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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**FORM      10-Q**

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**      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934 **

**For      the quarterly period ended March 31, 2007**

**OR      **

**      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934 **

**For      the transition period from ________to _________ **

**Commission      file number 333-44467-01**

**ESSEX      PORTFOLIO, L.P.**
** **

| **California**                                                                |   | **77-0369575**                                         |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S.                Employer Identification Number) |

**925      East Meadow Drive**

**Palo      Alto, California 94303 **

**(650)      494-3700 **

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**ESSEX      PORTFOLIO, L.P.**

**FORM      10-Q**

**INDEX      **

|                                             |                                                                                                                                                | **Page                No.** |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
| **PART                I. FINANCIAL INFORMATION** |                                                                                                                                                |
|                                             |                                                                                                                                                |                        |
| Item                1.                           | Financial                Statements (Unaudited):                                                                                                    | 3                           |
|                                             |                                                                                                                                                |                        |
|                                             | Consolidated                Balance Sheets as of March 31, 2007 and December 31, 2006                                                               | 4                           |
|                                             |                                                                                                                                                |                        |
|                                             | Consolidated                Statements of Operations for the three months ended March 31, 2007                and                2006               | 5                           |
|                                             |                                                                                                                                                |                        |
|                                             | Consolidated                Statements of Partners’ Capital and Comprehensive Income for the three                months ended March 31, 2007 | 6                           |
|                                             |                                                                                                                                                |                        |
|                                             | Condensed                Consolidated Statements of Cash Flows for the three months ended                March 31,                2007 and 2006     | 7                           |
|                                             |                                                                                                                                                |                        |
|                                             | Notes                to Consolidated Financial Statements                                                                                           | 8                           |
|                                             |                                                                                                                                                |                        |
| Item                2.                           | Management's                Discussion and Analysis of Financial Condition and Results of Operations                                                | 16                          |
|                                             |                                                                                                                                                |                        |
| Item                3.                           | Quantitative                and Qualitative Disclosures About Market Risk                                                                           | 21                          |
|                                             |                                                                                                                                                |                        |
| Item                4.                           | Controls                and Procedures                                                                                                              | 23                          |
|                                             |                                                                                                                                                |                        |
| **PART                II. OTHER INFORMATION**    |                                                                                                                                                |
|                                             |                                                                                                                                                |                        |
| Item                1.                           | Legal                Proceedings                                                                                                                    | 23                          |
|                                             |                                                                                                                                                |                        |
| Item                1A.                          | Risk                Factors                                                                                                                         | 23                          |
|                                             |                                                                                                                                                |                        |
| Item                6.                           | Exhibits                                                                                                                                            | 24                          |
|                                             |                                                                                                                                                |                        |
| **Signatures**                                   | 24                                                                                                                                                  |

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**Part      I -- Financial Information**

**Item      1: Financial Statements (Unaudited)**

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**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARIES**

|                                                                                                                                                     |   |    | **March                  31,** |   |    | **December                  31,** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------------------------------|--------|---------|-----------------------------------|
|                                                                                                                                                     |   |    | **2007**                       |   |    | **2006**                          |
| **Assets**                                                                                                                                               |   |    |                           |   |    |                              |
| Real                  estate:                                                                                                                            |   |    |                           |   |    |                              |
|     Rental                  properties:                                                                                              |   |    |                           |   |    |                              |
|         Land                  and land improvements                                                              |   | $       | 577,223                        |   | $       | 560,880                           |
|         Buildings                  and                  improvements                                             |   |    | 2,173,605                      |   |    | 2,108,307                         |
|                                                                                                                                                     |   |    | 2,750,828                      |   |    | 2,669,187                         |
|         Less                  accumulated depreciation                                                           |   |    | (486,134)                      |   |    | (465,015)                         |
|                                                                                                                                                     |   |    | 2,264,694                      |   |    | 2,204,172                         |
|     Real                  estate - held for sale, net                                                                                |   |    | -                              |   |    | 41,221                            |
|     Real                  estate under development                                                                                   |   |    | 152,248                        |   |    | 103,487                           |
|     Investments                                                                                                                      |   |    | 64,221                         |   |    | 60,451                            |
|                                                                                                                                                     |   |    | 2,481,163                      |   |    | 2,409,331                         |
| Cash                  and cash equivalents-unrestricted                                                                                                  |   |    | 15,038                         |   |    | 9,662                             |
| Cash                  and cash equivalents-restricted                                                                                                    |   |    | 10,777                         |   |    | 13,948                            |
| Marketable                  securities                                                                                                                   |   |    | 5,784                          |   |    | -                                 |
| Notes                  and other receivables from related parties                                                                                        |   |    | 961                            |   |    | 1,209                             |
| Notes                  and other receivables                                                                                                             |   |    | 26,982                         |   |    | 18,195                            |
| Prepaid                  expenses and other assets                                                                                                       |   |    | 23,150                         |   |    | 20,632                            |
| Deferred                  charges, net                                                                                                                   |   |    | 12,476                         |   |    | 12,863                            |
|                 Total                  assets                            |   | $       | 2,576,331                      |   | $       | 2,485,840                         |
| **Liabilities                  and Partners' Capital**                                                                                                   |   |    |                           |   |    |                              |
| Mortgage                  notes payable                                                                                                                  |   | $       | 1,092,407                      |   | $       | 1,060,704                         |
| Mortgage                  notes payable - held for sale                                                                                                  |   |    | -                              |   |    | 32,850                            |
| Exchangeable                  bonds                                                                                                                      |   |    | 225,000                        |   |    | 225,000                           |
| Lines                  of credit                                                                                                                         |   |    | 158,374                        |   |    | 93,000                            |
| Accounts                  payable and accrued liabilities                                                                                                |   |    | 47,529                         |   |    | 38,614                            |
| Dividends                  payable                                                                                                                       |   |    | 28,547                         |   |    | 24,910                            |
| Other                  liabilities                                                                                                                       |   |    | 14,358                         |   |    | 14,328                            |
| Deferred                  gain                                                                                                                           |   |    | 2,193                          |   |    | 2,193                             |
|                 Total                  liabilities                       |   |    | 1,568,408                      |   |    | 1,491,599                         |
| Commitments                  and contingencies                                                                                                           |   |    |                           |   |    |                              |
| Minority                  interests                                                                                                                      |   |    | 38,871                         |   |    | 44,950                            |
|                                                                                                                                                     |   |    |                           |   |    |                              |
| Redeemable                  convertible limited partnership units                                                                                        |   |    | 4,750                          |   |    | 4,750                             |
| Preferred                  convertible equity (liquidation value of $149,500)                                                                            |   | 145,912 |                           |   | 145,912 |
| Partners'                  Capital:                                                                                                                      |   |    |                           |   |    |                              |
|     General                  partner:                                                                                                |   |    |                           |   |    |                              |
|         Common                  equity                                                                           |   |    | 607,072                        |   |    | 590,070                           |
|         Preferred                  equity (liquidation value of $25,000)                                         |   |    | 24,412                         |   |    | 24,412                            |
|                                                                                                                                                     |   |    | 631,484                        |   |    | 614,482                           |
|                                                                                                                                                     |   |    |                           |   |    |                              |
| Limited                  partners:                                                                                                                       |   |    |                           |   |    |                              |
|     Common                  equity                                                                                                   |   |    | 59,948                         |   |    | 59,730                            |
|     Preferred                  equity (liquidation value of $130,000)                                                                |   |    | 126,690                        |   |    | 126,690                           |
|                                                                                                                                                     |   |    | 186,638                        |   |    | 186,420                           |
| Accumulated                  other comprehensive income (loss)                                                                                           |   |    | 268                            |   |    | (2,273)                           |
|                 Total                  partners' capital                 |   |    | 818,390                        |   |    | 798,629                           |
|                                                                                                                                                     |   |    |                           |   |    |                              |
|                 Total                  liabilities and partners' capital |   | $       | 2,576,331                      |   | $       | 2,485,840                         |
|                                                                                                                                                     |   |    |                           |   |    |                              |

