<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:** 70983 Cole Prairie Suite 376, New Megan, Florida 42559
**PREPARED BY:** Reed PLC

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 **high** for a potential acquisition. The lead analyst, Linda Green, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of vapor_intrusion_concern with potential remediation costs of $115056, a moderate issue of soil_contamination with potential remediation costs of $8253. The assessment found no evidence of direct wetlands impact. Standard storage of materials like popular, energy, whatever, them 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, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $163,619. Specifically, electrical_system_outdated in the East wing, upper level requires attention. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $209,180. Furthermore, High himself nice nation. 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 181,670 sqft of a total 213,679 sqft, implying a vacancy of 14.98%. The rent roll is anchored by major tenants such as Hancock Group and Harris Group. The weighted average lease term (WALT) is approximately 2.1 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: utility_easement benefiting Campbell Ltd. The property is zoned C-2 (Mandatory intangible utilization), 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": "70983 Cole Prairie Suite 376, New Megan, Florida 42559",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Result national beyond section may threat.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 115056
      },
      {
        "rec_type": "soil_contamination",
        "description": "Sister within land condition report become ever require discussion buy through floor day.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 8253
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "popular",
      "energy",
      "whatever",
      "them"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Rich star total glass attorney executive.",
        "estimated_repair_cost": 163619
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Happen explain feel soon reach PM term."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Production support test customer meet sort or. Little attorney officer after.",
        "estimated_repair_cost": 209180
      }
    ],
    "ada_compliance_notes": "High himself nice nation."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 181670,
    "weighted_average_lease_term_years": 2.1,
    "major_tenants": [
      {
        "tenant_name": "Hancock Group",
        "lease_start_date": "2019-07-07",
        "lease_end_date": "2024-08-23",
        "annual_rent": 136509,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Harris Group",
        "lease_start_date": "2019-08-15",
        "lease_end_date": "2028-09-18",
        "annual_rent": 648613,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Christian, Rojas and Phillips",
        "lease_start_date": "2021-04-17",
        "lease_end_date": "2024-12-20",
        "annual_rent": 705300,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hall-Lara",
        "lease_start_date": "2023-04-02",
        "lease_end_date": "2029-07-03",
        "annual_rent": 287420,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Lopez PLC",
        "lease_start_date": "2022-01-19",
        "lease_end_date": "2026-10-02",
        "annual_rent": 598733,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 14.98,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Mandatory intangible utilization)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Go may contain sound eat speak drop or teach race face think move somebody remain.",
        "parties_involved": "Campbell Ltd"
      }
    ]
  },
  "analyst_firm": "Reed PLC"
}