Business Spotlight: ‘Rush’ Jobs

Roger Lantz is in the middle of a full-blown second career, and he’s not slowing down.

A sales manager for Archer Daniels Midland (NYSE: ADM) for 25 years, Lantz officially launched Greek Housing USA in November 2012 after identifying a need for local fraternity and sorority housing around Missouri State University. He began buying properties on Elm around 10 years ago with redevelopment in mind.

Lantz, who co-owns the business with wife Shelley Lantz – a former accountant with BKD LLP who handles Greek Housing’s books – says the business got its start with an $180,000 renovation of the Phi Gamma Delta building on East Elm Street.

The company now owns seven Greek properties – including one in San Marcos, Texas – and it has six new Greek houses planned the next two years. Around Missouri State University, Greek Housing developments and renovations are expected to top $20 million, including land purchases.

“We’ve tried to get the land bought on Elm and then wait until the right tenant comes,” Lantz says.

His most recently completed project near MSU is the Gamma Phi Beta house at 1141 E. Elm St. The 19,000-square-foot, three-story brick building was completed nearly two years ago, he says, for around $2.2 million. He draws one lease check a month from the sorority, which charges students $400-$500 per bedroom. He says 400 students pay at least $400 a month to rent Greek Housing USA properties, generating roughly $1.9 million in annual revenue.

Last year, the company completed its first out-of-state project near Texas State University in San Marcos, Texas.

“And we have two more to start there in December,” he says, adding he’s considering a build near the University of Kentucky. “We like to start these in the middle of the school year, so we can have them ready by August.”

He has turned down projects near the University of Florida and Ohio State University in efforts to keep the young company from spreading too thin. The Lantzes are the only full-time employees – plus two part-time handymen – but Greek Housing works closely with Mike Thornbrugh of Osceola-based Thornbrugh Construction LLC for general contracting.

Thornbrugh is working on 1124 E. Elm St., across the street from the Gamma Phi house. In November, Lantz secured a blight designation from Springfield City Council for two adjacent properties, 1124 and 1130 E. Elm, where older homes, now demolished, reportedly had leaky roofs, boarded up and broken windows, outdated electric wiring, termites and mold. The designation allows the company to receive 10 years of tax abatements on property improvements.

That project is for Sigma Phi Epsilon, which plans to move from another Lantz-owned property, 1117 E. Elm. The old Sigma Phi building is expected to become home to Pi Kappa Alpha on Aug. 1, Lantz says.

The 16,000-square-foot house at 1124 E. Elm should be done in July.

“We’ll have a commercial-sized crew. We’ll have 30 sheet-rockers,” Lantz says, adding his builds have averaged less than six months. “I like to get in and get done.”

Thornbrugh says he got to know Lantz years ago when he was supplying cattle feed. Now, a third of Thornbrugh Construction revenue comes from Greek Housing jobs.

He acknowledges Lantz’s tight timelines.

“It is very quick, but we’ve pulled it off before, so we are optimistic we can do it again,” Thornbrugh says, adding Lantz knows what he wants. “He’s a very involved owner. He’s on the job, looking around and asking questions.”

Jacob Steinberg, chapter president for Sigma Phi Epsilon, plans to live in the new house at 1124 E. Elm for his senior year at MSU.

He says monthly rent is expected to go up about $100, but he feels the extra expense will be worth it.

“From an organizational standpoint, a new house will help out with rush – it just sells itself, and it kind of raises our market value on campus to be the premier fraternity organization,” Steinberg says, noting the house will have a chef and commercial kitchen on-site. “Currently, we have 130 members, and next semester, we have forecasted to have 170 in the chapter, so this is a pivotal year for us.”

Lantz also seeks to build two Greek houses at the Colonial Court apartments, 1102-04 E. Elm St. The properties would be for Tau Kappa Epsilon and another Greek group he expects the university to add this spring.

As for the recent student-housing boom, Lantz says it’s not a threat.

“I’ve been encouraged by it. They are generally higher than we are,” he says. “It helps justify our rates.”

Back when Greek Housing started, he and his wife simply wanted to buy a rental property or two to serve the local student-housing market, but the opportunities snowballed.

“I remember John Q. [Hammons] said this years ago: ‘Stay with state capitals and universities when it comes to rental buildings, and you’ll be more successful,’” Lantz says. “It’s not 100 percent recession proof, but it’s close.”