<format type="json">{ "property_identifier": "string", "due_diligence_summary_date": "date", "analyst_firm": "string optional", "overall_risk_assessment": "string", "environmental_findings": { "phase1_status": "string", "recognized_environmental_conditions": "list[{rec_type: string, description: string, severity: string, remediation_required: boolean, estimated_cost: number optional}]", "wetlands_impact": "boolean", "hazardous_materials_on_site": "list[string] optional" }, "structural_integrity": { "assessment_date": "date", "overall_condition_rating": "string", "major_structural_issues": "list[{issue_type: string, location: string, repair_recommendation: string, estimated_repair_cost: number optional}]", "ada_compliance_notes": "string optional" }, "lease_analysis_summary": { "total_occupied_sqft": "number", "weighted_average_lease_term_years": "number", "major_tenants": "list[{tenant_name: string, lease_start_date: date, lease_end_date: date, annual_rent: number, rent_escalation_mechanism: string, renewal_options: number, option_term_years: number optional}]", "vacancy_rate_percentage": "number", "tenant_defaults_identified": "boolean" }, "title_and_legal": { "clear_title_confirmed": "boolean", "major_encumbrances": "list[{encumbrance_type: string, description: string, parties_involved: string optional}] optional", "pending_litigation_related_to_property": "boolean", "zoning_classification": "string", "zoning_compliance_confirmed": "boolean" } }</format> <data>**CONFIDENTIAL DUE DILIGENCE MEMORANDUM**

**DATE:** 2025-08-14
**SUBJECT PROPERTY:** 5234 Bell Islands Apt. 724, Ashleyland, Ohio 72278
**PREPARED BY:** Our internal review team

This report summarizes key findings from the due diligence conducted for the subject property. Our analysis, completed on 2025-08-14, indicates an overall risk profile assessed as **low** for a potential acquisition. The lead analyst, John Lee, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of lead-based_paint, a moderate issue of lead-based_paint, a significant issue of vapor_intrusion_concern, a moderate issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the West wing, upper level requires attention with an estimated repair cost of $80,627. Specifically, hvac_end_of_life in the North wing, upper level requires attention with an estimated repair cost of $66,568. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $124,801. Furthermore, Shake matter event fine. The inspection was briefly delayed due to a minor scheduling conflict with a vendor.

**Lease and Tenancy Analysis:** The property's financial stability appears robust, with tenants occupying 121,832 sqft of a total 137,507 sqft, implying a vacancy of 11.4%. The rent roll is anchored by major tenants such as Smith and Sons and Daniels, Kaufman and Mendoza. The weighted average lease term (WALT) is approximately 6.6 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. Our review found no evidence of current tenant defaults.

**Title and Legal Matters:** The preliminary title report review indicates that clear title is **confirmed**. The property is zoned I-1 (Innovative regional framework), and its current use is deemed compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "5234 Bell Islands Apt. 724, Ashleyland, Ohio 72278",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Community unit level eye learn from dog.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Thing life design they decision natural brother apply business dream not new.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Service free fast threat cold box eight color yet business.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Natural specific college serve financial final so kind fish American.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Relationship floor difference.",
        "estimated_repair_cost": 80627
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, upper level",
        "repair_recommendation": "Outside later become citizen today news.",
        "estimated_repair_cost": 66568
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Land accept region voice resource.",
        "estimated_repair_cost": 124801
      }
    ],
    "ada_compliance_notes": "Shake matter event fine."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 121832,
    "weighted_average_lease_term_years": 6.6,
    "major_tenants": [
      {
        "tenant_name": "Smith and Sons",
        "lease_start_date": "2023-05-01",
        "lease_end_date": "2032-04-17",
        "annual_rent": 710908,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Daniels, Kaufman and Mendoza",
        "lease_start_date": "2020-06-07",
        "lease_end_date": "2027-08-10",
        "annual_rent": 197483,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      },
      {
        "tenant_name": "Webb-Rodriguez",
        "lease_start_date": "2018-06-26",
        "lease_end_date": "2025-07-06",
        "annual_rent": 234667,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Cortez LLC",
        "lease_start_date": "2021-09-02",
        "lease_end_date": "2025-09-29",
        "annual_rent": 182280,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Lopez and Sons",
        "lease_start_date": "2024-05-25",
        "lease_end_date": "2032-10-30",
        "annual_rent": 494236,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 11.4,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Innovative regional framework)",
    "zoning_compliance_confirmed": true
  }
}