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**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARES**

|                                                                                                |   |   | **Three                  Months Ended** |
|-----------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|
|                                                                                                |   |   | **March                  31,**          |
|                                                                                                |   |   | **2007**                                |   |   | **2006** |
| Revenues:                                                                                           |   |   |                                    |   |   |   |
|     Rental                  and other property                                  |   | $      | 92,154                                  |   | $ | 82,233 |
|     Management                  and                  other fees from affiliates |   |   | 1,040                                   |   |   | 824 |
|                                                                                                |   |   | 93,194                                  |   |   | 83,057 |
| Expenses:                                                                                           |   |   |                                    |   |   |   |
|     Property                  operating, excluding real estate taxes            |   |   | 23,120                                  |   |   | 21,660 |
|     Real                  estate taxes                                          |   |   | 7,712                                   |   |   | 7,170 |
|     Depreciation                  and amortization                              |   |   | 21,677                                  |   |   | 19,320 |
|     Interest                                                                    |   |   | 18,266                                  |   |   | 18,412 |
|     Amortization                  of                  deferred financing costs  |   |   | 677                                     |   |   | 696 |
|     General                  and administrative                                 |   |   | 6,096                                   |   |   | 4,899 |
|     Other                  expenses                                             |   |   | -                                       |   |   | 970 |
|                                                                                                |   |   | 77,548                                  |   |   | 73,127 |
| Earnings                  from operations                                                           |   |   | 15,646                                  |   |   | 9,930 |
|                                                                                                |   |   |                                    |   |   |   |
| Interest                  and other income                                                          |   |   | 2,182                                   |   |   | 2,394 |
| Equity                  income (loss) in co-investments                                             |   |   | 1,982                                   |   |   | (442) |
| Minority                  interests                                                                 |   |   | (1,172)                                 |   |   | (1,304) |
| Income                  before discontinued operations and                                          |   |   |                                    |   |   |   |
|                    tax provision                                                               |   |   | 18,638                                  |   |   | 10,578 |
| Income                  tax provision                                                               |   |   | -                                       |   |   | (37) |
| Income                  before discontinued operations                                              |   |   | 18,638                                  |   |   | 10,541 |
| Income                  from discontinued operations (net of                                        |   |   |                                    |   |   |   |
|                    minority interests)                                                         |   |   | 25,238                                  |   |   | 3,518 |
| Net                  income                                                                         |   |   | 43,876                                  |   |   | 14,059 |
| Dividends                  to preferred units - Series F                                            |   |   | (488)                                   |   |   | (488) |
| Dividends                  to preferred units - Series G                                            |   |   | (1,755)                                 |   |   | - |
| Dividends                  to preferred units - limited partners                                    |   |   | (2,559)                                 |   |   | (2,559) |
| Net                  income available to common units                                               |   | $      | 39,074                                  |   | $ | 11,012 |
|  Per                  common unit data:                                                        |   |   |                                    |   |   |   |
| Basic:                                                                                              |   |   |                                    |   |   |   |
|     Income                  before discontinued operations available to         |   |   |                                    |   |   |   |
|         common                  units                       |   | $      | 0.54                                    |   | $ | 0.30 |
|     Income                  from discontinued operations                        |   |   | 0.97                                    |   |   | 0.14 |
|     Net                  income available to common units                       |   | $      | 1.51                                    |   | $ | 0.44 |
|     Weighted                  average number of common units                    |   |   |                                    |   |   |   |
|         outstanding                  during the period      |   |   | 25,952,552                              |   |   | 25,165,778 |
|                                                                                                |   |   |                                    |   |   |   |
| Diluted:                                                                                            |   |   |                                    |   |   |   |
|     Income                  before discontinued operations available to         |   |   |                                    |   |   |
|         common                  units                       |   | $      | 0.52                                    |   | $ | 0.29 |
|     Income                  from discontinued operations                        |   |   | 0.94                                    |   |   | 0.14 |
|     Net                  income available to common units                       |   | $      | 1.46                                    |   | $ | 0.43 |
|     Weighted                  average number of common units                    |   |   |                                    |   |   |   |
|         outstanding                  during the period      |   |   | 26,735,117                              |   |   | 25,389,471 |
|                                                                                                |   |   |                                    |   |   |   |

