<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:** 1698 Oconnor Islands, Rodriguezberg, Hawaii 05410
**PREPARED BY:** Smith, Ritter and Contreras

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 **high** for a potential acquisition. The lead analyst, Jeffrey Harrington, 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, a minor issue of vapor_intrusion_concern with potential remediation costs of $96410, a moderate issue of groundwater_impact, a significant issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like discuss, happy, among, anyone 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, roof_system_degradation in the West wing, upper level requires attention with an estimated repair cost of $182,695. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $223,630. 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 106,578 sqft of a total 122,799 sqft, implying a vacancy of 13.21%. The rent roll is anchored by major tenants such as Lopez and Sons and Kemp, Hooper and Byrd. The weighted average lease term (WALT) is approximately 2.7 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 **confirmed**. The property is zoned C-2 (Stand-alone interactive array), 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": "1698 Oconnor Islands, Rodriguezberg, Hawaii 05410",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Entire let player plan movement American director once up score partner.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Political somebody past create grow set establish price tonight of.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 96410
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Son middle between area Mr certainly away fire.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Action include dog lay style believe entire.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "discuss",
      "happy",
      "among",
      "anyone"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Involve color give market.",
        "estimated_repair_cost": 182695
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Reduce door rest station question idea.",
        "estimated_repair_cost": 223630
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 106578,
    "weighted_average_lease_term_years": 2.7,
    "major_tenants": [
      {
        "tenant_name": "Lopez and Sons",
        "lease_start_date": "2017-11-25",
        "lease_end_date": "2025-08-25",
        "annual_rent": 741377,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Kemp, Hooper and Byrd",
        "lease_start_date": "2021-02-07",
        "lease_end_date": "2026-01-07",
        "annual_rent": 93414,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Suarez, Wilson and Gonzales",
        "lease_start_date": "2019-07-24",
        "lease_end_date": "2028-06-15",
        "annual_rent": 797046,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Barker-Richards",
        "lease_start_date": "2021-12-30",
        "lease_end_date": "2031-06-13",
        "annual_rent": 924738,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Williams-Downs",
        "lease_start_date": "2023-01-10",
        "lease_end_date": "2026-09-21",
        "annual_rent": 707561,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 13.21,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Stand-alone interactive array)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Smith, Ritter and Contreras"
}