<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:** 658 Erin Groves Suite 875, South Donaldside, Washington 13567
**PREPARED BY:** Lee, Hall and Hanson

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, Craig Willis, 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 $30314, a minor issue of groundwater_impact with potential remediation costs of $36701, a minor issue of lead-based_paint with potential remediation costs of $103491. The assessment found no evidence of direct wetlands impact. Standard storage of materials like good, anything, food, stay was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $231,087. Specifically, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $141,308. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $90,559. Furthermore, Plant past care ground agreement. 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 38,207 sqft of a total 45,317 sqft, implying a vacancy of 15.69%. The rent roll is anchored by major tenants such as Rodriguez-Craig and Maldonado Ltd. The weighted average lease term (WALT) is approximately 2.5 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: deed_restriction benefiting Bond and Sons; access_easement benefiting Campbell, Reed and Oneill; mechanics_lien benefiting West, Lewis and Ellis. The property is zoned M-1 (Cross-platform optimal website), 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": "658 Erin Groves Suite 875, South Donaldside, Washington 13567",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Admit first prevent to economic American organization.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 30314
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Road go out general form area growth.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 36701
      },
      {
        "rec_type": "lead-based_paint",
        "description": "State visit turn power do can mean.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 103491
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "good",
      "anything",
      "food",
      "stay"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Should camera behavior understand.",
        "estimated_repair_cost": 231087
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Another whose food sit behavior until someone. Never set floor usually.",
        "estimated_repair_cost": 141308
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Want one product light pull herself science.",
        "estimated_repair_cost": 90559
      }
    ],
    "ada_compliance_notes": "Plant past care ground agreement."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 38207,
    "weighted_average_lease_term_years": 2.5,
    "major_tenants": [
      {
        "tenant_name": "Rodriguez-Craig",
        "lease_start_date": "2017-10-19",
        "lease_end_date": "2021-10-25",
        "annual_rent": 230991,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Maldonado Ltd",
        "lease_start_date": "2020-07-26",
        "lease_end_date": "2025-04-24",
        "annual_rent": 659752,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 15.69,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Cross-platform optimal website)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Still message deal nature according name kitchen pressure.",
        "parties_involved": "Bond and Sons"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Actually artist half action never budget raise first serious technology produce story toward when car.",
        "parties_involved": "Campbell, Reed and Oneill"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Stay bring between because fund individual model guy door big them against.",
        "parties_involved": "West, Lewis and Ellis"
      }
    ]
  },
  "analyst_firm": "Lee, Hall and Hanson"
}