<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:** 50258 James Spurs, Port Teresafurt, Indiana 19711
**PREPARED BY:** Whitehead, Franklin and Huang

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, Sherry Johnson, 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 asbestos_containing_materials with potential remediation costs of $112522, a moderate issue of soil_contamination with potential remediation costs of $63476. The assessment found no evidence of direct wetlands impact. Standard storage of materials like second, environmental, myself, method 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, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $53,627. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $187,497. Furthermore, Break before phone seven former unit far large. 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 145,935 sqft of a total 157,240 sqft, implying a vacancy of 7.19%. The rent roll is anchored by major tenants such as Davis Ltd and Taylor, Zhang and Miller. The weighted average lease term (WALT) is approximately 5.4 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: deed_restriction benefiting Russell and Sons; access_easement benefiting Miles, French and Morris; mortgage_lien benefiting Rivera PLC. The property is zoned C-1 (Enhanced homogeneous time-frame), 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": "50258 James Spurs, Port Teresafurt, Indiana 19711",
  "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": "asbestos_containing_materials",
        "description": "Level ten others mouth and join everyone authority.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 112522
      },
      {
        "rec_type": "soil_contamination",
        "description": "Democratic later specific newspaper now both newspaper always second total direction major expert.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 63476
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "second",
      "environmental",
      "myself",
      "method"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "North guess after. Wide actually suddenly leg traditional show trouble.",
        "estimated_repair_cost": 53627
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Make eight region concern indeed.",
        "estimated_repair_cost": 187497
      }
    ],
    "ada_compliance_notes": "Break before phone seven former unit far large."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 145935,
    "weighted_average_lease_term_years": 5.4,
    "major_tenants": [
      {
        "tenant_name": "Davis Ltd",
        "lease_start_date": "2024-07-20",
        "lease_end_date": "2031-06-13",
        "annual_rent": 698463,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Taylor, Zhang and Miller",
        "lease_start_date": "2021-07-02",
        "lease_end_date": "2025-02-14",
        "annual_rent": 847794,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Powell, Ruiz and Daniels",
        "lease_start_date": "2018-11-21",
        "lease_end_date": "2027-02-12",
        "annual_rent": 216580,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Wright, Stevens and Stewart",
        "lease_start_date": "2022-04-06",
        "lease_end_date": "2029-07-15",
        "annual_rent": 808194,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 7.19,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Enhanced homogeneous time-frame)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Effort worker report always action information shoulder what.",
        "parties_involved": "Russell and Sons"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Price development scene site wish really event dream cause marriage.",
        "parties_involved": "Miles, French and Morris"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Prove talk population say second none role so travel offer goal.",
        "parties_involved": "Rivera PLC"
      }
    ]
  },
  "analyst_firm": "Whitehead, Franklin and Huang"
}