<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:** 7853 Samuel Pass Suite 601, Richardstad, Idaho 10523
**PREPARED BY:** Green, Clark and Velez

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, Heidi Harmon, 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 groundwater_impact, a moderate issue of vapor_intrusion_concern, a significant issue of asbestos_containing_materials. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $46,295. Specifically, electrical_system_outdated in the West wing, upper level requires attention with an estimated repair cost of $129,546. 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 65,237 sqft of a total 72,085 sqft, implying a vacancy of 9.5%. The rent roll is anchored by major tenants such as Barrett, Fisher and Burton and Myers, Mendoza and Butler. The weighted average lease term (WALT) is approximately 6.7 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: access_easement benefiting Pratt LLC. The property is zoned I-1 (Progressive responsive initiative), 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": "7853 Samuel Pass Suite 601, Richardstad, Idaho 10523",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Television under some factor feel particular similar politics star I present hundred.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Serious color light seem rule picture sense month sell occur several.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "How full detail national white unit want ahead.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Particularly along all level. National education task away military high.",
        "estimated_repair_cost": 46295
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Mean shoulder movie raise.",
        "estimated_repair_cost": 129546
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 65237,
    "weighted_average_lease_term_years": 6.7,
    "major_tenants": [
      {
        "tenant_name": "Barrett, Fisher and Burton",
        "lease_start_date": "2019-08-17",
        "lease_end_date": "2025-07-04",
        "annual_rent": 120641,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Myers, Mendoza and Butler",
        "lease_start_date": "2024-01-02",
        "lease_end_date": "2032-08-12",
        "annual_rent": 429631,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Smith Inc",
        "lease_start_date": "2020-10-27",
        "lease_end_date": "2028-05-19",
        "annual_rent": 942582,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 9.5,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Progressive responsive initiative)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Much tonight practice save arrive try development central.",
        "parties_involved": "Pratt LLC"
      }
    ]
  },
  "analyst_firm": "Green, Clark and Velez"
}