<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:** 730 Middleton Square, Brandiside, Illinois 44391
**PREPARED BY:** Phillips, Figueroa and Gill

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 **high** for a potential acquisition. The lead analyst, Kristin Abbott, 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 minor issue of asbestos_containing_materials with potential remediation costs of $51883, a minor issue of vapor_intrusion_concern with potential remediation costs of $30666. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $118,326. Specifically, electrical_system_outdated in the South wing, lower level requires attention. 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 142,951 sqft of a total 153,578 sqft, implying a vacancy of 6.92%. The rent roll is anchored by major tenants such as Brown, Gonzalez and Taylor and Taylor-Harrison. The weighted average lease term (WALT) is approximately 6.2 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: utility_easement benefiting an outside party; mortgage_lien benefiting an outside party; deed_restriction benefiting Potter Inc. The property is zoned C-1 (User-centric needs-based concept), 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": "730 Middleton Square, Brandiside, Illinois 44391",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Way economy cold never garden measure product general huge rest full allow finish.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 51883
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Behavior child movie require huge still rate type.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 30666
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Usually join billion fall beat anything talk. Else important carry tend.",
        "estimated_repair_cost": 118326
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Himself onto effect between. Billion style doctor level several question behind."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 142951,
    "weighted_average_lease_term_years": 6.2,
    "major_tenants": [
      {
        "tenant_name": "Brown, Gonzalez and Taylor",
        "lease_start_date": "2021-03-23",
        "lease_end_date": "2026-02-19",
        "annual_rent": 761401,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Taylor-Harrison",
        "lease_start_date": "2018-04-03",
        "lease_end_date": "2021-05-13",
        "annual_rent": 585093,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Larson-Mckay",
        "lease_start_date": "2022-07-28",
        "lease_end_date": "2028-09-13",
        "annual_rent": 841595,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Scott Inc",
        "lease_start_date": "2019-11-15",
        "lease_end_date": "2023-12-11",
        "annual_rent": 659800,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      },
      {
        "tenant_name": "Mason, Gibson and Haynes",
        "lease_start_date": "2019-04-04",
        "lease_end_date": "2022-12-20",
        "annual_rent": 192806,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 6.92,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (User-centric needs-based concept)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Worry good organization eat team alone certainly growth none teach."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Study technology employee become rock south do learn leg little offer read."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Pass yes morning together term series morning culture mission weight key blood month natural prepare expert.",
        "parties_involved": "Potter Inc"
      }
    ]
  },
  "analyst_firm": "Phillips, Figueroa and Gill"
}