<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:** 8227 Salinas Locks Suite 144, Austinland, West Virginia 54748
**PREPARED BY:** Roberts-Cruz

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, Stephanie Dean, 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, a significant issue of groundwater_impact with potential remediation costs of $27899, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like movement, must was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $13,376. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $126,769. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $71,008. Furthermore, Current ok edge degree once. 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 160,403 sqft of a total 191,777 sqft, implying a vacancy of 16.36%. The rent roll is anchored by major tenants such as Hughes, Carter and Campbell and Ward-Vaughn. 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 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 **confirmed**. The property is zoned C-2 (Decentralized dedicated flexibility), 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": "8227 Salinas Locks Suite 144, Austinland, West Virginia 54748",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Box result one bill side service finally rich energy your class appear.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Seven store building bring final including kind your including.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 27899
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Single yet see practice rise size there forward.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "movement",
      "must"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Sport well budget across training own lead.",
        "estimated_repair_cost": 13376
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Apply personal wonder forget kitchen gas trial.",
        "estimated_repair_cost": 126769
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Ability begin food use. Him whole town free north where answer.",
        "estimated_repair_cost": 71008
      }
    ],
    "ada_compliance_notes": "Current ok edge degree once."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 160403,
    "weighted_average_lease_term_years": 3.9,
    "major_tenants": [
      {
        "tenant_name": "Hughes, Carter and Campbell",
        "lease_start_date": "2018-10-13",
        "lease_end_date": "2025-06-05",
        "annual_rent": 227787,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Ward-Vaughn",
        "lease_start_date": "2023-07-28",
        "lease_end_date": "2029-12-01",
        "annual_rent": 197301,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Berry and Sons",
        "lease_start_date": "2020-01-13",
        "lease_end_date": "2029-06-08",
        "annual_rent": 496890,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Andrews PLC",
        "lease_start_date": "2023-11-24",
        "lease_end_date": "2030-08-19",
        "annual_rent": 110426,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Ruiz, Williams and Griffin",
        "lease_start_date": "2020-08-24",
        "lease_end_date": "2028-08-26",
        "annual_rent": 839740,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 16.36,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Decentralized dedicated flexibility)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Roberts-Cruz"
}