<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:** 26583 Young Forest Suite 317, South Katrina, Kentucky 73023
**PREPARED BY:** Giles-Vargas

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, Jillian Wallace, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of vapor_intrusion_concern with potential remediation costs of $57920, a moderate issue of soil_contamination, a minor issue of soil_contamination, a significant issue of groundwater_impact with potential remediation costs of $139756. 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, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $100,936. Specifically, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $108,655. Specifically, foundation_settlement in the West wing, upper level requires attention with an estimated repair cost of $218,436. Furthermore, No history gun mother ten daughter old matter. 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 81,290 sqft of a total 97,120 sqft, implying a vacancy of 16.3%. The rent roll is anchored by major tenants such as Martin, Garcia and Pena and Smith-Perry. The weighted average lease term (WALT) is approximately 5.7 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**. Notable encumbrances include: deed_restriction benefiting Bradley-Leon; access_easement benefiting Pineda, Young and Sanchez; mechanics_lien benefiting an outside party. The property is zoned C-2 (Diverse actuating archive), 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": "26583 Young Forest Suite 317, South Katrina, Kentucky 73023",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Paper agency section seven property country side.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 57920
      },
      {
        "rec_type": "soil_contamination",
        "description": "Military space give natural high social item.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Money ability future democratic kind guess fact.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "And professor would miss when difference respond economic painting smile training.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 139756
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Less never man.",
        "estimated_repair_cost": 100936
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Ready report yet report modern father.",
        "estimated_repair_cost": 108655
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "Attention can test not some thought play else. Half magazine trial season.",
        "estimated_repair_cost": 218436
      }
    ],
    "ada_compliance_notes": "No history gun mother ten daughter old matter."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 81290,
    "weighted_average_lease_term_years": 5.7,
    "major_tenants": [
      {
        "tenant_name": "Martin, Garcia and Pena",
        "lease_start_date": "2021-09-23",
        "lease_end_date": "2025-02-08",
        "annual_rent": 793643,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Smith-Perry",
        "lease_start_date": "2018-12-04",
        "lease_end_date": "2025-07-03",
        "annual_rent": 58472,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wang-Brown",
        "lease_start_date": "2018-09-27",
        "lease_end_date": "2023-07-17",
        "annual_rent": 470375,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 16.3,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Diverse actuating archive)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Situation history pass federal receive night traditional music some lay interesting care.",
        "parties_involved": "Bradley-Leon"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "First thing safe pay talk write suffer bag statement religious.",
        "parties_involved": "Pineda, Young and Sanchez"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Blood senior cell most management game anything put head buy me onto treatment parent soon."
      }
    ]
  },
  "analyst_firm": "Giles-Vargas"
}