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**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARIES**

|                                                                              |   | **General                  Partner** |   | **Limited                  Partners** |    |   | **Accumulated**                    |          |         |       |
|-----------------------------------------------------------------------------------|--------|--------------------------------------|--------|---------------------------------------|--------------|--------|------------------------------------|---------------|--------------|------------|
|                                                                              |   |                                 |   |                                  |         |   |                               | **Preferred** |         |       |   |     |   |    |    | **Preferred** |   |   | **Other** |   |   |   |
|                                                                              |   | **Common                  Equity**   |   |                        | **Equity**   |   | **Common                  Equity** |          |         | **Equity** |   |   | **Comprehensive** |   |     |               |
|                                                                              |   | **Units**                            |   |                        | **Amount**   |   |                          | **Amount**    |         | **Units**  |   |   | **Amount** |   |   | **Amount** |   |    | **Income                  (Loss)** |   |   | **Total** |
| Balances                  at December 31, 2006                                    |   | 23,416                               |   | $                                     | 590,070      |   | $                                  | 24,412        |    | 2,495      |   | $ | 59,730 |   | $ | 126,690 |   | $ | (2,273) |   | $ | 798,629 |
| Comprehensive                  income:                                            |   |                                 |   |                                  |         |   |                               |          |         |       |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net                  income                               |   | -                                    |   |                                  | 35,303       |   |                               | 2,243         |         | -          |   |   | 3,771 |   |   | 2,559 |   |   | - |   |   | 43,876 |
|     Change                  in fair value of cash flow hedges |   | -                                    |   |                                  | -            |   |                               | -             |         | -          |   |   | - |   |   | - |   |   | 2,541 |   |   | 2,541 |
| Comprehensive                  income                                             |   |                                      |   |                                  |              |   |                               |          |         |            |   |   |   |   |   |   |   |   |   |   |   | 46,417 |
| Issuance                  of common units under                                   |   |                                 |   |                                  |         |   |                               |          |         |       |   |   |   |   |   |   |   |   |   |   |   |   |
|     Stock-based                  compensation plan            |   | 28                                   |   |                                  | 1,485        |   |                               | -             |         | -          |   |   | - |   |   | - |   |   | - |   |   | 1,485 |
| Issuance                  of general partner common units                         |   | 27                                   |   |                                  | 3,247        |   |                               | -             |         | -          |   |   | - |   |   | - |   |   | - |   |   | 3,247 |
| Redemption                  of limited partner common units                       |   | -                                    |   |                                  | -            |   |                               | -             |         | (33)       |   |   | (1,173) |   |   | - |   |   | - |   |   | (1,173) |
| Vested                  of series Z and Z-1 incentive units                       |   | -                                    |   |                                  | -            |   |                               | -             |         | 29         |   |   | 378 |   |   | - |   |   | - |   |   | 378 |
| Reallocation                  of partners' capital                                |   | -                                    |   |                                  | (1,202)      |   |                               | -             |         | -          |   |   | 660 |   |   | - |   |   | - |   |   | (542) |
| Partners'                  distributions                                          |   | -                                    |   |                                  | (21,831)     |   |                               | (2,243)       |         | -          |   |   | (3,418) |   |   | (2,559) |   |   | - |   |   | (30,051) |
| Balances                  at March 31, 2007                                       |   | 23,471                               |   | $                                     | 607,072      |   | $                                  | 24,412        |         | 2,491      |   | $ | 59,948 |   | $ | 126,690 |   | $ | 268 |   | $ | 818,390 |
|                                                                              |   |                                 |   |                                  |         |   |                               |          |         |       |   |   |   |   |   |   |   |   |   |   |   |   |

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**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARIES**

|                                                                                                                                                                 |   |   | **Three                  Months Ended** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|
|                                                                                                                                                                 |   |   | **March                  31,**          |
|                                                                                                                                                                 |   |   | **2007**                                |   |   | **2006** |
| Net                  cash provided by operating activities                                                                                                           |   | $      | 59,931                                  |   | $ | 43,871 |
|  Cash                  flows used in investing activities:                                                                                                      |   |   |                                    |   |   |   |
|     Additions                  to                  real estate:                                                                                  |   |   |                                    |   |   |   |
|         Acquisitions                  and improvements to recent acquisitions                                                |   |   | (63,729)                                |   |   | (57,275) |
|         Capital                  expenditures and redevelopment                                                              |   |   | (9,547)                                 |   |   | (10,471) |
|     Additions                  to                  real estate under development                                                                 |   |   | (63,902)                                |   |   | (8,426) |
|     Dispositions                  of                  real estate and investments                                                                |   |   | 121,369                                 |   |   | 8,349 |
|     Changes                  in restricted cash and refundable deposits                                                                          |   |   | 5,347                                   |   |   | 5,003 |
|     Changes                  in marketable securities                                                                                            |   |   | (5,784)                                 |   |   | - |
|     Additions                  to                  notes receivable from related parties and other                  receivables                  |   |   | (9,410)                                 |   |   | (10,295) |
|     Repayments                  of                  notes receivable from related parties and other                  receivables                 |   |   | 669                                     |   |   | - |
|     Contributions                  to limited partnerships                                                                                       |   |   | (15,072)                                |   |   | (10,205) |
|     Distribution                  from limited partnerships                                                                                      |   |   | 14,421                                  |   |   | 9,587 |
|                 Net                  cash used in investing activities               |   |   | (25,638)                                |   |   | (73,733) |
|  Cash                  flows from financing activities:                                                                                                         |   |   |                                    |   |   |   |
|     Proceeds                  from                  mortgage notes payable and lines of credit                                                   |   |   | 159,140                                 |   |   | 116,792 |
|     Repayment                  of                  mortgage notes payable and lines of credit                                                    |   |   | (94,554)                                |   |   | (63,955) |
|     Additions                  to                  deferred charges                                                                              |   |   | (289)                                   |   |   | (907) |
|     Net                  proceeds from stock options exercised                                                                                   |   |   | 1,185                                   |   |   | 1,209 |
|     Distributions                  to limited partner units and minority interest                                                                |   |   | (65,486)                                |   |   | (5,731) |
|     Redemption                  of                  limited partner units and minority interest                                                  |   |   | (7,192)                                 |   |   | (3,469) |
|     Distributions                  to general partner                                                                                            |   |   | (21,721)                                |   |   | (19,005) |
|                 Net                  cash (used in) provided by financing activities |   |   | (28,917)                                |   |   | 24,934 |
|                                                                                                                                                                 |   |   |                                    |   |   |   |
| Net                  increase (decrease) in cash and cash equivalents                                                                                                |   |   | 5,376                                   |   |   | (4,928) |
| Cash                  and cash equivalents at beginning of period                                                                                                    |   |   | 9,662                                   |   |   | 14,337 |
| Cash                  and cash equivalents at end of period                                                                                                          |   | $      | 15,038                                  |   | $ | 9,409 |
|  Supplemental                  disclosure of cash flow information:                                                                                             |   |   |                                    |   |   |   |
|     Cash                  paid for interest, net of $1,972 and $549 capitalized                                                                  |   |   |                                    |   |   |   |
|         in                  2007                  and 2006, respectively                                                     |   | $      | 13,961                                  |   | $ | 16,269 |
|                                                                                                                                                                 |   |   |                                    |   |   |   |

