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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 September 30, 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 September 30, 2007 and December 31,                2006                                                        | 4                                                                                                   |
|                                             |                                                                                                                                                            |                                                                                                |
|                                             | Consolidated                Statements of Operations for the three and nine months ended September                30,                2007 and 2006              | 5                                                                                                   |
|                                             |                                                                                                                                                            |                                                                                                |
|                                             | Consolidated                Statements of Partners' Capital and Comprehensive Income for the                nine                months ended September 30, 2007 | 6                                                                                                   |
|                                             |                                                                                                                                                            |                                                                                                |
|                                             | Condensed                Consolidated Statements of Cash Flows for the nine months ended September                30, 2007 and 2006                             | 7                                                                                                   |
|                                             |                                                                                                                                                            |                                                                                                |
|                                             | Notes                to Consolidated Financial Statements                                                                                                       | 8                                                                                                   |
|                                             |                                                                                                                                                            |                                                                                                |
| Item                2.                           | Management's                Discussion and Analysis of Financial Condition and Results of                Operations                                             | 18                                                                                                  |
|                                             |                                                                                                                                                            |                                                                                                |
| Item                3.                           | Quantitative                and Qualitative Disclosures About Market Risk                                                                                       | 26                                                                                                  |
|                                             |                                                                                                                                                            |                                                                                                |
| Item                4.                           | Controls                and Procedures                                                                                                                          | 27                                                                                                  |
|                                             |                                                                                                                                                            |                                                                                                |
| **PART                II. OTHER INFORMATION**    |                                                                                                                                                            |
|                                             |                                                                                                                                                            |                                                                                                |
| Item                1.                           | Legal                Proceedings                                                                                                                                | 27                                                                                                  |
|                                             |                                                                                                                                                            |                                                                                                |
| Item                1A.                          | Risk                Factors                                                                                                                                     | 27                                                                                                  |
|                                             |                                                                                                                                                            |                                                                                                |
| Item                2.                           | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                      | 27                                                                                                  |
|                                             |                                                                                                                                                            |                                                                                                |
| Item                6.                           | Exhibits                                                                                                                                                        | 28                                                                                                  |
|                                             |                                                                                                                                                            |                                                                                                |
| **Signatures**                                   | 29                                                                                                                                                              |

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**Part      I -- Financial Information**

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

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

|                                                                        |   |   | **September                30,**                                                                                                                  |   | **December                31,** |                                                                                                                                              |
|-----------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                        |   |   | **2007**                                                                                                                                          |   |                            | **2006**                                                                                                                                          |   |
| **Assets**                                                                  |   |   |                                                                                                                                              |   |                            |                                                                                                                                              |   |
| Real                estate:                                                 |   |   |                                                                                                                                              |   |                            |                                                                                                                                              |   |
| Rental                properties:                                           |   |   |                                                                                                                                              |   |                            |                                                                                                                                              |   |
| Land                and land improvements                                   |   | $      |             679,818                                                                   |   |  $                         |             560,880                                                                   |   |
| Buildings                and improvements                                   |   |   |          2,452,040                                                                                   |   |                            |          2,108,307                                                                                   |   |
|                                                                        |   |   |                                                                                                                                              |   |                            |                                                                                                                                              |   |
|                                                                        |   |   |          3,131,858                                                                                   |   |                            |          2,669,187                                                                                   |   |
| Less                accumulated depreciation                                |   |   |           (532,386)                                                                             |   |                            |           (465,015)                                                                             |   |
|                                                                        |   |   |          2,599,472                                                                                   |   |                            |          2,204,172                                                                                   |   |
| Real                estate - held for sale, net                             |   |   |                         - |   |                            |               41,221                                                        |   |
| Real                estate under development                                |   |   |             182,455                                                                   |   |                            |             103,487                                                                   |   |
| Investments                                                                 |   |   |               70,787                                                        |   |                            |               60,451                                                        |   |
|                                                                        |   |   |          2,852,714                                                                                   |   |                            |          2,409,331                                                                                   |   |
| Cash                and cash equivalents-unrestricted                       |   |   |               10,239                                                        |   |                            |                 9,662                                             |   |
| Cash                and cash equivalents-restricted                         |   |   |               11,704                                                        |   |                            |               13,948                                                        |   |
| Marketable                securities                                        |   |   |                 5,843                                             |   |                            |                         - |   |
| Notes                and other receivables from related parties             |   |   |                 1,178                                             |   |                            |                 1,209                                             |   |
| Notes                and other receivables                                  |   |   |               35,350                                                        |   |                            |               18,195                                                        |   |
| Prepaid                expenses and other assets                            |   |   |               25,055                                                        |   |                            |               20,632                                                        |   |
| Deferred                charges, net                                        |   |   |               12,317                                                        |   |                            |               12,863                                                        |   |
| Total                assets                                                 |   | $      |          2,954,400                                                                                   |   |  $                         |          2,485,840                                                                                   |   |
| **Liabilities                and Partners' Capital**                        |   |   |                                                                                                                                              |   |                            |                                                                                                                                              |   |
| Mortgage                notes payable                                       |   | $      |          1,233,281                                                                                   |   |  $                         |          1,060,704                                                                                   |   |
| Mortgage                notes payable - held for sale                       |   |   |                         - |   |                            |               32,850                                                        |   |
| Exchangeable                bonds                                           |   |   |             225,000                                                                   |   |                            |             225,000                                                                   |   |
| Lines                of credit                                              |   |   |             167,571                                                                   |   |                            |               93,000                                                        |   |
| Accounts                payable and accrued liabilities                     |   |   |               55,332                                                        |   |                            |               38,614                                                        |   |
| Dividends                payable                                            |   |   |               28,724                                                        |   |                            |               24,910                                                        |   |
| Other                liabilities                                            |   |   |               15,966                                                        |   |                            |               14,328                                                        |   |
| Deferred                gain                                                |   |   |                 2,193                                             |   |                            |                 2,193                                             |   |
| Total                liabilities                                            |   |   |          1,728,067                                                                                   |   |                            |          1,491,599                                                                                   |   |
| Commitments                and contingencies                                |   |   |                                                                                                                                              |   |                            |                                                                                                                                              |   |
| Minority                interests                                           |   |   |               65,628                                                        |   |                            |               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                                                |   |   |             795,228                                                                   |   |                            |             590,070                                                                   |   |
| Preferred                equity (liquidation value of $25,000)              |   |   |               24,412                                                        |   |                            |               24,412                                                        |   |
|                                                                        |   |   |             819,640                                                                   |   |                            |             614,482                                                                   |   |
| Limited                partners:                                            |   |   |                                                                                                                                              |   |                            |                                                                                                                                              |   |
| Common                equity                                                |   |   |               58,962                                                        |   |                            |               59,730                                                        |   |
| Preferred                equity (liquidation value of $130,000)             |   |   |             126,690                                                                   |   |                            |             126,690                                                                   |   |
|                                                                        |   |   |             185,652                                                                   |   |                            |             186,420                                                                   |   |
| Accumulated                other comprehensive income (loss)                |   |   |                 4,751                                             |   |                            |               (2,273)                                                       |   |
| Total                partners' capital                                      |   |   |          1,010,043                                                                                   |   |                            |             798,629                                                                   |   |
| Total                liabilities and partners' capital                      |   | $      |          2,954,400                                                                                   |   |  $                         |          2,485,840                                                                                   |   |

