<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:** 41466 Schmidt Gardens Suite 113, Brownfort, Oklahoma 30927
**PREPARED BY:** Williams 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 **moderate** for a potential acquisition. The lead analyst, Douglas Davis, 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 asbestos_containing_materials with potential remediation costs of $141562, a significant issue of vapor_intrusion_concern, a minor issue of vapor_intrusion_concern, a minor issue of groundwater_impact with potential remediation costs of $14039. The assessment found no evidence of direct wetlands impact. Standard storage of materials like capital, red, part, doctor 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, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $212,697. Specifically, facade_water_intrusion in the North wing, upper level requires attention with an estimated repair cost of $174,255. 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 114,887 sqft of a total 129,435 sqft, implying a vacancy of 11.24%. The rent roll is anchored by major tenants such as Evans Group and Stein-Baxter. The weighted average lease term (WALT) is approximately 7.7 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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: utility_easement benefiting an outside party; access_easement benefiting Sullivan-Gibson. The property is zoned M-1 (Networked mobile interface), 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": "41466 Schmidt Gardens Suite 113, Brownfort, Oklahoma 30927",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Bring business three likely magazine part apply between theory run few provide.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 141562
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Teach later career each behavior might.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Employee style yet product else through.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Action will wonder skill beautiful ready television.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 14039
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "capital",
      "red",
      "part",
      "doctor"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Similar special learn industry future. Card nation product use very election.",
        "estimated_repair_cost": 212697
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, upper level",
        "repair_recommendation": "Benefit practice itself evidence himself your. Difficult style learn.",
        "estimated_repair_cost": 174255
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 114887,
    "weighted_average_lease_term_years": 7.7,
    "major_tenants": [
      {
        "tenant_name": "Evans Group",
        "lease_start_date": "2022-01-10",
        "lease_end_date": "2030-11-17",
        "annual_rent": 194479,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Stein-Baxter",
        "lease_start_date": "2019-08-26",
        "lease_end_date": "2025-02-06",
        "annual_rent": 759298,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Guerrero and Sons",
        "lease_start_date": "2018-10-30",
        "lease_end_date": "2025-03-04",
        "annual_rent": 844058,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Thomas, Taylor and Mitchell",
        "lease_start_date": "2021-11-18",
        "lease_end_date": "2029-09-12",
        "annual_rent": 433187,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Rios-Bennett",
        "lease_start_date": "2022-12-16",
        "lease_end_date": "2032-08-22",
        "annual_rent": 116028,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 11.24,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Networked mobile interface)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Although throughout similar by total how teacher her enjoy offer form health."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Pretty teacher statement week oil issue professional art yeah.",
        "parties_involved": "Sullivan-Gibson"
      }
    ]
  },
  "analyst_firm": "Williams and Sons"
}