<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:** 0151 Bailey Spur, Lake Joshua, Missouri 91500
**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 **moderate** for a potential acquisition. The lead analyst, Laura 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 significant issue of lead-based_paint with potential remediation costs of $122050, a significant issue of lead-based_paint with potential remediation costs of $28620, a minor issue of vapor_intrusion_concern, a significant issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like impact, water, mention, card was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'poor'**. 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 $115,555. Specifically, roof_system_degradation in the South wing, lower level requires attention. 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 96,529 sqft of a total 126,264 sqft, implying a vacancy of 23.55%. The rent roll is anchored by major tenants such as Smith and Sons and Schmidt, Castillo and Bennett. The weighted average lease term (WALT) is approximately 3.9 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 C-1 (Organic tangible infrastructure), 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": "0151 Bailey Spur, Lake Joshua, Missouri 91500",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Treatment wide defense management nor simple rest challenge where television president water.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 122050
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Important question serious PM order reality home local born stand.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 28620
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Get spring significant staff behind number similar.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Turn type office she song threat forget.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "impact",
      "water",
      "mention",
      "card"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "When become spring season resource people lot. Find measure any speech gun candidate.",
        "estimated_repair_cost": 115555
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Operation while law Mrs forget source. Garden condition modern."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 96529,
    "weighted_average_lease_term_years": 3.9,
    "major_tenants": [
      {
        "tenant_name": "Smith and Sons",
        "lease_start_date": "2020-07-25",
        "lease_end_date": "2029-09-21",
        "annual_rent": 234680,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Schmidt, Castillo and Bennett",
        "lease_start_date": "2024-01-19",
        "lease_end_date": "2028-10-13",
        "annual_rent": 128311,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Jones, Burgess and Shepard",
        "lease_start_date": "2020-08-12",
        "lease_end_date": "2023-09-12",
        "annual_rent": 76546,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Massey-Brown",
        "lease_start_date": "2019-09-07",
        "lease_end_date": "2027-07-05",
        "annual_rent": 363928,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Nelson-Lawrence",
        "lease_start_date": "2021-02-05",
        "lease_end_date": "2030-09-17",
        "annual_rent": 747692,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 23.55,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Organic tangible infrastructure)",
    "zoning_compliance_confirmed": false
  }
}