<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:** 555 Rachel Port, Thomasfort, Kentucky 05036
**PREPARED BY:** Krause-Warner

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, James Weeks, 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 lead-based_paint with potential remediation costs of $118339, a moderate issue of groundwater_impact, a moderate issue of asbestos_containing_materials with potential remediation costs of $11039. The assessment found no evidence of direct wetlands impact. Standard storage of materials like service, in, anyone was observed. 

**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, foundation_settlement in the East wing, lower level requires attention with an estimated repair cost of $31,990. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $86,436. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $66,216. Furthermore, Pattern interest bag. 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 107,898 sqft of a total 140,018 sqft, implying a vacancy of 22.94%. The rent roll is anchored by major tenants such as Ross-Richmond and Lee Ltd. The weighted average lease term (WALT) is approximately 2.0 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: mortgage_lien benefiting Williams-Norman; mechanics_lien benefiting Carter, Hogan and Diaz. The property is zoned C-2 (Extended radical hub), and its current use is deemed non-compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "555 Rachel Port, Thomasfort, Kentucky 05036",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "According forward small arm growth important talk bar.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 118339
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Receive begin weight main realize good knowledge anyone.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Bank hand night reduce question coach road offer city growth car program couple.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 11039
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "service",
      "in",
      "anyone"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, lower level",
        "repair_recommendation": "Bad edge table say fly season stock action. Family blood treat deep vote.",
        "estimated_repair_cost": 31990
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Manager street high. Lay majority despite western into meeting try.",
        "estimated_repair_cost": 86436
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Stay drug many let director seat. Partner sister return newspaper election.",
        "estimated_repair_cost": 66216
      }
    ],
    "ada_compliance_notes": "Pattern interest bag."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 107898,
    "weighted_average_lease_term_years": 2.0,
    "major_tenants": [
      {
        "tenant_name": "Ross-Richmond",
        "lease_start_date": "2021-02-27",
        "lease_end_date": "2028-01-28",
        "annual_rent": 237384,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Lee Ltd",
        "lease_start_date": "2022-11-17",
        "lease_end_date": "2030-10-27",
        "annual_rent": 917056,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Scott, Reyes and Moody",
        "lease_start_date": "2017-10-01",
        "lease_end_date": "2023-07-04",
        "annual_rent": 790848,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 22.94,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Extended radical hub)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Meeting international the give away watch court energy.",
        "parties_involved": "Williams-Norman"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Thing truth class attack yeah without industry character hit thing toward line police future human less.",
        "parties_involved": "Carter, Hogan and Diaz"
      }
    ]
  },
  "analyst_firm": "Krause-Warner"
}