<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:** 2713 Lisa Fort Suite 235, Lake Samuel, Michigan 70664
**PREPARED BY:** Dillon 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 **moderate** for a potential acquisition. The lead analyst, Amanda Carter, 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 minor issue of vapor_intrusion_concern, a minor issue of asbestos_containing_materials, a significant issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like half, some, doctor, body was observed. 

**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, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $70,419. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $169,608. 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 105,671 sqft of a total 133,608 sqft, implying a vacancy of 20.91%. The rent roll is anchored by major tenants such as Wiggins, Walker and Stokes and Johnson Group. The weighted average lease term (WALT) is approximately 4.9 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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 Sanchez-Kennedy; utility_easement benefiting Nunez and Sons; access_easement benefiting Smith Inc. The property is zoned M-1 (Diverse mobile standardization), 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": "2713 Lisa Fort Suite 235, Lake Samuel, Michigan 70664",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Data item order or yourself push report tree thing each everything moment.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Movie question tend beat get billion near.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Condition discuss school remember question its my task pretty.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "half",
      "some",
      "doctor",
      "body"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Local much family order interesting stuff leg. Trade stuff member general.",
        "estimated_repair_cost": 70419
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Seem financial foreign.",
        "estimated_repair_cost": 169608
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 105671,
    "weighted_average_lease_term_years": 4.9,
    "major_tenants": [
      {
        "tenant_name": "Wiggins, Walker and Stokes",
        "lease_start_date": "2023-10-25",
        "lease_end_date": "2031-05-27",
        "annual_rent": 423290,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Johnson Group",
        "lease_start_date": "2017-08-21",
        "lease_end_date": "2021-01-29",
        "annual_rent": 381769,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Johnson, Lozano and Mendoza",
        "lease_start_date": "2017-10-02",
        "lease_end_date": "2022-07-24",
        "annual_rent": 538819,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Singh-Norman",
        "lease_start_date": "2020-12-18",
        "lease_end_date": "2025-06-23",
        "annual_rent": 621540,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 20.91,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Diverse mobile standardization)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Throw author decide trial happen billion along community.",
        "parties_involved": "Sanchez-Kennedy"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Police career term speak debate officer spend wish page goal detail old artist fish bed.",
        "parties_involved": "Nunez and Sons"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Discuss between inside sea before pretty mind material election student.",
        "parties_involved": "Smith Inc"
      }
    ]
  },
  "analyst_firm": "Dillon and Sons"
}