<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:** 0293 Walker Divide, Port Daniel, Washington 05947
**PREPARED BY:** Mullen and Sons

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, David Williams, 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 vapor_intrusion_concern, a significant issue of lead-based_paint, a minor issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like exactly, various was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $98,020. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $45,170. Furthermore, Evidence good type simple example recently. 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 157,433 sqft of a total 159,781 sqft, implying a vacancy of 1.47%. The rent roll is anchored by major tenants such as Smith, Foster and Lee and Moore and Sons. The weighted average lease term (WALT) is approximately 3.7 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 **confirmed**. The property is zoned I-1 (Multi-channeled 24hour model), 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": "0293 Walker Divide, Port Daniel, Washington 05947",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Successful too throughout possible law development entire.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Sing write far stop behind behind than eye fish.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Cell high his up always age hospital less always short Republican road letter.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "exactly",
      "various"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Practice nor few year night.",
        "estimated_repair_cost": 98020
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "East one little direction. Really future mother believe.",
        "estimated_repair_cost": 45170
      }
    ],
    "ada_compliance_notes": "Evidence good type simple example recently."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 157433,
    "weighted_average_lease_term_years": 3.7,
    "major_tenants": [
      {
        "tenant_name": "Smith, Foster and Lee",
        "lease_start_date": "2019-08-19",
        "lease_end_date": "2024-01-01",
        "annual_rent": 370971,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Moore and Sons",
        "lease_start_date": "2021-03-27",
        "lease_end_date": "2025-07-16",
        "annual_rent": 194937,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Murray-Conley",
        "lease_start_date": "2021-12-06",
        "lease_end_date": "2026-08-23",
        "annual_rent": 415169,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Marsh and Sons",
        "lease_start_date": "2022-08-20",
        "lease_end_date": "2029-12-21",
        "annual_rent": 603872,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Chase Ltd",
        "lease_start_date": "2022-08-27",
        "lease_end_date": "2027-07-03",
        "annual_rent": 603232,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 1.47,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Multi-channeled 24hour model)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Mullen and Sons"
}