Promote interest

  
ESSEX PROPERTY TRUST, INC. AND SUBSIDIARIESESSEX PORTFOLIO, L.P. AND SUBSIDIARIESNotes to Condensed Consolidated Financial StatementsSeptember 30, 2022 and 2021(Unaudited)  
(2) Significant Transactions During the Nine Months Ended September 30, 2022 and Subsequent Events  
Significant Transactions  
Acquisitions  
In July 2022, the Company purchased its joint venture partner's 49.8% minority interest in two apartment communities, consisting of 211 apartment houses located in Los Angeles, CA, for a contract price of $32.9 million. As a result of this acquisition, the Company realized a gain on remeasurement of co-investment of $17.4 million upon consolidation.   
In January 2022, Wesco VI, LLC (“Wesco VI”), one of the Company's joint ventures with an institutional partner, acquired Vela, a 379-unit apartment home community located in Woodland Hills, CA, for a total contract price of $183.0 million. The property was encumbered by a $100.7 million bridge loan from the Company, with an interest rate of 2.64% that was paid off in January 2022 and replaced by permanent secured debt with an institutional lender.   
Co-Investments  
In April 2022, the Wesco IV, LLC (“Wesco IV”) joint venture operating agreement was amended to extend the venture. As part of the amendment, the Company and the joint venture partner agreed that the Company earned a promote interest of approximately $37.5 million. The Company agreed to contribute the earned promote interest to the joint venture, resulting in an increase in the Company’s ownership interest in Wesco IV to 65.1%.   
Preferred Equity Investments  
In the third quarter of 2022, the Company funded four preferred equity investments, including one with a related party, totaling $55.4 million. The investments have a weighted average return of 9.5% and are scheduled to mature between January 2026 and September 2032. See Note 6, Related Party Transactions, for additional details.  
In September 2022, the Company received cash of $8.4 million for the partial redemption of a preferred equity investment in a joint venture that holds property located in Northern California.  
In June 2022, the Company received cash of $3.0 million for the partial redemption of a preferred equity investment in a joint venture that holds property located in Northern California.   
In the first quarter of 2022, the Company originated three preferred equity investments totaling $29.5 million in multifamily communities located in Southern California and Washington. The preferred equity investments have a weighted average return of 10.0% and are scheduled to mature in March 2027.   
In the first quarter of 2022, the Company received cash proceeds of $106.9 million, including an early redemption fee of $0.9 million, for the full redemption of two preferred equity investments and partial redemption of two preferred equity investments in joint ventures that held properties in California.   
23