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**ESSEX      PORTFOLIO, L.P. AND SUBSIDIARIES**

**Notes      to Consolidated Financial Statements**

**March      31, 2007 and 2006**

**(Unaudited)**

**(1)**
**Organization and Basis of Presentation**

***Fund      Activities***

***Variable      Interest Entities***

*Consolidation      of Variable Interest Entities, an Interpretation of ARB No. 51*

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***Stock-Based      Compensation***

*Share-Based      Payment”, *

***Accounting      Estimates and Reclassifications***

***New      Accounting Pronouncements***

*Accounting      for Uncertainty in Income Taxes-an Interpretation of FASB Statement      109.*

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**(2)      **
**Significant      Transactions**

***(a)      Acquisitions***

***(b)      Dispositions***

***(c)      Investments***

***(d)      Debt and Financing Activities***

***(e)      Equity***

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**(3)      Investments**

|                                                                                                                                             |   |   | **March                  31,** |   |   | **December                  31,** |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|-----------------------------------|
|                                                                                                                                             |   |   | **2007**                       |   |   | **2006**                          |
|                                                                                                                                             |   |   |                           |   |   |                              |
| Investments                  in joint ventures accounted for under the equity                                                                    |   |   |                           |   |   |                              |
|     method                  of accounting:                                                                                   |   |   |                           |   |   |                              |
|                                                                                                                                             |   |   |                           |   |   |                              |
|     Limited                  partnership interest of 27.2% and general partner                                               |   |   |                           |   |   |                              |
|         interest                  of 1%                  in Essex Apartment Value Fund II, L.P (Fund II) |   | $      | 53,855                         |   | $      | 45,598                            |
|     Preferred                  limited partnership interests in Mountain Vista                                               |   |   |                           |   |   |                              |
|     Apartments,                  LLC                  (A)                                                                    |   |   | 1,182                          |   |   | 6,806                             |
|     Development                  joint ventures                                                                              |   |   | 8,684                          |   |   | 7,547                             |
|                                                                                                                                             |   |   | 63,721                         |   |   | 59,951                            |
| Investments                  accounted for under the cost method of accounting:                                                                  |   |   |                           |   |   |                              |
|                                                                                                                                             |   |   |                           |   |   |                              |
|     Series                  A Preferred Stock interest in Multifamily Technology                                             |   |   |                           |   |   |                              |
|         Solutions,                  Inc.                                                                 |   |   | 500                            |   |   | 500                               |
|      Total                  investments                                                                                 |   | $      | 64,221                         |   | $      | 60,451                            |
|                                                                                                                                             |   |   |                           |   |   |                              |

| (A)   | The                investment is held in an entity that includes an affiliate of The                Marcus                & Millichap Company (“TMMC”). TMMC’s Chairman is also the Chairman of                the Company. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | **March                  31,**          |      |   | ** December 31,** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|--------------------------|--------|-----------------------------|
|                                                                                                                    |   |   | **2007**                                |                     |   | **2006**                    |
| Balance                  sheets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |                                    |                     |   |                        |
| Real                  estate and real estate under development                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 574,385                                 |                     | $      | 576,134                     |
| Other                  assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 20,158                                  |                     |   | 20,681                      |
|          Total                  assets                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 594,543                                 |                     | $      | 596,815                     |
|  Mortgage                  notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 314,541                                 |                     | $      | 301,665                     |
| Other                  liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 30,490                                  |                     |   | 74,793                      |
| Partners'                  capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 249,512                                 |                     |   | 220,357                     |
|          Total                  liabilities and partners' capital                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 594,543                                 |                     | $      | 596,815                     |
|  Operating                  Partnership's share of capital                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 63,721                                  |                     | $      | 59,951                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |                                    |                     |   |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | **Three                  Months Ended** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | **March                  31,**          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | **2007**                                |                     |   | **2006**                    |
| Statements                  of operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |                                    |                     |   |                        |
|     Total                  property revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 12,172                                  |                     | $      | 9,290                       |
|     Depreciation                  and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (3,472)                                 |                     |   | (2,885)                     |
|     Interest                  expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (4,018)                                 |                     |   | (4,155)                     |
|     Other                  operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (4,934)                                 |                     |   | (3,928)                     |
|      Total                  net (loss) income                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | (252)                                   |                     | $      | (1,678)                     |
|  Operating                  Partnership's share of operating net (loss) income                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (64)   |                                    |                     | (442)  |
| Operating                  Partnership's gain - partial sale of its interest                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 2,046                                   |                     |   | -                           |
| Operating                  Partnership's share of net income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 1,982                                   |                     | $      | (442)                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |                                    |                     |   |                        |

