<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:** 409 Michelle Trafficway, North Melaniemouth, Colorado 87143
**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 **moderate** for a potential acquisition. The lead analyst, Stephen Barber, 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 moderate issue of asbestos_containing_materials, a moderate issue of soil_contamination with potential remediation costs of $70528. The assessment found no evidence of direct wetlands impact. Standard storage of materials like work, imagine 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, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $200,169. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $26,705. Furthermore, Candidate five present live together scene. 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 144,899 sqft of a total 152,830 sqft, implying a vacancy of 5.19%. The rent roll is anchored by major tenants such as Nash, Weber and Lewis and Walker, Huff and Krueger. The weighted average lease term (WALT) is approximately 2.0 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 **not yet confirmed**. The property is zoned I-1 (De-engineered demand-driven alliance), 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": "409 Michelle Trafficway, North Melaniemouth, Colorado 87143",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Consider set design evening reality measure live why technology what capital clearly major.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Plan paper mean policy story different clearly wonder.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 70528
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "work",
      "imagine"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Common interest over computer.",
        "estimated_repair_cost": 200169
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Generation particular card yet share more. One model physical step which charge former.",
        "estimated_repair_cost": 26705
      }
    ],
    "ada_compliance_notes": "Candidate five present live together scene."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 144899,
    "weighted_average_lease_term_years": 2.0,
    "major_tenants": [
      {
        "tenant_name": "Nash, Weber and Lewis",
        "lease_start_date": "2019-10-03",
        "lease_end_date": "2027-09-20",
        "annual_rent": 882449,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Walker, Huff and Krueger",
        "lease_start_date": "2018-03-01",
        "lease_end_date": "2024-09-12",
        "annual_rent": 701465,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Turner-Bradford",
        "lease_start_date": "2020-02-23",
        "lease_end_date": "2027-06-18",
        "annual_rent": 938604,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "French PLC",
        "lease_start_date": "2023-08-20",
        "lease_end_date": "2028-09-16",
        "annual_rent": 880168,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "White, Vaughn and Figueroa",
        "lease_start_date": "2022-01-11",
        "lease_end_date": "2030-07-16",
        "annual_rent": 203683,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 5.19,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (De-engineered demand-driven alliance)",
    "zoning_compliance_confirmed": true
  }
}