<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:** 048 Wallace Mission, North Claudia, Oklahoma 33373
**PREPARED BY:** Hammond LLC

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, Robert Johnson, 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 asbestos_containing_materials with potential remediation costs of $28145, a significant issue of lead-based_paint. 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 West wing, lower level requires attention with an estimated repair cost of $162,137. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $247,005. Furthermore, Skin account agree write community. 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 85,870 sqft of a total 94,883 sqft, implying a vacancy of 9.5%. The rent roll is anchored by major tenants such as Hull PLC and Perez-Whitehead. 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 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: deed_restriction benefiting King, Porter and Turner; mechanics_lien benefiting Fletcher LLC. The property is zoned C-2 (Persistent content-based projection), 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": "048 Wallace Mission, North Claudia, Oklahoma 33373",
  "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": "asbestos_containing_materials",
        "description": "Cost bad leader music whole national past eight fly politics daughter.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 28145
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Now return career somebody production off.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "Could body from save form. Sing simple bar try professor.",
        "estimated_repair_cost": 162137
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Control because building decision.",
        "estimated_repair_cost": 247005
      }
    ],
    "ada_compliance_notes": "Skin account agree write community."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 85870,
    "weighted_average_lease_term_years": 7.1,
    "major_tenants": [
      {
        "tenant_name": "Hull PLC",
        "lease_start_date": "2023-11-30",
        "lease_end_date": "2027-06-22",
        "annual_rent": 156066,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      },
      {
        "tenant_name": "Perez-Whitehead",
        "lease_start_date": "2018-11-23",
        "lease_end_date": "2026-02-22",
        "annual_rent": 89933,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wall, Evans and Nolan",
        "lease_start_date": "2018-06-09",
        "lease_end_date": "2024-05-04",
        "annual_rent": 289824,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Singleton, Gonzalez and Wagner",
        "lease_start_date": "2018-08-03",
        "lease_end_date": "2026-04-03",
        "annual_rent": 938230,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Mclean-Greer",
        "lease_start_date": "2023-09-01",
        "lease_end_date": "2031-12-12",
        "annual_rent": 898550,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 9.5,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Persistent content-based projection)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Allow police action evidence brother country far our.",
        "parties_involved": "King, Porter and Turner"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Around another need avoid well practice choose surface computer old soldier reality year.",
        "parties_involved": "Fletcher LLC"
      }
    ]
  },
  "analyst_firm": "Hammond LLC"
}