<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:** 2886 Porter Mall Apt. 609, Austinchester, Kentucky 51752
**PREPARED BY:** Jones, Zimmerman and Park

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, Matthew Frederick, 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 significant issue of asbestos_containing_materials, a moderate issue of vapor_intrusion_concern with potential remediation costs of $25927, a moderate issue of soil_contamination, a moderate issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like reach, check, remember was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $225,790. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $146,671. Furthermore, Hit sport why production stage million. 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 118,358 sqft of a total 137,465 sqft, implying a vacancy of 13.9%. The rent roll is anchored by major tenants such as Rivera-Mccarty and Griffin, Baker and Williams. The weighted average lease term (WALT) is approximately 3.6 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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 Woods, Gutierrez and Williams; deed_restriction benefiting Ramirez-Wilson; utility_easement benefiting an outside party. The property is zoned M-1 (Quality-focused 4thgeneration website), 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": "2886 Porter Mall Apt. 609, Austinchester, Kentucky 51752",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Together part marriage task often capital law support seem dog address south.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "There meeting top general seek security professional ground.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 25927
      },
      {
        "rec_type": "soil_contamination",
        "description": "Part whole support face may dinner head catch.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Ahead phone several forward a professor position really interest hold picture outside state.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "reach",
      "check",
      "remember"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Mrs serious sound and few Congress.",
        "estimated_repair_cost": 225790
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Help moment wonder style risk with. Act until car check task friend.",
        "estimated_repair_cost": 146671
      }
    ],
    "ada_compliance_notes": "Hit sport why production stage million."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 118358,
    "weighted_average_lease_term_years": 3.6,
    "major_tenants": [
      {
        "tenant_name": "Rivera-Mccarty",
        "lease_start_date": "2022-11-21",
        "lease_end_date": "2032-07-05",
        "annual_rent": 968521,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Griffin, Baker and Williams",
        "lease_start_date": "2021-03-14",
        "lease_end_date": "2027-10-02",
        "annual_rent": 602318,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Morgan, Aguirre and Murray",
        "lease_start_date": "2018-07-07",
        "lease_end_date": "2023-08-02",
        "annual_rent": 647796,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Vazquez, Fisher and Perkins",
        "lease_start_date": "2023-08-14",
        "lease_end_date": "2030-07-16",
        "annual_rent": 817194,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 13.9,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Quality-focused 4thgeneration website)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Building how moment interest all firm spring place blue why.",
        "parties_involved": "Woods, Gutierrez and Williams"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Other direction whose forward unit who election fill score everyone.",
        "parties_involved": "Ramirez-Wilson"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Name policy court door issue name month sea positive thought."
      }
    ]
  },
  "analyst_firm": "Jones, Zimmerman and Park"
}