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Significant Transactions During the Nine Months Ended September 30, 2025 | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Significant Transactions During the Nine Months Ended September 30, 2025 | Significant Transactions During the Nine Months Ended September 30, 2025 Significant Transactions Acquisition of Real Estate Interests The table below summarizes acquisition activity for the nine months ended September 30, 2025 ($ in millions):
Property Name |  | Location |  | Date |  | Apartment Homes |  | Contract Price at Pro Rata Share |
The Plaza |  | CA |  | Jan-25 |  | 307 |  | $ | 161.4 |  |
One Hundred Grand |  | CA |  | Feb-25 |  | 166 |  | 105.3 |  | (1)
ROEN Menlo Park |  | CA |  | Feb-25 |  | 146 |  | 78.8 |  |
Revere Campbell |  | CA |  | May-25 |  | 168 |  | 118.0 |  | (1)
The Parc at Pruneyard |  | CA |  | May-25 |  | 252 |  | 122.5 |  |
ViO |  | CA |  | Sep-25 |  | 234 |  | 100.0 |  |
Total acquisitions |  |  |  | 1,273 |  | $ | 686.0 |  |
(1) One Hundred Grand and Revere Campbell replaced Highridge, an apartment home community owned by DownREIT entities that are consolidated by the Company, within the DownREIT structures of those entities pursuant to the like-kind exchange rules under Section 1031 of the Internal Revenue Code of 1986, as amended (“Section 1031 Exchange”). Disposition of Real Estate Interests The table below summarizes disposition activity for the nine months ended September 30, 2025 ($ in millions):
Property Name |  | Location |  | Date |  | Apartment Homes |  | Sale Price at Pro Rata Share |
Highridge |  | CA |  | Feb-25 |  | 255 |  | $ | 127.0 |  | (1)
Essex Skyline |  | CA |  | Apr-25 |  | 350 |  | 239.6 | (2)
The Grand |  | CA |  | Jul-25 |  | 243 |  | 97.5 | (3)
Fourth & U |  | CA |  | Sep-25 |  | 171 |  | 52.3 | (4)
Total dispositions |  |  |  | 1,019 |  | $ | 516.4 |  |
(1) Highridge, an apartment home community owned by DownREIT entities that are consolidated by the Company, was replaced by One Hundred Grand and Revere Campbell within the DownREIT structures of those entities pursuant to a Section 1031 Exchange. The Company recognized a $111.0 million gain on sale of real estate and land in the condensed consolidated statements of income and comprehensive income. In conjunction with the sale, $69.6 million in debt associated with the property was paid off and the Company recorded a $0.8 million loss on early extinguishment of debt. (2) The Company recognized a $126.2 million gain on sale in the condensed consolidated statements of income and comprehensive income. (3) The Company recognized a $47.8 million gain on sale in the condensed consolidated statements of income and comprehensive income. (4) The Company recognized a $14.5 million gain on sale in the condensed consolidated statements of income and comprehensive income. Preferred Equity Investments In July 2025, the Company formed a new joint venture, Wesco VII, LLC (“Wesco VII”), with the State of Wisconsin Investment Board, for the purpose of investing in multifamily real estate projects. Each partner has an initial equity commitment of $50.0 million and holds a 50% ownership interest. The investment is recorded to co-investments in the condensed consolidated balance sheets. Wesco VII subsequently funded a preferred equity investment of $42.6 million in a 480-unit apartment home community development located in California. The investment has an initial preferred return of 13.5% subject to adjustment upon the occurrence of specified events and mandatory redemption in July 2030. In the third quarter of 2025, the Company received cash proceeds of $71.4 million, including an early redemption fee of $0.1 million, for the full redemption of three preferred equity investments and partial redemption of one preferred equity investment in joint ventures that hold properties in California and Washington. In the second quarter of 2025, the Company received cash of $14.1 million for the full redemption of a preferred equity investment in a joint venture that holds property located in Washington. In the first quarter of 2025, the Company received cash of $9.9 million for the full redemption of a preferred equity investment in a joint venture that holds property located in California. In the fourth quarter of 2024, the Company repaid a $72.0 million senior mortgage associated with a $22.7 million preferred equity investment in Artizan, a 241-unit stabilized apartment home community located in Oakland, CA, and subsequently issued a default notice to the third-party sponsor in January 2025, assumed full managerial control and consolidated the property based on a valuation of $95.0 million. The Company recorded $0.3 million as a gain on remeasurement of co-investment in the condensed consolidated statements of income and comprehensive income. Notes Receivable In August 2025, the Company funded an $81.2 million related party bridge loan to Wesco I, LLC ("Wesco I"), a co-investment, in connection with the payoff of a mortgage related to one of Wesco I’s properties located in Southern California. The note receivable accrues interest at 5.50% and is scheduled to mature in December 2025. Senior Unsecured Debt In July 2025, the Operating Partnership amended its $1.2 billion unsecured line of credit, increasing the borrowing capacity to $1.5 billion (“New Credit Facility”). The underlying interest rate on the New Credit Facility is Secured Overnight Financing Rate (“SOFR”) plus 0.775% which is based on a tiered rate structure tied to the Company’s long-term unsecured credit ratings. The New Credit Facility is scheduled to mature in January 2030, with two six-month extensions exercisable at the option of the Company. The Company may also elect to increase the facility by up to an additional $1.0 billion, to an aggregate size of $2.5 billion, if the lenders permit. In May 2025, the Operating Partnership established a commercial paper program (the “Commercial Paper Program”) to issue unsecured commercial paper notes with varying maturities up to 397 days from the date of issue (the “Notes”). Amounts available under the Commercial Paper Program may be borrowed, repaid and re-borrowed from time to time, with the maximum aggregate face or principal amount outstanding at any one time not exceeding $750.0 million. The Company’s unsecured line of credit facilities serve as a liquidity backstop and any issuances under the Commercial Paper Program reduce the available borrowing capacity. The Notes rank equally in right of payment with all other senior unsecured senior obligations of the Operating Partnership and are unconditionally guaranteed by the Company. In May 2025, the Operating Partnership obtained a $300.0 million unsecured term loan priced at SOFR plus 0.850%. The loan is scheduled to mature in May 2028, with two one-year extension options, exercisable at the option of the Company. The loan includes a twelve-month delayed draw feature. The Company may elect to increase this facility by up to an additional $300.0 million, to an aggregate size of $600.0 million, if the lenders permit. As of September 30, 2025, the Company had borrowed $250.0 million under the term loan facility. The Company has entered into floating-to-fixed interest rate swaps to fix the interest rate for $247.5 million of the term loan facility to an all-in rate of 4.1%. In February 2025, the Operating Partnership issued $400.0 million of senior unsecured notes due on April 1, 2035 with a coupon rate of 5.375% per annum (the “2035 Notes”), which are payable on April 1 and October 1 of each year, beginning on October 1, 2025. The 2035 Notes were offered to investors at a price of 99.604% of the principal amount. The 2035 Notes are general unsecured senior obligations of the Operating Partnership, rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership and are unconditionally guaranteed by Essex. In April 2025, the Company repaid its $500.0 million unsecured notes at maturity.

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