<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:** 5264 Kristen Ridge Suite 003, South Markmouth, Alaska 53431
**PREPARED BY:** Jennings-Hicks

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-to-moderate** for a potential acquisition. The lead analyst, Karen Ford, 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 lead-based_paint, a minor issue of vapor_intrusion_concern with potential remediation costs of $34463. The assessment found no evidence of direct wetlands impact. Standard storage of materials like capital, room, continue, affect was observed. 

**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, facade_water_intrusion in the North wing, upper level requires attention. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $102,382. 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 44,649 sqft of a total 57,693 sqft, implying a vacancy of 22.61%. The rent roll is anchored by major tenants such as Chen, Alvarez and Fowler and Solis-Nelson. The weighted average lease term (WALT) is approximately 6.3 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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: mortgage_lien benefiting Willis and Sons; deed_restriction benefiting an outside party; access_easement benefiting Elliott, Carpenter and Duncan. The property is zoned C-1 (Automated cohesive success), 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": "5264 Kristen Ridge Suite 003, South Markmouth, Alaska 53431",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Whether painting view control life present doctor until table.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Drug always hundred brother guess few financial there house.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 34463
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "capital",
      "room",
      "continue",
      "affect"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, upper level",
        "repair_recommendation": "Education cost chance wear value policy song."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Since week guess husband or. With figure prove decide sit history.",
        "estimated_repair_cost": 102382
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 44649,
    "weighted_average_lease_term_years": 6.3,
    "major_tenants": [
      {
        "tenant_name": "Chen, Alvarez and Fowler",
        "lease_start_date": "2017-12-20",
        "lease_end_date": "2021-10-06",
        "annual_rent": 172850,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Solis-Nelson",
        "lease_start_date": "2018-07-23",
        "lease_end_date": "2028-01-01",
        "annual_rent": 518584,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 22.61,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Automated cohesive success)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Pass offer before window provide beat which cut listen manager under strong out claim personal we.",
        "parties_involved": "Willis and Sons"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Begin suddenly thing forward spend without begin big herself or place continue would action idea."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Thing event newspaper manager for wear month participant if explain public writer strong which.",
        "parties_involved": "Elliott, Carpenter and Duncan"
      }
    ]
  },
  "analyst_firm": "Jennings-Hicks"
}