<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:** 23036 Nicole Fords Suite 012, Suttonstad, Kentucky 81236
**PREPARED BY:** Hansen-Riley

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 Schroeder, 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 asbestos_containing_materials, a moderate 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 **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the East wing, upper level requires attention. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $69,332. 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 136,983 sqft of a total 141,966 sqft, implying a vacancy of 3.51%. The rent roll is anchored by major tenants such as Hodge Group and Hughes Group. The weighted average lease term (WALT) is approximately 4.7 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: deed_restriction benefiting Brooks, Hill and Norris; deed_restriction benefiting Jones Group; mortgage_lien benefiting an outside party. The property is zoned C-2 (Inverse secondary leverage), 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": "23036 Nicole Fords Suite 012, Suttonstad, Kentucky 81236",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Question matter speak media activity interview deep large before senior.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "With public enter nature media win wall science cut sport second include.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Adult left single."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Fast everything wonder heavy performance.",
        "estimated_repair_cost": 69332
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 136983,
    "weighted_average_lease_term_years": 4.7,
    "major_tenants": [
      {
        "tenant_name": "Hodge Group",
        "lease_start_date": "2023-08-12",
        "lease_end_date": "2026-12-31",
        "annual_rent": 844285,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hughes Group",
        "lease_start_date": "2018-06-04",
        "lease_end_date": "2026-07-17",
        "annual_rent": 601572,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Bullock, Mcclain and Foster",
        "lease_start_date": "2018-07-08",
        "lease_end_date": "2022-03-20",
        "annual_rent": 354920,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Martinez, Bailey and Ryan",
        "lease_start_date": "2024-03-26",
        "lease_end_date": "2033-12-03",
        "annual_rent": 314097,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 3.51,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Inverse secondary leverage)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Current what wife region woman teach soon school trip.",
        "parties_involved": "Brooks, Hill and Norris"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Exist individual everything about so break certainly great social factor support then if.",
        "parties_involved": "Jones Group"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Often simply find require must book civil expert discover."
      }
    ]
  },
  "analyst_firm": "Hansen-Riley"
}