"It's always been our intention, that once our portfolio reaches a certain size, that we'd want to start managing it ourselves," says Ross McCallister, MC Cos.' co-principal and partner. "Our investors and clients expect us to be property managers, and we had identified purchase of a management company as one way in which we could increase our presence there quickly."

McCallister tells GlobeSt.com Encore had assisted with due diligence on MC Cos.' recent buy of Harvest Tree Apartments at 5401 Independence Pkwy. in Plano, TX. When MC Management LLC president Lesley Brice mentioned to Encore Management owner Jackie Jackson that the company was interested in acquiring a local management company, "one thing led to another," McCallister comments.

"We've been acquiring properties in Texas for awhile, and one of our focuses has been to treat this as a core market for us," adds Brice, who is also CEO of MC Residential of Texas LLC. "For us to really grow in that respect, we felt like management growth would be the way to go."

The Encore Management's portfolio consists of assets built during the mid-1980s, on average. Occupancy is around 94%. The common denominator of the Texas portfolio is that it consists primarily of workforce housing, which is what MC Cos. is targeting.

for acquisitionBrice tells GlobeSt.com that the underwriting for the portfolio doesn't allow for much value-add, however. "This is more of a management play," she explains. "We'll build value through management, and some appliance upgrades, such as buying washers and driers if there are connections in the units. But no major renovations."