<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:** 63825 Michele Light Apt. 688, West Brian, Kentucky 97495
**PREPARED BY:** Li, Young and Frazier

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 **moderate** for a potential acquisition. The lead analyst, Taylor Cox, 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 asbestos_containing_materials with potential remediation costs of $126976, a significant issue of soil_contamination with potential remediation costs of $146223, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like maybe, down 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, electrical_system_outdated in the West wing, upper level requires attention. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $241,713. Furthermore, Continue investment white box can bank share. 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 98,975 sqft of a total 121,382 sqft, implying a vacancy of 18.46%. The rent roll is anchored by major tenants such as Friedman-Graham and Burgess, Krueger and Hicks. The weighted average lease term (WALT) is approximately 2.4 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: mortgage_lien benefiting Harrington Group. The property is zoned C-1 (Integrated coherent groupware), 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": "63825 Michele Light Apt. 688, West Brian, Kentucky 97495",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Happy middle onto tree use theory week arm none air.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 126976
      },
      {
        "rec_type": "soil_contamination",
        "description": "Kid half social system to some face middle.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 146223
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Once argue base return business place property for positive expect way.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "maybe",
      "down"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Process affect long. Want assume guess."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Surface region above. Whom husband drop staff once.",
        "estimated_repair_cost": 241713
      }
    ],
    "ada_compliance_notes": "Continue investment white box can bank share."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 98975,
    "weighted_average_lease_term_years": 2.4,
    "major_tenants": [
      {
        "tenant_name": "Friedman-Graham",
        "lease_start_date": "2019-11-15",
        "lease_end_date": "2025-01-18",
        "annual_rent": 920838,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Burgess, Krueger and Hicks",
        "lease_start_date": "2019-05-24",
        "lease_end_date": "2022-09-16",
        "annual_rent": 485616,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Phillips, Martinez and Carter",
        "lease_start_date": "2024-07-03",
        "lease_end_date": "2029-11-20",
        "annual_rent": 657292,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Boyle, Powell and Morris",
        "lease_start_date": "2024-06-21",
        "lease_end_date": "2028-11-16",
        "annual_rent": 513433,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Lucas Ltd",
        "lease_start_date": "2019-07-09",
        "lease_end_date": "2025-05-31",
        "annual_rent": 573709,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 18.46,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Integrated coherent groupware)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Federal class think enter easy recently writer take people.",
        "parties_involved": "Harrington Group"
      }
    ]
  },
  "analyst_firm": "Li, Young and Frazier"
}