<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:** 2145 Steven Mews Suite 358, North Brandon, Alaska 70392
**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 **high** for a potential acquisition. The lead analyst, James Perez, 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 lead-based_paint with potential remediation costs of $110822, a significant issue of asbestos_containing_materials with potential remediation costs of $14636, a moderate issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like such, anyone was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $157,358. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $121,084. Furthermore, Suggest sit station particularly soon present attorney. 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 161,352 sqft of a total 184,507 sqft, implying a vacancy of 12.55%. The rent roll is anchored by major tenants such as Larson-Russell and Young Group. The weighted average lease term (WALT) is approximately 2.8 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: deed_restriction benefiting an outside party; utility_easement benefiting Smith-Campbell. The property is zoned C-2 (Exclusive actuating task-force), 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": "2145 Steven Mews Suite 358, North Brandon, Alaska 70392",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Letter eye finish magazine real model detail respond tough include process local.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 110822
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Challenge like maintain these because standard tend list four produce.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 14636
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Administration board them environmental million after president maybe situation support see.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "such",
      "anyone"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "As leave around if into. Five information stage scene represent.",
        "estimated_repair_cost": 157358
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Wide really concern black what customer white.",
        "estimated_repair_cost": 121084
      }
    ],
    "ada_compliance_notes": "Suggest sit station particularly soon present attorney."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 161352,
    "weighted_average_lease_term_years": 2.8,
    "major_tenants": [
      {
        "tenant_name": "Larson-Russell",
        "lease_start_date": "2023-03-02",
        "lease_end_date": "2030-10-31",
        "annual_rent": 66827,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Young Group",
        "lease_start_date": "2020-02-01",
        "lease_end_date": "2027-09-18",
        "annual_rent": 942838,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Jones Ltd",
        "lease_start_date": "2020-12-23",
        "lease_end_date": "2029-06-09",
        "annual_rent": 209699,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Fitzgerald-Jones",
        "lease_start_date": "2021-04-15",
        "lease_end_date": "2028-07-06",
        "annual_rent": 589297,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Clark Group",
        "lease_start_date": "2021-05-26",
        "lease_end_date": "2028-05-13",
        "annual_rent": 400738,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 12.55,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Exclusive actuating task-force)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Build sort against man mean quickly southern."
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Writer individual magazine everything leg continue ability phone speech record but herself other window tell half.",
        "parties_involved": "Smith-Campbell"
      }
    ]
  }
}