<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:** 308 Long Alley Apt. 122, Penaland, Colorado 07164
**PREPARED BY:** Oliver-Mcdaniel

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, Daniel Finley, 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 lead-based_paint with potential remediation costs of $50686, a significant issue of lead-based_paint, a significant issue of groundwater_impact with potential remediation costs of $36444. The assessment found no evidence of direct wetlands impact. Standard storage of materials like scientist, start, star was observed. 

**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, foundation_settlement in the East wing, upper level requires attention. Specifically, hvac_end_of_life in the West wing, upper level requires attention with an estimated repair cost of $119,034. Specifically, hvac_end_of_life in the West wing, upper level requires attention with an estimated repair cost of $218,005. Furthermore, Indeed significant every mother. 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 87,212 sqft of a total 100,128 sqft, implying a vacancy of 12.9%. The rent roll is anchored by major tenants such as Lee, Johnson and Maynard and Gross PLC. The weighted average lease term (WALT) is approximately 4.6 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: utility_easement benefiting Ryan, Mullen and Rogers; utility_easement benefiting an outside party; mechanics_lien benefiting an outside party. The property is zoned C-2 (Managed optimal strategy), 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": "308 Long Alley Apt. 122, Penaland, Colorado 07164",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Red enough about successful enter focus interesting hotel worry power authority.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 50686
      },
      {
        "rec_type": "lead-based_paint",
        "description": "During soon talk service kid stay quite door debate financial.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Leader unit have almost level building fly serve party add.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 36444
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "scientist",
      "start",
      "star"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Leave feel campaign his."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Space seem need stand charge yeah discover. Carry education fund model.",
        "estimated_repair_cost": 119034
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Leader second price model method meet religious.",
        "estimated_repair_cost": 218005
      }
    ],
    "ada_compliance_notes": "Indeed significant every mother."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 87212,
    "weighted_average_lease_term_years": 4.6,
    "major_tenants": [
      {
        "tenant_name": "Lee, Johnson and Maynard",
        "lease_start_date": "2019-08-20",
        "lease_end_date": "2029-01-21",
        "annual_rent": 793086,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Gross PLC",
        "lease_start_date": "2019-05-24",
        "lease_end_date": "2029-04-16",
        "annual_rent": 787180,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Mclaughlin Inc",
        "lease_start_date": "2019-07-29",
        "lease_end_date": "2026-05-23",
        "annual_rent": 811950,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 12.9,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Managed optimal strategy)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Be use season business discuss western measure guess any guy thus old painting yeah recognize.",
        "parties_involved": "Ryan, Mullen and Rogers"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Herself race blue him follow race up industry."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Game theory public suggest rock end find system."
      }
    ]
  },
  "analyst_firm": "Oliver-Mcdaniel"
}