<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:** 66593 Clarence Bypass Suite 176, North Todd, Kansas 94999
**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 **low** for a potential acquisition. The lead analyst, Susan Khan, 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 moderate issue of vapor_intrusion_concern with potential remediation costs of $34429, a minor issue of soil_contamination with potential remediation costs of $75708. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $128,909. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $131,670. Specifically, foundation_settlement in the West wing, upper level requires attention with an estimated repair cost of $114,028. 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 26,340 sqft of a total 31,123 sqft, implying a vacancy of 15.37%. The rent roll is anchored by major tenants such as Bailey, Jacobs and Phillips and Carey, Wagner and Lopez. The weighted average lease term (WALT) is approximately 7.0 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 **not yet confirmed**. Notable encumbrances include: access_easement benefiting Frank Inc. The property is zoned C-1 (Assimilated asymmetric standardization), 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": "66593 Clarence Bypass Suite 176, North Todd, Kansas 94999",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Expect mother ability improve particularly yeah.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 34429
      },
      {
        "rec_type": "soil_contamination",
        "description": "Tell wrong page his sound skill ground late field me until.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 75708
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Door common investment.",
        "estimated_repair_cost": 128909
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "To can organization serious there range.",
        "estimated_repair_cost": 131670
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "As paper growth doctor end appear. Whatever garden dog forward case four carry.",
        "estimated_repair_cost": 114028
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 26340,
    "weighted_average_lease_term_years": 7.0,
    "major_tenants": [
      {
        "tenant_name": "Bailey, Jacobs and Phillips",
        "lease_start_date": "2018-11-06",
        "lease_end_date": "2022-10-07",
        "annual_rent": 496533,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Carey, Wagner and Lopez",
        "lease_start_date": "2021-10-17",
        "lease_end_date": "2026-11-02",
        "annual_rent": 687796,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 15.37,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Assimilated asymmetric standardization)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Issue whom state relate clearly consider yeah.",
        "parties_involved": "Frank Inc"
      }
    ]
  }
}