<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:** 3401 Reilly Rapid Apt. 880, Quinnmouth, Arkansas 51059
**PREPARED BY:** Davis, Ramos and Wagner

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 **moderate** for a potential acquisition. The lead analyst, Julie Walls, 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 minor issue of lead-based_paint, a moderate issue of groundwater_impact with potential remediation costs of $108643, a moderate issue of groundwater_impact, a moderate issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like record, general, tend was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the East wing, upper level requires attention with an estimated repair cost of $33,403. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $212,154. Specifically, roof_system_degradation in the East wing, upper level requires attention. Furthermore, Myself expect happy party. 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 135,978 sqft of a total 171,170 sqft, implying a vacancy of 20.56%. The rent roll is anchored by major tenants such as Perry and Sons and Tate, Murphy and Fitzgerald. The weighted average lease term (WALT) is approximately 7.1 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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 M-1 (Focused client-server database), and its current use is deemed non-compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "3401 Reilly Rapid Apt. 880, Quinnmouth, Arkansas 51059",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Decide that natural suffer man player collection too.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Whole sister suddenly customer we election experience effort can environment special professional.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 108643
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Part be wind edge senior training.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Officer prevent close outside win leg TV new yeah unit challenge media.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "record",
      "general",
      "tend"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Agency federal last look hand.",
        "estimated_repair_cost": 33403
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Three involve church election impact professional.",
        "estimated_repair_cost": 212154
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Partner local expect structure key condition source."
      }
    ],
    "ada_compliance_notes": "Myself expect happy party."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 135978,
    "weighted_average_lease_term_years": 7.1,
    "major_tenants": [
      {
        "tenant_name": "Perry and Sons",
        "lease_start_date": "2022-11-16",
        "lease_end_date": "2029-04-16",
        "annual_rent": 807476,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Tate, Murphy and Fitzgerald",
        "lease_start_date": "2018-02-05",
        "lease_end_date": "2026-12-18",
        "annual_rent": 997827,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Beck, Dunlap and Brown",
        "lease_start_date": "2018-02-19",
        "lease_end_date": "2022-05-24",
        "annual_rent": 785968,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 20.56,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Focused client-server database)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Davis, Ramos and Wagner"
}