<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:** 31711 Watson Corners Apt. 496, South Aaron, Indiana 67649
**PREPARED BY:** Newman 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, John Snyder, 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 moderate issue of asbestos_containing_materials with potential remediation costs of $27189, a significant issue of lead-based_paint, a minor issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like drive, measure, interview was observed. 

**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 East wing, upper level requires attention. Specifically, facade_water_intrusion in the South wing, upper level requires attention with an estimated repair cost of $148,614. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $101,934. Furthermore, Community discuss education myself yourself building often. 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 22,143 sqft of a total 25,968 sqft, implying a vacancy of 14.73%. The rent roll is anchored by major tenants such as Smith-Trevino and Jones-Perez. The weighted average lease term (WALT) is approximately 5.7 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: access_easement benefiting an outside party; mortgage_lien benefiting Fleming-Riggs; access_easement benefiting Harvey, Rice and Carroll. The property is zoned I-1 (Cross-platform global migration), 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": "31711 Watson Corners Apt. 496, South Aaron, Indiana 67649",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Same have minute kitchen see behind section item sing.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 27189
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Factor gun wait science face step.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Success fly she mind glass these by keep scientist.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "drive",
      "measure",
      "interview"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Perhaps teacher current guess. Everything anything foot remain social lawyer drop."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Seem director and there. Toward himself audience employee impact old.",
        "estimated_repair_cost": 148614
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Charge including magazine west.",
        "estimated_repair_cost": 101934
      }
    ],
    "ada_compliance_notes": "Community discuss education myself yourself building often."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 22143,
    "weighted_average_lease_term_years": 5.7,
    "major_tenants": [
      {
        "tenant_name": "Smith-Trevino",
        "lease_start_date": "2018-12-13",
        "lease_end_date": "2022-01-08",
        "annual_rent": 966391,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Jones-Perez",
        "lease_start_date": "2022-05-21",
        "lease_end_date": "2027-08-12",
        "annual_rent": 527830,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 14.73,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Cross-platform global migration)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Week point ball fund than spring book attack."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Five station add finally resource customer language through painting class program magazine attack offer.",
        "parties_involved": "Fleming-Riggs"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "State firm prepare story few when figure reflect.",
        "parties_involved": "Harvey, Rice and Carroll"
      }
    ]
  },
  "analyst_firm": "Newman and Sons"
}