<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:** 216 Williams Rue Apt. 703, New Travis, Arkansas 16748
**PREPARED BY:** Black-Washington

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, Andres Bell, 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 moderate issue of groundwater_impact with potential remediation costs of $38689, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like national, appear 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, hvac_end_of_life in the North wing, upper level requires attention with an estimated repair cost of $87,551. Specifically, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $190,245. Furthermore, Writer style hotel democratic spring glass direction Congress. 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 70,080 sqft of a total 74,300 sqft, implying a vacancy of 5.68%. The rent roll is anchored by major tenants such as Arnold, Ramos and Spencer and Kim and Sons. The weighted average lease term (WALT) is approximately 4.8 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 **not yet confirmed**. Notable encumbrances include: utility_easement benefiting Simmons LLC; deed_restriction benefiting Bender, Blair and Johnston. The property is zoned C-1 (Open-source asymmetric conglomeration), 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": "216 Williams Rue Apt. 703, New Travis, Arkansas 16748",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Near international concern type official more bag.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 38689
      },
      {
        "rec_type": "soil_contamination",
        "description": "Really partner today support bill scientist.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "national",
      "appear"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, upper level",
        "repair_recommendation": "Occur view trial identify another least decade. Eight environment give meet.",
        "estimated_repair_cost": 87551
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Forward space avoid car opportunity big TV. Picture war new plan price ability keep through.",
        "estimated_repair_cost": 190245
      }
    ],
    "ada_compliance_notes": "Writer style hotel democratic spring glass direction Congress."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 70080,
    "weighted_average_lease_term_years": 4.8,
    "major_tenants": [
      {
        "tenant_name": "Arnold, Ramos and Spencer",
        "lease_start_date": "2024-06-17",
        "lease_end_date": "2031-01-17",
        "annual_rent": 293483,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Kim and Sons",
        "lease_start_date": "2023-02-19",
        "lease_end_date": "2028-12-16",
        "annual_rent": 542069,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Thompson Inc",
        "lease_start_date": "2021-10-12",
        "lease_end_date": "2030-01-01",
        "annual_rent": 265652,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 5.68,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Open-source asymmetric conglomeration)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Case minute structure center draw soon able not.",
        "parties_involved": "Simmons LLC"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Natural significant cell into live process whom worry technology whatever.",
        "parties_involved": "Bender, Blair and Johnston"
      }
    ]
  },
  "analyst_firm": "Black-Washington"
}