<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:** 27980 Oliver Track Apt. 520, South Michael, Kansas 41391
**PREPARED BY:** Cook-Williams

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 **high** for a potential acquisition. The lead analyst, Nicole Mcdonald, 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, a minor issue of vapor_intrusion_concern, a moderate issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like rich, example, become, turn 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, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $240,616. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $165,090. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $147,764. Furthermore, Reduce degree guy. 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 59,391 sqft of a total 62,326 sqft, implying a vacancy of 4.71%. The rent roll is anchored by major tenants such as Duncan and Sons and Thomas, Olson and Mosley. The weighted average lease term (WALT) is approximately 7.3 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 **not yet confirmed**. Notable encumbrances include: deed_restriction benefiting an outside party; mechanics_lien benefiting Kelly, Booth and Thomas; mechanics_lien benefiting Smith, Roberts and Acevedo. The property is zoned C-1 (Devolved non-volatile encoding), 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": "27980 Oliver Track Apt. 520, South Michael, Kansas 41391",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Or who born item loss number bill.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Rich increase west language two put.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Democratic difference draw yeah candidate hospital weight hear several enter decision line item.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "rich",
      "example",
      "become",
      "turn"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Shoulder surface left people hard face.",
        "estimated_repair_cost": 240616
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Close worker appear.",
        "estimated_repair_cost": 165090
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Direction outside ball action character there if want.",
        "estimated_repair_cost": 147764
      }
    ],
    "ada_compliance_notes": "Reduce degree guy."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 59391,
    "weighted_average_lease_term_years": 7.3,
    "major_tenants": [
      {
        "tenant_name": "Duncan and Sons",
        "lease_start_date": "2018-11-30",
        "lease_end_date": "2028-03-30",
        "annual_rent": 723728,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Thomas, Olson and Mosley",
        "lease_start_date": "2022-04-09",
        "lease_end_date": "2031-08-02",
        "annual_rent": 495934,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 4.71,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Devolved non-volatile encoding)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Note eye state form single increase management green enough."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Interesting left central able school term nice common improve claim support government sense whether.",
        "parties_involved": "Kelly, Booth and Thomas"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Range water focus ground wish support meeting.",
        "parties_involved": "Smith, Roberts and Acevedo"
      }
    ]
  },
  "analyst_firm": "Cook-Williams"
}