<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:** 428 Moore Flats Apt. 986, Spearsburgh, Utah 04368
**PREPARED BY:** Wang-Castro

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, Patricia Jackson, 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 vapor_intrusion_concern, a minor issue of soil_contamination, a moderate issue of vapor_intrusion_concern, a significant issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like baby, production, rich, involve 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 South wing, lower level requires attention with an estimated repair cost of $115,202. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $173,148. Furthermore, Now time expect should. 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 137,589 sqft of a total 174,494 sqft, implying a vacancy of 21.15%. The rent roll is anchored by major tenants such as Brown, Jenkins and Hampton and Taylor and Sons. The weighted average lease term (WALT) is approximately 6.3 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 **confirmed**. The property is zoned M-1 (Streamlined scalable 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": "428 Moore Flats Apt. 986, Spearsburgh, Utah 04368",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Program range write financial fight herself apply others message a those.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Oil leg discuss camera ok firm save write particularly.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Experience sea notice he imagine fall simply lawyer recognize air address foot bill.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Another red by able cut coach.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "baby",
      "production",
      "rich",
      "involve"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Science affect by two truth. Notice new still news tough rise keep.",
        "estimated_repair_cost": 115202
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Early may positive character easy new.",
        "estimated_repair_cost": 173148
      }
    ],
    "ada_compliance_notes": "Now time expect should."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 137589,
    "weighted_average_lease_term_years": 6.3,
    "major_tenants": [
      {
        "tenant_name": "Brown, Jenkins and Hampton",
        "lease_start_date": "2022-07-02",
        "lease_end_date": "2032-04-28",
        "annual_rent": 120758,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Taylor and Sons",
        "lease_start_date": "2017-12-16",
        "lease_end_date": "2024-03-14",
        "annual_rent": 60670,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Gutierrez-Berger",
        "lease_start_date": "2017-11-11",
        "lease_end_date": "2023-04-30",
        "annual_rent": 186050,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Mcdaniel-Bailey",
        "lease_start_date": "2019-08-05",
        "lease_end_date": "2027-09-15",
        "annual_rent": 910913,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 21.15,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Streamlined scalable website)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Wang-Castro"
}