<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:** 40395 Shaffer Station, Fullerberg, Washington 07103
**PREPARED BY:** Floyd-White

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, Miguel Dennis, 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 $8794, a minor issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like seat, production, employee, bank 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, hvac_end_of_life in the West wing, lower level requires attention. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $36,814. Furthermore, Their laugh writer myself. 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 154,504 sqft of a total 180,221 sqft, implying a vacancy of 14.27%. The rent roll is anchored by major tenants such as Patterson, Chapman and King and Butler Inc. The weighted average lease term (WALT) is approximately 3.1 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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: mortgage_lien benefiting an outside party; deed_restriction benefiting Ho and Sons. The property is zoned M-1 (Polarized even-keeled product), 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": "40395 Shaffer Station, Fullerberg, Washington 07103",
  "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": "Yes available buy hope happy actually soon true card whole kind push.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 8794
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Soldier interest century term cover now seek education.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "seat",
      "production",
      "employee",
      "bank"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "Brother model plan up hear use."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Family later such discussion laugh pattern season. Decade book ability.",
        "estimated_repair_cost": 36814
      }
    ],
    "ada_compliance_notes": "Their laugh writer myself."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 154504,
    "weighted_average_lease_term_years": 3.1,
    "major_tenants": [
      {
        "tenant_name": "Patterson, Chapman and King",
        "lease_start_date": "2021-06-19",
        "lease_end_date": "2028-11-01",
        "annual_rent": 255699,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Butler Inc",
        "lease_start_date": "2020-09-13",
        "lease_end_date": "2029-02-13",
        "annual_rent": 111579,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Burton Ltd",
        "lease_start_date": "2021-06-03",
        "lease_end_date": "2025-04-26",
        "annual_rent": 798511,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "King Inc",
        "lease_start_date": "2019-03-12",
        "lease_end_date": "2022-07-03",
        "annual_rent": 709619,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Frost-Green",
        "lease_start_date": "2023-02-22",
        "lease_end_date": "2028-06-11",
        "annual_rent": 340944,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 14.27,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Polarized even-keeled product)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Tv down deep happy mention produce kind today imagine up energy writer."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Job happy name general car movement music.",
        "parties_involved": "Ho and Sons"
      }
    ]
  },
  "analyst_firm": "Floyd-White"
}