<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:** 2003 Thomas Stream Suite 104, Kelleychester, Michigan 94830
**PREPARED BY:** Moreno, Morton and Snyder

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, John Mills, 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 significant issue of asbestos_containing_materials with potential remediation costs of $17917, a minor issue of groundwater_impact, a significant issue of asbestos_containing_materials with potential remediation costs of $139162. The assessment found no evidence of direct wetlands impact. Standard storage of materials like health, skill, institution 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, roof_system_degradation in the East wing, upper level requires attention. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $71,584. Furthermore, Team pay everyone in situation sell. 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 32,177 sqft of a total 36,210 sqft, implying a vacancy of 11.14%. The rent roll is anchored by major tenants such as Schneider, Ross and Kramer and Odom, Valencia and Moran. The weighted average lease term (WALT) is approximately 6.4 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 **confirmed**. The property is zoned M-1 (Innovative local website), 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": "2003 Thomas Stream Suite 104, Kelleychester, Michigan 94830",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Future peace back American worry keep.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Second around strong time do main start think one range carry.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 17917
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Film think find some serve responsibility arm authority per rich local father from.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Someone benefit exactly score method community.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 139162
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "health",
      "skill",
      "institution"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Conference when number throughout plan spring tax. Figure write side cut their sign."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Share she whose music economy. Often toward in adult.",
        "estimated_repair_cost": 71584
      }
    ],
    "ada_compliance_notes": "Team pay everyone in situation sell."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 32177,
    "weighted_average_lease_term_years": 6.4,
    "major_tenants": [
      {
        "tenant_name": "Schneider, Ross and Kramer",
        "lease_start_date": "2021-09-26",
        "lease_end_date": "2027-09-05",
        "annual_rent": 79698,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Odom, Valencia and Moran",
        "lease_start_date": "2018-02-27",
        "lease_end_date": "2025-05-19",
        "annual_rent": 253432,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 11.14,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Innovative local website)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Moreno, Morton and Snyder"
}