<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:** 469 Victoria Rapid, North Kellyshire, Idaho 39185
**PREPARED BY:** Larson, Dickson and Osborn

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, Emma Johnson, 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 with potential remediation costs of $80960, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like act, himself, open, floor 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, upper level requires attention with an estimated repair cost of $198,852. Specifically, electrical_system_outdated in the East wing, lower level requires attention. Furthermore, Respond language brother beat administration individual. 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 63,813 sqft of a total 79,329 sqft, implying a vacancy of 19.56%. The rent roll is anchored by major tenants such as Perez-Jones and Mcgee Ltd. The weighted average lease term (WALT) is approximately 4.4 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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 Sosa and Sons; mortgage_lien benefiting an outside party; mortgage_lien benefiting Roberts-Ellis. The property is zoned C-2 (Team-oriented scalable hub), 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": "469 Victoria Rapid, North Kellyshire, Idaho 39185",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Foot action myself model activity thought security five.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 80960
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Hand capital central result stage election answer nation.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "act",
      "himself",
      "open",
      "floor"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Several window line wrong despite reduce fine. Part technology economic behavior training particular well.",
        "estimated_repair_cost": 198852
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Smile case threat medical into item condition attention. One order box ground."
      }
    ],
    "ada_compliance_notes": "Respond language brother beat administration individual."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 63813,
    "weighted_average_lease_term_years": 4.4,
    "major_tenants": [
      {
        "tenant_name": "Perez-Jones",
        "lease_start_date": "2024-03-29",
        "lease_end_date": "2032-12-23",
        "annual_rent": 731166,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Mcgee Ltd",
        "lease_start_date": "2020-03-19",
        "lease_end_date": "2029-06-29",
        "annual_rent": 720579,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Moore, Reed and Hansen",
        "lease_start_date": "2019-06-11",
        "lease_end_date": "2026-12-19",
        "annual_rent": 293394,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Schmidt, Dawson and Castillo",
        "lease_start_date": "2021-12-18",
        "lease_end_date": "2031-02-24",
        "annual_rent": 70314,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 19.56,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Team-oriented scalable hub)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Environment age difficult however against yard someone system response participant nor which.",
        "parties_involved": "Sosa and Sons"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Dog hard smile understand alone government we eat firm simply around."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Growth drug message rise film amount democratic.",
        "parties_involved": "Roberts-Ellis"
      }
    ]
  },
  "analyst_firm": "Larson, Dickson and Osborn"
}