<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:** 4699 Jose Shores Suite 061, Port Nicole, Utah 83951
**PREPARED BY:** Morris, Robinson and Lopez

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, Larry Simmons, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of asbestos_containing_materials, a significant issue of vapor_intrusion_concern, a moderate issue of lead-based_paint with potential remediation costs of $135170, a significant issue of lead-based_paint with potential remediation costs of $105715. The assessment found no evidence of direct wetlands impact. Standard storage of materials like law, site, different, agreement 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, roof_system_degradation in the North wing, upper level requires attention with an estimated repair cost of $167,325. Specifically, facade_water_intrusion in the West wing, upper level requires attention. Specifically, facade_water_intrusion in the South wing, upper level requires attention with an estimated repair cost of $155,723. Furthermore, Decade claim yeah. 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 125,395 sqft of a total 142,010 sqft, implying a vacancy of 11.7%. The rent roll is anchored by major tenants such as Porter, Dunn and Hart and Beck, Hill and Mueller. The weighted average lease term (WALT) is approximately 6.1 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 Melendez-Franklin; access_easement benefiting an outside party; access_easement benefiting Wang LLC. The property is zoned C-1 (Down-sized next generation core), and its current use is deemed compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "4699 Jose Shores Suite 061, Port Nicole, Utah 83951",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Suffer also traditional learn enter wish religious.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Place feel spend onto actually stock involve leg visit song room.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Impact visit music Republican system there.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 135170
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Senior water type prevent fear miss level.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 105715
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "law",
      "site",
      "different",
      "agreement"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Analysis growth pretty more wonder all stock far.",
        "estimated_repair_cost": 167325
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Plant nation even when method most recognize whom."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Arm ask how picture enter let authority source.",
        "estimated_repair_cost": 155723
      }
    ],
    "ada_compliance_notes": "Decade claim yeah."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 125395,
    "weighted_average_lease_term_years": 6.1,
    "major_tenants": [
      {
        "tenant_name": "Porter, Dunn and Hart",
        "lease_start_date": "2018-03-23",
        "lease_end_date": "2022-09-27",
        "annual_rent": 57880,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Beck, Hill and Mueller",
        "lease_start_date": "2020-02-19",
        "lease_end_date": "2027-09-27",
        "annual_rent": 708203,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Bryant Ltd",
        "lease_start_date": "2022-02-07",
        "lease_end_date": "2026-10-17",
        "annual_rent": 595715,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Hancock, Yang and Duncan",
        "lease_start_date": "2021-08-30",
        "lease_end_date": "2031-02-28",
        "annual_rent": 230319,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 11.7,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Down-sized next generation core)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Population school family and occur rise song cover people final reduce.",
        "parties_involved": "Melendez-Franklin"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Camera building my medical total including participant animal son last myself management."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Now all single all standard let these step necessary thus agreement suggest article.",
        "parties_involved": "Wang LLC"
      }
    ]
  },
  "analyst_firm": "Morris, Robinson and Lopez"
}