----

**(4)      Notes Receivable and Other Receivables from Related      Parties**

|                                                                                                           |   |   | **March                  31,** |   |   | **December                  31,** |
|----------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|-----------------------------------|
|                                                                                                           |   |   | **2007**                       |   |   | **2006**                          |
| Related                  party receivables, unsecured:                                                         |   |   |                           |   |   |                              |
|     Loans                  to officers made prior to July 31, 2002, secured,               |   |   |                           |   |   |                              |
|         bearing                  interest at 8% (repaid in March 2007) |   | $      | -                              |   | $      | 375                               |
|     Other                  related party receivables, substantially due on demand          |   |   | 961                            |   |   | 834                               |
|     Total                  notes and other receivable from related parties                 |   | $      | 961                            |   | $      | 1,209                             |
|                                                                                                           |   |   |                           |   |   |                              |

**(5)      Notes and Other Receivables**

|                                                                                                                 |   |   | **March                    31,** |   |   | **December                    31,** |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------|--------|--------|-------------------------------------|
|                                                                                                                 |   |   | **2007**                         |   |   | **2006**                            |
|                                                                                                                 |   |   |                             |   |   |                                |
| Note                    receivable, secured, bearing interest at 12%, due June                    2008               |   | $      | 2,193                            |   | $      | 2,193                               |
| Note                    receivable, secured, bearing interest at LIBOR + 3.69%, due June                    2009     |   |   | 7,347                            |   |   | 7,309                               |
| Note                    receivable, secured, bearing interest at LIBOR + 4.65%, due November                    2008 |   |   | 8,767                            |   |   | 7,807                               |
| Note                    receivable, secured, bearing interest at LIBOR + 4.75%, due March                    2012    |   |   | 6,901                            |   |   | -                                   |
| Other                    receivables                                                                                 |   |   | 1,774                            |   |   | 886                                 |
|     Total                    notes and other receivables                                         |   | $      | 26,982                           |   | $      | 18,195                              |
|                                                                                                                 |   |   |                             |   |   |                                |

**(6)      Related Party Transactions**

----

**(7)      Segment Information**

|                                                                                        |   |   | **Three                  Months Ended** |
|---------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|
|                                                                                        |   |   | **March                  31,**          |
|                                                                                        |   |   | **2007**                                |   |   | **2006** |
| Revenues:                                                                                   |   |   |                                    |   |   |   |
|     Southern                  California                                |   | $      | 51,963                                  |   | $ | 48,363 |
|     Northern                  California                                |   |   | 21,868                                  |   |   | 17,444 |
|     Seattle                  Metro                                      |   |   | 15,044                                  |   |   | 13,271 |
|     Other                  Regions                                      |   |   | 3,279                                   |   |   | 3,155 |
|         Total                  property revenues    |   | $      | 92,154                                  |   | $ | 82,233 |
|                                                                                        |   |   |                                    |   |   |   |
| Net                  operating income:                                                      |   |   |                                    |   |   |   |
|     Southern                  California                                |   | $      | 35,871                                  |   | $ | 32,845 |
|     Northern                  California                                |   |   | 14,640                                  |   |   | 11,526 |
|     Seattle                  Metro                                      |   |   | 9,849                                   |   |   | 8,257 |
|     Other                  Regions                                      |   |   | 962                                     |   |   | 775 |
|         Total                  net operating income |   |   | 61,322                                  |   |   | 53,403 |
|                                                                                        |   |   |                                    |   |   |   |
| Depreciation                  and amortization:                                             |   |   |                                    |   |   |   |
|     Southern                  California                                |   |   | (11,345)                                |   |   | (10,407) |
|     Northern                  California                                |   |   | (6,175)                                 |   |   | (4,075) |
|     Seattle                  Metro                                      |   |   | (3,469)                                 |   |   | (3,151) |
|     Other                  Regions                                      |   |   | (688)                                   |   |   | (1,687) |
|                                                                                        |   |   | (21,677)                                |   |   | (19,320) |
| Interest                  expense:                                                          |   |   |                                    |   |   |   |
|     Southern                  California                                |   |   | (6,589)                                 |   |   | (6,355) |
|     Northern                  California                                |   |   | (4,502)                                 |   |   | (4,654) |
|     Seattle                  Metro                                      |   |   | (1,725)                                 |   |   | (1,690) |
|     Other                  Regions                                      |   |   | (5,450)                                 |   |   | (5,713) |
|                                                                                        |   |   | (18,266)                                |   |   | (18,412) |
|  Amortization                  of deferred financing costs                             |   | (677)  |                                    |   | (696) |
| General                  and administrative                                                 |   |   | (6,096)                                 |   |   | (4,899) |
| Other                  expenses                                                             |   |   | -                                       |   |   | (970) |
| Management                  and other fees from affiliates                                  |   | 1,040  |                                    |   | 824 |
| Interest                  and other income                                                  |   |   | 2,182                                   |   |   | 2,394 |
| Equity                  income (loss) in co-investments                                     |   |   | 1,982                                   |   |   | (442) |
| Minority                  interests                                                         |   |   | (1,172)                                 |   |   | (1,304) |
| Income                  tax provision                                                       |   |   | -                                       |   |   | (37) |
|  Income                  before discontinued operations                                |   | $      | 18,638                                  |   | $ | 10,541 |
|                                                                                        |   |   |                                    |   |   |   |

|                                                                                    |   |   | **March                  31,** |   |   | **December                  31,** |
|-----------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|-----------------------------------|
|                                                                                    |   |   | **2007**                       |   |   | **2006**                          |
| Assets:                                                                                 |   |   |                           |   |   |                              |
|     Southern                  California                            |   | $      | 1,262,376                      |   | $      | 1,244,037                         |
|     Northern                  California                            |   |   | 606,926                        |   |   | 565,405                           |
|     Seattle                  Metro                                  |   |   | 316,368                        |   |   | 317,848                           |
|     Other                  Regions                                  |   |   | 79,024                         |   |   | 76,882                            |
|         Net                  real estate assets |   |   | 2,264,694                      |   |   | 2,204,172                         |
|     Non-segment                  assets                             |   |   | 311,637                        |   |   | 281,668                           |
|         Total                  assets           |   | $      | 2,576,331                      |   | $      | 2,485,840                         |
|                                                                                    |   |   |                           |   |   |                              |

