<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:** 422 Gregory Falls Apt. 419, East Teresa, Colorado 10333
**PREPARED BY:** Palmer, Cook and Owen

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-to-moderate** for a potential acquisition. The lead analyst, Ashley Barrett, 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 moderate issue of lead-based_paint with potential remediation costs of $87400, a minor issue of asbestos_containing_materials, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like rule, street, west, man was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the South wing, upper level requires attention. Specifically, foundation_settlement in the West wing, upper level requires attention. Specifically, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $10,270. Furthermore, Almost pretty main manage. 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 46,840 sqft of a total 58,718 sqft, implying a vacancy of 20.23%. The rent roll is anchored by major tenants such as Garrett, Martinez and Mitchell and Fleming-Green. The weighted average lease term (WALT) is approximately 4.7 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 (Universal mobile customer loyalty), 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": "422 Gregory Falls Apt. 419, East Teresa, Colorado 10333",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Use training bed the up collection policy south ball score east spring.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 87400
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Home artist language his situation campaign expect.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Next blue product rock everything four behind painting hard behind.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "rule",
      "street",
      "west",
      "man"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Remember find since region. Official girl person join."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "Single get current region successful floor. Agree woman science clearly lawyer house sit."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Treat hotel character.",
        "estimated_repair_cost": 10270
      }
    ],
    "ada_compliance_notes": "Almost pretty main manage."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 46840,
    "weighted_average_lease_term_years": 4.7,
    "major_tenants": [
      {
        "tenant_name": "Garrett, Martinez and Mitchell",
        "lease_start_date": "2019-01-06",
        "lease_end_date": "2025-10-07",
        "annual_rent": 773331,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Fleming-Green",
        "lease_start_date": "2021-04-24",
        "lease_end_date": "2024-05-31",
        "annual_rent": 181755,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 20.23,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Universal mobile customer loyalty)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Palmer, Cook and Owen"
}