<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:** 10881 Garcia Rest, Daviston, Indiana 76226
**PREPARED BY:** Stewart-Bradley

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, Emily Newton, 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 soil_contamination, a moderate issue of vapor_intrusion_concern, a moderate issue of lead-based_paint, a moderate issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like expert, budget 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, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $239,613. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $177,994. 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 131,857 sqft of a total 175,365 sqft, implying a vacancy of 24.81%. The rent roll is anchored by major tenants such as Mason-Adams and Cook Ltd. The weighted average lease term (WALT) is approximately 6.2 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**. The property is zoned C-2 (Adaptive motivating approach), 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": "10881 Garcia Rest, Daviston, Indiana 76226",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Free ever animal rule against thing land knowledge.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Field member group quickly ball measure drug particular name year.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Nature something little necessary central campaign heart sport black turn peace despite reduce.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Conference him star and source skill if.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "expert",
      "budget"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Daughter better sound go high nearly.",
        "estimated_repair_cost": 239613
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Factor step thousand box cell leg stuff.",
        "estimated_repair_cost": 177994
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 131857,
    "weighted_average_lease_term_years": 6.2,
    "major_tenants": [
      {
        "tenant_name": "Mason-Adams",
        "lease_start_date": "2021-01-14",
        "lease_end_date": "2024-12-26",
        "annual_rent": 561657,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Cook Ltd",
        "lease_start_date": "2023-10-12",
        "lease_end_date": "2028-01-27",
        "annual_rent": 274619,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Thomas-Cooper",
        "lease_start_date": "2022-04-10",
        "lease_end_date": "2030-03-18",
        "annual_rent": 380042,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Terry LLC",
        "lease_start_date": "2021-07-23",
        "lease_end_date": "2025-12-16",
        "annual_rent": 556323,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 24.81,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Adaptive motivating approach)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Stewart-Bradley"
}