----

**(8)      Net Income Per Common Unit**

|                                                                                                        |   |   | **Three                  Months Ended** |   |          | **Three                  Months Ended** |
|-------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|--------|---------------|-----------------------------------------|
|                                                                                                        |   |   | **March                  31, 2007**     |   |          | **March                  31, 2006**     |
|                                                                                                        |   |   |                                    |   | **Weighted-** |                                    |   | **Per** |   |   |   |   |   | **Weighted-** |      |      | **Per** |
|                                                                                                        |   |   |                                    |   | **average**   |                                    |   | **Common** |   |   |   |   |   | **average** |   |   | **Common** |
|                                                                                                        |   |   |                                    |   | **Common**    |                                    |   | **Unit** |   |   |   |   |   | **Common** |   |   | **Unit** |
|                                                                                                        |   |   | **Income**                              |   | **Units**     |                                    |   | **Amount** |   |   | **Income** |   |   | **Units** |   |   | **Amount** |
| Basic:                                                                                                      |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |
|     Income                  from continuing operations                                  |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |
|         available                  to                  common units |   | $      | 13,836                                  |   | 25,953        |                                    | $ | 0.54 |   | $ | 7,494 |   |   | 25,166 |   | $ | 0.30 |
|     Income                  from discontinued operations                                |   |   | 25,238                                  |   | 25,953        |                                    |   | 0.97 |   |   | 3,518 |   |   | 25,166 |   |   | 0.14 |
|                                                                                                        |   |   | 39,074                                  |   |          |                                    | $ | 1.51 |   |   | 11,012 |   |   |   |   | $ | 0.44 |
|                                                                                                        |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                        |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Effect                  of Dilutive Securities (1)                                                          |   |   | -                                       |   | 782           |                                    |   |   |   |   | - |   |   | 223 |   |   |   |
|                                                                                                        |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                                                    |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |
|     Income                  from continuing operations                                  |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |
|         available                  to                  common units |   |   | 13,836                                  |   | 26,735        |                                    | $ | 0.52 |   |   | 7,494 |   |   | 25,389 |   | $ | 0.29 |
|     Income                  from discontinued operations                                |   |   | 25,238                                  |   | 26,735        |                                    |   | 0.94 |   |   | 3,518 |   |   | 25,389 |   |   | 0.14 |
|                                                                                                        |   | $      | 39,074                                  |   |          |                                    | $ | 1.46 |   | $ | 11,012 |   |   |   |   | $ | 0.43 |
|                                                                                                        |   |   |                                    |   |          |                                    |   |   |   |   |   |   |   |   |   |   |   |

| (1)   | On                or after November 1, 2020, the holders of the $225 million exchangeable                notes may exchange, at the then applicable exchange rate, the notes                for                cash and, at Essex’s option, a portion of the notes may be exchanged for                Essex common stock; the current exchange rate is $103.25 per share                of                Essex common stock. The exchangeable notes will also be exchangeable                prior                to November 1, 2020, but only upon the occurrence of certain specified                events. During the three months ended March 31, 2007 the weighted                average                common stock price exceeded the $103.25 strike price and therefore                common                stock issuable upon exchange of the exchangeable notes was included                in the                diluted share count. The treasury method was used to determine the                shares                to be added to the denominator for the calculation of earnings per                diluted                share. Stock                options of 0 and 667 for the three months ended March 31, 2007 and                2006,                respectively, are not included in the diluted earnings per unit                calculation because the exercise price of the options were greater                than the average market price of the common unit for the three and                nine months ended and, therefore, were anti-dilutive. The                5,980,000 shares of cumulative convertible                preferred stock Series G have been excluded from diluted earnings                per unit                for the three months ended March 31, 2007 as the effect was                anti-dilutive.  |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(9)    **Derivative      Instruments and Hedging Activities****

----

**(10)    **Discontinued      Operations**    **

*Accounting      for the Impairment or Disposal of Long-Lived Assets*

|                                                                     |   |   | **Three                  Months Ended** |
|--------------------------------------------------------------------------|--------|--------|-----------------------------------------|
|                                                                     |   |   | **March                  31,**          |
|                                                                     |   |   | **2007**                                |   |   | **2006** |
| Rental                  revenues                                         |   | $      | 1,355                                   |   | $ | 3,029 |
| Interest                  and other income                               |   |   | 290                                     |   |   | - |
|     Revenues                                         |   |   | 1,645                                   |   |   | 3,029 |
| Property                  operating expenses                             |   |   | (535)                                   |   |   | (1,199) |
| Interest                  expense                                        |   |   | (416)                                   |   |   | (579) |
| Depreciation                  and amortization                           |   |   | (41)                                    |   |   | (771) |
| Minority                  interests                                      |   |   | -                                       |   |   | (143) |
|     Expenses                                         |   |   | (992)                                   |   |   | (2,692) |
| Gain                  on sale of real estate                             |   |   | 78,919                                  |   |   | 3,062 |
| Equity                  income co-investments                            |   |   | -                                       |   |   | 119 |
| Promote                  interest and fees                               |   |   | 10,290                                  |   |   | - |
| Minority                  interests - City Heights                       |   |   | (64,624)                                |   |   | - |
|     Net                  gain on sale of real estate |   |   | 24,585                                  |   |   | 3,181 |
|                                                                     |   |   |                                    |   |   |   |
| Income                  from discontinued operations                     |   | $      | 25,238                                  |   | $ | 3,518 |
|                                                                     |   |   |                                    |   |   |   |

**(11)      Commitments and Contingencies **

The      Operating Partnership is subject to various lawsuits in the normal course of      its      business operations. Such lawsuits are not expected to have a material adverse      effect on the Operating Partnership’s financial condition, results of operations      or cash flows.

