Scottsdale, Ariz.-based multifamily owner, operator, and fee management firm MC Cos. announced this week that it has acquired Arlington, Texas-based property management firm Encore Property Management. The acquisition brings 7,000 units to MC's fee management arm and will provide the company with a significant footprint across Texas as it looks for additional portfolio growth opportunities across the Lone Star State and beyond. Terms of the acquisition were not released.
"Texas is one of our core markets, and knowing that we are going to be growing by acquisition there, we really wanted to have a management presence as well," says MC Management president Lesley Brice. "Until now, we were using third-party fee management. That's worked well, but eventually, we want to manage all of our own units."
According to Brice, MC's back office acumen was a big motivator for Encore, which had been struggling with accounting. "It's an area where we think we can add immediate value, and I think part and parcel of what was so attractive to them in terms of the merger was our presence and systems in place for accounting. Otherwise, we are very well-yoked with them. Shifting the accounting back to Arizona is really the only integration layer left that we still need to focus on."
Encore will likewise afford immediate benefits to MC, providing the company with client and vendor relationships across Texas that can provide the firm with solid market intelligence if not additional direct acquisition opportunities.
"We plan to acquire again, and do it again, and do it again," says MC principal and co-founder Ken McElroy, who describes an end goal of assembling a consortium of independent, sole-owner management companies and multifamily owner/operators that otherwise would have limited growth opportunities. "We definitely want to grow with good partners in multiple areas, We have additional acquisitions in our crosshairs. In fact, we're talking with two companies now, but it's still premature. We'll see where they go."
Founded in 1985, MC's current portfolio includes 3,000 self-owned and 7,500 fee-managed units in Arizona, Nevada, Oregon, Oklahoma, and Texas.