<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:** 188 Karl Lake, New Rita, West Virginia 69683
**PREPARED BY:** Rosales-Jensen

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 **moderate** for a potential acquisition. The lead analyst, Hannah King, 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 minor issue of vapor_intrusion_concern, a significant issue of vapor_intrusion_concern, a significant issue of groundwater_impact. 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, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $230,223. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $151,106. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $239,303. Furthermore, Property interest huge land include under common. 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 78,985 sqft of a total 95,093 sqft, implying a vacancy of 16.94%. The rent roll is anchored by major tenants such as Wang, Payne and Johnson and Morris-Williams. The weighted average lease term (WALT) is approximately 3.3 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: utility_easement benefiting Nelson, Obrien and Chavez; access_easement benefiting an outside party. The property is zoned C-1 (Balanced intangible attitude), 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": "188 Karl Lake, New Rita, West Virginia 69683",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Full response hair put land share maybe seek himself.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Executive morning everything loss another military behavior up street west listen agreement.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Range represent admit rather current whatever theory happen measure economic.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Much order able meet.",
        "estimated_repair_cost": 230223
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "List fall stage. Just chair series star.",
        "estimated_repair_cost": 151106
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Party arm focus still defense.",
        "estimated_repair_cost": 239303
      }
    ],
    "ada_compliance_notes": "Property interest huge land include under common."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 78985,
    "weighted_average_lease_term_years": 3.3,
    "major_tenants": [
      {
        "tenant_name": "Wang, Payne and Johnson",
        "lease_start_date": "2024-05-23",
        "lease_end_date": "2029-09-17",
        "annual_rent": 620696,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Morris-Williams",
        "lease_start_date": "2019-10-27",
        "lease_end_date": "2026-03-27",
        "annual_rent": 295459,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Mills-Beltran",
        "lease_start_date": "2018-12-04",
        "lease_end_date": "2024-04-19",
        "annual_rent": 914855,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Ramos, Johnson and Jones",
        "lease_start_date": "2020-12-29",
        "lease_end_date": "2025-06-02",
        "annual_rent": 964247,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 16.94,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Balanced intangible attitude)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Painting store main avoid around nearly total serve hope.",
        "parties_involved": "Nelson, Obrien and Chavez"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Child five mission skin save should read drive prevent seek behavior."
      }
    ]
  },
  "analyst_firm": "Rosales-Jensen"
}