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Real Estate Investments (Tables) | 12 Months Ended
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Dec. 31, 2021
Real Estate Investments, Net [Abstract] |
Schedule of Real Estate Properties | The table below summarizes acquisition activity for the year ended December 31, 2021 ($ in millions): For the year ended December 31, 2021, the Company purchased two communities consisting of 268 apartment homes and two commercial properties for approximately $165.4 million.
Property Name |  | Location |  | Apartment Homes |  | Essex Ownership Percentage |  | Quarter in 2021 |  | Purchase Price
The Village at Toluca Lake (1) |  | Burbank, CA |  | 145 |  |  | 100 | % |  | Q2 |  | $ | 31.8 |
7 South Linden (2) |  | South San Francisco, CA |  | — |  |  | 100 | % |  | Q3 |  | 33.5
Third & Broad (3) |  | Seattle, WA |  | — |  |  | 100 | % |  | Q3 |  | 52.5
Canvas |  | Seattle, WA |  | 123 |  |  | 100 | % |  | Q4 |  | 47.6
Total 2021 |  | 268 |  |  |  |  |  |  | $ | 165.4 |
(1) In June 2021, the Company purchased its joint venture partner's 50.0% membership interest in the BEX III, LLC co-investment that owned The Village at Toluca Lake based on a property valuation of $63.5 million. In conjunction with the acquisition, $29.5 million of mortgage debt that encumbered the property was paid off. (2) The commercial property is fully-leased to two commercial tenants. The Company is currently pursuing entitlements to construct an apartment community on the property. (3) The Company will hold the fully-leased commercial property for future apartment development.
Sales of Real Estate Investments | The table below summarizes the disposition activity for the year ended December 31, 2021 ($ in millions):
Property Name |  | Location |  | Apartment Homes |  | Ownership |  | Quarter in 2021 |  | Sales Price |
Hidden Valley |  | Simi Valley, CA |  | 324 |  |  | EPLP |  | Q1 |  | $ | 105.0 |  | (1)
Park 20 |  | San Mateo, CA |  | 197 |  |  | EPLP |  | Q1 |  | 113.0 |  | (2)
Axis 2300 |  | Irvine, CA |  | 115 |  |  | EPLP |  | Q1 |  | 57.5 |  | (3)
Devonshire Apartments |  | Hemet, CA |  | 276 |  |  | EPLP |  | Q3 |  | 54.5 |  | (4)
Total 2021 |  | 912 |  |  |  |  |  |  | $ | 330.0 |  |
(1) The Company recognized a $69.2 million gain on sale. In conjunction with the sale, the Company repaid $29.7 million of mortgage debt that encumbered the property. (2) The Company recognized an immaterial gain on sale. (3) The Company recognized a $30.8 million gain on sale. (4) The Company recognized a $42.9 million gain on sale.
Summary of Co-Investment | The carrying values of the Company’s co-investments as of December 31, 2021 and 2020 are as follows ($ in thousands, except in parenthetical):
| Weighted Average Essex Ownership |  | December 31,
| Percentage (1) |  | 2021 |  | 2020
Ownership interest in: |  |  |  |  |
Wesco I (2), Wesco III, Wesco IV, Wesco V and Wesco VI | 52 | % |  | $ | 168,198 |  |  | $ | 178,322 |
BEXAEW, BEX II, BEX III (3), BEX IV and 500 Folsom (4) | 50 | % |  | 270,550 |  |  | 152,309 |
Other (5) | 52 | % |  | 126,503 |  |  | 27,635 |
Total operating and other co-investments, net |  |  | 565,251 |  |  | 358,266 |
Total development co-investments | 50 | % |  | 11,076 |  |  | 157,433 |
Total preferred interest co-investments (includes related party investments of $71.1 million and $81.4 million as of December 31, 2021 and December 31, 2020, respectively - Note 6 - Related Party Transactions for further discussion) |  |  | 565,930 |  |  | 502,311 |
Total co-investments, net |  |  | $ | 1,142,257 |  |  | $ | 1,018,010 |
(1)Weighted average Company ownership percentages are as of December 31, 2021. (2)As of December 31, 2021, the Company's investment in Wesco I was classified as a liability of $35.3 million due to distributions received in excess of the Company's investment. (3)In June 2021, the Company purchased the additional 50% interest in BEX III. (4)500 Folsom had not stabilized as of December 31, 2020. Its carrying value was included in the development co-investments balance as of December 31, 2020. (5)As of December 31, 2021, the Company's investment in Expo was classified as a liability of $0.2 million due to distributions received in excess of the Company's investment. The weighted average Essex ownership percentage excludes our investments in non-core technology co-investments which are carried at fair value..
Summarized Financial Statement for Co-Investment Accounted for Under the Equity Method | The combined summarized financial information of co-investments is as follows ($ in thousands):
| December 31,
| 2021 |  | 2020
Combined balance sheets: (1) |  |  |
Rental properties and real estate under development | $ | 4,603,465 |  |  | $ | 4,242,611 |
Other assets | 278,411 |  |  | 200,777 |
Total assets | $ | 4,881,876 |  |  | $ | 4,443,388 |
Debt | $ | 3,046,765 |  |  | $ | 2,611,365 |
Other liabilities | 200,129 |  |  | 189,515 |
Equity | 1,634,982 |  |  | 1,642,508 |
Total liabilities and equity | $ | 4,881,876 |  |  | $ | 4,443,388 |
Company's share of equity | $ | 1,142,257 |  |  | $ | 1,018,010 |
| Years ended December 31,
| 2021 |  | 2020 |  | 2019
Combined statements of income: (1) |  |  |  |  |
Property revenues | $ | 289,680 |  |  | $ | 300,624 |  |  | $ | 336,922 |
Property operating expenses | (115,023) |  |  | (108,682) |  |  | (115,658) |
Net operating income | 174,657 |  |  | 191,942 |  |  | 221,264 |
Gain on sale of real estate | — |  |  | — |  |  | 112,918 |
Interest expense | (65,172) |  |  | (78,962) |  |  | (65,665) |
General and administrative | (17,885) |  |  | (17,079) |  |  | (9,575) |
Depreciation and amortization | (133,787) |  |  | (117,836) |  |  | (121,006) |
Net income | $ | (42,187) |  |  | $ | (21,935) |  |  | $ | 137,936 |
Company's share of net income (2) | $ | 111,721 |  |  | $ | 66,512 |  |  | $ | 112,136 |
(1)Includes preferred equity investments held by the Company. (2)Includes the Company's share of equity income from joint ventures and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $9.1 million, $8.6 million, and $7.5 million for the years ended December 31, 2021, 2020, and 2019, respectively.

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