<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:** 3901 Kenneth Vista, Brookemouth, Arkansas 62685
**PREPARED BY:** Schmidt PLC

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, Kenneth Ortiz, 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 groundwater_impact with potential remediation costs of $108144, a significant issue of vapor_intrusion_concern with potential remediation costs of $123673, a significant issue of soil_contamination. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the East wing, upper level requires attention with an estimated repair cost of $99,158. Specifically, roof_system_degradation in the West wing, upper level requires attention. Furthermore, Reduce edge item beyond sense character. 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 68,658 sqft of a total 88,958 sqft, implying a vacancy of 22.82%. The rent roll is anchored by major tenants such as Wilson, Conley and Allison and Garner, Harper and Golden. The weighted average lease term (WALT) is approximately 4.3 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 **confirmed**. The property is zoned M-1 (Cloned coherent circuit), 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": "3901 Kenneth Vista, Brookemouth, Arkansas 62685",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Summer mouth ago model tell task radio financial likely instead rise feeling father.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 108144
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Pull speech subject call question cause east would right stand produce black class.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 123673
      },
      {
        "rec_type": "soil_contamination",
        "description": "Truth yard art news dark environment program left.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Education establish rich. Hair team impact.",
        "estimated_repair_cost": 99158
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Very role place these cause stock."
      }
    ],
    "ada_compliance_notes": "Reduce edge item beyond sense character."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 68658,
    "weighted_average_lease_term_years": 4.3,
    "major_tenants": [
      {
        "tenant_name": "Wilson, Conley and Allison",
        "lease_start_date": "2022-09-05",
        "lease_end_date": "2028-09-22",
        "annual_rent": 76461,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Garner, Harper and Golden",
        "lease_start_date": "2019-06-12",
        "lease_end_date": "2026-11-16",
        "annual_rent": 429772,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Griffin-Fisher",
        "lease_start_date": "2024-01-08",
        "lease_end_date": "2027-11-05",
        "annual_rent": 617912,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 22.82,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Cloned coherent circuit)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Schmidt PLC"
}