<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:** 370 Schultz Ramp, New Richard, Kansas 80171
**PREPARED BY:** Hudson and Sons

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, Matthew Brewer, 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 significant issue of lead-based_paint with potential remediation costs of $91824, a moderate issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like scientist, hear, then was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $91,709. Specifically, electrical_system_outdated in the North wing, upper level requires attention. Specifically, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $38,429. 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 153,082 sqft of a total 187,233 sqft, implying a vacancy of 18.24%. The rent roll is anchored by major tenants such as Brown and Sons and Fernandez, Ryan and Welch. The weighted average lease term (WALT) is approximately 7.1 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 **confirmed**. The property is zoned C-1 (Robust bottom-line product), 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": "370 Schultz Ramp, New Richard, Kansas 80171",
  "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": "lead-based_paint",
        "description": "Deal Congress our certainly song free line rest simply keep.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 91824
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Community thing way strategy maintain option degree thousand leave grow be.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "scientist",
      "hear",
      "then"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Radio pressure experience under thousand.",
        "estimated_repair_cost": 91709
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Smile answer size whether me bank."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Force government forget past term tend.",
        "estimated_repair_cost": 38429
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 153082,
    "weighted_average_lease_term_years": 7.1,
    "major_tenants": [
      {
        "tenant_name": "Brown and Sons",
        "lease_start_date": "2024-01-09",
        "lease_end_date": "2030-05-30",
        "annual_rent": 132190,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Fernandez, Ryan and Welch",
        "lease_start_date": "2019-07-07",
        "lease_end_date": "2028-10-01",
        "annual_rent": 561845,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Nichols, Little and Snyder",
        "lease_start_date": "2021-03-19",
        "lease_end_date": "2025-01-21",
        "annual_rent": 357771,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Brown-Villa",
        "lease_start_date": "2023-06-18",
        "lease_end_date": "2030-06-20",
        "annual_rent": 711044,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Johnson-Sparks",
        "lease_start_date": "2018-01-28",
        "lease_end_date": "2021-02-21",
        "annual_rent": 637411,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 18.24,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Robust bottom-line product)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Hudson and Sons"
}