Legal Disclaimer

INVESTMENT DISCLAIMERS & INVESTMENT RISKS
We believe it is vitally important that you read and fully understand the following risks of investing in real estate and the fitness club industry. An investment in the project or projects herein is an investment in both real estate and a fitness club.

INVESTMENT RISKS
All investments, including real estate and fitness clubs, are speculative in nature and involve substantial risk of loss. We encourage our investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable, but are without our independent verification. Some of our information is derived from paid consultants who prepared, or helped to prepare, certain documents, projections, forecasts or demographics analysis on which we believe are reliable, but are without independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations.

Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of investing they choose to do.

Hypothetical or simulated performance is not indicative of future results. Unless specifically noted otherwise, all return examples provided in our websites and publications are based on hypothetical or simulated investing. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because hypothetical or simulated performance is not necessarily indicative of future results.

Don’t enter any investment without fully understanding the worst-case scenarios of that investment.

FORWARD LOOKING STATEMENTS
Various statements contained in this presentation, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success of strategies, plans, or intentions. We have based these forward-looking statements on our current expectations and assumptions about future events. These assumptions include, among others, our projections and expectations regarding: market trends in the commercial real estate and fitness industry and in the local markets where we operate, our business strengths, our ideal tenant profile, the quality and location of our properties in attractive neighborhoods, our ability to create a cash flow opportunity with attractive current yields and upside from increasing rents and cost efficiencies, membership acquisition, retention and rates, and our understanding of our competition and general economic, demographic and real estate and fitness industry conditions that may impact our business. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-looking statements to conform to actual results or changes in our expectations, unless required by applicable law.

RISKS RELATED TO THE REAL ESTATE INDUSTRY AND FITNESS INDUSTRY
An investor’s performance and the value of their properties are subject to general economic conditions and risks associated with (a) our real estate assets and (b) the fitness club that may serve as the sole tenant of a property.

There are significant expenditures associated with an investment in real estate (such as debt service, real estate taxes, insurance, and maintenance costs) that generally do not decline when circumstances reduce the income from the property. Income from and the value of the properties acquired may be adversely affected by the following factors:

  • downturns in international, national, regional and local economic conditions (particularly increases in unemployment);the attractiveness of the properties acquired to potential tenants and competition from other properties;
  • increases in the supply of or decreases in the demand for similar or competing properties in our target markets;
  • bankruptcies, financial difficulties or lease defaults by tenants;
  • changes in interest rates, financing availability and terms of debt financing;
  • changes in operating costs and expenses;
  • changes in, or increased costs of compliance with, governmental laws, rules, regulations, and fiscal policies, including changes in tax, real estate, environmental and zoning laws, and our potential liability thereunder;
  • our ability to provide adequate maintenance;
  • changes in the cost or availability of insurance, including coverage for mold or asbestos;
  • environmental conditions or retained liabilities for such conditions;
  • tenant turnover;
  • the illiquidity of real estate investments generally;
  • tenant’s perceptions of the safety, convenience and attractiveness of our properties and the neighborhoods where they are built or acquired;
  • the ongoing need for capital improvements, particularly in older properties;
  • the ability or unwillingness of tenants to pay rent increases;
  • civil unrest, acts of God, including earthquakes, floods and other natural disasters, which may result in uninsured losses, and acts of war or terrorism;
  • rent control or rent stabilization or other laws, which could prevent us from raising rents;
  • fitness club membership acquisition, retention and monthly membership rates; and
  • increases in property-level maintenance and operating expenses.

For these and other reasons, PowerCo Development Group, LLC cannot and does not make any guarantees to investor performance.

PowerCo Development Group, LLC, or its affiliates, subsidiaries, and related parties, faces significant competition in the leasing market for quality tenants, which may limit our ability to lease our properties on favorable terms or at all.

PowerCo Development Group, LLC, or its affiliates, subsidiaries, and related parties, faces significant competition in the fitness club industry for new customers, which may limit our ability to acquire sufficient new customers and retain existing customers to continue ongoing operations.

We face competition for tenants from other lessors of commercial space, and the continuing development of warehouse space and fitness clubs in many of our target markets increases the supply of warehouse space and fitness clubs and exacerbates competition for both tenants and fitness club memberships. Many of these competitors may successfully attract tenants and fitness club members with better incentives and amenities, which could adversely affect our ability to obtain quality tenants, or fitness club memberships, or (c) both, or our ability to lease our commercial properties on favorable terms, or at all. Additionally, some competing commercial space options may qualify for government subsidies that may make such options more affordable and therefore more attractive than our properties.

SEASONALITY
PowerCo Development Group, LLC has no operating history, but we believe that our business and related operating results will be impacted by seasonal factors throughout the year. In particular, we believe fitness club memberships will likely decrease during the summer months when local schools are on summer break, which impacts both our membership revenues and related turnover and customer acquisition costs. Further, our property operating costs are seasonally impacted in certain markets for expenses, such as snow removal and heating during the winter season and HVAC repairs and expenses during the summer season.

Weak economic conditions, combined with governmental orders, may reduce the total number of customers who can access the property at any given time, or the property may be forced to temporarily close for a period of time, and as a result, cause a decline in the number and quality of potential customers.

PowerCo Development Group, LLC or its affiliates, subsidiaries and related parties may have difficulty selling real estate investment properties after development or initial purchase.

Real estate investments are relatively illiquid, and as a result, there may be a limited ability to sell investment properties. When an investor sells any property, they may recognize a loss on such sale. Market conditions, seasonality, property conditions and repairs, vacancy, days on market, commissions, and closings costs should be accounted for as part of the selling transaction for commercial properties. PowerCo Development Group, LLC makes no guarantees as to the price, timing, costs or either participation or assistance by PowerCo Development Group, LLC in the selling of a subject property.

DISCLAIMER:
All calculations and data presented within the PowerCo Development Group, LLC publications and digital marketing and media including, but not limited to, websites, brochures, presentations, and return models are deemed to be accurate, but accuracy is not guaranteed. The projected pro forma returns on investment are intended for the purpose of illustrative projections to facilitate analysis and are not guaranteed by PowerCo Development Group, LLC or its affiliates, subsidiaries, and related parties. Past performance is not an indicator of future results.

The information provided herein is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice, consultation, or service. The prospective buyer should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts pertaining to the property or properties described herein.

All marketing and media material have been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. PowerCo Development Group, LLC has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information presented has been obtained from sources we believe to be reliable; however, PowerCo Development Group, LLC has not verified, and will not verify, any of the information contained herein, nor has PowerCo Development Group, LLC conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.