Item 2. Properties

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Item 2. Properties

As of December 31, 2021, the Company, directly or indirectly through investments in title holding entities, owned all or a portion of 310 properties located in 10 states and the District of Columbia consisting of 80,407 apartment units. See Item 1, Business, for additional information regarding the Company’s properties and the markets/metro areas upon which we are focused. The Company’s properties are summarized by building type in the following table:

Type
Garden	96	24,489	255
Mid/High-Rise	214	55,918	261
	310	80,407	259

Garden-style are generally defined as properties with two and/or three story buildings while mid-rise/high-rise are generally defined as properties with greater than three story buildings. These two property types typically provide residents with amenities, such as rooftop decks and swimming pools, fitness centers and community rooms. In addition, many of our urban properties have non-residential components, such as parking garages and/or retail spaces.

The Company’s properties are summarized by ownership type in the following table:


Wholly Owned Properties	294	76,861
Partially Owned Properties – Consolidated	16	3,546
	310	80,407

The following table sets forth certain information by market relating to the Company’s properties at December 31, 2021:

Portfolio Summary
Markets/Metro Areas	Properties		Apartment Units		% of Stabilized Budgeted NOI (1)			Average Rental Rate (2)
Established Markets:
Los Angeles		66		15,259		18.6	%	$	2,673
Orange County		13		4,028		5.3	%		2,427
San Diego		11		2,706		3.7	%		2,598
Subtotal – Southern California		90		21,993		27.6	%		2,619

San Francisco		44		11,830		16.0	%		2,957
Washington D.C.		48		14,851		15.5	%		2,358
New York		36		9,343		13.7	%		3,597
Boston		27		7,170		11.4	%		3,049
Seattle		46		9,525		11.0	%		2,332

Expansion Markets:
Denver		8		2,498		2.6	%		2,197
Atlanta		4		1,215		1.0	%		1,935
Dallas/Ft. Worth		4		1,241		0.8	%		1,868
Austin		3		741		0.4	%		1,694

Total		310		80,407		100.0	%	$	2,696

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

(1)	% of Stabilized Budgeted NOI - Represents original budgeted 2022 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.

(2)	Average Rental Rate - Total residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.

The following tables provide a rollforward of the apartment units included in Same Store Properties (please refer to the Definitions section in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations) and a reconciliation of apartment units included in Same Store Properties to those included in Total Properties for the year ended December 31, 2021:

	Year Ended December 31, 2021
	Properties			Apartment Units
Same Store Properties at December 31, 2020		285			73,585
2019 acquisitions stabilized		12			3,323
2021 dispositions		(14	)		(3,053	)
Lease-up properties stabilized		1			222
Same Store Properties at December 31, 2021		284			74,077

	Year Ended December 31, 2021
	Properties		Apartment Units
Same Store		284		74,077
Non-Same Store:
2021 acquisitions		17		4,747
2020 acquisitions		1		158
2019 acquisitions not yet stabilized		1		217
Lease-up properties not yet stabilized (1)		6		1,207
Other		1		1
Total Non-Same Store		26		6,330
Total Properties and Apartment Units		310		80,407

Note: Properties are considered “stabilized” when they have achieved 90% occupancy for three consecutive months. Properties are included in same store when they are stabilized for all of the current and comparable periods presented.

(1)	Consists of properties in various stages of lease-up and properties where lease-up has been completed but the properties were not stabilized for the comparable periods presented. Also includes one former third-party master-leased property that was not stabilized.

As of December 31, 2021, the Company’s same store occupancy was 96.4% and its total portfolio-wide occupancy, which includes completed development properties in various stages of lease-up, was 95.7%. Certain of the Company’s properties are encumbered by mortgages and additional detail can be found on Schedule III – Real Estate and Accumulated Depreciation.

The properties in various stages of development and lease-up at December 31, 2021 are included in the following table:

Development and Lease-Up Projects as of December 31, 2021
(Amounts in thousands except for project and apartment unit amounts)

					Total		Total
			No. of		Budgeted		Book					Estimated/Actual				Percentage
		Ownership	Apartment		Capital		Value		Total		Percentage	Start	Initial	Completion	Stabilization	Leased /
Projects	Location	Percentage	Units		Cost (1)		to Date		Debt (2)		Completed	Date	Occupancy	Date	Date	Occupied
CONSOLIDATED:
Projects Under Development:
9th and W (3)	Washington, DC	92%		312	$	108,027	$	24,307	$	—	16%	Q3 2021	Q2 2023	Q3 2023	Q3 2024	– / –
Projects Under Development - Consolidated				312		108,027		24,307		—
Projects Completed Not Stabilized:
The Edge (fka 4885 Edgemoor Lane) (3)	Bethesda, MD	100%		154		75,271		73,091		—	100%	Q3 2019	Q3 2021	Q3 2021	Q3 2022	62% / 54%
Aero Apartments	Alameda, CA	90%		200		117,794		113,361		61,662	100%	Q3 2019	Q2 2021	Q2 2021	Q2 2022	71% / 70%
Alcott Apartments (fka West End Tower)	Boston, MA	100%		470		409,749		398,138		—	98%	Q2 2018	Q3 2021	Q4 2021	Q1 2023	52% / 43%
Projects Completed Not Stabilized - Consolidated				824		602,814		584,590		61,662
UNCONSOLIDATED: (4)
Projects Under Development:
Alloy Sunnyside	Denver, CO	80%		209		66,004		15,554		—	12%	Q3 2021	Q2 2023	Q4 2023	Q3 2024	– / –
Alexan Harrison	Harrison, NY	62%		450		198,664		52,041		—	4%	Q3 2021	Q3 2023	Q2 2024	Q4 2025	– / –
Solana Beeler Park	Denver, CO	90%		270		79,956		12,739		—	1%	Q4 2021	Q4 2023	Q2 2024	Q1 2025	– / –
Projects Under Development - Unconsolidated				929		344,624		80,334		—
Total Development Projects - Consolidated				1,136		710,841		608,897		61,662
Total Development Projects - Unconsolidated				929		344,624		80,334		—
Total Development Projects				2,065	$	1,055,465	$	689,231	$	61,662

(1)

Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project.

(2)	All non-wholly owned projects are being partially funded with project-specific construction loans. None of these loans are recourse to the Company. As of December 31, 2021, no draws have been made on the construction loans for 9th and W, Alloy Sunnyside, Alexan Harrison or Solana Beeler Park.

(3)	The land under these projects are subject to long-term ground leases.

(4)	The Company has six unconsolidated development joint ventures as of December 31, 2021. In addition to the three projects disclosed in “Projects Under Development – Unconsolidated” above, the Company has three additional unconsolidated joint venture projects that have not yet started but are expected to do so in 2022 and eventually deliver approximately 1,005 apartment units.

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