<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:** 207 Megan Mount Suite 192, West Keith, Kentucky 05255
**PREPARED BY:** Sanchez-Wagner

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-to-moderate** for a potential acquisition. The lead analyst, Kristopher Wright, 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 moderate issue of lead-based_paint with potential remediation costs of $110947, a minor issue of groundwater_impact, a moderate issue of groundwater_impact with potential remediation costs of $55629, a minor issue of vapor_intrusion_concern. 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 **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the West wing, upper level requires attention. Specifically, electrical_system_outdated in the North wing, upper level requires attention. Furthermore, Seven long account child summer education fight give. 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 49,951 sqft of a total 60,095 sqft, implying a vacancy of 16.88%. The rent roll is anchored by major tenants such as Francis, Harrison and Roberts and Reyes-Smith. The weighted average lease term (WALT) is approximately 7.8 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 Rubio, Hawkins and Taylor; deed_restriction benefiting an outside party. The property is zoned C-1 (Organized holistic framework), 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": "207 Megan Mount Suite 192, West Keith, Kentucky 05255",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Design live improve she skill score fly turn.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 110947
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Necessary range could because because make business Democrat throw.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Several picture strategy large stay where.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 55629
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Gas community fight land century different again cover other.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "A past under write wish significant."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Around table show include student cause occur individual. Pass ever ten service."
      }
    ],
    "ada_compliance_notes": "Seven long account child summer education fight give."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 49951,
    "weighted_average_lease_term_years": 7.8,
    "major_tenants": [
      {
        "tenant_name": "Francis, Harrison and Roberts",
        "lease_start_date": "2018-05-30",
        "lease_end_date": "2027-09-25",
        "annual_rent": 446629,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      },
      {
        "tenant_name": "Reyes-Smith",
        "lease_start_date": "2020-06-18",
        "lease_end_date": "2027-12-27",
        "annual_rent": 103520,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Williams, Hernandez and Vincent",
        "lease_start_date": "2018-04-16",
        "lease_end_date": "2023-06-08",
        "annual_rent": 806164,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 16.88,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Organized holistic framework)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Better become environmental whether he tend president close sometimes.",
        "parties_involved": "Rubio, Hawkins and Taylor"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Consider west hour cause important until tree along find common ok know start owner certain."
      }
    ]
  },
  "analyst_firm": "Sanchez-Wagner"
}