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

|                                                                             |   |   | **Three                  Months Ended**                                                                             |   |    | **Nine                  Months Ended**                                                                                    |
|----------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------------------------|
|                                                                             |   |   | **September                  30,**                                                                                  |   |    | **September                  30,**                                                                                        |
|                                                                             |   |   | **2007**                                                                                                            |   |    | **2006**                                                                                                                  |   |   | **2007** |   |   | **2006** |
| Revenues:                                                                        |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| Rental                  and other property                                       |   | $      |           99,987                                                  |   |  $ |           86,850                                                        |   |  $ |          288,848 |   |  $ |         252,800 |
| Management                  and other fees from affiliates                       |   |   |             1,268                                       |   |    |             1,872                                             |   |   |              3,662 |   |   |             3,526 |
|                                                                             |   |   |         101,255                                                             |   |    |           88,722                                                        |   |   |          292,510 |   |   |         256,326 |
| Expenses:                                                                        |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| Property                  operating, excluding real estate taxes                 |   |   |           25,030                                                  |   |    |           22,483                                                        |   |   |            72,082 |   |   |           65,389 |
| Real                  estate taxes                                               |   |   |             8,675                                       |   |    |             7,314                                             |   |   |            24,530 |   |   |           21,645 |
| Depreciation                  and amortization                                   |   |   |           25,612                                                  |   |    |           19,898                                                        |   |   |            72,455 |   |   |           59,125 |
| Interest                                                                         |   |   |           20,235                                                  |   |    |           17,946                                                        |   |   |            58,992 |   |   |           55,277 |
| Amortization                  of deferred financing costs                        |   |   |                708                       |   |    |                777                             |   |   |              2,063 |   |   |             1,970 |
| General                  and administrative                                      |   |   |             6,415                                       |   |    |             5,289                                             |   |   |            18,519 |   |   |           15,168 |
| Other                  expenses                                                  |   |   |                    - |   |    |                     - |   |   |                     - |   |   |             1,770 |
|                                                                             |   |   |           86,675                                                  |   |    |           73,707                                                        |   |   |          248,641 |   |   |         220,344 |
| Earnings                  from operations                                        |   |   |           14,580                                                  |   |    |           15,015                                                        |   |   |            43,869 |   |   |           35,982 |
|                                                                             |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| Interest                  and other income                                       |   |   |             2,407                                       |   |    |             1,686                                             |   |   |              7,454 |   |   |             4,728 |
| Equity                  income (loss) in co-investments                          |   |   |                322                       |   |    |              (368)                                       |   |   |              2,767 |   |   |            (1,184) |
| Minority                  interests                                              |   |   |           (1,198)                                                 |   |    |           (1,231)                                                       |   |   |            (3,556) |   |   |            (3,739) |
| Income                  before discontinued operations and                       |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
|   tax                  provision                                       |   |   |           16,111                                                  |   |    |           15,102                                                        |   |   |            50,534 |   |   |           35,787 |
| Income                  tax provision                                            |   |   |                    - |   |    |              (150)                                       |   |   |                     - |   |   |               (325) |
| Income                  before discontinued operations                           |   |   |           16,111                                                  |   |    |           14,952                                                        |   |   |            50,534 |   |   |           35,462 |
| Income                  from discontinued operations (net of                     |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
|   minority                  interests)                                 |   |   |                  53            |   |    |             1,460                                             |   |   |            25,594 |   |   |           22,459 |
| Net                  income                                                      |   |   |           16,164                                                  |   |    |           16,412                                                        |   |   |            76,128 |   |   |           57,921 |
| Dividends                  to preferred units - Series F                         |   |   |              (488)                                 |   |    |              (488)                                       |   |   |            (1,465) |   |   |            (1,465) |
| Dividends                  to preferred units - Series G                         |   |   |           (1,823)                                                 |   |    |           (1,303)                                                       |   |   |            (5,399) |   |   |            (1,303) |
| Dividends                  to preferred units - limited partners                 |   |   |           (2,559)                                                 |   |    |           (2,559)                                                       |   |   |            (7,678) |   |   |            (7,677) |
| Net                  income available to common units                            |   | $      |           11,294                                                  |   |  $ |           12,062                                                        |   |  $ |            61,586 |   |  $ |           47,476 |
|                                                                             |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| Per                  common unit data:                                           |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| Basic:                                                                           |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| Income                  before discontinued operations available to              |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| common                  units                                                    |   | $      |               0.41                            |   |  $ |               0.42                                  |   |  $ |                1.34 |   |  $ |               0.99 |
| Income                  from discontinued operations                             |   |   |               0.00                            |   |    |               0.05                                  |   |   |                0.95 |   |   |               0.89 |
| Net                  income available to common units                            |   | $      |               0.41                            |   |  $ |               0.47                                  |   |  $ |                2.29 |   |  $ |               1.88 |
| Weighted                  average number of common units                         |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| outstanding                  during the period                                   |   |   |    27,652,473                                                                                        |   |    |    25,424,259                                                                                              |   |   |     26,868,825 |   |   |    25,275,460 |
|                                                                             |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
|    Diluted:                                                       |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
| Income                  before discontinued operations available to              |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
|     common                  units                            |   | $      |               0.40                            |   |  $ |               0.41                                  |   |  $ |                1.31 |   |  $ |               0.97 |
|     Income                  from discontinued operations     |   |   |               0.00                            |   |    |               0.05                                  |   |   |                0.93 |   |   |               0.87 |
|     Net                  income available to common units    |   | $      |               0.40                            |   |  $ |               0.46                                  |   |  $ |                2.24 |   |  $ |               1.84 |
|     Weighted                  average number of common units |   |   |                                                                                                                |   |    |                                                                                                                      |   |   |   |   |   |   |
|     outstanding                  during the period           |   |   |    28,043,125                                                                                        |   |    |    26,143,924                                                                                              |   |   |     27,482,406 |   |   |    25,825,186 |

