LFRO | Application Preview
LFRO is seeking government grants to fund capital expenditures related to upgrading windows and HVAC systems, as well as buy out its parent company. The business operates properties that fall under the Ohio Housing Financing Authority (OHFA) covenants, which will expire in 2025, allowing for rent adjustments that could yield an additional $150,000 in revenue. The planned improvements are expected to significantly reduce monthly operational costs.
The application highlights the success LFRO has achieved since acquiring 112 units in 2012, including cost reductions, rent increases up to HUD limits, and consistent rental income despite the challenges posed by the pandemic. The properties serve both seniors and the general population in Wapakoneta and Sidney. LFRO has a solid financial track record, consistently paying bills on time and establishing a projected fair market value of over $4 million for the properties by 2025, with a projected debt service coverage ratio above 1.7 and a loan-to-value ratio below 45%.
LFRO faces competition from nearby properties, including Normandy Ridge and recently renovated units managed by the National Church Residences. However, LFRO's competitive edge lies in its unique location within a historic converted high school, notable for its connection to astronaut Neil Armstrong and its architectural significance. The company has also been proactive in community support, being the first in the area to install EV charging stations and LED lighting, and providing essential supplies to residents during the pandemic. This commitment to resident well-being has translated into timely rent payments and strong community ties.
-
General Information
Business Registration Number: LFRO
Location: Wapakoneta, OH, United States
Length of Operation: 9 years (April 2012)
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: YES
-
Funding Usage
CapEx of Windows and HVAC. Buyout of parent company
-
Business Plan
The properties are under OHFA Ohio Housing Financing Authority Covenants which expire in 2025. Rents can be increased to meet market levels generating $150k additional revenues. With the installation of the windows and more energy efficient HVAC units will dramatically result in monthly operational costs. After acquiring 112 units in 2012 we have been able to reduce costs, raise rents to HUD limits and maintain tenant rental income through Pandemic by providing for our residents as a community. We have a senior side and general population in Wapakoneta and Sidney. We pay our bills, in full, on time as agreed. ARV after repair value and stabilized rent in 2025 it is projected FMV of project to be in excess of $4mm. DSCR north of 1.7 with <= 45% LTV. We set up most all payments through Chase autopay to streamline administrative accounting.
-
Self Identified Competition
We are in Central-West Ohio, North of Dayton on I-75 40 minutes and 90 minutes South of Toledo. The closest competitor is Normandy Ridge within 1/2 mile with new ownership past year and went off OHFA to market rates. New roofs located near fairgrounds and Rte-30. 84 units in free standing buildings up to 3 stories. Wapakoneta Village behind Lowes was newly renovated and owned by National Church Residences affordable living community for seniors aged 62 yrs and older. Fully renovated past 2 years by National Church. Laurelwood Apts built in 1975, is walking distance to newly renovated YMCA and located behind Grand View Plaza. We are located with in 3 blocks of downtown Wapakoneta, in a historically significant and registered converted high school. The first for centralized learning in Ohio. The Architecture was the prototype for all buildings of this type through out the mid-west. This was the high school that Astronaut Neil Armstrong who walked on the moon first is part of the identity and fabric of Wapakoneta Ohio. Being proactive, we are the first apartment complex in the four county area to install EV charging station, 1st to install LED lighting 8 years ago, and provided up to 2000 lbs of food per month along with hand sanitizers, toilet paper and safe rides to area services (churches, doctors etc) during the pandemic. Why is this important? We care about the residents and most returned their gratitude with paying the rent on time.
-
Contact Applicant
Subscribe to our Administrator Dashboard to gain full access to this application. Learn More
