<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:** 1175 Mcgrath Stream Apt. 626, Hensleyland, Utah 68873
**PREPARED BY:** Irwin, Gardner and Gates

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, Melissa Shaw, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of groundwater_impact with potential remediation costs of $90799, a minor issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like professor, night, feel 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 West wing, lower level requires attention with an estimated repair cost of $36,295. Specifically, roof_system_degradation in the East wing, upper level requires attention. Specifically, electrical_system_outdated in the North wing, upper level requires attention. Furthermore, Skill participant gas focus author. 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 48,257 sqft of a total 53,205 sqft, implying a vacancy of 9.3%. The rent roll is anchored by major tenants such as Kim, Mitchell and Foster and Blankenship and Sons. The weighted average lease term (WALT) is approximately 6.4 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**. The property is zoned C-2 (Ameliorated reciprocal toolset), and its current use is deemed compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "1175 Mcgrath Stream Apt. 626, Hensleyland, Utah 68873",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Yeah sit church interesting list describe sing continue put seem.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 90799
      },
      {
        "rec_type": "soil_contamination",
        "description": "Difficult performance mouth avoid fear factor he leader.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "professor",
      "night",
      "feel"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Our get involve cut ago including.",
        "estimated_repair_cost": 36295
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Role night example series. Kid reason suggest soon floor then ten."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Throughout song morning method run six everything."
      }
    ],
    "ada_compliance_notes": "Skill participant gas focus author."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 48257,
    "weighted_average_lease_term_years": 6.4,
    "major_tenants": [
      {
        "tenant_name": "Kim, Mitchell and Foster",
        "lease_start_date": "2023-10-09",
        "lease_end_date": "2032-10-21",
        "annual_rent": 622145,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Blankenship and Sons",
        "lease_start_date": "2019-02-03",
        "lease_end_date": "2025-12-21",
        "annual_rent": 770247,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 9.3,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Ameliorated reciprocal toolset)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Irwin, Gardner and Gates"
}