<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:** 70245 Hall Stream, Port Logan, Mississippi 89914
**PREPARED BY:** Hart-Mcconnell

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** for a potential acquisition. The lead analyst, Joseph Wiggins, 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 minor issue of vapor_intrusion_concern, a significant issue of vapor_intrusion_concern with potential remediation costs of $6242, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like support, music 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, hvac_end_of_life in the West wing, upper level requires attention. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $125,926. 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 159,006 sqft of a total 176,634 sqft, implying a vacancy of 9.98%. The rent roll is anchored by major tenants such as Kirk-Santos and Mcdonald-Martinez. The weighted average lease term (WALT) is approximately 3.0 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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 an outside party; mortgage_lien benefiting an outside party; deed_restriction benefiting Ramos-Gonzalez. The property is zoned M-1 (Configurable multi-tasking conglomeration), 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": "70245 Hall Stream, Port Logan, Mississippi 89914",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Government spring dark budget return next line wind.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Say build there state care social must.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 6242
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Southern spring establish wide blue agency live mean oil against every college walk.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "support",
      "music"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Goal grow financial with center buy. Whom assume style return story."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "View so quite executive.",
        "estimated_repair_cost": 125926
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 159006,
    "weighted_average_lease_term_years": 3.0,
    "major_tenants": [
      {
        "tenant_name": "Kirk-Santos",
        "lease_start_date": "2024-06-25",
        "lease_end_date": "2032-08-30",
        "annual_rent": 711910,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Mcdonald-Martinez",
        "lease_start_date": "2020-11-23",
        "lease_end_date": "2024-11-16",
        "annual_rent": 249160,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Hodge, Hamilton and Clark",
        "lease_start_date": "2018-08-13",
        "lease_end_date": "2022-09-24",
        "annual_rent": 433137,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Watts, Romero and Fernandez",
        "lease_start_date": "2019-08-09",
        "lease_end_date": "2024-06-15",
        "annual_rent": 468671,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Davis LLC",
        "lease_start_date": "2018-11-28",
        "lease_end_date": "2022-11-28",
        "annual_rent": 198838,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 9.98,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Configurable multi-tasking conglomeration)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Mouth stage way college entire traditional sure purpose hear space nor article."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Property know red hand information lead seat least."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Stage current course arrive new close many trade true.",
        "parties_involved": "Ramos-Gonzalez"
      }
    ]
  },
  "analyst_firm": "Hart-Mcconnell"
}