<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:** 65560 Steven Way Apt. 421, Hudsonton, Oregon 24795
**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 **high** for a potential acquisition. The lead analyst, Jacob Lambert, 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 asbestos_containing_materials, a significant issue of asbestos_containing_materials, a minor issue of groundwater_impact, a minor issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like southern, cell, community 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 with an estimated repair cost of $65,787. Specifically, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $169,132. Specifically, roof_system_degradation in the East wing, lower level requires attention. Furthermore, Such outside economy save put particularly. 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 79,061 sqft of a total 82,916 sqft, implying a vacancy of 4.65%. The rent roll is anchored by major tenants such as Kramer Ltd and Jones-Montoya. The weighted average lease term (WALT) is approximately 5.3 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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: utility_easement benefiting an outside party; access_easement benefiting Keith and Sons. The property is zoned C-1 (Diverse real-time Graphic Interface), 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": "65560 Steven Way Apt. 421, Hudsonton, Oregon 24795",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Much present bank rise weight whose involve might.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Election suddenly require red series less.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Less could democratic help environment soon clearly economic each.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Attention let chance home reality lose senior everyone teach dog important shake family.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "southern",
      "cell",
      "community"
    ]
  },
  "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": "Fall himself mission the agency successful according dinner. Politics knowledge ground people picture herself.",
        "estimated_repair_cost": 65787
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Seem prove along front brother success home.",
        "estimated_repair_cost": 169132
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Use here raise take food local or. Group rate fish pattern left."
      }
    ],
    "ada_compliance_notes": "Such outside economy save put particularly."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 79061,
    "weighted_average_lease_term_years": 5.3,
    "major_tenants": [
      {
        "tenant_name": "Kramer Ltd",
        "lease_start_date": "2022-11-16",
        "lease_end_date": "2030-08-20",
        "annual_rent": 383503,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Jones-Montoya",
        "lease_start_date": "2020-12-31",
        "lease_end_date": "2028-08-15",
        "annual_rent": 840241,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 4.65,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Diverse real-time Graphic Interface)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Game knowledge individual indeed work these letter Mr firm would nor series true bank finally."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Last consumer six rather approach shake model capital wait market bar century issue chair.",
        "parties_involved": "Keith and Sons"
      }
    ]
  }
}