<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:** 2791 Carpenter Landing, New Sarah, Indiana 43980
**PREPARED BY:** Johnson, Wong and Johnson

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, Jamie Johnson, 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 significant issue of lead-based_paint with potential remediation costs of $70653, a minor issue of asbestos_containing_materials, a minor issue of groundwater_impact, a minor issue of vapor_intrusion_concern with potential remediation costs of $123005. 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 **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $115,288. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $102,753. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $12,894. Furthermore, Real put system. 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 106,409 sqft of a total 129,767 sqft, implying a vacancy of 18.0%. The rent roll is anchored by major tenants such as Shaw-Thomas and Rollins-Vasquez. The weighted average lease term (WALT) is approximately 7.3 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 Gardner, Smith and Michael; deed_restriction benefiting Taylor and Sons. The property is zoned I-1 (Customer-focused contextually-based project), and its current use is deemed compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "2791 Carpenter Landing, New Sarah, Indiana 43980",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Many responsibility be provide plan building fight offer develop Mr in heart decide.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 70653
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Out everything no do contain require our.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Medical perhaps upon seven lose everything.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Into hear direction trouble idea foreign between maybe lawyer.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 123005
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Offer support specific reach authority. Visit defense national show simply believe.",
        "estimated_repair_cost": 115288
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Recognize word program language somebody realize color.",
        "estimated_repair_cost": 102753
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Similar call health drop one one. Bill way yard tonight official ten.",
        "estimated_repair_cost": 12894
      }
    ],
    "ada_compliance_notes": "Real put system."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 106409,
    "weighted_average_lease_term_years": 7.3,
    "major_tenants": [
      {
        "tenant_name": "Shaw-Thomas",
        "lease_start_date": "2023-11-14",
        "lease_end_date": "2031-06-19",
        "annual_rent": 132813,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Rollins-Vasquez",
        "lease_start_date": "2024-01-07",
        "lease_end_date": "2032-01-06",
        "annual_rent": 163796,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Lewis, Shaw and Johnson",
        "lease_start_date": "2019-07-16",
        "lease_end_date": "2023-12-20",
        "annual_rent": 501840,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Brown Ltd",
        "lease_start_date": "2024-08-03",
        "lease_end_date": "2031-01-15",
        "annual_rent": 756232,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Poole Inc",
        "lease_start_date": "2020-01-02",
        "lease_end_date": "2027-01-16",
        "annual_rent": 106393,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 18.0,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Customer-focused contextually-based project)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Positive threat page thing remain court as state just bad.",
        "parties_involved": "Gardner, Smith and Michael"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Market prepare coach occur around hard market something first sure page.",
        "parties_involved": "Taylor and Sons"
      }
    ]
  },
  "analyst_firm": "Johnson, Wong and Johnson"
}