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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                               |                                                                      |             - |   |                                                                            |    55,177                                                        |                               |                                                                                        |        6,864                                             |                                                                            |              - |   |   |         6,410 |   |   |                   7,677 |   |   |                      - |   |   |   |        76,128 |
|     Change                  in fair value of cash flow hedges |             - |                                                                      |   |              - |                                                                            |                               |                - |                                                                                        |              - |   |   |                 - |   |   |                           - |   |   |              7,024   |   |          7,024 |
| Comprehensive                  income                                             |                                                                      |                                                                      |   |                                                                            |                                                                            |                               |                                                                                        |                                                                                        |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |        83,152 |
| Issuance                  of common units under                                   |                                                                      |                                                                      |   |                                                                            |                                                                            |                               |                                                                                        |                                                                                        |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock-based                  compensation plan                  |                                                                      |          74                  |   |                                                                            |      4,746                                             |                               |                                                                                        |                - |                                                                            |              - |   |   |                 - |   |   |                           - |   |   |                      -   |   |          4,746 |
| Issuance                  of general partner common units                         |     1,698                                             |                                                                      |   |  216,776                                                                   |                                                                            |                               |                - |                                                                                        |              - |   |   |                 - |   |   |                           - |   |   |                      -   |   |      216,776 |
| Repurchase                  of general partner common units                       |        (13)                            |                                                                      |   |     (1,409)                                                 |                                                                            |                               |                - |                                                                                        |              - |   |   |                 - |   |   |                           - |   |   |                      -   |   |        (1,409) |
| Redemption                  of limited partner common units                       |             - |                                                                      |   |              - |                                                                            |                               |                - |                                                                                        |          (37)                      |   |   |       (2,026) |   |   |                           - |   |   |                      -   |   |        (2,026) |
| Vesting                  of series Z and Z-1 incentive units                      |                                                                      |             - |   |                                                                            |              - |                               |                                                                                        |                - |                                                                            |           29 |   |   |         1,134 |   |   |                           - |   |   |                      -   |   |          1,134 |
| Reallocation                  of partners' capital                                |                                                                      |             - |   |                                                                            |     (1,500)                                                 |                               |                                                                                        |                - |                                                                            |              - |   |   |            660 |   |   |                           - |   |   |                      -   |   |           (840) |
| Partners'                  distributions                                          |                                                                      |             - |   |                                                                            |   (68,632)                                                            |                               |                                                                                        |      (6,864)                                                       |                                                                            |              - |   |   |       (6,946) |   |   |                  (7,677) |   |   |                      -   |   |      (90,119) |
| Balances                  at September 30, 2007                                   |                                                                      |   25,175                                                        |   |  $                                                                         |  795,228                                                                   |                               |  $                                                                                     |      24,412                                                        |                                                                            |      2,487 |   |  $ |       58,962 |   |  $ |               126,690 |   |  $ |              4,751   |  $ |   1,010,043 |

----

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

|                                                                                    |   |   | **Nine                  Months Ended**                                                                        |
|-----------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------|
|                                                                                    |   |   | **September                  30,**                                                                            |
|                                                                                    |   |   | **2007**                                                                                                      |   |   | **2006** |
| Net                  cash provided by operating activities                              |   | $      | 158,148                                                                                                       |   | $ | 138,540 |
|                                                                                    |   |   |                                                                                                          |   |   |   |
| Cash                  flows used in investing activities:                               |   |   |                                                                                                          |   |   |   |
| Additions                  to real estate:                                              |   |   |                                                                                                          |   |   |   |
| Acquisitions                  and improvements to recent acquisitions                   |   |   |      (333,110)                                                                       |   |   |      (161,998) |
| Capital                  expenditures and redevelopment                                 |   |   |        (52,124)                                                            |   |   |        (30,147) |
| Additions                  to real estate under development                             |   |   |        (96,236)                                                            |   |   |        (53,996) |
| Dispositions                  of real estate and investments                            |   |   |        124,103                                                             |   |   |          15,883 |
| Changes                  in restricted cash and refundable deposits                     |   |   |            1,979                                       |   |   |            5,162 |
| Purchases                  of marketable securities                                     |   |   |          (5,843)                                                 |   |   |                   - |
| Additions                  to notes and other receivables                               |   |   |        (19,192)                                                            |   |   |        (15,279) |
| Collections                  of notes and other receivables                             |   |   |            1,472                                       |   |   |            2,295 |
| Contributions                  to limited partnerships                                  |   |   |        (22,164)                                                            |   |   |        (35,526) |
| Distributions                  from limited partnerships                                |   |   |          15,330                                                  |   |   |            9,588 |
| Net                  cash used in investing activities                                  |   |   |      (385,785)                                                                       |   |   |      (264,018) |
|                                                                                    |   |   |                                                                                                          |   |   |   |
| Cash                  flows from financing activities:                                  |   |   |                                                                                                          |   |   |   |
| Proceeds                  from mortgage notes payable and lines of credit               |   |   |        665,709                                                             |   |   |        281,325 |
| Repayment                  of mortgage notes payable and lines of credit                |   |   |      (494,331)                                                                       |   |   |      (233,442) |
| Payments                  of loans fees and related costs                               |   |   |          (1,516)                                                 |   |   |             (472) |
| Net                  proceeds from issuance of preferred convertible equity             |   |   |                   - |   |   |        145,912 |
| Proceeds                  from settlement of forward-starting swap                      |   |   |            1,311                                       |   |   |                   - |
| Net                  proceeds from stock options exercised                              |   |   |            3,786                                       |   |   |            3,136 |
| Net                  proceeds from sale of common units to general partner              |   |   |        213,672                                                             |   |   |          27,225 |
| Purchase                  of common units from general partner                          |   |   |          (1,409)                                                 |   |   |                   - |
| Distributions                  to limited partner units and minority interest           |   |   |        (77,145)                                                            |   |   |        (17,482) |
| Redemption                  of limited partner units and minority interest              |   |   |          (9,983)                                                 |   |   |          (6,360) |
| Distributions                  to general partner                                       |   |   |        (71,880)                                                            |   |   |        (58,559) |
| Net                  cash provided by financing activities                              |   |   |        228,214                                                             |   |   |        141,283 |
|                                                                                    |   |   |                                                                                                          |   |   |   |
| Net                  increase in cash and cash equivalents                              |   |   |               577                       |   |   |          15,805 |
| Cash                  and cash equivalents at beginning of period                       |   |   |            9,662                                       |   |   |          14,337 |
| Cash                  and cash equivalents at end of period                             |   | $      |          10,239                                                  |   | $ |          30,142 |
|                                                                                    |   |   |                                                                                                          |   |   |   |
| Supplemental                  disclosure of cash flow information:                      |   |   |                                                                                                          |   |   |   |
| Cash                  paid for interest, net of $3,561 and $2,413 capitalized           |   |   |                                                                                                          |   |   |   |
| in                  2007 and 2006, respectively                                         |   | $      |          52,443                                                  |   | $ |          52,386 |
|                                                                                    |   |   |                                                                                                          |   |   |   |
| Supplemental                  disclosure of noncash investing and financing activities: |   |   |                                                                                                          |   |   |   |
| Mortgage                  notes assumed in connection with purchases                    |   |   |                                                                                                          |   |   |   |
| of                  real estate                                                         |   | $      |          43,839                                                  |   |   |                   - |
| Land                  contributed by a partner in a consolidated joint venture          |   | $      |          22,200                                                  |   |   |                   - |
| Issuance                  of limited partner units in connection with                   |   |   |                                                                                                          |   |   |   |
|     with                  purchase of real estate                   |   | $      |            7,067                                       |   |   |                   - |

