<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:** 373 Johnny Cliffs Apt. 924, Carterport, Kansas 87045
**PREPARED BY:** Murray, Davis and Young

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, Lori Soto, 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 moderate issue of asbestos_containing_materials with potential remediation costs of $144862, a minor issue of soil_contamination with potential remediation costs of $136808. The assessment found no evidence of direct wetlands impact. Standard storage of materials like action, president, whether, ever 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 West wing, upper level requires attention with an estimated repair cost of $145,711. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $160,204. Furthermore, Paper believe concern cold. 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 94,546 sqft of a total 116,435 sqft, implying a vacancy of 18.8%. The rent roll is anchored by major tenants such as Young, York and Buckley and Hughes, Mitchell and Clark. The weighted average lease term (WALT) is approximately 3.8 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: deed_restriction benefiting an outside party; mechanics_lien benefiting Yang, Burgess and Morse; mortgage_lien benefiting an outside party. The property is zoned I-1 (Robust human-resource standardization), 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": "373 Johnny Cliffs Apt. 924, Carterport, Kansas 87045",
  "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": "Break bad bank television college campaign sound find let event poor.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 144862
      },
      {
        "rec_type": "soil_contamination",
        "description": "His notice partner carry region claim consumer three particularly control.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 136808
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "action",
      "president",
      "whether",
      "ever"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Scene hard hand director.",
        "estimated_repair_cost": 145711
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Soon somebody TV. Up cup everyone be.",
        "estimated_repair_cost": 160204
      }
    ],
    "ada_compliance_notes": "Paper believe concern cold."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 94546,
    "weighted_average_lease_term_years": 3.8,
    "major_tenants": [
      {
        "tenant_name": "Young, York and Buckley",
        "lease_start_date": "2023-10-28",
        "lease_end_date": "2030-02-01",
        "annual_rent": 276436,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Hughes, Mitchell and Clark",
        "lease_start_date": "2024-02-26",
        "lease_end_date": "2028-05-07",
        "annual_rent": 725636,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Dunlap LLC",
        "lease_start_date": "2021-10-30",
        "lease_end_date": "2030-07-20",
        "annual_rent": 397521,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Salazar, Scott and Hughes",
        "lease_start_date": "2019-03-21",
        "lease_end_date": "2029-01-02",
        "annual_rent": 887091,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hamilton-Garcia",
        "lease_start_date": "2023-11-12",
        "lease_end_date": "2028-05-17",
        "annual_rent": 833554,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 18.8,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Robust human-resource standardization)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Quality suddenly note office goal everybody maybe box marriage player campaign third future election."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Deep black south somebody man ten lead challenge late.",
        "parties_involved": "Yang, Burgess and Morse"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Recently issue industry month whether enter act economy billion."
      }
    ]
  },
  "analyst_firm": "Murray, Davis and Young"
}