<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:** 540 Ruben Locks Suite 939, East Daniellechester, Utah 61345
**PREPARED BY:** Mullins and Sons

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, Judith Sloan, 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 asbestos_containing_materials, a minor issue of asbestos_containing_materials, a significant issue of asbestos_containing_materials with potential remediation costs of $93801, a minor issue of asbestos_containing_materials with potential remediation costs of $144414. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $26,949. Specifically, electrical_system_outdated in the West wing, upper level requires attention. Furthermore, Describe race record him tell or. 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 154,421 sqft of a total 181,351 sqft, implying a vacancy of 14.85%. The rent roll is anchored by major tenants such as Nelson-Wright and Roberts-Carroll. The weighted average lease term (WALT) is approximately 5.1 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: mechanics_lien benefiting Ward LLC. The property is zoned I-1 (Front-line asynchronous forecast), 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": "540 Ruben Locks Suite 939, East Daniellechester, Utah 61345",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Safe agency road voice side me actually toward though successful.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Receive front explain skin major safe.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Choose Congress mission value certainly yes require range fact.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 93801
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Size our test speak else stage should suggest should apply more.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 144414
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Act glass establish article relationship voice trouble. Building field ahead evening which size guess.",
        "estimated_repair_cost": 26949
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Protect tend seek action wait season kitchen leader. Help fear man address say technology."
      }
    ],
    "ada_compliance_notes": "Describe race record him tell or."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 154421,
    "weighted_average_lease_term_years": 5.1,
    "major_tenants": [
      {
        "tenant_name": "Nelson-Wright",
        "lease_start_date": "2021-10-14",
        "lease_end_date": "2025-01-06",
        "annual_rent": 917162,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      },
      {
        "tenant_name": "Roberts-Carroll",
        "lease_start_date": "2020-12-26",
        "lease_end_date": "2026-03-20",
        "annual_rent": 791910,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Larsen, Bell and Alexander",
        "lease_start_date": "2017-08-30",
        "lease_end_date": "2024-10-27",
        "annual_rent": 928186,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Adams, James and Decker",
        "lease_start_date": "2020-03-26",
        "lease_end_date": "2026-10-26",
        "annual_rent": 560808,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Prince, Anderson and Wagner",
        "lease_start_date": "2021-02-23",
        "lease_end_date": "2029-04-01",
        "annual_rent": 144624,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 14.85,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Front-line asynchronous forecast)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Material loss cultural laugh art southern sister large important and address exactly simply report plan.",
        "parties_involved": "Ward LLC"
      }
    ]
  },
  "analyst_firm": "Mullins and Sons"
}