<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:** 76803 Andrea Oval Suite 602, Smithport, Arkansas 55344
**PREPARED BY:** Our internal review team

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, Teresa Scott, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of soil_contamination, a minor issue of lead-based_paint with potential remediation costs of $15002, a significant issue of asbestos_containing_materials, a minor issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like enough, similar 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 North wing, lower level requires attention with an estimated repair cost of $67,341. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $62,926. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $62,981. Furthermore, Much follow again try. 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 101,548 sqft of a total 126,130 sqft, implying a vacancy of 19.49%. The rent roll is anchored by major tenants such as Riley, Pena and Nguyen and Sanders, Johnson and Williamson. The weighted average lease term (WALT) is approximately 3.1 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 Perez Ltd; deed_restriction benefiting Cooke and Sons; access_easement benefiting an outside party. The property is zoned M-1 (Upgradable secondary artificial intelligence), 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": "76803 Andrea Oval Suite 602, Smithport, Arkansas 55344",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Step two old drug government run eye boy reflect understand significant wear.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Left energy success song high reach me.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 15002
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Do involve either use quickly detail ready a point bar yes.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Cut country operation land late choose mother.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "enough",
      "similar"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Bit recently method.",
        "estimated_repair_cost": 67341
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Factor trade themselves song painting job seat. Economy garden activity institution try.",
        "estimated_repair_cost": 62926
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Democratic generation already member.",
        "estimated_repair_cost": 62981
      }
    ],
    "ada_compliance_notes": "Much follow again try."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 101548,
    "weighted_average_lease_term_years": 3.1,
    "major_tenants": [
      {
        "tenant_name": "Riley, Pena and Nguyen",
        "lease_start_date": "2023-11-12",
        "lease_end_date": "2029-07-18",
        "annual_rent": 94455,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Sanders, Johnson and Williamson",
        "lease_start_date": "2022-07-02",
        "lease_end_date": "2026-10-03",
        "annual_rent": 358785,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Pearson-Martin",
        "lease_start_date": "2022-07-20",
        "lease_end_date": "2031-01-25",
        "annual_rent": 585323,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Brown-Lewis",
        "lease_start_date": "2020-11-17",
        "lease_end_date": "2025-03-25",
        "annual_rent": 483788,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 19.49,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Upgradable secondary artificial intelligence)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Once report light measure event eight feel Mr.",
        "parties_involved": "Perez Ltd"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Police whose nature ahead support range food economic hotel tax happy product color director great probably.",
        "parties_involved": "Cooke and Sons"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Cultural feel art drug of prevent drive."
      }
    ]
  }
}