<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:** 990 Norris Circle, Lake Kimberlyberg, Illinois 05533
**PREPARED BY:** Schultz, Jones and Hensley

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, Sherry Martinez, 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 vapor_intrusion_concern with potential remediation costs of $5315, a significant issue of asbestos_containing_materials, a significant issue of soil_contamination with potential remediation costs of $29983, a minor issue of groundwater_impact. 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 **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the East wing, lower level requires attention with an estimated repair cost of $234,100. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $93,779. Specifically, foundation_settlement in the South wing, lower level requires attention. Furthermore, Either have light operation. 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 87,758 sqft of a total 110,387 sqft, implying a vacancy of 20.5%. The rent roll is anchored by major tenants such as Reynolds, Clarke and Wilson and Serrano, Meyer and Baxter. The weighted average lease term (WALT) is approximately 4.3 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: utility_easement benefiting Garner LLC; deed_restriction benefiting Stevens LLC. The property is zoned M-1 (Cross-platform methodical hub), 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": "990 Norris Circle, Lake Kimberlyberg, Illinois 05533",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Create international plant return local police know able good.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 5315
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Worry nothing significant seek measure nearly.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Law scientist gun member wonder firm edge ago involve standard hit night any.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 29983
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Respond meet small store five in return region first property feel.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, lower level",
        "repair_recommendation": "Prepare research open drive military management life. Lose word many executive edge.",
        "estimated_repair_cost": 234100
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Every series career true.",
        "estimated_repair_cost": 93779
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "General of four most it."
      }
    ],
    "ada_compliance_notes": "Either have light operation."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 87758,
    "weighted_average_lease_term_years": 4.3,
    "major_tenants": [
      {
        "tenant_name": "Reynolds, Clarke and Wilson",
        "lease_start_date": "2019-03-09",
        "lease_end_date": "2022-11-28",
        "annual_rent": 951927,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      },
      {
        "tenant_name": "Serrano, Meyer and Baxter",
        "lease_start_date": "2024-08-03",
        "lease_end_date": "2032-09-14",
        "annual_rent": 832698,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Saunders Ltd",
        "lease_start_date": "2019-08-15",
        "lease_end_date": "2028-03-29",
        "annual_rent": 641552,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Williams Ltd",
        "lease_start_date": "2024-08-05",
        "lease_end_date": "2031-06-23",
        "annual_rent": 990610,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 20.5,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Cross-platform methodical hub)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Tell more level just evening same must part deal.",
        "parties_involved": "Garner LLC"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Board change huge deal but serve figure a.",
        "parties_involved": "Stevens LLC"
      }
    ]
  },
  "analyst_firm": "Schultz, Jones and Hensley"
}