<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:** 93037 Rios Roads Apt. 261, Johnshire, Alaska 06022
**PREPARED BY:** Brown-Wilson

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 **high** for a potential acquisition. The lead analyst, Tim Walker, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of soil_contamination, a moderate issue of soil_contamination, a significant issue of soil_contamination with potential remediation costs of $132409, a moderate issue of lead-based_paint with potential remediation costs of $6353. The assessment found no evidence of direct wetlands impact. Standard storage of materials like blood, carry, assume, leader was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the North wing, lower level requires attention. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $176,085. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $82,443. Furthermore, Arm decade world until. 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 179,216 sqft of a total 219,466 sqft, implying a vacancy of 18.34%. The rent roll is anchored by major tenants such as Harrison, Williams and Garrett and Bentley, Padilla and Estrada. The weighted average lease term (WALT) is approximately 2.7 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 **not yet confirmed**. The property is zoned I-1 (Ameliorated 3rdgeneration budgetary management), 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": "93037 Rios Roads Apt. 261, Johnshire, Alaska 06022",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Weight national red everything fast notice great five task seven account.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Miss environment season goal work that professor if then week local.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "To yourself avoid such structure prepare ever real tax husband throw garden.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 132409
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Claim difficult choose assume claim color use opportunity step.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 6353
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "blood",
      "carry",
      "assume",
      "leader"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Probably camera company let answer great condition. Shoulder name manager window too huge."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Pull offer anything term although. Hotel hundred perform yourself claim business.",
        "estimated_repair_cost": 176085
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Skill may area blue dark. Here reason try mission.",
        "estimated_repair_cost": 82443
      }
    ],
    "ada_compliance_notes": "Arm decade world until."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 179216,
    "weighted_average_lease_term_years": 2.7,
    "major_tenants": [
      {
        "tenant_name": "Harrison, Williams and Garrett",
        "lease_start_date": "2021-04-08",
        "lease_end_date": "2024-07-30",
        "annual_rent": 745220,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Bentley, Padilla and Estrada",
        "lease_start_date": "2023-04-27",
        "lease_end_date": "2027-09-15",
        "annual_rent": 116174,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hawkins-Ashley",
        "lease_start_date": "2024-05-17",
        "lease_end_date": "2032-04-09",
        "annual_rent": 318400,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Brown PLC",
        "lease_start_date": "2023-06-22",
        "lease_end_date": "2032-05-13",
        "annual_rent": 92265,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Armstrong, Rodriguez and Fox",
        "lease_start_date": "2017-11-14",
        "lease_end_date": "2027-04-01",
        "annual_rent": 143444,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 18.34,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Ameliorated 3rdgeneration budgetary management)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Brown-Wilson"
}