----

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

**Notes      to Consolidated Financial Statements**

**September      30, 2007 and 2006**

**(Unaudited)**

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

***Fund      Activities***

***Marketable      Securities***

***Variable      Interest Entities***

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

----

***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.*

----

*Fair Value        Measurements*

*The Fair Value Option for      Financial Assets and Financial Liabilities*

| **(2) ** | ** Significant                Transactions** |
|---------------|---------------------------------------------------|

***(a)      Acquisitions***

***(b)      Dispositions***

***(c)      Joint Ventures***

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

***(e)      Equity***

***(f)      Structured Finance***

----

** (3)      Investments**

|                                                                                                       |   |   | **September                  30,** |   |   | **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)          |   | $      | 59,270                             |   | $      | 45,598                            |
|      Preferred                  limited partnership interests in Mountain Vista   |   |   |                               |   |   |                              |
|  Apartments,                  LLC (A)                                                                 |   |   | 1,182                              |   |   | 6,806                             |
|     Development                  joint ventures                                        |   |   | 9,835                              |   |   | 7,547                             |
|                                                                                                       |   |   | 70,287                             |   |   | 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                                                                         |   | $      | 70,787                             |   | $      | 60,451                            |

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

----

|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|                                                                                                            |                                                                                                                                  |                                                                                                            | **September                  30,**                                                                              |                                                                                                                                  |                                                                                                  | **December                  31,**                                                               |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|                                                                                                            |                                                                                                                                  |                                                                                                            | **2007**                                                                                                        |                                                                                                                                  |                                                                                                  | **2006**                                                                                        |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Balance                  sheets:                                                                                |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|  Real                  estate and real estate under development                                            |                                                                                                                                  | $                                                                                                               |            590,438                                       |                                                                                                                                  |  $                                                                                               |            576,134                       |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|  Other                  assets                                                                             |                                                                                                                                  |                                                                                                            |              18,622                            |                                                                                                                                  |                                                                                                  |              20,681            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Total                  assets                                                                                   |                                                                                                                                  | $                                                                                                               |            609,060                                       |                                                                                                                                  |  $                                                                                               |            596,815                       |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Mortgage                  notes payable                                                                         |                                                                                                                                  | $                                                                                                               |            318,630                                       |                                                                                                                                  |  $                                                                                               |            301,665                       |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Other                  liabilities                                                                              |                                                                                                                                  |                                                                                                            |              17,090                            |                                                                                                                                  |                                                                                                  |              74,793            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Partners'                  equity                                                                               |                                                                                                                                  |                                                                                                            |            273,340                                       |                                                                                                                                  |                                                                                                  |            220,357                       |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Total                  liabilities and partners' capital                                                        |                                                                                                                                  | $                                                                                                               |            609,060                                       |                                                                                                                                  |  $                                                                                               |            596,815                       |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Operating                  Partnership's share of capital                                                       |                                                                                                                                  | $                                                                                                               |              70,287                            |                                                                                                                                  |  $                                                                                               |              59,951            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
|                                                                                                            |                                                                                                                                  |                                                                                                            | ** Three                  Months Ended**                                                                   |                                                                                                                                  |                                                                                                  | ** Nine                  Months Ended**                                               |
|                                                                                                            |                                                                                                                                  |                                                                                                            | **September                  30,**                                                               |                                                                                                                                  |                                                                                                  | **September                  30,**                                               |
|                                                                                                            |                                                                                                                                  |                                                                                                            | **2007**                                                                                                        |                                                                                                                                  |                                                                                                  | **2006**                                                                                        |                                                                                                            |                                                                                            | **2007**                                                                                              |                                                                                                                                  |                                                                                  | **2006**                                                                              |
| Statements                  of operations:                                                                      |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Property                  revenues                                                                              |                                                                                                                                  | $                                                                                                               |              11,761                            |                                                                                                                                  |  $                                                                                               |              10,887            |                                                                                                            |  $                                                                                         |              34,596                  |                                                                                                                                  |  $                                                                               |              30,631  |
| Property                  operating expenses                                                                    |                                                                                                                                  |                                                                                                            |              (4,335)                           |                                                                                                                                  |                                                                                                  |              (5,074)           |                                                                                                            |                                                                                            |            (13,805)                            |                                                                                                                                  |                                                                                  |            (13,600)            |
| Net                  operating income                                                                           |                                                                                                                                  |                                                                                                            |                7,426                 |                                                                                                                                  |                                                                                                  |                5,813 |                                                                                                            |                                                                                            |              20,791                  |                                                                                                                                  |                                                                                  |              17,031  |
| Interest                  expense                                                                               |                                                                                                                                  |                                                                                                            |              (3,369)                           |                                                                                                                                  |                                                                                                  |              (4,169)           |                                                                                                            |                                                                                            |            (10,623)                            |                                                                                                                                  |                                                                                  |            (12,731)            |
| Depreciation                  and amortization                                                                  |                                                                                                                                  |                                                                                                            |              (3,485)                           |                                                                                                                                  |                                                                                                  |              (3,122)           |                                                                                                            |                                                                                            |            (10,431)                            |                                                                                                                                  |                                                                                  |              (8,945) |
|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Total                  net income (loss)                                                                        |                                                                                                                                  | $                                                                                                               |                   572 |                                                                                                                                  |  $                                                                                               |              (1,478)           |                                                                                                            |  $                                                                                         |                 (263) |                                                                                                                                  |  $                                                                               |              (4,645) |
|                                                                                                            |                                                                                                                                  |                                                                                                            |                                                                                                            |                                                                                                                                  |                                                                                                  |                                                                                            |                                                                                                            |                                                                                            |                                                                                                  |                                                                                                                                  |                                                                                  |                                                                                  |
| Operating                  Partnership's share of operating net income                  (loss)                  |                   322                       |                                                                                                            |                                                                                                            |                 (368)                                 |                                                                                                  |                                                                                            |                   421 |                                                                                            |                                                                                                  |              (1,184)                                                 |
| Operating                  Partnership's gain on sale and gain on partial                  sale of its interest |                       - |                                                                                                            |                                                                                                            |                       - |                                                                                                  |                                                                                            |                2,346                 |                                                                                            |                                                                                                  |                       - |
| Operating                  Partnership's share of equity income (loss)                  in co-investments       |  $                                                                                                                               |                   322 |                                                                                                            |  $                                                                                                                               |                 (368) |                                                                                            |  $                                                                                                         |                2,767 |                                                                                                  |  $                                                                                                                               |              (1,184) |

