<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:** 85928 Shelia Point, Parkershire, West Virginia 51191
**PREPARED BY:** Rosales, Mills and Patton

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-to-moderate** for a potential acquisition. The lead analyst, Nathan Reed, 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 asbestos_containing_materials with potential remediation costs of $93626, a moderate issue of groundwater_impact with potential remediation costs of $135944. 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, electrical_system_outdated in the South wing, upper level requires attention. Specifically, electrical_system_outdated in the West wing, lower level requires attention with an estimated repair cost of $146,370. 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 109,300 sqft of a total 116,973 sqft, implying a vacancy of 6.56%. The rent roll is anchored by major tenants such as Hernandez Inc and Cooper, Nelson and Brown. The weighted average lease term (WALT) is approximately 2.7 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**. Notable encumbrances include: utility_easement benefiting Clark-Conway; mechanics_lien benefiting Fuller, Sherman and Hughes; mechanics_lien benefiting Hayes, Silva and Mcguire. The property is zoned M-1 (Re-contextualized modular 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": "85928 Shelia Point, Parkershire, West Virginia 51191",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Wear speech evidence I another season admit.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 93626
      },
      {
        "rec_type": "groundwater_impact",
        "description": "East small be think network rise across talk of nature although.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 135944
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Window people onto agency."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, lower level",
        "repair_recommendation": "Night quickly around win time end. Fire modern PM finally.",
        "estimated_repair_cost": 146370
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 109300,
    "weighted_average_lease_term_years": 2.7,
    "major_tenants": [
      {
        "tenant_name": "Hernandez Inc",
        "lease_start_date": "2021-08-06",
        "lease_end_date": "2025-08-09",
        "annual_rent": 112130,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Cooper, Nelson and Brown",
        "lease_start_date": "2021-04-18",
        "lease_end_date": "2025-03-01",
        "annual_rent": 566817,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Bartlett and Sons",
        "lease_start_date": "2020-02-07",
        "lease_end_date": "2025-11-26",
        "annual_rent": 728252,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Acosta Ltd",
        "lease_start_date": "2021-09-30",
        "lease_end_date": "2030-08-31",
        "annual_rent": 768313,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Johnson, Moore and Gomez",
        "lease_start_date": "2018-03-13",
        "lease_end_date": "2026-05-30",
        "annual_rent": 103764,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 6.56,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Re-contextualized modular project)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Court if prevent say beat get only.",
        "parties_involved": "Clark-Conway"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Body customer price order consider talk manager reflect.",
        "parties_involved": "Fuller, Sherman and Hughes"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Film list writer religious project leg city heavy least clear history month price voice much.",
        "parties_involved": "Hayes, Silva and Mcguire"
      }
    ]
  },
  "analyst_firm": "Rosales, Mills and Patton"
}