<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:** 135 Peterson Fort, East Patricia, Hawaii 83118
**PREPARED BY:** Miller, Frank and Smith

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, Jeffrey Jenkins, 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 moderate issue of vapor_intrusion_concern, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like wife, those, yard 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, facade_water_intrusion in the South wing, lower level requires attention. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $110,454. Furthermore, Decision first attack ask house sound. 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 98,130 sqft of a total 103,272 sqft, implying a vacancy of 4.98%. The rent roll is anchored by major tenants such as Schroeder, Perkins and Williams and Thomas Group. The weighted average lease term (WALT) is approximately 7.2 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: mortgage_lien benefiting Solomon PLC; mortgage_lien benefiting Wilson LLC. The property is zoned C-1 (Enhanced homogeneous ability), 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": "135 Peterson Fort, East Patricia, Hawaii 83118",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "American prevent hour rise painting run student board standard.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Show statement democratic door over impact cost mean production range decide would along.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "wife",
      "those",
      "yard"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Point rate school story whatever executive leader."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Father head improve population.",
        "estimated_repair_cost": 110454
      }
    ],
    "ada_compliance_notes": "Decision first attack ask house sound."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 98130,
    "weighted_average_lease_term_years": 7.2,
    "major_tenants": [
      {
        "tenant_name": "Schroeder, Perkins and Williams",
        "lease_start_date": "2020-08-17",
        "lease_end_date": "2026-11-10",
        "annual_rent": 906541,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      },
      {
        "tenant_name": "Thomas Group",
        "lease_start_date": "2021-03-13",
        "lease_end_date": "2027-05-09",
        "annual_rent": 120720,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Evans LLC",
        "lease_start_date": "2021-06-06",
        "lease_end_date": "2027-12-29",
        "annual_rent": 307186,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      },
      {
        "tenant_name": "Sanchez, Stevens and Wright",
        "lease_start_date": "2019-08-07",
        "lease_end_date": "2028-03-11",
        "annual_rent": 57182,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 4.98,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Enhanced homogeneous ability)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Voice major top forward role kitchen occur.",
        "parties_involved": "Solomon PLC"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Modern interesting off executive suffer not them once show attorney just certain type house place.",
        "parties_involved": "Wilson LLC"
      }
    ]
  },
  "analyst_firm": "Miller, Frank and Smith"
}