----

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

|                                                                                                |   |   | **September                30,**                                                                                                      |   |   | **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 |   |   |                1,178                                       |   |   |                   834 |
| Total                notes and other receivable from related parties                                |   | $      |                1,178                                       |   | $      |                1,209                 |

**(5)      Notes and Other Receivables**

|                                                                                                             |   |   | **September                  30,**                                                                              |   |   | **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 + 4.65%, due January                  2008  |   |   |                8,215                 |   |   |                7,807                                       |
| Note                  receivable, secured, bearing interest at LIBOR + 3.38%, due February                  2009 |   |   |                9,651                 |   |   |                       - |
| Note                  receivable, secured, bearing interest at LIBOR + 3.69%, due June                  2009     |   |   |                7,343                 |   |   |                7,309                                       |
| Note                  receivable, secured, bearing interest at LIBOR + 4.75%, due March                  2011    |   |   |                7,068                 |   |   |                       - |
| Other                  receivables                                                                               |   |   |                   880 |   |   |                   886                       |
| Total                  notes and other receivables                                                               |   | $      |              35,350                            |   | $      |              18,195                                                  |

**(6)      Related Party Transactions**

----

| ** (7) ** | ** Segment                Information** |
|---------------------|----------------------------------------------|

|                                                       |   |                                                                                            | **Three                  Months Ended**                                                                                          |
|------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |   |                                                                                            | **September                  30,**                                                                                     |
|                                                       |   |                                                                                            | **2007**                                                                                                                              |   |   | **2006** |
| Revenues:                                                  |   |                                                                                            |                                                                                                                                  |   |   |   |
| Southern                  California                       |   | $                                                                                               |              54,515                                                  |   | $ | 50,362 |
| Northern                  California                       |   |                                                                                            |              25,708                                                  |   |   | 18,985 |
| Seattle                  Metro                             |   |                                                                                            |              16,403                                                  |   |   | 14,310 |
| Other                  Regions                             |   |                                                                                            |                3,361                                       |   |   | 3,193 |
| Total                  property revenues                   |   | $                                                                                               |              99,987                                                  |   | $ | 86,850 |
|                                                       |   |                                                                                            |                                                                                                                                  |   |   |   |
| Net                  operating income:                     |   |                                                                                            |                                                                                                                                  |   |   |   |
| Southern                  California                       |   | $                                                                                               |              37,028                                                  |   | $ | 34,352 |
| Northern                  California                       |   |                                                                                            |              16,919                                                  |   |   | 12,609 |
| Seattle                  Metro                             |   |                                                                                            |              10,681                                                  |   |   | 8,855 |
| Other                  Regions                             |   |                                                                                            |                1,654                                       |   |   | 1,237 |
| Total                  net operating income                |   |                                                                                            |              66,282                                                  |   |   | 57,053 |
|                                                       |   |                                                                                            |                                                                                                                                  |   |   |   |
| Depreciation                  and amortization             |   |                                                                                            |            (25,612)                                                            |   |   |            (19,898) |
| Interest                  expense                          |   |                                                                                            |            (20,235)                                                            |   |   |            (17,946) |
| Amortization                  of deferred financing costs  |   |                                                                                            |                 (708)                                 |   |   |                 (777) |
| General                  and administrative                |   |                                                                                            |              (6,415)                                                 |   |   |              (5,289) |
| Other                  expenses                            |   |                                                                                            |                       - |   |   |                       - |
| Management                  and other fees from affiliates |   |                1,268 |                                                                                                                                  |   |                1,872 |
| Interest                  and other income                 |   |                                                                                            |                2,407                                       |   |   |                1,686 |
| Equity                  income (loss) in co-investments    |   |                                                                                            |                   322                       |   |   |                 (368) |
| Minority                  interests                        |   |                                                                                            |              (1,198)                                                 |   |   |              (1,231) |
| Income                  tax provision                      |   |                                                                                            |                       - |   |   |                 (150) |
| Income                  before discontinued operations     |   | $                                                                                               |              16,111                                                  |   | $ |              14,952 |

----

|                                                       |   | **Nine                  Months Ended**                                                |
|------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
|                                                       |   |                                                                                            | **September                  30,**    |
|                                                       |   |                                                                                            | **2007** |   |   | **2006** |
| Revenues:                                                  |   |                                                                                            |   |   |   |   |
| Southern                  California                       |   | $                                                                                               |            160,259 |   | $ |            147,591 |
| Northern                  California                       |   |                                                                                            |              71,364 |   |   |              54,486 |
| Seattle                  Metro                             |   |                                                                                            |              47,297 |   |   |              41,202 |
| Other                  Regions                             |   |                                                                                            |                9,928 |   |   |                9,521 |
| Total                  property revenues                   |   | $                                                                                               |            288,848 |   | $ |            252,800 |
|                                                       |   |                                                                                            |   |   |   |   |
| Net                  operating income:                     |   |                                                                                            |   |   |   |   |
| Southern                  California                       |   | $                                                                                               |            109,849 |   | $ |            100,441 |
| Northern                  California                       |   |                                                                                            |              47,080 |   |   |              36,370 |
| Seattle                  Metro                             |   |                                                                                            |              31,035 |   |   |              25,745 |
| Other                  Regions                             |   |                                                                                            |                4,272 |   |   |                3,210 |
| Total                  net operating income                |   |                                                                                            |            192,236 |   |   |            165,766 |
|                                                       |   |                                                                                            |   |   |   |   |
| Depreciation                  and amortization             |   |                                                                                            |            (72,455) |   |   |            (59,125) |
| Interest                  expense                          |   |                                                                                            |            (58,992) |   |   |            (55,277) |
| Amortization                  of deferred financing costs  |   |                                                                                            |              (2,063) |   |   |              (1,970) |
| General                  and administrative                |   |                                                                                            |            (18,519) |   |   |            (15,168) |
| Other                  expenses                            |   |                                                                                            |                       - |   |   |              (1,770) |
| Management                  and other fees from affiliates |   |                3,662 |   |   |                3,526 |
| Interest                  and other income                 |   |                                                                                            |                7,454 |   |   |                4,728 |
| Equity                  income (loss) in co-investments    |   |                                                                                            |                2,767 |   |   |              (1,184) |
| Minority                  interests                        |   |                                                                                            |              (3,556) |   |   |              (3,739) |
| Income                  tax provision                      |   |                                                                                            |                       - |   |   |                 (325) |
| Income                  before discontinued operations     |   | $                                                                                               |              50,534 |   | $ |              35,462 |

