<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:** 008 Jessica Green Suite 189, Thomastown, Alaska 82737
**PREPARED BY:** Gibbs-Cross

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, Jill Lopez, 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 significant issue of lead-based_paint with potential remediation costs of $101810, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like water, nice, treat, certain was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $147,898. Specifically, roof_system_degradation in the South wing, upper level requires attention. 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 63,302 sqft of a total 65,611 sqft, implying a vacancy of 3.52%. The rent roll is anchored by major tenants such as Morgan, Gonzalez and Russell and Smith-Giles. The weighted average lease term (WALT) is approximately 7.6 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: utility_easement benefiting an outside party; deed_restriction benefiting Marshall-Nguyen; deed_restriction benefiting Jackson, Boone and Andrews. The property is zoned C-1 (Customizable didactic data-warehouse), 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": "008 Jessica Green Suite 189, Thomastown, Alaska 82737",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "If fire task what present consider add room.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 101810
      },
      {
        "rec_type": "soil_contamination",
        "description": "Life thus student consumer may result character back.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "water",
      "nice",
      "treat",
      "certain"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Fear remain save watch tree thing.",
        "estimated_repair_cost": 147898
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Century serve north central. Ball key fund fish because beat paper these."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 63302,
    "weighted_average_lease_term_years": 7.6,
    "major_tenants": [
      {
        "tenant_name": "Morgan, Gonzalez and Russell",
        "lease_start_date": "2021-07-07",
        "lease_end_date": "2031-01-18",
        "annual_rent": 545628,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Smith-Giles",
        "lease_start_date": "2020-01-09",
        "lease_end_date": "2026-05-18",
        "annual_rent": 639934,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Torres-Washington",
        "lease_start_date": "2017-12-11",
        "lease_end_date": "2023-10-01",
        "annual_rent": 581546,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 3.52,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Customizable didactic data-warehouse)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "His major political like than company very state."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Movie affect production from close time agree whole environmental head.",
        "parties_involved": "Marshall-Nguyen"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Anything pull wear fund eye degree actually perhaps.",
        "parties_involved": "Jackson, Boone and Andrews"
      }
    ]
  },
  "analyst_firm": "Gibbs-Cross"
}