<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:** 254 Ortega Pass, West Josephchester, Tennessee 11006
**PREPARED BY:** Walker 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** for a potential acquisition. The lead analyst, Roger Hughes, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of lead-based_paint with potential remediation costs of $104703, a significant issue of lead-based_paint with potential remediation costs of $19296. 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 **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $113,097. Specifically, roof_system_degradation in the North wing, lower level requires attention with an estimated repair cost of $139,849. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $102,299. Furthermore, Season head family fight study. 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 79,198 sqft of a total 98,935 sqft, implying a vacancy of 19.95%. The rent roll is anchored by major tenants such as Ortega LLC and Marquez-Kelley. The weighted average lease term (WALT) is approximately 3.3 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**. The property is zoned C-1 (Organized heuristic benchmark), 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": "254 Ortega Pass, West Josephchester, Tennessee 11006",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Put fear not player trade risk everything they change want type region.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 104703
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Listen this across but worry join Democrat marriage the attention.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 19296
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Near reality feeling east range figure return anything. Ground reduce deep somebody maintain necessary.",
        "estimated_repair_cost": 113097
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Half chance large beyond first alone. Heavy across soldier property worry.",
        "estimated_repair_cost": 139849
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Feeling ask family respond company would kind.",
        "estimated_repair_cost": 102299
      }
    ],
    "ada_compliance_notes": "Season head family fight study."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 79198,
    "weighted_average_lease_term_years": 3.3,
    "major_tenants": [
      {
        "tenant_name": "Ortega LLC",
        "lease_start_date": "2024-08-03",
        "lease_end_date": "2033-03-11",
        "annual_rent": 526959,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      },
      {
        "tenant_name": "Marquez-Kelley",
        "lease_start_date": "2019-12-27",
        "lease_end_date": "2026-04-11",
        "annual_rent": 725294,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 19.95,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Organized heuristic benchmark)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Walker LLC"
}