|                                                                      |   |   | **September                  30,**                                                                                                    |   |   | **December                  31,** |
|---------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------|
|                                                                      |   |   | **2007**                                                                                                                              |   |   | **2006**                          |
| Assets:                                                                   |   |   |                                                                                                                                  |   |   |                              |
|     Southern                  California              |   | $      |         1,341,567                                                                             |   | $      | 1,244,037                         |
|     Northern                  California              |   |   |            827,572                                                             |   |   | 565,405                           |
|     Seattle                  Metro                    |   |   |            351,345                                                             |   |   | 317,848                           |
| Other                  Regions                                            |   |   |              78,988                                                  |   |   | 76,882                            |
| Net                  rental properties                                    |   |   |         2,599,472                                                                             |   |   | 2,204,172                         |
|     Real                  estate - held for sale, net |   |   |                       - |   |   | 41,221                            |
|     Real                  estate under development    |   |   |            182,455                                                             |   |   | 103,487                           |
|     Investments                                       |   |   |              70,787                                                  |   |   | 60,451                            |
|     Notes                  and other receivables      |   |   |              35,350                                                  |   |   | 18,195                            |
|     Other                  non-segment assets         |   |   |              66,336                                                  |   |   | 58,314                            |
| Total                  assets                                             |   | $      |         2,954,400                                                                             |   | $      | 2,485,840                         |

----

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

|  |   | (Amounts                in thousands, except per unit data) |
|--|--------|-------------------------------------------------------------|

|                                                               |                                                         |                                                         | **Three                  Months Ended**                                                        |                                                         |                                                                                    | **Three                  Months Ended**                             |
|--------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|-----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                               |                                                         |                                                         | **September                  30, 2007**                                              |                                                         |                                                                                    | **September                  30, 2006**              |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         | **Weighted-**                                                                           |                                                                               |   | **Per** |   |   |   |   | **Weighted-** |   |   | **Per** |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         | **average**                                                                             |                                                                               |   | **Common** |   |   |   |   | **average** |   |   | **Common** |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         | **Common**                                                                              |                                                                               |   | **Unit** |   |   |   |   | **Common** |   |   | **Unit** |
|                                                               |                                                         |                                                         | **Income**                                                                                                    |                                                         | **Units**                                                                               |                                                                               |   | **Amount** |   |   | **Income** |   | **Units** |   |   | **Amount** |
| Basic:                                                             |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Income                  before discontinued operations |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| available                  to common units                         |                                                         | $                                                            |          11,241                                                  |                                                         |          27,652                            |                                                                               |  $ |              0.41 |   |  $ |          10,602 |   |          25,424 |   |  $ |              0.42 |
|   Income                  from discontinued operations   |                                                         |                                                         |                 53            |                                                         |          27,652                            |                                                                               |   |              0.00 |   |   |            1,460 |   |          25,424 |   |   |              0.05 |
|                                                               |                                                         |                                                         |          11,294                                                  |                                                         |                                                                                    |                                                                               |  $ |              0.41 |   |   |          12,062 |   |   |   |  $ |              0.47 |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| Effect                  of Dilutive Securities (1)                 |                                                         |                                                         |  -                                                                                                       |                                                         |               391 |                                                                               |   |   |   |   |  - |   |               721 |   |   |   |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                           |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Income                  before discontinued operations |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| available                  to common units                         |                                                         |                                                         |          11,241                                                  |                                                         |          28,043                            |                                                                               |  $ |              0.40 |   |   |          10,602 |   |          26,144 |   |  $ |              0.41 |
|   Income                  from discontinued operations   |                                                         |                                                         |                 53            |                                                         |          28,043                            |                                                                               |   |              0.00 |   |   |            1,460 |   |          26,144 |   |   |              0.05 |
|                                                               |                                                         | $                                                            |          11,294                                                  |                                                         |                                                                                    |                                                                               |  $ |              0.40 |   |  $ |          12,062 |   |   |   |  $ |              0.46 |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                               |                                                         |                                                         | ** Nine                  Months Ended**                                                   |                                                         |                                                                                    | ** Nine                  Months Ended**                        |
|                                                               |                                                         |                                                         | **September                  30, 2007**                                              |                                                         |                                                                                    | **September                  30, 2006**              |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         | ** Weighted**                                                                      |                                                                               |   | ** Per** |   |   |   |   | ** Weighted** |   |   | ** Per** |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         | ** Average**                                                                       |                                                                               |   | ** Common** |   |   |   |   | ** Average** |   |   | ** Common** |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         | ** Common**                                                                        |                                                                               |   | **Unit** |   |   |   |   | ** Common** |   |   | **Unit** |
|                                                               |                                                         |                                                         | ** Income**                                                                                              |                                                         | **Units**                                                                               |                                                                               |   | ** Amount** |   |   | ** Income** |   | **Units** |   |   | ** Amount** |
| Basic:                                                             |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Income                  before discontinued operations |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| available                  to common units                         | $                                                            |          35,992 |                                                                                                          |          26,869 |                                                                                    |  $                                                                            |              1.34 |   |  $ |          25,017 |   |          25,275 |   |  $ |              0.99 |
|   Income                  from discontinued operations   |                                                         |                                                         |          25,594                                                  |                                                         |          26,869                            |                                                                               |   |              0.95 |   |   |          22,459 |   |          25,275 |   |   |              0.89 |
|                                                               |                                                         |                                                         |          61,586                                                  |                                                         |                                                                                    |                                                                               |  $ |              2.29 |   |   |          47,476 |   |   |   |  $ |              1.88 |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| Effect                  of Dilutive Securities (1)                 |                                                         |                                                         |                   - |                                                         |               614 |                                                                               |   |   |   |   |                   - |   |               550 |   |   |   |
|                                                               |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                           |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
|   Income                  before discontinued operations |                                                         |                                                         |                                                                                                          |                                                         |                                                                                    |                                                                               |   |   |   |   |   |   |   |   |   |   |
| available                  to common units                         |          35,992 |                                                         |          27,482                                                  |                                                         |  $                                                                                 |              1.31 |   |   |          25,017 |   |          25,825 |   |  $ |              0.97 |
|   Income                  from discontinued operations   |                                                         |                                                         |          25,594                                                  |                                                         |          27,482                            |                                                                               |   |              0.93 |   |   |          22,459 |   |          25,825 |   |   |              0.87 |
|                                                               |                                                         | $                                                            |          61,586                                                  |                                                         |                                                                                    |                                                                               |  $ |              2.24 |   |  $ |          47,476 |   |   |   |  $ |              1.84 |

| (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 original exchange rate was $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 nine months ended                September 30, 2007 the weighted average common stock price exceeded                the                current 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                unit. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| **(10)  ** | **Discontinued                Operations** |
|----------------------|--------------------------------------------|

