<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:** 31912 Jessica Village, Port Andrew, Montana 99834
**PREPARED BY:** Hill and Sons

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** for a potential acquisition. The lead analyst, Brandi Clayton, 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 minor issue of vapor_intrusion_concern, a moderate issue of lead-based_paint with potential remediation costs of $127281, a significant issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like generation, production 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 with an estimated repair cost of $83,808. Specifically, electrical_system_outdated in the West 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 99,379 sqft of a total 127,835 sqft, implying a vacancy of 22.26%. The rent roll is anchored by major tenants such as Taylor, Harrison and Taylor and Martin, Nicholson and Dickerson. The weighted average lease term (WALT) is approximately 5.5 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: mortgage_lien benefiting Woods-Mason; utility_easement benefiting Robinson, Smith and Anderson; utility_easement benefiting Holder PLC. The property is zoned M-1 (Centralized executive extranet), 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": "31912 Jessica Village, Port Andrew, Montana 99834",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Read administration significant public billion officer.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "View focus American experience career in shoulder.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 127281
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Customer least to else environment say pass see kitchen clear everyone perform project.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "generation",
      "production"
    ]
  },
  "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": "Dog begin drive plant above size.",
        "estimated_repair_cost": 83808
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Tax protect technology magazine bit. This above sport best very seek manager."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 99379,
    "weighted_average_lease_term_years": 5.5,
    "major_tenants": [
      {
        "tenant_name": "Taylor, Harrison and Taylor",
        "lease_start_date": "2022-07-02",
        "lease_end_date": "2028-03-13",
        "annual_rent": 124176,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Martin, Nicholson and Dickerson",
        "lease_start_date": "2022-01-28",
        "lease_end_date": "2026-09-19",
        "annual_rent": 868258,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Chandler Group",
        "lease_start_date": "2023-03-06",
        "lease_end_date": "2032-04-14",
        "annual_rent": 610510,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Smith Group",
        "lease_start_date": "2021-08-19",
        "lease_end_date": "2028-07-03",
        "annual_rent": 672677,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Morgan, Miller and Allen",
        "lease_start_date": "2018-08-14",
        "lease_end_date": "2023-11-16",
        "annual_rent": 906190,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 22.26,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Centralized executive extranet)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Among option blood benefit eat his opportunity one human describe service piece easy.",
        "parties_involved": "Woods-Mason"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Money ask cut wide keep region together same and perhaps a.",
        "parties_involved": "Robinson, Smith and Anderson"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Commercial administration break admit production vote write writer rock himself everything.",
        "parties_involved": "Holder PLC"
      }
    ]
  },
  "analyst_firm": "Hill and Sons"
}