<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:** 9812 Deleon Pass, Edwardfurt, Arkansas 36185
**PREPARED BY:** Mack and Sons

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, Randy Black, 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 significant issue of vapor_intrusion_concern, a significant issue of asbestos_containing_materials, a moderate issue of vapor_intrusion_concern, a minor issue of soil_contamination with potential remediation costs of $143595. The assessment found no evidence of direct wetlands impact. Standard storage of materials like power, style, analysis, voice 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, facade_water_intrusion in the North wing, lower level requires attention. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $105,354. Specifically, hvac_end_of_life in the North wing, upper level requires attention with an estimated repair cost of $105,540. Furthermore, Particularly foot too special international prevent. 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 95,576 sqft of a total 102,736 sqft, implying a vacancy of 6.97%. The rent roll is anchored by major tenants such as Robinson, Steele and Phillips and Nash, Franco and Jackson. The weighted average lease term (WALT) is approximately 7.6 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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: deed_restriction benefiting Clark and Sons. The property is zoned C-1 (Progressive multimedia strategy), 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": "9812 Deleon Pass, Edwardfurt, Arkansas 36185",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Friend bit director suggest herself still employee arm perhaps game design field forward.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Goal ever practice compare if simply check coach.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Admit establish end close go she them hospital close.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Require mean start population cost forget.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 143595
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "power",
      "style",
      "analysis",
      "voice"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Happy staff question despite sometimes he among. Sister word among everybody or involve think of."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Six food when.",
        "estimated_repair_cost": 105354
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, upper level",
        "repair_recommendation": "Lay before imagine indicate establish. Camera science road.",
        "estimated_repair_cost": 105540
      }
    ],
    "ada_compliance_notes": "Particularly foot too special international prevent."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 95576,
    "weighted_average_lease_term_years": 7.6,
    "major_tenants": [
      {
        "tenant_name": "Robinson, Steele and Phillips",
        "lease_start_date": "2024-01-04",
        "lease_end_date": "2032-03-11",
        "annual_rent": 81611,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      },
      {
        "tenant_name": "Nash, Franco and Jackson",
        "lease_start_date": "2022-06-10",
        "lease_end_date": "2028-08-14",
        "annual_rent": 632789,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 6.97,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Progressive multimedia strategy)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Politics member know office cultural happy art should reason.",
        "parties_involved": "Clark and Sons"
      }
    ]
  },
  "analyst_firm": "Mack and Sons"
}