	2013	96%
Bridgeport	Newark, CA	184	139,000	1987	1987	98%
The Landing at Jack London Square	Oakland, CA	282	257,796	2001	2014	95%



		Apartment	Rentable	Year	Year
Communities (1)	Location	Homes	Square Footage	Built	Acquired	Occupancy(2)
The Grand	Oakland, CA	243	205,026	2009	2009	96%
Radius	Redwood City, CA	264	245,862	2015	2015	94%
San Marcos	Richmond, CA	432	407,600	2003	2003	96%
Bennett Lofts	San Francisco, CA	165	184,713	2004	2012	95%
Fox Plaza	San Francisco, CA	443	230,017	1968	2013	95%
MB 360 Phase I	San Francisco, CA	188	222,810	2014	2014	96%
Mosso (23)	San Francisco, CA	463	607,549	2014	2014	87%
Park West	San Francisco, CA	126	90,060	1958	2012	95%
101 San Fernando	San Jose, CA	323	296,078	2001	2010	96%
Bella Villagio	San Jose, CA	231	227,511	2004	2010	97%
Enso	San Jose, CA	183	179,562	2014	2015	100%
Epic - Phase I & II (13) (23)	San Jose, CA	569	472,236	2013	2013	95%
Esplanade	San Jose, CA	278	279,000	2002	2004	96%
Fountains at River Oaks	San Jose, CA	226	209,954	1990	2014	97%
Museum Park	San Jose, CA	117	121,329	2002	2014	97%
One South Market (23)	San Jose, CA	312	283,268	2015	2015	46%
Palm Valley (16)	San Jose, CA	1,098	1,132,284	2008	2014	96%
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	96%
Lakeshore Landing	San Mateo, CA	308	223,972	1988	2014	95%
Hillsdale Garden	San Mateo, CA	697	611,505	1948	2006	97%
Park 20 (23)	San Mateo, CA	197	140,547	2015	2015	79%
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	98%
Crow Canyon	San Ramon, CA	400	337,064	1992	2014	96%
Foothill Gardens	San Ramon, CA	132	155,100	1985	1997	97%
Mill Creek at Windermere	San Ramon, CA	400	381,060	2005	2007	97%
Twin Creeks	San Ramon, CA	44	51,700	1985	1997	97%
1000 Kiely	Santa Clara, CA	121	128,486	1971	2011	95%
Le Parc	Santa Clara, CA	140	113,200	1975	1994	97%
Marina Cove (14)	Santa Clara, CA	292	250,200	1974	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	97%
Harvest Park	Santa Rosa, CA	104	116,628	2004	2007	97%
Bristol Commons	Sunnyvale, CA	188	142,600	1989	1995	95%
Brookside Oaks (4)	Sunnyvale, CA	170	119,900	1973	2000	95%
Lawrence Station	Sunnyvale, CA	336	297,188	2012	2014	96%
Magnolia Lane (15)	Sunnyvale, CA	32	31,541	2001	2007	97%
Magnolia Square (4)	Sunnyvale, CA	156	110,824	1963	2007	97%
Montclaire	Sunnyvale, CA	390	294,100	1973	1988	97%
Reed Square	Sunnyvale, CA	100	95,440	1970	2011	97%
Solstice	Sunnyvale, CA	280	571,466	2014	2014	96%
Summerhill Park	Sunnyvale, CA	100	78,500	1988	1988	95%
Via	Sunnyvale, CA	284	309,421	2011	2011	96%
Windsor Ridge	Sunnyvale, CA	216	161,800	1989	1989	96%



