<format type="json">{report_id: string, property_address: string, report_date: date, report_author_firm: string, overall_risk_assessment: string, estimated_remediation_cost_usd: number optional, structural_assessment: {foundation: {condition: string, issues_identified: list[string], notes: string optional}, framing: {condition: string, issues_identified: list[string], notes: string optional}, roofing: {material: string, age_years: number, condition: string, recommended_action: string optional}}, environmental_findings: {phase_i_esa_status: string, recognized_environmental_conditions: list[{type: string, description: string, severity: string, recommended_action: string optional}], asbestos_containing_materials_present: boolean, lead_based_paint_present: boolean}, building_systems: list[{system_type: string, components_summary: list[{component_name: string, condition: string, estimated_lifespan_remaining_years: number optional, issues: list[string] optional}], overall_system_condition: string, system_recommendations: string optional}], title_encumbrances: list[{type: string, description: string, impact_assessment: string}], capital_expenditure_projections: list[{item: string, category: string, estimated_cost_usd: number, timeline_years: number}], key_due_diligence_recommendations: list[string], summary_narrative: string optional}</format> <data>EXECUTIVE SUMMARY: COMMERCIAL PROPERTY DUE DILIGENCE REPORT
Report ID: DDR-2025-1626
Date of Report: 2025-08-07
Subject Property: 9255 Heather Views Suite 251, Lake Josephside, Hawaii 54091
Prepared by: Preston-Woods

This report, commissioned by our client, synthesizes the findings from a comprehensive due diligence investigation of the subject property. The inspection, conducted on a brisk weekday, revealed a significant risk profile, driven by several key factors across structural, environmental, and financial domains. The on-site property manager was cooperative during our walkthrough. 

Structural Assessment:
The building's core structure presents a mixed condition. The foundation was observed to be in fair state, with field notes indicating moisture intrusion in crawlspace and minor hairline cracks.Similarly, the framing is considered Good; however, no significant issues were readily apparent. Of greater concern is the TPO Membrane roofing system. Having been in service for approximately 5 years, its condition is fair, and our recommendation is a full replacement recommended within next 1-3 years. 

Environmental Findings:
The Phase I Environmental Site Assessment (ESA) concluded with a status of 'RECs Identified'. Multiple Recognized Environmental Conditions (RECs) were documented. A notable REC of Low severity relates to Underground Storage Tank (UST): He instead theory be pass sure key already product. A survey for hazardous materials confirmed that the presence of asbestos-containing materials is not suspected, while lead-based paint is a concern. 

Building Systems and Capital Needs:
An evaluation of major building systems revealed significant deferred maintenance. The Electrical system is in Fair condition. The Main Switchgear exhibits issues such as nearing end of useful life, requires immediate service. The HVAC system is in Good condition. The Fire Safety system is in Poor condition. The Sprinkler System exhibits issues such as inefficient operation, requires immediate service. The Fire Alarm Control Panel exhibits issues such as requires immediate service, nearing end of useful life. These deficiencies translate into considerable near-term capital needs. Our projections identify a total of $170,015 in required expenditures over the next decade. This includes approximately $73,595 for Main Switchgear Replacement/Repair within 3 year(s). Immediate and environmental remediation costs are preliminarily budgeted at $170,015. 

Title & Encumbrances:
A preliminary title report review found 4 encumbrances. These include items of moderate impact, such as a Covenant related to 'Thompson LLC holds a covenant for utilize wireless action-items.'. 

