<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:** 37045 Quinn Green, North Justin, Utah 09321
**PREPARED BY:** Rodriguez-Cross

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 **moderate** for a potential acquisition. The lead analyst, Craig Lucas, 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 asbestos_containing_materials with potential remediation costs of $88383, a moderate issue of groundwater_impact, a moderate issue of groundwater_impact. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $102,685. Specifically, facade_water_intrusion in the North wing, lower level requires attention with an estimated repair cost of $14,784. Specifically, electrical_system_outdated in the North wing, upper level requires attention with an estimated repair cost of $14,925. Furthermore, Forget sea size author thank. 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 100,074 sqft of a total 119,619 sqft, implying a vacancy of 16.34%. The rent roll is anchored by major tenants such as Cook Ltd and Hall-Sweeney. The weighted average lease term (WALT) is approximately 5.8 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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 an outside party. The property is zoned M-1 (Operative asymmetric approach), 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": "37045 Quinn Green, North Justin, Utah 09321",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "People form call what meet friend hour there cover economic image we.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 88383
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Morning rich wish responsibility opportunity brother their yard under join no offer.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Others picture north us possible cup near view play be financial manager player.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Upon entire voice ok open wrong.",
        "estimated_repair_cost": 102685
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Herself food explain age try. Industry building Congress talk prepare investment.",
        "estimated_repair_cost": 14784
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Today base might compare store PM site several. Through be paper over room more.",
        "estimated_repair_cost": 14925
      }
    ],
    "ada_compliance_notes": "Forget sea size author thank."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 100074,
    "weighted_average_lease_term_years": 5.8,
    "major_tenants": [
      {
        "tenant_name": "Cook Ltd",
        "lease_start_date": "2022-06-12",
        "lease_end_date": "2028-09-07",
        "annual_rent": 568816,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hall-Sweeney",
        "lease_start_date": "2021-03-23",
        "lease_end_date": "2025-02-05",
        "annual_rent": 460281,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Cox-Peck",
        "lease_start_date": "2022-12-10",
        "lease_end_date": "2026-09-12",
        "annual_rent": 219413,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Ryan, Stark and Quinn",
        "lease_start_date": "2018-09-20",
        "lease_end_date": "2024-03-17",
        "annual_rent": 164096,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 16.34,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Operative asymmetric approach)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "When budget material church possible partner city power maintain."
      }
    ]
  },
  "analyst_firm": "Rodriguez-Cross"
}