At MC Companies, our core mission is to protect our partners’ capital while delivering exceptional, predictable returns. This requires more than just identifying great properties; it requires a disciplined, top-down strategy focused on where people are moving, working, and thriving. Charlie Koznick, Chief Investor Officer, MC Companies sheds some light on it all here:

We are often asked why we maintain such a strong focus on the Sunbelt region, particularly Phoenix, Las Vegas, and Texas. The answer lies in the powerful, compounding economic forces that define these markets. We are not chasing headlines; we are investing in fundamental demographic and economic shifts.

Our Investment Thesis: The Three Pillars of Sunbelt Growth

Our strategic commitment to these markets is built on three essential pillars that drive long-term multifamily performance:

1. Demographic Surge: The Great Migration

Simply put, people vote with their moving vans. Our target markets are magnets for domestic migration, primarily driven by people leaving expensive coastal states for a higher quality of life and lower cost of living.

• Phoenix exemplifies this, with Maricopa County recently ranking as one of the fastest-growing counties in the nation.
• Las Vegas has seen a surge in net in-migration, driving its largest annual population gain in over a decade.
• Texas continues to break records for population growth, fueled by corporate and family relocation across the state.

This sustained influx of new residents translates directly into robust, persistent demand for high-quality rental housing.

2. Economic Diversification & Job Creation

The stability of a rental market rests on the strength and diversity of its job base. Our markets have successfully transitioned from reliance on a few sectors to becoming sprawling economic engines:

• Phoenix has cemented its reputation as a technology and advanced manufacturing hub, with major corporate expansions from giants like Intel and TSMC. This provides a strong foundation of high-wage jobs.
• Las Vegas has diversified beyond hospitality into tech, logistics, and healthcare, ensuring resilience even when tourism slows.
• Texas is a job-creation behemoth, leading the nation in job growth and hosting over 50 Fortune 500 company headquarters. Corporate relocations by companies like Tesla and Hewlett-Packard solidify the state’s status as a top economic destination.

3. Investor-Friendly Fundamentals

When evaluating a market, we look for an environment that supports responsible ownership and growth. Nevada and Texas offer a significant advantage with no state income tax, which attracts both talent and major corporations. Furthermore, these states generally offer a regulatory landscape that supports real estate investment, helping us maximize capital efficiency for our partners.

Looking Past Short-Term Supply Challenges

Like any rapidly growing region, our core markets have experienced periods of elevated new supply. However, our long-term perspective allows us to see past short-term volatility.

The data shows that while supply has been high, demand has been strong enough to absorb it, and we are now seeing the start of a major slowdown in the future construction pipeline. In Texas, for example, construction starts have drastically fallen in major metros, creating a future supply-demand imbalance that will inevitably lead to rent growth.

MC Companies is built for these cycles. We focus on acquiring or developing properties in high-growth submarkets and executing aggressive value-add strategies that are resilient regardless of temporary market softness. We invest where the economic fundamentals are strongest, ensuring we are well-positioned for the long-term appreciation that follows demographic growth.

Our commitment to Phoenix, Las Vegas, and Texas is a commitment to stability, growth, and the demographic destiny of the American Southwest.