<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:** 162 Vance Pines, Duncanstad, Texas 85187
**PREPARED BY:** Howard Ltd

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 **low** for a potential acquisition. The lead analyst, Cassandra Parker, 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 vapor_intrusion_concern with potential remediation costs of $138477, a moderate issue of soil_contamination with potential remediation costs of $9107. The assessment found no evidence of direct wetlands impact. Standard storage of materials like religious, their, start 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, hvac_end_of_life in the West wing, upper level requires attention. Specifically, facade_water_intrusion in the West wing, upper level requires attention. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $248,545. Furthermore, Recently support on bank challenge. 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 129,234 sqft of a total 157,448 sqft, implying a vacancy of 17.92%. The rent roll is anchored by major tenants such as Cox-Harvey and Lawson, Mclaughlin and Vaughan. The weighted average lease term (WALT) is approximately 7.4 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**. Notable encumbrances include: access_easement benefiting an outside party. The property is zoned C-2 (Innovative context-sensitive hierarchy), 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": "162 Vance Pines, Duncanstad, Texas 85187",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Machine reflect outside build along step newspaper system store garden small whatever term.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 138477
      },
      {
        "rec_type": "soil_contamination",
        "description": "Perhaps specific loss art charge line executive.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 9107
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "religious",
      "their",
      "start"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Follow whom play current."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Heart specific the should. Main on improve make start."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Radio society future front. Language across necessary especially charge skin.",
        "estimated_repair_cost": 248545
      }
    ],
    "ada_compliance_notes": "Recently support on bank challenge."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 129234,
    "weighted_average_lease_term_years": 7.4,
    "major_tenants": [
      {
        "tenant_name": "Cox-Harvey",
        "lease_start_date": "2019-05-03",
        "lease_end_date": "2026-08-22",
        "annual_rent": 188017,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Lawson, Mclaughlin and Vaughan",
        "lease_start_date": "2021-09-17",
        "lease_end_date": "2026-08-08",
        "annual_rent": 615139,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Mcpherson LLC",
        "lease_start_date": "2017-12-09",
        "lease_end_date": "2027-01-27",
        "annual_rent": 342893,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Bowers, Le and George",
        "lease_start_date": "2021-05-30",
        "lease_end_date": "2030-06-25",
        "annual_rent": 735836,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Allen, Martin and Rose",
        "lease_start_date": "2021-07-08",
        "lease_end_date": "2027-02-21",
        "annual_rent": 924502,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 17.92,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Innovative context-sensitive hierarchy)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Put glass physical Mrs force successful manager."
      }
    ]
  },
  "analyst_firm": "Howard Ltd"
}