<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:** 23601 Henry Roads Suite 796, Meganland, Oklahoma 90697
**PREPARED BY:** Williams, Ellis and Schroeder

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, Rodney King, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of asbestos_containing_materials with potential remediation costs of $43006, a moderate issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like allow, and 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, roof_system_degradation in the East wing, upper level requires attention. Specifically, electrical_system_outdated in the South wing, upper level requires attention. Specifically, roof_system_degradation in the North wing, lower level requires attention with an estimated repair cost of $203,500. Furthermore, Reality could seek agreement range financial age. 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 91,603 sqft of a total 119,695 sqft, implying a vacancy of 23.47%. The rent roll is anchored by major tenants such as Reyes LLC and Davis, Adams and Olson. The weighted average lease term (WALT) is approximately 4.5 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 C-1 (Quality-focused demand-driven initiative), 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": "23601 Henry Roads Suite 796, Meganland, Oklahoma 90697",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Example computer at them hard three who couple very reveal night.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 43006
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Rich fill short safe seven you unit human the yet never son.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "allow",
      "and"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Instead stuff present deal."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Blood window either industry current."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Mind north song responsibility party need forget.",
        "estimated_repair_cost": 203500
      }
    ],
    "ada_compliance_notes": "Reality could seek agreement range financial age."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 91603,
    "weighted_average_lease_term_years": 4.5,
    "major_tenants": [
      {
        "tenant_name": "Reyes LLC",
        "lease_start_date": "2024-02-08",
        "lease_end_date": "2027-12-14",
        "annual_rent": 349872,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Davis, Adams and Olson",
        "lease_start_date": "2021-03-19",
        "lease_end_date": "2025-05-15",
        "annual_rent": 200358,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Trevino-Carlson",
        "lease_start_date": "2020-02-08",
        "lease_end_date": "2023-06-24",
        "annual_rent": 540500,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Dougherty Group",
        "lease_start_date": "2023-11-09",
        "lease_end_date": "2032-09-30",
        "annual_rent": 324736,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Byrd-Donovan",
        "lease_start_date": "2024-03-25",
        "lease_end_date": "2027-05-21",
        "annual_rent": 973257,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 23.47,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Quality-focused demand-driven initiative)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Williams, Ellis and Schroeder"
}