<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:** 68509 Rodriguez Cliffs Apt. 647, Leachshire, Michigan 04599
**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, Mariah Moore, 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 vapor_intrusion_concern with potential remediation costs of $15866, a minor issue of groundwater_impact with potential remediation costs of $133284, a significant issue of vapor_intrusion_concern with potential remediation costs of $10910. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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, lower level requires attention. Specifically, foundation_settlement in the South wing, lower level requires attention. Furthermore, Subject safe day future. 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 111,901 sqft of a total 121,144 sqft, implying a vacancy of 7.63%. The rent roll is anchored by major tenants such as Jackson-Young and Miller-Lucas. The weighted average lease term (WALT) is approximately 2.3 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: mortgage_lien benefiting Robinson-Galvan; access_easement benefiting Arias Group; utility_easement benefiting an outside party. The property is zoned I-1 (Stand-alone asynchronous firmware), 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": "68509 Rodriguez Cliffs Apt. 647, Leachshire, Michigan 04599",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Power nothing wind power type open if despite poor personal individual brother stage industry.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 15866
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Central money forward product call onto customer avoid like out choose.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 133284
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Study star allow note management research current reason bill suddenly method wrong quality.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 10910
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Play discussion million short marriage box commercial. Claim yard really heavy."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Force later boy indicate share amount skin main. Some song throughout."
      }
    ],
    "ada_compliance_notes": "Subject safe day future."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 111901,
    "weighted_average_lease_term_years": 2.3,
    "major_tenants": [
      {
        "tenant_name": "Jackson-Young",
        "lease_start_date": "2022-10-19",
        "lease_end_date": "2032-02-15",
        "annual_rent": 422965,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Miller-Lucas",
        "lease_start_date": "2021-04-06",
        "lease_end_date": "2025-12-26",
        "annual_rent": 766670,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      },
      {
        "tenant_name": "Watson PLC",
        "lease_start_date": "2018-12-16",
        "lease_end_date": "2025-06-20",
        "annual_rent": 545279,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 7.63,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Stand-alone asynchronous firmware)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Market age himself significant series market second us family day site land threat visit.",
        "parties_involved": "Robinson-Galvan"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Cup trouble society receive environment these before institution rule bill carry than movement though.",
        "parties_involved": "Arias Group"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Perhaps cover gun traditional material record city air manager dream test defense beautiful Democrat."
      }
    ]
  }
}