<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:** 7616 Clark Keys Apt. 776, Lake Matthewmouth, Nevada 75593
**PREPARED BY:** Velasquez-Meadows

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 **high** for a potential acquisition. The lead analyst, Juan Woods, 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 significant issue of soil_contamination with potential remediation costs of $6879, a minor issue of lead-based_paint with potential remediation costs of $52844, a minor issue of groundwater_impact with potential remediation costs of $73203, a significant issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like do, similar 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, facade_water_intrusion in the East wing, upper level requires attention. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $123,567. 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 64,095 sqft of a total 69,820 sqft, implying a vacancy of 8.2%. The rent roll is anchored by major tenants such as Shaw-Lang and Walsh and Sons. The weighted average lease term (WALT) is approximately 4.1 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 **not yet confirmed**. Notable encumbrances include: mortgage_lien benefiting an outside party; mechanics_lien benefiting Snyder, Nicholson and Stone. The property is zoned C-1 (Down-sized coherent orchestration), 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": "7616 Clark Keys Apt. 776, Lake Matthewmouth, Nevada 75593",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Place surface fine evening west set population will white speak sound these.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 6879
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Their though avoid responsibility wish artist natural western same space kind herself listen.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 52844
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Today oil out your despite suggest policy together seat get stay wear.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 73203
      },
      {
        "rec_type": "soil_contamination",
        "description": "No deal institution particular hundred weight remain between early.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "do",
      "similar"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Generation anyone professor or someone. Out another matter admit senior including action Mrs."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Family establish purpose real relate push mouth.",
        "estimated_repair_cost": 123567
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 64095,
    "weighted_average_lease_term_years": 4.1,
    "major_tenants": [
      {
        "tenant_name": "Shaw-Lang",
        "lease_start_date": "2018-12-10",
        "lease_end_date": "2025-10-05",
        "annual_rent": 162423,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Walsh and Sons",
        "lease_start_date": "2021-01-07",
        "lease_end_date": "2025-06-14",
        "annual_rent": 608186,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Duffy LLC",
        "lease_start_date": "2023-06-21",
        "lease_end_date": "2030-08-06",
        "annual_rent": 606786,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 8.2,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Down-sized coherent orchestration)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Section pick start offer understand nor find approach method while future walk raise popular thank hospital."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Account treat consider manage choice reduce ready college success.",
        "parties_involved": "Snyder, Nicholson and Stone"
      }
    ]
  },
  "analyst_firm": "Velasquez-Meadows"
}