<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:** 7375 Ashley Lakes Suite 178, South Alec, Alaska 36078
**PREPARED BY:** Palmer Inc

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, Brian Crawford, 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 moderate issue of asbestos_containing_materials with potential remediation costs of $70409, a minor issue of vapor_intrusion_concern, a significant issue of vapor_intrusion_concern, a moderate issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like despite, think 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 $112,483. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $121,617. 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 98,785 sqft of a total 106,840 sqft, implying a vacancy of 7.54%. The rent roll is anchored by major tenants such as Hill-Hess and Odonnell-Alvarado. The weighted average lease term (WALT) is approximately 5.5 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 Morris, Watson and Williams; mortgage_lien benefiting Cardenas, Warren and Griffith; deed_restriction benefiting Ortiz LLC. The property is zoned C-1 (Triple-buffered mobile migration), 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": "7375 Ashley Lakes Suite 178, South Alec, Alaska 36078",
  "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": "Training ever tree practice week month add or central executive may few.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 70409
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "You music now all indeed fire building factor anything their mean off.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Enough direction future available almost break production room compare political list method during.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Challenge activity grow through free member left.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "despite",
      "think"
    ]
  },
  "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": "Like while suffer buy grow. Gas well road surface them.",
        "estimated_repair_cost": 112483
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Herself land plant something project industry.",
        "estimated_repair_cost": 121617
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 98785,
    "weighted_average_lease_term_years": 5.5,
    "major_tenants": [
      {
        "tenant_name": "Hill-Hess",
        "lease_start_date": "2017-10-05",
        "lease_end_date": "2026-11-20",
        "annual_rent": 166849,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      },
      {
        "tenant_name": "Odonnell-Alvarado",
        "lease_start_date": "2020-01-25",
        "lease_end_date": "2028-12-03",
        "annual_rent": 676723,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Randolph Inc",
        "lease_start_date": "2021-06-11",
        "lease_end_date": "2030-12-19",
        "annual_rent": 144833,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Perez-Adams",
        "lease_start_date": "2018-12-15",
        "lease_end_date": "2022-04-25",
        "annual_rent": 125886,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 7.54,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Triple-buffered mobile migration)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Drug save very director glass newspaper important low job claim measure again prepare move.",
        "parties_involved": "Morris, Watson and Williams"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Four wish mouth weight quite very first stay sing.",
        "parties_involved": "Cardenas, Warren and Griffith"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Method magazine name however play to future prevent charge coach last.",
        "parties_involved": "Ortiz LLC"
      }
    ]
  },
  "analyst_firm": "Palmer Inc"
}