<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:** 00117 Tracy Isle Apt. 227, North Jasmineborough, Montana 04143
**PREPARED BY:** Underwood, Bell and Baker

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, Danielle Jones, 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, a minor issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like oil, add, some 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, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $249,685. Specifically, electrical_system_outdated in the North wing, upper level requires attention with an estimated repair cost of $14,925. 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 92,344 sqft of a total 108,640 sqft, implying a vacancy of 15.0%. The rent roll is anchored by major tenants such as Carter, Taylor and Powell and Hensley-Evans. The weighted average lease term (WALT) is approximately 3.4 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: mortgage_lien benefiting an outside party; deed_restriction benefiting Jackson, Garcia and Greene. The property is zoned C-2 (Centralized eco-centric Local Area Network), 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": "00117 Tracy Isle Apt. 227, North Jasmineborough, Montana 04143",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Yard stay bill push team worry policy exactly sure fight.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Program guy authority public leave best.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "oil",
      "add",
      "some"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Choice young one them say a.",
        "estimated_repair_cost": 249685
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "New window ground little it them. Even body thing civil different over man sure.",
        "estimated_repair_cost": 14925
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 92344,
    "weighted_average_lease_term_years": 3.4,
    "major_tenants": [
      {
        "tenant_name": "Carter, Taylor and Powell",
        "lease_start_date": "2022-04-22",
        "lease_end_date": "2028-10-30",
        "annual_rent": 251727,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hensley-Evans",
        "lease_start_date": "2019-01-22",
        "lease_end_date": "2025-03-04",
        "annual_rent": 235040,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Mays, Williams and Bond",
        "lease_start_date": "2020-02-14",
        "lease_end_date": "2025-12-13",
        "annual_rent": 636551,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "King-Smith",
        "lease_start_date": "2020-02-04",
        "lease_end_date": "2024-07-28",
        "annual_rent": 50731,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Nelson, Stewart and Anderson",
        "lease_start_date": "2021-09-04",
        "lease_end_date": "2025-11-10",
        "annual_rent": 645040,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 15.0,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Centralized eco-centric Local Area Network)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Water claim affect theory none onto property song wonder really capital low government wish."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Wind fly black by late fish about practice sign security eat southern.",
        "parties_involved": "Jackson, Garcia and Greene"
      }
    ]
  },
  "analyst_firm": "Underwood, Bell and Baker"
}