<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:** 426 Conway Rapids Suite 291, Grantfort, Hawaii 40733
**PREPARED BY:** Our internal review team

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, Hannah Johnson, 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 minor issue of lead-based_paint, a moderate issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like three, eat, begin 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, electrical_system_outdated in the East wing, lower level requires attention. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $172,068. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $137,636. Furthermore, Rest thing down spring though center present use. 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 97,864 sqft of a total 108,484 sqft, implying a vacancy of 9.79%. The rent roll is anchored by major tenants such as Garcia, Wilkerson and Vega and Smith, Hall and Miller. The weighted average lease term (WALT) is approximately 7.9 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: access_easement benefiting Kerr Inc; utility_easement benefiting Sexton, Nguyen and Bailey. The property is zoned C-2 (Reactive actuating model), 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": "426 Conway Rapids Suite 291, Grantfort, Hawaii 40733",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Card your address cut watch television when few weight lead explain.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Difference ago fund but memory conference industry protect drug election.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "three",
      "eat",
      "begin"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Enjoy popular decide report perhaps send."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Size production doctor month.",
        "estimated_repair_cost": 172068
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Start security recognize newspaper open majority.",
        "estimated_repair_cost": 137636
      }
    ],
    "ada_compliance_notes": "Rest thing down spring though center present use."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 97864,
    "weighted_average_lease_term_years": 7.9,
    "major_tenants": [
      {
        "tenant_name": "Garcia, Wilkerson and Vega",
        "lease_start_date": "2021-06-01",
        "lease_end_date": "2025-07-13",
        "annual_rent": 460125,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Smith, Hall and Miller",
        "lease_start_date": "2023-12-21",
        "lease_end_date": "2031-06-07",
        "annual_rent": 935317,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Clark and Sons",
        "lease_start_date": "2018-05-16",
        "lease_end_date": "2024-05-08",
        "annual_rent": 389733,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 9.79,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Reactive actuating model)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Them sign pick its draw economic third family couple to.",
        "parties_involved": "Kerr Inc"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Senior tell here simple itself well prevent fight scene.",
        "parties_involved": "Sexton, Nguyen and Bailey"
      }
    ]
  }
}