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

----

|                                                                                 |    | **Three                  Months Ended**                                                                                               |    |  **Nine                  Months Ended**                                                                                          |
|--------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                 |    | **September                  30,**                                                                                     |    |  **September                  30,**                                                                               |
|                                                                                 |    | **2007**                                                                                                                              |    | **2006**                                                                                                                              |   |   | **2007** |   |   | **2006** |
|                                                                                 |    |                                                                                                                                  |    |                                                                                                                                  |   |   |   |   |   |   |
| Rental                  revenues                                                     |  $ |                       - |  $ |                2,820                                       |   |  $ |                1,355 |   |  $ |                8,788 |
| Interest                  and other income                                           |    |                       - |    |                     14            |   |   |                   290 |   |   |                     21 |
|      Revenues                                               |    |                       - |    |                2,834                                       |   |   |                1,645 |   |   |                8,809 |
| Property                  operating expenses                                         |    |                       - |    |              (1,046)                                                 |   |   |                 (535) |   |   |              (3,329) |
| Interest                  expense                                                    |    |                       - |    |                 (579)                                 |   |   |                 (416) |   |   |              (1,736) |
| Depreciation                  and amortization                                       |    |                       - |    |                 (768)                                 |   |   |                   (41) |   |   |              (2,307) |
| Minority                  interests                                                  |    |                       - |    |                 (151)                                 |   |   |                       - |   |   |                 (469) |
|      Expenses                                               |    |                       - |    |              (2,544)                                                 |   |   |                 (992) |   |   |              (7,841) |
| Gain                  on sale of real estate                                         |    |                     53            |    |                1,170                                       |   |   |              79,222 |   |   |              13,032 |
| Equity                  income co-investments                                        |    |                       - |    |                       - |   |   |                       - |   |   |                   238 |
| Promote                  interest and fees                                           |    |                       - |    |                       - |   |   |              10,343 |   |   |                8,221 |
| Minority                  interests - City Heights                                   |    |                       - |    |                       - |   |   |            (64,624) |   |   |                       - |
|       Net                  gain on sale of real estate |    |                     53            |    |                1,170                                       |   |   |              24,941 |   |   |              21,491 |
|                                                                                 |    |                                                                                                                                  |    |                                                                                                                                  |   |   |   |   |   |   |
| Income                  from discontinued operations                                 |  $ |                     53            |  $ |                1,460                                       |   |  $ |              25,594 |   |  $ |              22,459 |

**(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      September 30, 2007.*

**Southern      California**

**Northern      California**

**Seattle**
**Metro**

**Other      Regions**

----

|                                 | As                  of September 30, 2007 |   | As                  of September 30, 2006 |   |
|--------------------------------------|-------------------------------------------|--------|-------------------------------------------|--------|
|                                 | Apartment                  Units          | %      | Apartment                  Units          | *%*    |
| Southern                  California | 12,725                                    | 50%    | 12,118                                    | 51%    |
| Northern                  California | 6,361                                     | 25%    | 5,318                                     | 23%    |
| Seattle                  Metro       | 5,005                                     | 20%    | 4,905                                     | 21%    |
| Other                  Regions       | 1,177                                     | 5%     | 1,177                                     | 5%     |
| **Total**                            | 25,268                                    | 100%   | 23,518                                    | 100%   |

**Comparison      of the Three Months Ended September 30, 2007 to the Three Months Ended September      30, 2006**

|                                 |   | **Three                  months ended**  |
|--------------------------------------|--------|------------------------------------------|
|                                 |   | **September                  30,**  |
|                                 |   | **2007**                                 |   | **2006** |
| Southern                  California |   | 95.6%                                    |   | 96.5% |
| Northern                  California |   | 97.1%                                    |   | 97.3% |
| Seattle                  Metro       |   | 96.0%                                    |   | 97.2% |
| Other                  Regions       |   | 94.6%                                    |   | 94.9% |

|                                                                                                                  |                           |   | **Three                  Months Ended**        |   |       |      |           |       |
|-----------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|------------------------------------------------|--------|------------|--------------------------|----------------|------------|
|                                                                                                                  | **Number                  of** |   | **September                  30,**   |   | **Dollar** |                     | **Percentage** |       |
|                                                                                                                  | **Properties**                 |   | **2007**                                       |   |       | **2006**                 |           | **Change** |   | **Change** |   |
| Property                  Revenues** **(dollars in thousands)                                                    |                           |   |                                           |   |       |                     |           |       |   |   |   |
|    Same-Properties:                                                                                    |                           |   |                                           |   |       |                     |           |       |   |   |   |
|        Southern                  California                                        | 56                             | $      | 46,481                                         |   | $          | 44,834                   | $              | 1,647      |   | 3.7 | % |
|        Northern                  California                                        | 16                             |   | 15,287                                         |   |       | 14,032                   |           | 1,255      |   | 8.9 |   |
|        Seattle                  Metro                                              | 23                             |   | 14,729                                         |   |       | 13,390                   |           | 1,339      |   | 10.0 |   |
|        Other                  Regions                                              | 5                              |   | 2,714                                          |   |       | 2,603                    |           | 111        |   | 4.3 |   |
|             Total                  Same-Property revenues | 100                            |   | 79,211                                         |   |       | 74,859                   |           | 4,352      |   | 5.8 |   |
|    Non-Same                  Property Revenues (1)                                                     |                           |   | 20,776                                         |   |       | 11,991                   |           | 8,785      |   | 73.3 |   |
|           Total                  property revenues                  |                           | $      | 99,987                                         |   | $          | 86,850                   | $              | 13,137     |   | 15.1 | % |
|                                                                                                                  |                           |   |                                           |   |       |                     |           |       |   |   |   |

----

*Quarterly      Same-Property Revenues*

*Quarterly      Non-Same Property Revenues*

*Total      Expenses*

*Interest      and other income*

*Equity      income (loss) in co-investments *

*Income      from discontinued operations*

**Comparison      of the Nine Months Ended September 30, 2007 to the Nine Months Ended September      30, 2006**

|                                 |   | **Nine                  Months Ended**          |
|--------------------------------------|--------|------------------------------------------------------|
|                                 |   | **September                  30,**    |
|                                 |   | **2007**                                             |   | **2006** |
| Southern                  California |   | 95.6%                                                |   | 96.3% |
| Northern                  California |   | 96.5%                                                |   | 97.4% |
| Seattle                  Metro       |   | 96.1%                                                |   | 97.1% |
| Other                  Regions       |   | 95.0%                                                |   | 95.7% |

