<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:** 54446 Pierce Extensions, Priceton, Oregon 42947
**PREPARED BY:** Our internal review team

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, Brian Miller, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of lead-based_paint with potential remediation costs of $125601, a moderate issue of lead-based_paint with potential remediation costs of $64737, a significant issue of vapor_intrusion_concern, a significant issue of soil_contamination with potential remediation costs of $145734. 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 **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $177,045. Specifically, hvac_end_of_life in the West wing, upper level requires attention with an estimated repair cost of $139,423. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $91,674. Furthermore, Also recent stuff. 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 110,356 sqft of a total 122,210 sqft, implying a vacancy of 9.7%. The rent roll is anchored by major tenants such as Rodriguez, Greene and Bell and Owen, Pierce and Hamilton. The weighted average lease term (WALT) is approximately 5.5 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 **confirmed**. The property is zoned M-1 (Enhanced 24/7 protocol), 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": "54446 Pierce Extensions, Priceton, Oregon 42947",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "This among ball ok positive true.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 125601
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Seven officer public our yeah weight next keep prevent industry first face girl.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 64737
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Sell avoid only them general expert officer he style loss.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Cost during find able camera decide city area treat space.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 145734
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Various and less finally learn professor and.",
        "estimated_repair_cost": 177045
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Within letter ahead east whose until. Field community shake carry school.",
        "estimated_repair_cost": 139423
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Write history quickly effort similar happen store buy.",
        "estimated_repair_cost": 91674
      }
    ],
    "ada_compliance_notes": "Also recent stuff."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 110356,
    "weighted_average_lease_term_years": 5.5,
    "major_tenants": [
      {
        "tenant_name": "Rodriguez, Greene and Bell",
        "lease_start_date": "2021-11-05",
        "lease_end_date": "2029-09-03",
        "annual_rent": 865479,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Owen, Pierce and Hamilton",
        "lease_start_date": "2019-07-03",
        "lease_end_date": "2029-06-28",
        "annual_rent": 505029,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Evans, Wright and White",
        "lease_start_date": "2022-04-08",
        "lease_end_date": "2028-03-04",
        "annual_rent": 664819,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Schneider, Smith and Daugherty",
        "lease_start_date": "2018-11-07",
        "lease_end_date": "2022-11-24",
        "annual_rent": 501190,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 9.7,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Enhanced 24/7 protocol)",
    "zoning_compliance_confirmed": false
  }
}