Development

Strategy Development is a significant part of Essex’s investment strategy as yields on development projects provide attractive external growth opportunities for the Company. As of September 30, 2008, our $967 million development pipeline consisted of 8 properties under development with 16 projects in various stages of entitlement composed of approximately 2.8 million net rentable square feet of residential, and approximately 110,000 square feet of ancillary retail. In order to provide the most attractive returns to shareholders, the Company uses its proven research driven strategy to target select locations for new development initiatives. As a result of this proficient strategy and the Company’s high standards for architectural design and quality, Essex has earned numerous national and regional awards for many of its development projects.

Current Projects Eastlake 2851 Seattle, WA 127 units Completion: June 2008 $35.4 million Belmont Station Los Angeles, CA 275 units Completion: August 2008 $77.7 million The Grand Oakland, CA 238 units Completion: December 2008 $96.2 million Cielo Chatsworth, CA 119 units Completion: May 2009 $39.4 million Studio 40-41 Studio City, CA 149 units Completion: June 2009 $60.6 million Fourth Street Berkeley, CA 171 units Completion: February 2010 $69.4 million Joule Broadway Seattle, WA 295 units Completion: September 2010 $104.3 million Tasman Place Sunnyvale, CA 284 units Completion: March 2011 $138.9 million