----

|                                                                                                                            |                           |   |   | **Nine                  Months Ended**         |   |   |       |   |           |       |
|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------|------------------------------------------------|--------|--------|------------|--------|----------------|------------|
|                                                                                                                            | **Number                  of** |   |   | **September                  30,**   |   |   | **Dollar** |   | **Percentage** |       |
|                                                                                                                            | **Properties**                 |   |   | **2007**                                       |   |   | **2006**   |   |           | **Change** |   | **Change** |   |
| Property                  Revenues** **(dollars in thousands)                                                              |                           |   |   |                                           |   |   |       |   |           |       |   |   |   |
|    2007/2006                  Same-Properties:                                                                   |                           |   |   |                                           |   |   |       |   |           |       |   |   |   |
|        Southern                  California                                                  | 56                             |   | $      | 138,309                                        |   | $      | 131,604    |   | $              | 6,705      |   | 5.1 | % |
|        Northern                  California                                                  | 16                             |   |   | 44,520                                         |   |   | 40,883     |   |           | 3,637      |   | 8.9 |   |
|        Seattle                  Metro                                                        | 22                             |   |   | 41,773                                         |   |   | 37,625     |   |           | 4,148      |   | 11.0 |   |
|        Other                  Regions                                                        | 5                              |   |   | 8,039                                          |   |   | 7,625      |   |           | 414        |   | 5.4 |   |
|             Total                  2007/2006 Same-Property revenues | 99                             |   |   | 232,641                                        |   |   | 217,737    |   |           | 14,904     |   | 6.8 |   |
|      2007/2006                  Non-Same Property Revenues (1)                                         |                           |   |   | 56,207                                         |   |   | 35,063     |   |           | 21,144     |   | 60.3 |   |
|           Total                  property revenues                            |                           |   | $      | 288,848                                        |   | $      | 252,800    |   | $              | 36,048     |   | 14.3 | % |

*2007/2006      Same-Property Revenues*

*2007/2006      Non-Same Property Revenues*

*Total      Expenses*

*Other      expenses *

*Interest      and other income*

*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              | $      |                - | $      | 141,852                                                                                     | $      | 322,548                                                                                     | $      | 768,881                                                                                           | $      | 1,233,281 |
| Exchangeable                  bonds                  |   |                - |   |                - |   |                - |   |      225,000                                                             |   | 225,000   |
| Lines                  of credit                     |   |                - |   | 167,571                                                                                     |   |                - |   |                 - |   | 167,571   |
| Interest                  on indebtedness            |   |       23,477                                                  |   |     128,671                                                             |   |       67,859                                                  |   |      212,433                                                             |   | 432,440   |
| Development                  commitments             |   | 45,550                                                                                      |   | 86,250                                                                                      |   |                - |   |                 - |   | 131,800   |
| Redevelopment                  commitments           |   | 13,195                                                                                      |   |       69,386                                                  |   |                - |   |                 - |   | 82,581    |
| Essex                  Apartment Value Fund II, L.P. |   |                                                                                        |   |                                                                                        |   |                                                                                        |   |                                                                                              |   |      |
|   capital                  commitment      |   |                - |   |       13,383                                                  |   |                - |   |                 - |   | 13,383    |
|                                                 | $      | 82,222                                                                                      | $      | 607,113                                                                                     | $      | 390,407                                                                                     | $      | 1,206,314                                                                                         | $      | 2,286,056 |

**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,                entitlement and  government regulation; |
| ·  occupancy                rates and rents at a completed project may be less than anticipated;                and                                                |
| ·  expenses                at a completed  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 | $      | 450,000    |         | 2008-2011                       | $            |         3,427                            | $                                  |        18,106                                       | $                        |          (12,384)                                                            |
|   Interest                  rate caps                   |   | 182,849    |         | 2008-2011                       |         |              12 |                               |               39 |                     |                     3 |
|     Total                  cash flow hedges   | $      | 632,849    |         | 2008-2011                       | $            |         3,439                            | $                                  |        18,145                                       | $                        |          (12,381)                                                            |

***Interest      Rate Sensitive Liabilities***

|                                     |   |                                      |   |                           |   |                                                                                  |   |                                                                                  |   |                            |   |      |                                        |             |                                        |
|------------------------------------------|--------|-------------------------------------------|--------|--------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------|--------|-----------|---------------------------------------------|---------------------------------|---------------------------------------------|
| **For                  the Years Ended** |   | **2008(1)**                               |   | **2009**                       |   | **2010(2)**                                                                           |   | **2011(3)**                                                                           |   | **Thereafter**                  |   | **Total** |                                        | **Fair                  value** |
|                                     |   |                                      |   |                           |   |                                                                                  |   |                                                                                  |   |                            |   |      |                                        |                            |                                        |
| (In                  thousands)          |   |                                      |   |                           |   |                                                                                  |   |                                                                                  |   |                            |   |      |                                        |                            |                                        |
| Fixed                  rate debt         | $      |   112,070                       |   |     24,036 |   |   155,279                                                                   |   |   153,808                                                                   |   |     813,734 |   |  $   |    1,258,927                 |  $                         |    1,323,978                 |
| Average                  interest rate   |   | 6.8%                                      |   | 7.2%                           |   | 8.0%                                                                                  |   | 6.3%                                                                                  |   | 5.2%                            |   |      |                                        |                            |                                        |
| Variable                  rate debt      | $      |       9,571 |   |   158,000            |   |               - |   |               - |   | 199,354                         | (4)    |  $   |       366,925 |  $                         |       366,925 |
| Average                  interest        |   | 5.4%                                      |   | 5.9%                           |   |               - |   |               - |   | 4.8%                            |   |      |                                        |                            |                                        |

----

The      table incorporates only those exposures that exist as of      September 30, 2007; it does not consider those exposures or positions that      could      arise after that date. Thus, 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      2: Unregistered Sales of Equity Securities and Use of      Proceeds**

----

***Issuer      Purchases of Equity Securities***

|  Period                                                                       |   |                    Total                    Number                    of Shares                    Purchased |   |                    Average                    Price                    Paid per                    Share |   |                    Total                    Number of Shares                    Purchased as Part                    of Publicly Announced Plans or Programs |   |                    Maximum                    Number of Shares                    that may Yet be Purchased Under the Plans                    or Programs |
|------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    September                    3, 2007 to September 28, 2007 |   |                    12,600                                                                                    |   |                    $111.74                                                                               |   |                    12,600                                                                                                                                    |   |                    (1)                                                                                                                                     |

**Item      6: Exhibits**

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

|   | 10.1 | First                Amendment to Fourth Amended and Restated Revolving Credit Agreement,                dated                as of September 28, 2007, among Essex Portfolio, L.P., Bank of America                and                other lenders as specified therein. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Agreement                to Restructure Partnership Between Western-Mountain View II Investors,                a                California Limited Partnership and Essex Portfolio, L.P., a California                Limited Partnership Agreement and Essex Property Trust, Inc., a Maryland                Corporation and Essex Management Corporation, a California Corporation                and                General Partners of the Partnership.  (The related agreement to                restructure the Western-San Jose IV Investors Limited Partnership,                a                California Limited Partnership, has basically the same terms as the                exhibit and is not being filed, but will be furnished to the SEC                upon                request.) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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**

|   | ESSEX                PORTFOLIO, L.P.                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   | *(Registrant)*                                                                                                                       |
|   |                                                                                                                                 |
|   |                                                                                                                                 |
|   | Date:                November 7, 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*                                                             |