		Apartment	Rentable	Year	Year
Communities (1)	Location	Homes	Square Footage	Built	Acquired	Occupancy(2)
Vista Belvedere	Tiburon, CA	76	78,300	1963	2004	95%
Tuscana	Tracy, CA	30	29,088	2007	2007	99%
Verandas (22)	Union City, CA	282	199,092	1989	2014	96%
		18,924	17,173,129			95%
Seattle, Washington Metropolitan Area
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	96%
Courtyard off Main	Bellevue, WA	110	108,388	2000	2010	96%
Ellington at Bellevue	Bellevue, WA	220	165,794	1994	2014	96%
Emerald Ridge	Bellevue, WA	180	144,000	1987	1994	96%
Foothill Commons	Bellevue, WA	394	288,300	1978	1990	96%
Palisades, The	Bellevue, WA	192	159,700	1977	1990	97%
Park Highland	Bellevue, WA	250	224,750	1993	2014	95%
Piedmont	Bellevue, WA	396	348,969	1969	2014	96%
Sammamish View	Bellevue, WA	153	133,500	1986	1994	97%
Woodland Commons	Bellevue, WA	302	217,878	1978	1990	95%
Bothell Ridge (21)	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	97%
Pinnacle Sonata	Bothell, WA	268	343,095	2000	2014	95%
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	96%
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	97%
Bridle Trails	Kirkland, WA	108	99,700	1986	1997	97%
Corbella at Juanita Bay	Kirkland, WA	169	103,339	1978	2010	96%
Evergreen Heights	Kirkland, WA	200	188,300	1990	1997	97%
Slater 116	Kirkland, WA	108	81,415	2013	2013	96%
Montebello	Kirkland, WA	248	272,734	1996	2012	96%
Aviara (12)	Mercer Island, WA	166	147,033	2013	2014	96%
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	95%
The Elliot at Mukilteo (4)	Mukilteo, WA	301	245,900	1981	1997	95%
Castle Creek	Newcastle, WA	216	191,900	1998	1998	97%
Delano	Redmond, WA	126	116,340	2005	2011	97%
Elevation	Redmond, WA	158	138,916	1986	2010	97%
Redmond Hill (6)	Redmond, WA	442	350,275	1985	2011	96%
Shadowbrook	Redmond, WA	418	338,880	1986	2014	97%
The Trails of Redmond	Redmond, WA	423	376,000	1985	2014	97%
Vesta (6)	Redmond, WA	440	381,675	1998	2011	96%
Brighton Ridge	Renton, WA	264	201,300	1986	1996	97%
Fairwood Pond	Renton, WA	194	189,200	1997	2004	97%
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	96%



		Apartment	Rentable	Year	Year
Communities (1)	Location	Homes	Square Footage	Built	Acquired	Occupancy(2)
The Audrey at Belltown	Seattle, WA	137	94,119	1992	2014	97%
Ballinger Commons (21)	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	97%
Citywalk (21)	Seattle, WA	102	92,010	1988	2014	97%
Collins on Pine	Seattle, WA	76	48,733	2013	2014	97%
Domaine	Seattle, WA	92	79,421	2009	2012	95%
Expo (16)	Seattle, WA	275	190,176	2012	2012	97%
Fountain Court	Seattle, WA	320	207,000	2000	2000	95%
Joule (17)	Seattle, WA	295	191,109	2010	2010	96%
Taylor 28	Seattle, WA	197	155,630	2008	2014	95%
Vox	Seattle, WA	58	42,173	2013	2013	97%
Wharfside Pointe	Seattle, WA	155	119,200	1990	1994	94%
		12,197	10,503,985			96%

Total/Weighted Average		59,160	52,527,408			95%



			Square	Year	Year
Other real estate assets (1)	Location	Tenants	Footage	Built	Acquired	Occupancy (2)
925 / 935 East Meadow Drive (18)	Palo Alto, CA	—	39,600	1988 / 1962	1997 / 2007	—%
Essex - Hollywood (19)	Los Angeles, CA	1	34,000	1938	2006	100%
Derian Office Building (20)	Irvine, CA	8	106,564	1983	2000	100%
Santa Clara Retail	Santa Clara, CA	3	138,915	1970	2011	100%
		12	319,079			88%

Footnotes to the Company’s Portfolio Listing as of December 31, 2015


(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, 2015; for the commercial buildings occupancy rates are based on physical occupancy as of December 31, 2015. 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 Essex Management Company 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.

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


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


(9)	The Company has a 97% interest and an Executive Vice President of the Company has a 3% interest in this community.


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


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


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


(13)	The community is being developed in three phases with one remaining phase currently under development.


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


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


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


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


(18)	This property was the Company's previous headquarters until December 2015 and was unoccupied at December 31, 2015.


(19)	The property is leased through January 2016 to a single tenant.


(20)	The Company occupies 8% of space in this property.


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


(22)	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.


(23)	The Company has a 55% ownership in this community which is accounted for using the equity method of accounting.

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