Investor FAQ

Common
Questions

Who is PowerCo's target customer?

We anticipate driving memberships from multiple channels, including:

  1. Specific and identified targeted demographics where a significant demand is unserved or underserved.
  2. Youth sports performance training across multiple sports including football, wrestling, track and field and soccer.
  3. Underserved and underprivileged young athletes through a soon-to-be formed 501(c)(3) with scholarship, travel and work opportunities.
  4. The fitness minded customer seeking a more upscale, boutique fitness experience.
  5. Customers with multiple memberships seeking higher quality at a lower price point.
  6. Parents who want to train at the time their children train.
  7. Industry closures and consolidation.
  8. Customers tired of the High Volume/Low Cost (HV/LC) crowded gyms.

Why Albuquerque, NM?

The Demographics Demand Analysis Study completed December 2019 by Atwood Consulting Group indicates that a supply shortage exists for several signficant target demographics in the Albuquerque market:

  • Over 26,000 unserved and underserved performance athletes, not counting the additional sales channels identified earlier.
  • 4,500 is our anticipated membership level at maturity.
  • 1,427 members is our break even (approx. 5.4% of ┬áthe supply gap).

IRR and Investment Period?

PowerCo aims to deliver a 16.1% IRR over an 8 year investment period.

PowerCo plans to return 100% of the free cash flow to the Investors through the investment period as well as the proceeds of a projected 75% LTV Project refinancing at month 30, less associated costs and fees.

Any participation after the Investment Period?

After the 8 year Investment Period, or the Investor earns the projected 16.1% IRR, whichever comes first, the Investor continues to participate in the Project with 20% distribution of free cash flow for the life of the Project or until the Project is sold.

Minimum investment?

The minimum investment is:

  • 5 units at $10,000 per unit
  • A total of $50,000 minimum investment

How many customers are needed for "break-even"?

  • 4,500 is our anticipated membership level at maturity.
  • 1,427 members is our projected break-even (approx. 5.4% of ┬áthe 26,000 unserved and underserved performance athlete supply gap).

Am I investing in the fitness industry operations, the real estate development project, or both?

An investment in WTC ABQ Equity Partners, LLC, the investment vehicle, is an investment into both the real estate land and improvements and WTC ABQ OpCo, LLC, the fitness industry operator.

The investment is roughly 50/50 with half of the investment going to develop the facility while the other half is going to purchase equipment and turf, pre and post-opening operational expenses with projected funding sufficient to carry the project through a break-even at or around the 12 month operational period.

How is PowerCo "revolutionizing" the fitness industry?

PowerCo has:

  • designed the training complex to meet leading industry fitness training trends like HIIT, plate-loaded and self-powered equipment;
  • designed a “large boutique” to meet leading consumer demand trends;
  • incorporated an expansive outdoor training complex for leading consumer demand trends;
  • incorporate an outdoor competition and event center to allow performance athletes to train like they compete; and,
  • designed pathogen control systems into the facility to avoid costly future retrofit.

Since fitness industry memberships drive revenue, should I worry about the industry post-COVID?

Recent data indicates that the fitness industry has been growing significantly since 2010 and through 2019. Our targeted demographics are in the strongest growth areas.

Institutional money has been flowing into certain fitness industry segments and we anticipate leading those development trends.

Recent studies demonstrate that consumer demand has shown an incredible resiliance to return to the gym experience following the temporary shut-downs.

Despite the strong consumber demand to return to the health club, PowerCo has made significant design additions to ensure the customer feels safe in his or her return to the facility experience including ultraviolet light sterilization of the HVAC and group training rooms, e.g., Spin, GroupX and Mat Room.

Few other facilities, if any, can boast the level of sterilization that PowerCo provides with its ground-up integration of UV sterilization process.

PowerCo believes we are poised to absorb customers from failed boutiques and the consumer demand from customers who seek the shared experience of working out, sweating, training and suffering with like-minded fitness enthusiasts.

With 30 Projects planned, can I get preferred investor status on future projects?

Each of our current Project investors will have a “preferred” status on future projects meaning all current investors will have the first right of refusal to invest in future projects before new investor subscriptions are accepted.