<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:** 458 Rodgers Forges, Port Leah, Oregon 78256
**PREPARED BY:** Wolfe, Smith and Phelps

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, William Hill, 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 minor issue of soil_contamination with potential remediation costs of $45500, a minor issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like term, company was observed. 

**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, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $125,169. Specifically, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $97,670. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $128,079. 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 173,018 sqft of a total 197,554 sqft, implying a vacancy of 12.42%. The rent roll is anchored by major tenants such as Murphy-Coleman and Mckenzie, Chandler and Fisher. The weighted average lease term (WALT) is approximately 2.3 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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: utility_easement benefiting an outside party. The property is zoned C-2 (Cloned holistic knowledge user), 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": "458 Rodgers Forges, Port Leah, Oregon 78256",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Total tonight right strategy budget then whose figure early culture other staff.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 45500
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Environment eye story nothing hear should at their program almost once his daughter.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "term",
      "company"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Along story skin huge talk attention performance remain. Including long anyone few.",
        "estimated_repair_cost": 125169
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Explain child consumer happy.",
        "estimated_repair_cost": 97670
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Front until common discuss six between. Help forget stage trial major per during.",
        "estimated_repair_cost": 128079
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 173018,
    "weighted_average_lease_term_years": 2.3,
    "major_tenants": [
      {
        "tenant_name": "Murphy-Coleman",
        "lease_start_date": "2018-07-19",
        "lease_end_date": "2024-03-11",
        "annual_rent": 531734,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Mckenzie, Chandler and Fisher",
        "lease_start_date": "2022-02-23",
        "lease_end_date": "2027-10-10",
        "annual_rent": 396684,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Joseph Inc",
        "lease_start_date": "2021-05-16",
        "lease_end_date": "2030-05-02",
        "annual_rent": 110060,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Santiago Group",
        "lease_start_date": "2019-09-02",
        "lease_end_date": "2028-11-04",
        "annual_rent": 911694,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Mcdonald-Fuller",
        "lease_start_date": "2023-07-05",
        "lease_end_date": "2032-11-12",
        "annual_rent": 722908,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 12.42,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Cloned holistic knowledge user)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "All sea many first subject lay chair success why."
      }
    ]
  },
  "analyst_firm": "Wolfe, Smith and Phelps"
}