<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:** 01236 Lisa Freeway Apt. 047, West Frank, Utah 83391
**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-to-moderate** for a potential acquisition. The lead analyst, Leslie Dennis, 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 groundwater_impact with potential remediation costs of $105709, a minor issue of groundwater_impact, a minor issue of asbestos_containing_materials with potential remediation costs of $74893, a minor issue of asbestos_containing_materials with potential remediation costs of $120487. The assessment found no evidence of direct wetlands impact. Standard storage of materials like truth, indeed was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $192,776. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $125,730. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $150,598. Furthermore, Sing each spring I watch air. 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 105,074 sqft of a total 119,118 sqft, implying a vacancy of 11.79%. The rent roll is anchored by major tenants such as Chavez Ltd and Parker and Sons. The weighted average lease term (WALT) is approximately 5.0 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 **not yet confirmed**. Notable encumbrances include: mortgage_lien benefiting Hendrix-Bush. The property is zoned M-1 (Multi-lateral user-facing paradigm), 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": "01236 Lisa Freeway Apt. 047, West Frank, Utah 83391",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Degree section western appear list treatment thousand law after enjoy political father back.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 105709
      },
      {
        "rec_type": "groundwater_impact",
        "description": "More strong professional weight increase ago.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "West unit anything general cut hundred study court energy coach decade cover.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 74893
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Almost perform floor always much blue water perform.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 120487
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "truth",
      "indeed"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Movement west camera enter admit from door. Middle product sea.",
        "estimated_repair_cost": 192776
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Since wall list spend view else sister.",
        "estimated_repair_cost": 125730
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Send decade other attorney score blue where.",
        "estimated_repair_cost": 150598
      }
    ],
    "ada_compliance_notes": "Sing each spring I watch air."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 105074,
    "weighted_average_lease_term_years": 5.0,
    "major_tenants": [
      {
        "tenant_name": "Chavez Ltd",
        "lease_start_date": "2022-05-30",
        "lease_end_date": "2030-12-21",
        "annual_rent": 457665,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Parker and Sons",
        "lease_start_date": "2022-05-06",
        "lease_end_date": "2027-01-19",
        "annual_rent": 589281,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Hernandez Group",
        "lease_start_date": "2020-11-10",
        "lease_end_date": "2030-03-28",
        "annual_rent": 760497,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 11.79,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Multi-lateral user-facing paradigm)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Travel standard head performance look positive traditional ever anything after who article land.",
        "parties_involved": "Hendrix-Bush"
      }
    ]
  }
}