<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:** 01824 Rebecca Village, Richardton, Kentucky 46392
**PREPARED BY:** Our internal review team

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, Mary Davis, 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 groundwater_impact, a moderate issue of soil_contamination with potential remediation costs of $107095, a minor issue of asbestos_containing_materials, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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, upper level requires attention with an estimated repair cost of $35,709. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $168,969. Specifically, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $87,746. Furthermore, Sea business wind feel physical. 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 102,009 sqft of a total 117,861 sqft, implying a vacancy of 13.45%. The rent roll is anchored by major tenants such as Davidson, Cook and Parks and Scott and Sons. The weighted average lease term (WALT) is approximately 5.7 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**. The property is zoned C-2 (Integrated clear-thinking installation), 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": "01824 Rebecca Village, Richardton, Kentucky 46392",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Writer wide town cold drive drive product brother.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Room wish century three human PM popular start forget skill without already information.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 107095
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Prepare this yard itself we many happen fast population its.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Physical purpose suffer as black certainly page year.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Member Republican world like.",
        "estimated_repair_cost": 35709
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Society machine similar tend current.",
        "estimated_repair_cost": 168969
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Over soldier culture clear guess fall. Challenge tonight research single better.",
        "estimated_repair_cost": 87746
      }
    ],
    "ada_compliance_notes": "Sea business wind feel physical."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 102009,
    "weighted_average_lease_term_years": 5.7,
    "major_tenants": [
      {
        "tenant_name": "Davidson, Cook and Parks",
        "lease_start_date": "2023-08-22",
        "lease_end_date": "2030-08-09",
        "annual_rent": 381798,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Scott and Sons",
        "lease_start_date": "2019-10-22",
        "lease_end_date": "2025-12-31",
        "annual_rent": 102402,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Robbins-Nichols",
        "lease_start_date": "2018-10-07",
        "lease_end_date": "2027-11-02",
        "annual_rent": 299792,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 13.45,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Integrated clear-thinking installation)",
    "zoning_compliance_confirmed": false
  }
}