----

**Item      2: Management's Discussion and Analysis of Financial Condition and Results      of      Operations**

*The      following discussion should be read in conjunction with our Consolidated      Condensed Financial Statements and accompanying Notes thereto included elsewhere      herein and with our 2006 Annual Report on Form 10-K for the year ended      December 31, 2006 and our Current Report on Form 10-Q for the quarter ended      March 31, 2007. *

**Southern      California**

**Northern      California**

**Seattle**
**Metro**

**Other      Regions**

|                                 | As                  of March 31, 2007 |   | As                  of March 31, 2006 |   |
|--------------------------------------|---------------------------------------|--------|---------------------------------------|--------|
|                                 | Apartment                  Homes      | %      | Apartment                  Homes      | *%*    |
| Southern                  California | 12,866                                | 47%    | 13,555                                | 51%    |
| Northern                  California | 7,624                                 | 28%    | 6,557                                 | 25%    |
| Seattle                  Metro       | 5,420                                 | 20%    | 5,471                                 | 20%    |
| Other                  Regions       | 1,177                                 | 5%     | 1,177                                 | 4%     |
| **Total**                            | 27,087                                | 100%   | 26,760                                | 100%   |

**Comparison      of the Three Months Ended March 31, 2007 to the Three Months Ended March 31,      2006**

----

|                                                                                   |   |   | **Three                    months ended** |
|----------------------------------------------------------------------------------------|--------|--------|-------------------------------------------|
|                                                                                   |   |   | **March                    31,**          |
|                                                                                   |   |   | **2007**                                  |   | **2006** |
|         Southern                    California |   |   | 95.7%                                     |   | 96.4% |
|         Northern                    California |   |   | 95.4%                                     |   | 96.7% |
|         Seattle                    Metro       |   |   | 95.9%                                     |   | 96.7% |
|         Other                    Regions       |   |   | 94.9%                                     |   | 95.5% |
|                                                                                   |   |   |                                      |   |   |

|                                                                                                                                                                                                                                                         |                           |   |   | **Three                  Months Ended** |   |   |       |     |           |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------|-----------------------------------------|--------|--------|------------|--------------------|----------------|------------|
|                                                                                                                                                                                                                                                         | **Number                  of** |   |   | **March                  31,**          |   |   | **Dollar** |               | **Percentage** |       |
|                                                                                                                                                                                                                                                         | **Properties**                 |   |   | **2007**                                |   |   | **2006**   |               |           | **Change** |    | **Change** |   |
| Property                  Revenues** **(dollars                  in thousands)                                                                                                                                                                          |                           |   |   |                                    |   |   |       |               |           |       |
|     Same-Properties:                                                                                                                                                                                                                     |                           |   |   |                                    |   |   |       |               |           |       |   |   |   |
|         Southern                  California                                                                     | 54                             |   | $      | 45,801                                  |   | $      | 43,178     |               | $              | 2,623      |   | 6.1 | % |
|         Northern                  California                                                                     | 16                             |   |   | 14,371                                  |   |   | 13,191     |               |           | 1,180      |   | 8.9 |   |
|         Seattle                  Metro                              | 22                             |   |   | 13,505                                  |   |   | 12,119     |               |           | 1,386      |   | 11.4 |   |
|         Other                  Regions                              | 5                              |   |   | 2,639                                   |   |   | 2,472      |               |           | 167        |   | 6.8 |   |
|             Total                  Same-Property revenues                                                                                                                    | 97                             |   |   | 76,316                                  |   |   | 70,960     |               |           | 5,356      |   | 7.5 |   |
| Non-Same                  Property Revenues (1)                                                                                                                                                                                          |                           |   |   | 15,838                                  |   |   | 11,273     |               |           | 4,565      |   | 40.5 |   |
|             Total                  property revenues                                                                                                     |                           |   | $      | 92,154                                  |   | $      | 82,233     |               | $              | 9,921      |   | 12.1 | % |
|                                                                                                                                                                                                                                                         |                           |   |   |                                    |   |   |       |               |           |       |   |   |   |

*Quarterly      Same-Property Revenues*

*Quarterly      Non-Same Property Revenues*

*Total      Expenses*

*Other      expenses *

*Equity      income (loss) in co-investments *

*Income      from discontinued operations*

----

**Liquidity      and Capital Resources**

----

*Derivative      Activity*

*Development      and Predevelopment Pipeline*

*Redevelopment*

----

**Alternative      Capital Sources**

**Contractual      Obligations and Commercial Commitments**

|                                                                                                  |   |   |     |   |   | **2008                  and** |   |   | **2010                  and** |   |   |           |   |   |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------------|--------|--------|-------------------------------|--------|--------|----------------|--------|--------|-----------|
| **(In                  thousands)                               ** |   |   | **2007** |   |   | **2009**                      |   |   | **2011**                      |   |   | **Thereafter** |   |   | **Total** |
| Mortgage                  notes payable                                                                                                                                                                                       |   | $      | 68,662   |   | $      | 137,631                       |   | $      | 311,278                       |   | $      | 574,836        |   | $      | 1,092,407 |
| Exchangeable                  bonds                                                                                                                                                                                           |   |   | -        |   |   | -                             |   |   | -                             |   |   | 225,000        |   |   | 225,000   |
| Lines                  of credit                                                                                                                                                                                              |   |   | -        |   |   | -                             |   |   | 158,374                       |   |   | -              |   |   | 158,374   |
| Interest                  on indebtedness                                                                                                                                                                                     |   |   | 56,471   |   |   | 97,003                        |   |   | 51,554                        |   |   | 188,514        |   |   | 393,542   |
| Development                  commitments                                                                                                                                                                                      |   |   | 59,600   |   |   | 57,500                        |   |   | -                             |   |   | -              |   |   | 117,100   |
| Redevelopment                  commitments                                                                                                                                                                                    |   |   | 37,315   |   |   | 25,149                        |   |   | -                             |   |   | -              |   |   | 62,464    |
| Essex                  Apartment Value Fund II, L.P.                                                                                                                                                                          |   |   |     |   |   |                          |   |   |                          |   |   |           |   |   |      |
|     capital                  commitment                                                                                                                                                                   |   |   | 11,107   |   |   | 8,397                         |   |   | -                             |   |   | -              |   |   | 19,504    |
|                                                                                                                                                                                                                          |   | $      | 233,155  |   | $      | 325,680                       |   | $      | 521,206                       |   | $      | 988,350        |   | $      | 2,068,391 |
|                                                                                                                                                                                                                          |   |   |     |   |   |                          |   |   |                          |   |   |           |   |   |      |

