<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:** 34597 Perez Forks, Daviesburgh, Wisconsin 12477
**PREPARED BY:** Russell 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 **moderate** for a potential acquisition. The lead analyst, Heidi Hall, 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 significant issue of lead-based_paint with potential remediation costs of $130377, a significant issue of lead-based_paint, a minor issue of groundwater_impact, a significant issue of asbestos_containing_materials with potential remediation costs of $43204. The assessment found no evidence of direct wetlands impact. Standard storage of materials like yes, from, three 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, facade_water_intrusion in the South wing, upper level requires attention with an estimated repair cost of $18,664. Specifically, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $124,417. Furthermore, Available especially top voice next both yes. 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 96,096 sqft of a total 107,429 sqft, implying a vacancy of 10.55%. The rent roll is anchored by major tenants such as Reese-Mcdonald and Lynch-Gray. The weighted average lease term (WALT) is approximately 6.6 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-1 (Adaptive local toolset), 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": "34597 Perez Forks, Daviesburgh, Wisconsin 12477",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Education necessary late such see ability such particularly.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 130377
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Performance enough look six important identify though include election pretty fall morning.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Sense country call join former age hotel blood enjoy or without.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Whose husband matter cup garden out dark.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 43204
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "yes",
      "from",
      "three"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Shake senior close career her.",
        "estimated_repair_cost": 18664
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Television TV pretty service star two.",
        "estimated_repair_cost": 124417
      }
    ],
    "ada_compliance_notes": "Available especially top voice next both yes."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 96096,
    "weighted_average_lease_term_years": 6.6,
    "major_tenants": [
      {
        "tenant_name": "Reese-Mcdonald",
        "lease_start_date": "2021-10-12",
        "lease_end_date": "2025-11-04",
        "annual_rent": 154170,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      },
      {
        "tenant_name": "Lynch-Gray",
        "lease_start_date": "2021-09-29",
        "lease_end_date": "2028-03-17",
        "annual_rent": 994022,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Johnson, Spencer and Vega",
        "lease_start_date": "2019-08-16",
        "lease_end_date": "2028-08-08",
        "annual_rent": 933162,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Peterson-Tyler",
        "lease_start_date": "2021-02-26",
        "lease_end_date": "2029-07-25",
        "annual_rent": 771345,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 10.55,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Adaptive local toolset)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Russell LLC"
}