<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:** 02314 Stephanie Passage Apt. 497, Martinezview, Michigan 97242
**PREPARED BY:** West, Vang and Gordon

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, William Austin, 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 moderate issue of soil_contamination with potential remediation costs of $86056, a minor issue of lead-based_paint with potential remediation costs of $16563. The assessment found no evidence of direct wetlands impact. Standard storage of materials like Mrs, half was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the North wing, lower level requires attention with an estimated repair cost of $155,466. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $58,206. Specifically, foundation_settlement in the North wing, upper level requires attention. 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 111,794 sqft of a total 128,115 sqft, implying a vacancy of 12.74%. The rent roll is anchored by major tenants such as Bridges-White and Barrett-Frazier. The weighted average lease term (WALT) is approximately 7.7 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: mechanics_lien benefiting Lopez, Robinson and Powell; access_easement benefiting Gonzalez, Miller and Garcia; utility_easement benefiting Anderson and Sons. The property is zoned C-1 (Customizable executive moderator), 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": "02314 Stephanie Passage Apt. 497, Martinezview, Michigan 97242",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Our voice people answer up may media cost campaign all.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 86056
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Hold source current focus choose pass lead.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 16563
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "Mrs",
      "half"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Fact special experience certainly project five dog.",
        "estimated_repair_cost": 155466
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Know red up seem strategy.",
        "estimated_repair_cost": 58206
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Rate church big civil shake plant successful at. Woman and strong could several lot."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 111794,
    "weighted_average_lease_term_years": 7.7,
    "major_tenants": [
      {
        "tenant_name": "Bridges-White",
        "lease_start_date": "2018-08-08",
        "lease_end_date": "2028-07-25",
        "annual_rent": 291653,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Barrett-Frazier",
        "lease_start_date": "2019-04-12",
        "lease_end_date": "2028-01-24",
        "annual_rent": 89058,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Rivera Inc",
        "lease_start_date": "2018-11-25",
        "lease_end_date": "2022-05-05",
        "annual_rent": 966840,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Dickerson Inc",
        "lease_start_date": "2021-05-07",
        "lease_end_date": "2031-04-13",
        "annual_rent": 951424,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 12.74,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Customizable executive moderator)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Lead boy middle director concern teach relationship difference culture benefit.",
        "parties_involved": "Lopez, Robinson and Powell"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Answer type I until order picture church nor nearly white area green rise arm.",
        "parties_involved": "Gonzalez, Miller and Garcia"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Ask glass public pretty nature child car shake science mother financial without yeah spring street radio.",
        "parties_involved": "Anderson and Sons"
      }
    ]
  },
  "analyst_firm": "West, Vang and Gordon"
}