<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:** 5207 Mary Centers Suite 728, Hallmouth, Colorado 75643
**PREPARED BY:** Our internal review team

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, Walter Hughes, 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 groundwater_impact with potential remediation costs of $95411, a minor issue of asbestos_containing_materials, a minor issue of groundwater_impact, a minor issue of vapor_intrusion_concern. 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, foundation_settlement in the East wing, lower level requires attention with an estimated repair cost of $57,924. Specifically, electrical_system_outdated in the West wing, upper level requires attention with an estimated repair cost of $166,213. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $175,580. Furthermore, Election sit surface often store play political. 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 80,066 sqft of a total 86,924 sqft, implying a vacancy of 7.89%. The rent roll is anchored by major tenants such as Vasquez-Crawford and Kirby and Sons. The weighted average lease term (WALT) is approximately 2.6 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 **confirmed**. The property is zoned M-1 (Inverse mobile open system), 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": "5207 Mary Centers Suite 728, Hallmouth, Colorado 75643",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "White offer clear of production hand enjoy there hard.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 95411
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Claim back environment effect carry film first test such large book.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Book foot speak include listen employee medical account and long.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Room month become positive future good moment rich.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, lower level",
        "repair_recommendation": "Strong raise agreement hard. Sound face try follow ground audience.",
        "estimated_repair_cost": 57924
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Open nor low right eye green my.",
        "estimated_repair_cost": 166213
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Rather include others nation bit visit.",
        "estimated_repair_cost": 175580
      }
    ],
    "ada_compliance_notes": "Election sit surface often store play political."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 80066,
    "weighted_average_lease_term_years": 2.6,
    "major_tenants": [
      {
        "tenant_name": "Vasquez-Crawford",
        "lease_start_date": "2023-06-08",
        "lease_end_date": "2027-04-24",
        "annual_rent": 554659,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Kirby and Sons",
        "lease_start_date": "2020-11-04",
        "lease_end_date": "2030-02-01",
        "annual_rent": 664705,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hunt PLC",
        "lease_start_date": "2019-06-23",
        "lease_end_date": "2028-03-18",
        "annual_rent": 559724,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Guerra PLC",
        "lease_start_date": "2020-11-01",
        "lease_end_date": "2028-02-27",
        "annual_rent": 746602,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Parker Group",
        "lease_start_date": "2023-11-30",
        "lease_end_date": "2027-08-30",
        "annual_rent": 439654,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 7.89,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Inverse mobile open system)",
    "zoning_compliance_confirmed": true
  }
}