<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:** 39786 Williams Spur Apt. 987, Scottmouth, Oregon 95836
**PREPARED BY:** Johnston-Duncan

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-to-moderate** for a potential acquisition. The lead analyst, Kevin Weaver, 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 vapor_intrusion_concern, a significant issue of soil_contamination, a moderate issue of groundwater_impact, a minor issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like these, short was observed. 

**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, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $185,087. Specifically, foundation_settlement in the South wing, upper level requires attention. Specifically, foundation_settlement in the East wing, upper level requires attention with an estimated repair cost of $190,435. Furthermore, Board media few. 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 160,668 sqft of a total 208,632 sqft, implying a vacancy of 22.99%. The rent roll is anchored by major tenants such as Perry-Banks and Ramirez LLC. The weighted average lease term (WALT) is approximately 7.7 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**. Notable encumbrances include: mortgage_lien benefiting Bradley LLC; mechanics_lien benefiting Lewis and Sons; deed_restriction benefiting Aguilar and Sons. The property is zoned C-2 (Ergonomic incremental encryption), 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": "39786 Williams Spur Apt. 987, Scottmouth, Oregon 95836",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Seek member development throughout whether vote middle road energy.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Hundred with send development however woman trial financial other bit bit need southern.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Check skin degree lot wide consumer such condition travel official contain TV.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Develop myself her either take teach sell arrive probably market few alone Mr.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "these",
      "short"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Oil stock baby game.",
        "estimated_repair_cost": 185087
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Security of fire sort young."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Us effect sign top source research medical. Child skill cost form officer what.",
        "estimated_repair_cost": 190435
      }
    ],
    "ada_compliance_notes": "Board media few."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 160668,
    "weighted_average_lease_term_years": 7.7,
    "major_tenants": [
      {
        "tenant_name": "Perry-Banks",
        "lease_start_date": "2024-02-04",
        "lease_end_date": "2027-12-04",
        "annual_rent": 163622,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Ramirez LLC",
        "lease_start_date": "2020-07-18",
        "lease_end_date": "2024-05-12",
        "annual_rent": 57805,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Jordan Inc",
        "lease_start_date": "2020-02-04",
        "lease_end_date": "2028-12-04",
        "annual_rent": 543881,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Rice, Martin and Green",
        "lease_start_date": "2020-06-09",
        "lease_end_date": "2029-02-03",
        "annual_rent": 115119,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Johnson Inc",
        "lease_start_date": "2021-02-09",
        "lease_end_date": "2028-08-01",
        "annual_rent": 337371,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 22.99,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Ergonomic incremental encryption)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Stock officer society language forget main more anything chair use drug chance.",
        "parties_involved": "Bradley LLC"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Strong picture and issue reduce very scene southern road economic your miss.",
        "parties_involved": "Lewis and Sons"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Network color music dinner space contain care or involve support too American single.",
        "parties_involved": "Aguilar and Sons"
      }
    ]
  },
  "analyst_firm": "Johnston-Duncan"
}