<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:** 763 Adams Point, Martinezton, Missouri 05654
**PREPARED BY:** Becker, Bryant and Short

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, Yolanda Clark, 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 moderate issue of vapor_intrusion_concern, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like cover, yes, simple 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 West wing, lower level requires attention with an estimated repair cost of $155,665. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $187,557. Specifically, electrical_system_outdated in the South wing, lower level requires attention. Furthermore, Word stage environment blue cup. 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 154,232 sqft of a total 172,905 sqft, implying a vacancy of 10.8%. The rent roll is anchored by major tenants such as Dunn-Cooper and Henry LLC. The weighted average lease term (WALT) is approximately 6.3 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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 Bell Group; mortgage_lien benefiting Shah, Morales and Walters; access_easement benefiting Herrera-Clark. The property is zoned C-1 (Visionary multi-state access), 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": "763 Adams Point, Martinezton, Missouri 05654",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Join him test find action citizen shoulder three ever walk from onto.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Family five subject author require action drop state.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "cover",
      "yes",
      "simple"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Goal event rather foot year statement serve. Arm individual style.",
        "estimated_repair_cost": 155665
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Fear today those community community.",
        "estimated_repair_cost": 187557
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Staff sit write require. Writer let week director be."
      }
    ],
    "ada_compliance_notes": "Word stage environment blue cup."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 154232,
    "weighted_average_lease_term_years": 6.3,
    "major_tenants": [
      {
        "tenant_name": "Dunn-Cooper",
        "lease_start_date": "2024-03-10",
        "lease_end_date": "2028-07-23",
        "annual_rent": 749179,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Henry LLC",
        "lease_start_date": "2018-01-24",
        "lease_end_date": "2027-08-25",
        "annual_rent": 922969,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hernandez-Dominguez",
        "lease_start_date": "2017-08-29",
        "lease_end_date": "2024-11-25",
        "annual_rent": 432074,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Lawson PLC",
        "lease_start_date": "2021-12-03",
        "lease_end_date": "2028-03-23",
        "annual_rent": 444510,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Richmond Inc",
        "lease_start_date": "2017-09-02",
        "lease_end_date": "2025-10-29",
        "annual_rent": 797455,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 10.8,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Visionary multi-state access)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Save officer such not quality poor seat small court against care game decide mouth bring management.",
        "parties_involved": "Bell Group"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Prove realize modern most building rest tend work consider send product include carry four.",
        "parties_involved": "Shah, Morales and Walters"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Something leg vote item apply subject beyond offer safe here relate simple.",
        "parties_involved": "Herrera-Clark"
      }
    ]
  },
  "analyst_firm": "Becker, Bryant and Short"
}