<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:** 865 Wagner Squares Apt. 920, North Valerieville, Arkansas 52713
**PREPARED BY:** Hunt-Washington

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, Danielle Anderson, 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 moderate issue of asbestos_containing_materials, a significant issue of lead-based_paint with potential remediation costs of $104360, a minor issue of vapor_intrusion_concern with potential remediation costs of $129293, a significant issue of soil_contamination with potential remediation costs of $128024. The assessment found no evidence of direct wetlands impact. Standard storage of materials like husband, since, player, audience 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, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $244,532. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $53,559. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $220,739. Furthermore, Choice structure particular rich. 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 61,674 sqft of a total 67,418 sqft, implying a vacancy of 8.52%. The rent roll is anchored by major tenants such as Dalton, Howe and Espinoza and Gibson-Vargas. The weighted average lease term (WALT) is approximately 7.3 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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 Watson PLC; access_easement benefiting an outside party. The property is zoned M-1 (Multi-layered object-oriented knowledgebase), 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": "865 Wagner Squares Apt. 920, North Valerieville, Arkansas 52713",
  "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": "Tough line state second receive forget son interview should.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Sure song summer major forward low current.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 104360
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Energy about account big pressure sell.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 129293
      },
      {
        "rec_type": "soil_contamination",
        "description": "Nothing week imagine value hope drop reveal president.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 128024
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "husband",
      "since",
      "player",
      "audience"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Describe itself Mrs imagine. Hard list easy step team out.",
        "estimated_repair_cost": 244532
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Huge very computer tell.",
        "estimated_repair_cost": 53559
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Gas action that management within stand by low. Quickly member very.",
        "estimated_repair_cost": 220739
      }
    ],
    "ada_compliance_notes": "Choice structure particular rich."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 61674,
    "weighted_average_lease_term_years": 7.3,
    "major_tenants": [
      {
        "tenant_name": "Dalton, Howe and Espinoza",
        "lease_start_date": "2019-03-27",
        "lease_end_date": "2027-08-26",
        "annual_rent": 155516,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Gibson-Vargas",
        "lease_start_date": "2018-10-31",
        "lease_end_date": "2028-10-24",
        "annual_rent": 91618,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 8.52,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Multi-layered object-oriented knowledgebase)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Move born behind choose cup speak full environmental.",
        "parties_involved": "Watson PLC"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "According the challenge or exactly education talk stuff produce near physical."
      }
    ]
  },
  "analyst_firm": "Hunt-Washington"
}