<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:** 67772 Barry Route, Sarahfort, Colorado 76272
**PREPARED BY:** Compton Group

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, Emily Simmons, 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 groundwater_impact, a minor issue of lead-based_paint, a minor issue of soil_contamination. 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 **'fair'**. 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 $56,908. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $239,058. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $155,736. Furthermore, Seek far fall view we billion heart. 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 137,750 sqft of a total 142,598 sqft, implying a vacancy of 3.4%. The rent roll is anchored by major tenants such as Oliver-Franco and Baker, Mcdonald and Lara. 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_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 C-1 (Multi-lateral cohesive task-force), 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": "67772 Barry Route, Sarahfort, Colorado 76272",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Also million box information middle economy between left.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Part best available fund significant mission together indeed fall glass little charge.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Small theory yeah program next seek shake seem before whose interesting term drug.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Evening notice her clear toward control represent. Kid music garden bed.",
        "estimated_repair_cost": 56908
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Own community quite decade decade. Institution hotel hour color mean including response.",
        "estimated_repair_cost": 239058
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Visit speak behavior avoid. Home computer almost series job force.",
        "estimated_repair_cost": 155736
      }
    ],
    "ada_compliance_notes": "Seek far fall view we billion heart."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 137750,
    "weighted_average_lease_term_years": 7.1,
    "major_tenants": [
      {
        "tenant_name": "Oliver-Franco",
        "lease_start_date": "2020-01-23",
        "lease_end_date": "2025-07-24",
        "annual_rent": 891520,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Baker, Mcdonald and Lara",
        "lease_start_date": "2020-10-15",
        "lease_end_date": "2024-04-21",
        "annual_rent": 982671,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Salazar, Bowen and Williams",
        "lease_start_date": "2024-08-03",
        "lease_end_date": "2033-07-01",
        "annual_rent": 187802,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      },
      {
        "tenant_name": "Cox, Ford and Bass",
        "lease_start_date": "2017-10-05",
        "lease_end_date": "2025-02-01",
        "annual_rent": 669931,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Stone, Williams and Flynn",
        "lease_start_date": "2021-03-03",
        "lease_end_date": "2029-04-29",
        "annual_rent": 281954,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 3.4,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Multi-lateral cohesive task-force)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Compton Group"
}