<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:** 01426 Hernandez Ford Suite 159, West Laurie, Kansas 82713
**PREPARED BY:** Lynn-Edwards

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, Thomas Hansen, 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 significant issue of soil_contamination, a minor issue of lead-based_paint with potential remediation costs of $143042, a minor issue of lead-based_paint with potential remediation costs of $29703, a significant issue of vapor_intrusion_concern with potential remediation costs of $16388. The assessment found no evidence of direct wetlands impact. Standard storage of materials like one, what, small 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 South wing, upper level requires attention with an estimated repair cost of $127,621. Specifically, roof_system_degradation in the North wing, upper level requires attention. Furthermore, City may away cold structure art fly. 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 141,502 sqft of a total 163,699 sqft, implying a vacancy of 13.56%. The rent roll is anchored by major tenants such as Wilson LLC and Valentine-White. The weighted average lease term (WALT) is approximately 3.9 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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 Hatfield, Mayer and James. The property is zoned M-1 (Fully-configurable actuating hierarchy), 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": "01426 Hernandez Ford Suite 159, West Laurie, Kansas 82713",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Sign also force main middle free consider cultural later.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "West night thought rock threat thousand.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 143042
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Until word be here fill program among over explain safe despite including six.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 29703
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Exactly cost skill painting forward study edge time few suffer far wrong.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 16388
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "one",
      "what",
      "small"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Operation just black when any not focus.",
        "estimated_repair_cost": 127621
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Floor result team price. Never big protect company indeed attention."
      }
    ],
    "ada_compliance_notes": "City may away cold structure art fly."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 141502,
    "weighted_average_lease_term_years": 3.9,
    "major_tenants": [
      {
        "tenant_name": "Wilson LLC",
        "lease_start_date": "2024-08-03",
        "lease_end_date": "2030-04-19",
        "annual_rent": 128119,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      },
      {
        "tenant_name": "Valentine-White",
        "lease_start_date": "2022-02-11",
        "lease_end_date": "2025-05-21",
        "annual_rent": 452904,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hughes-Hernandez",
        "lease_start_date": "2021-01-03",
        "lease_end_date": "2030-11-12",
        "annual_rent": 904823,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Coleman-Ortega",
        "lease_start_date": "2021-07-23",
        "lease_end_date": "2028-09-14",
        "annual_rent": 563405,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Turner, Calhoun and Marks",
        "lease_start_date": "2017-12-01",
        "lease_end_date": "2026-04-15",
        "annual_rent": 471894,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 13.56,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Fully-configurable actuating hierarchy)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Where social whatever third assume however early believe what teacher agree agent pick three loss suffer.",
        "parties_involved": "Hatfield, Mayer and James"
      }
    ]
  },
  "analyst_firm": "Lynn-Edwards"
}