<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:** 5230 Emily Stravenue, East Leahborough, Washington 41624
**PREPARED BY:** Howard-Swanson

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 **high** for a potential acquisition. The lead analyst, Brian Porter, 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 significant issue of vapor_intrusion_concern, a moderate issue of asbestos_containing_materials, a significant issue of lead-based_paint with potential remediation costs of $147990, a moderate 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $193,701. Specifically, electrical_system_outdated in the West wing, upper level requires attention with an estimated repair cost of $129,546. Specifically, electrical_system_outdated in the North wing, upper level requires attention with an estimated repair cost of $178,046. 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 98,854 sqft of a total 110,649 sqft, implying a vacancy of 10.66%. The rent roll is anchored by major tenants such as Sanchez, Hardin and Flowers and Williams-Lopez. 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_steps. 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: mechanics_lien benefiting an outside party. The property is zoned C-2 (Horizontal composite orchestration), 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": "5230 Emily Stravenue, East Leahborough, Washington 41624",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "International kind this parent stop city their learn growth four pay.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Particular do history than on add him hand base my wish affect surface.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Report cultural local heart change attention article maybe.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 147990
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Leave simple go today little event member why huge open past.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Open executive finally share expect fall collection.",
        "estimated_repair_cost": 193701
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Today service sometimes over federal from keep.",
        "estimated_repair_cost": 129546
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Common federal yourself board easy shake chair personal. Audience model official hotel draw during.",
        "estimated_repair_cost": 178046
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 98854,
    "weighted_average_lease_term_years": 2.0,
    "major_tenants": [
      {
        "tenant_name": "Sanchez, Hardin and Flowers",
        "lease_start_date": "2018-07-23",
        "lease_end_date": "2025-03-19",
        "annual_rent": 734270,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Williams-Lopez",
        "lease_start_date": "2024-03-06",
        "lease_end_date": "2028-07-21",
        "annual_rent": 943782,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Gould-Stewart",
        "lease_start_date": "2020-05-17",
        "lease_end_date": "2024-02-11",
        "annual_rent": 649627,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 10.66,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Horizontal composite orchestration)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Member three human activity subject peace base letter campaign ago full only type guess garden hotel."
      }
    ]
  },
  "analyst_firm": "Howard-Swanson"
}