**Critical      Accounting Policies and Estimates**

**Forward      Looking Statements **

----

**Potential      Factors Affecting Future Operating Results **

*Development      and Redevelopment Activities*

|         |   |   | ·  funds                may be expended and management's time devoted to projects that may                not be                completed;                         |
|--------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |   | ·  construction                costs of a project may exceed original estimates possibly making                the                project economically unfeasible; |
|    |   |   | ·  projects                may be delayed due to, among other things, adverse weather conditions;                                                                  |
|    |   |   | ·  occupancy                rates and rents at a completed project may be less than anticipated;                and                                                |
|    |   |   | ·  expenses                at a completed development project may be higher than anticipated.                                                                      |

*Interest      Rate Fluctuations *

**Item      3: Quantitative and Qualitative Disclosures About Market Risk**

***Interest      Rate Hedging Activities***

----

|                                                                                           |   |       |         |                            |         |   |    | **Carrying                  and**  |                              |                    |                              |                      |
|------------------------------------------------------------------------------------------------|--------|------------|--------------|---------------------------------|--------------|--------|--------------|------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------------------------|-----------------------------------|---------------------------|
|                                                                                           |   |       | **Notional** |                            | **Maturity** |   |         | **Estimate                  Fair** |                              | **+                  50**                                                                                    |                              | **-                  50** |
| **(Dollars                  in thousands)**                                                    |   | **Amount** |         | **Date                  Range** |         |   | **Value**    |                               | **Basis                  Points** |                                                                                                         | **Basis                  Points** |
| Cash                  flow hedges:                                                             |   |       |         |                            |         |   |         |                               |                              |                                                                                                         |                              |
|     Interest                  rate                  forward-starting swaps | $      | 500,000    |         | 2007-2011                       |         | $      | 260          | $                                  | 16,465                            | $                                                                                                            | (17,219)                          |
|     Interest                  rate                  caps                   |   | 182,849    |         | 2008-2011                       |         |   | 8            |                               | 31                                |                                                                                                         | 2                                 |
|         Total                  cash flow hedges        | $      | 682,849    |         | 2007-2011                       |         | $      | 268          | $                                  | 16,496                            | $                                                                                                            | (17,217)                          |
|                                                                                           |   |       |         |                            |         |   |         |                               |                              |                                                                                                         |                              |                      |

***Interest      Rate Sensitive Liabilities***

|                                     |   |   |            |   |            |   |     |   |            |   |            |   |           |    |      |      |   |                            |        |
|------------------------------------------|--------|--------|-----------------|--------|-----------------|--------|----------|--------|-----------------|--------|-----------------|--------|----------------|---------|-----------|-----------|--------|---------------------------------|--------------------------------------|
| **For                  the Years Ended** |   |   | **2007****(1)** |   | **2008****(2)** |   | **2009** |   | **2010****(3)** |   | **2011****(4)** |   | **Thereafter** |    | **Total** |      |   | **Fair                  value** |
|                                     |   |   |            |   |            |   |     |   |            |   |            |   |           |    |      |      |   |                            |                                 |
| (In                  thousands)          |   |   |            |   |            |   |     |   |            |   |            |   |           |    |      |      |   |                            |                                 |
| Fixed                  rate debt         |   | $      | 68,662          |   | 113,226         |   | 24,405   |   | 156,351         |   | 154,927         |   | 610,785        |    | $         | 1,128,356 |   | $                               | 1,218,377                            |
| Average                  interest rate   |   |   | 6.0%            |   | 6.8%            |   | 6.9%     |   | 8.0%            |   | 6.4%            |   | 5.0%           |    |      |      |   |                            |                                 |
| Variable                  rate debt      |   | $      | -               |   | -               |   | -        |   | 158,374         |   | -               |   | 189,051        | **(5)** | $         | 347,425   |   | $                               | 347,425                              |
| Average                  interest        |   |   | -               |   | -               |   | -        |   | 5.9%            |   | -               |   | 4.8%           |    |      |      |   |                            |                                 |
|                                     |   |   |            |   |            |   |     |   |            |   |            |   |           |    |      |      |   |                            |                                 |

The      table      incorporates only those exposures that exist as of March 31, 2007; it does      not      consider those exposures or positions that could arise after that date. As      a      result, our ultimate realized gain or loss, with respect to interest rate      fluctuations, would depend on the exposures that arise during the period, our      hedging strategies at the time, and interest rates.

----

**Item      4: Controls and Procedures **

**Part      II -- Other Information**

**Item      1: Legal Proceedings**

**Item      IA: Risk Factors**

----

**Item      6: Exhibits **

|   | *A.* | *Exhibits* |
|--------|------|------------|

|   | 12.1 | Ratio                of Earnings to Fixed Charges |
|--------|------|---------------------------------------------------|

|   | 31.1 | Certification                of Keith R. Guericke, Chief Executive Officer, pursuant to Section                302 of                the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                of Michael T. Dance, Chief Financial Officer, pursuant to Section                302 of                the Sarbanes-Oxley Act of 2002. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                of Keith R. Guericke, Chief Executive Officer, pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification                of Michael T. Dance, Chief Financial Officer, pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURE**

|             Pursuant                to the                requirements of the Securities Exchange Act of 1934, the Registrant                has                duly caused this report to be signed on its behalf by the             undersigned                  thereunto duly                  authorized. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ESSEX                PORTFOLIO, L.P.                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   | *(Registrant)*                                                                                                                       |
|   |                                                                                                                                 |
|   |                                                                                                                                 |
|   | Date:                 May 9, 2007                                                                                               |
|   |                                                                                                                                 |
|   |             By:                                                          |  /S/                MICHAEL T. DANCE |
|   | Michael                T. Dance                                                                                                      |
|   | *Executive                Vice President, Chief Financial Officer**(Authorized                Officer, Principal Financial Officer)* |
|   |                                                                                                                                 |
|   |                                                                                                                                 |
|   |             By:                 /S/ BRYAN HUNT                      |
|   | Bryan                Hunt                                                                                                            |
|   | *Vice                President, Chief Accounting                Officer*                                                             |