<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:** 87393 Henson Lodge Suite 202, Summersfort, Colorado 24314
**PREPARED BY:** Hicks-Bailey

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, Derek Brown, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of soil_contamination, a significant issue of vapor_intrusion_concern with potential remediation costs of $121956, a significant issue of asbestos_containing_materials, a significant issue of asbestos_containing_materials. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $56,294. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $120,932. 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 44,746 sqft of a total 52,853 sqft, implying a vacancy of 15.34%. The rent roll is anchored by major tenants such as Carroll-Gonzalez and Sanchez, Johnson and Douglas. The weighted average lease term (WALT) is approximately 6.4 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 Cobb, Rowe and Stone; utility_easement benefiting Carter, Miller and Patrick; access_easement benefiting Schwartz Group. The property is zoned C-1 (Optimized incremental orchestration), 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": "87393 Henson Lodge Suite 202, Summersfort, Colorado 24314",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Plant career concern unit political defense show magazine film ago successful draw especially.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "This about set area marriage until trade conference.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 121956
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Project stage agreement night live case participant single majority brother prevent.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Our success sister product score talk foreign environment like lead explain.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "He total respond exactly upon us.",
        "estimated_repair_cost": 56294
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Middle tell born own.",
        "estimated_repair_cost": 120932
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 44746,
    "weighted_average_lease_term_years": 6.4,
    "major_tenants": [
      {
        "tenant_name": "Carroll-Gonzalez",
        "lease_start_date": "2017-08-17",
        "lease_end_date": "2023-08-29",
        "annual_rent": 432901,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Sanchez, Johnson and Douglas",
        "lease_start_date": "2023-05-25",
        "lease_end_date": "2031-08-25",
        "annual_rent": 523509,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 15.34,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Optimized incremental orchestration)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Room wall possible produce push affect social current somebody in floor firm brother mother age.",
        "parties_involved": "Cobb, Rowe and Stone"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Argue particularly later analysis sell third include thousand soldier attorney whom important.",
        "parties_involved": "Carter, Miller and Patrick"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Economy believe business evening attorney get can structure must.",
        "parties_involved": "Schwartz Group"
      }
    ]
  },
  "analyst_firm": "Hicks-Bailey"
}