Key Recommendations:
Based on these findings, we strongly advise the following actions prior to closing: Obtain proposals for replacement of sprinkler system.; Obtain proposals for replacement of main switchgear.; Proceed with Phase II Environmental Site Assessment to quantify contamination..</data>
{
  "report_id": "DDR-2025-1626",
  "property_address": "9255 Heather Views Suite 251, Lake Josephside, Hawaii 54091",
  "report_date": "2025-08-07",
  "report_author_firm": "Preston-Woods",
  "overall_risk_assessment": "Significant",
  "structural_assessment": {
    "foundation": {
      "condition": "Fair",
      "issues_identified": [
        "moisture intrusion in crawlspace",
        "minor hairline cracks"
      ]
    },
    "framing": {
      "condition": "Good",
      "issues_identified": []
    },
    "roofing": {
      "material": "TPO Membrane",
      "age_years": 5,
      "condition": "Fair",
      "recommended_action": "Full replacement recommended within next 1-3 years."
    }
  },
  "environmental_findings": {
    "phase_i_esa_status": "RECs Identified",
    "recognized_environmental_conditions": [
      {
        "type": "Underground Storage Tank (UST)",
        "description": "He instead theory be pass sure key already product.",
        "severity": "Low",
        "recommended_action": "Recommend Phase II ESA to investigate underground storage tank (ust)."
      },
      {
        "type": "Hazardous Material Storage",
        "description": "Exactly would ok seven network effort class.",
        "severity": "High",
        "recommended_action": "Recommend Phase II ESA to investigate hazardous material storage."
      }
    ],
    "asbestos_containing_materials_present": false,
    "lead_based_paint_present": true
  },
  "building_systems": [
    {
      "system_type": "Electrical",
      "components_summary": [
        {
          "component_name": "Panelboards",
          "condition": "Good",
          "estimated_lifespan_remaining_years": 11
        },
        {
          "component_name": "Main Switchgear",
          "condition": "Poor",
          "estimated_lifespan_remaining_years": 9,
          "issues": [
            "nearing end of useful life",
            "requires immediate service"
          ]
        }
      ],
      "overall_system_condition": "Fair"
    },
    {
      "system_type": "HVAC",
      "components_summary": [
        {
          "component_name": "Chiller",
          "condition": "Good",
          "estimated_lifespan_remaining_years": 8
        }
      ],
      "overall_system_condition": "Good"
    },
    {
      "system_type": "Fire Safety",
      "components_summary": [
        {
          "component_name": "Sprinkler System",
          "condition": "Poor",
          "issues": [
            "inefficient operation",
            "requires immediate service"
          ]
        },
        {
          "component_name": "Fire Alarm Control Panel",
          "condition": "Fair",
          "estimated_lifespan_remaining_years": 15,
          "issues": [
            "requires immediate service",
            "nearing end of useful life"
          ]
        }
      ],
      "overall_system_condition": "Poor",
      "system_recommendations": "Recommend comprehensive review and budgeting for Fire Safety system upgrades."
    }
  ],
  "title_encumbrances": [
    {
      "type": "Covenant",
      "description": "Thompson LLC holds a covenant for utilize wireless action-items.",
      "impact_assessment": "Moderate"
    },
    {
      "type": "Easement",
      "description": "Davis, Jackson and Johnson holds a easement for iterate compelling infrastructures.",
      "impact_assessment": "Minor"
    },
    {
      "type": "Easement",
      "description": "Wood-Mcdowell holds a easement for mesh global channels.",
      "impact_assessment": "Minor"
    },
    {
      "type": "Covenant",
      "description": "Diaz, Morgan and Wilson holds a covenant for brand end-to-end initiatives.",
      "impact_assessment": "Significant"
    }
  ],
  "capital_expenditure_projections": [
    {
      "item": "Main Switchgear Replacement/Repair",
      "category": "Short-Term CAPEX",
      "estimated_cost_usd": 73595,
      "timeline_years": 3
    },
    {
      "item": "Sprinkler System Replacement/Repair",
      "category": "Short-Term CAPEX",
      "estimated_cost_usd": 58271,
      "timeline_years": 2
    },
    {
      "item": "Phase II ESA & Remediation",
      "category": "Environmental Mitigation",
      "estimated_cost_usd": 38149,
      "timeline_years": 1
    }
  ],
  "key_due_diligence_recommendations": [
    "Obtain proposals for replacement of sprinkler system.",
    "Obtain proposals for replacement of main switchgear.",
    "Proceed with Phase II Environmental Site Assessment to quantify contamination."
  ],
  "estimated_remediation_cost_usd": 170015
}