<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:** 39558 Ford Prairie Apt. 498, Michaelmouth, Texas 38159
**PREPARED BY:** Dean PLC

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, Stephanie Spencer, 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 minor issue of groundwater_impact with potential remediation costs of $9627, a moderate issue of groundwater_impact with potential remediation costs of $142088, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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 East wing, upper level requires attention with an estimated repair cost of $240,920. Specifically, roof_system_degradation in the North wing, upper level requires attention with an estimated repair cost of $75,839. Furthermore, Themselves test type card realize meeting system hit. 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 182,946 sqft of a total 199,265 sqft, implying a vacancy of 8.19%. The rent roll is anchored by major tenants such as Johnson Group and Taylor LLC. The weighted average lease term (WALT) is approximately 7.3 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 I-1 (Business-focused contextually-based open architecture), 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": "39558 Ford Prairie Apt. 498, Michaelmouth, Texas 38159",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Accept somebody wife fire these Congress even within political difference star.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 9627
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Somebody all central pressure behind us.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 142088
      },
      {
        "rec_type": "soil_contamination",
        "description": "Outside pull lose mention data see.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Off TV ever right after to focus.",
        "estimated_repair_cost": 240920
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Experience practice guy public name build thousand nearly. Up character song Mrs.",
        "estimated_repair_cost": 75839
      }
    ],
    "ada_compliance_notes": "Themselves test type card realize meeting system hit."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 182946,
    "weighted_average_lease_term_years": 7.3,
    "major_tenants": [
      {
        "tenant_name": "Johnson Group",
        "lease_start_date": "2019-11-08",
        "lease_end_date": "2026-08-04",
        "annual_rent": 519376,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Taylor LLC",
        "lease_start_date": "2021-07-31",
        "lease_end_date": "2026-06-24",
        "annual_rent": 834252,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Lindsey PLC",
        "lease_start_date": "2024-07-22",
        "lease_end_date": "2031-01-27",
        "annual_rent": 860241,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Best LLC",
        "lease_start_date": "2024-08-06",
        "lease_end_date": "2028-05-18",
        "annual_rent": 138384,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Burgess LLC",
        "lease_start_date": "2022-05-09",
        "lease_end_date": "2030-11-11",
        "annual_rent": 776405,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 8.19,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Business-focused contextually-based open architecture)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Dean PLC"
}