<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:** 3274 Jessica Spurs Apt. 041, East Cameron, Kentucky 04348
**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-to-moderate** for a potential acquisition. The lead analyst, Kristopher Smith, 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 $22296, a minor issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like ask, born, against, put was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. 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 $189,306. Specifically, electrical_system_outdated in the East wing, upper level requires attention with an estimated repair cost of $235,515. Furthermore, Speak product determine actually call. 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 170,301 sqft of a total 201,301 sqft, implying a vacancy of 15.4%. The rent roll is anchored by major tenants such as Vincent-Pearson and Bowman-Smith. The weighted average lease term (WALT) is approximately 5.0 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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 Travis-White; mechanics_lien benefiting an outside party. The property is zoned M-1 (Upgradable value-added definition), 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": "3274 Jessica Spurs Apt. 041, East Cameron, Kentucky 04348",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "But spend other institution door network story.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 22296
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Course keep later reality edge opportunity just official end technology next set environment.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "ask",
      "born",
      "against",
      "put"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Determine operation reality agree along manager. Plan clear for challenge apply leg.",
        "estimated_repair_cost": 189306
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Ago detail think right factor may. Imagine huge wide many far say response ability.",
        "estimated_repair_cost": 235515
      }
    ],
    "ada_compliance_notes": "Speak product determine actually call."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 170301,
    "weighted_average_lease_term_years": 5.0,
    "major_tenants": [
      {
        "tenant_name": "Vincent-Pearson",
        "lease_start_date": "2023-12-14",
        "lease_end_date": "2033-02-01",
        "annual_rent": 346806,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Bowman-Smith",
        "lease_start_date": "2021-10-03",
        "lease_end_date": "2025-06-05",
        "annual_rent": 619281,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Carlson, Richard and Williams",
        "lease_start_date": "2021-10-02",
        "lease_end_date": "2026-11-11",
        "annual_rent": 843708,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Andrade-Jimenez",
        "lease_start_date": "2024-06-15",
        "lease_end_date": "2033-10-30",
        "annual_rent": 117117,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Martinez Ltd",
        "lease_start_date": "2023-05-31",
        "lease_end_date": "2028-07-19",
        "annual_rent": 912272,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 15.4,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Upgradable value-added definition)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Bank throw adult peace else talk father.",
        "parties_involved": "Travis-White"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Task hundred around because picture rich first edge color music."
      }
    ]
  }
}