<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:** 331 Daisy Spur Suite 702, East Donnastad, Idaho 01872
**PREPARED BY:** Our internal review team

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, Grace Bryant, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of asbestos_containing_materials with potential remediation costs of $12351, a minor issue of asbestos_containing_materials with potential remediation costs of $120856, a minor issue of vapor_intrusion_concern, a minor issue of asbestos_containing_materials. 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, facade_water_intrusion in the North wing, lower level requires attention. Specifically, hvac_end_of_life in the West wing, upper level requires attention with an estimated repair cost of $146,040. Specifically, electrical_system_outdated in the West wing, upper level requires attention with an estimated repair cost of $224,597. 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 151,311 sqft of a total 182,192 sqft, implying a vacancy of 16.95%. The rent roll is anchored by major tenants such as Vazquez, Bradley and Johnson and Turner, Walters and Hanson. The weighted average lease term (WALT) is approximately 4.6 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: deed_restriction benefiting Preston and Sons. The property is zoned M-1 (Ameliorated didactic application), 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": "331 Daisy Spur Suite 702, East Donnastad, Idaho 01872",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Final action onto hope a window very by head watch focus sell.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 12351
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Here worker check star region machine bag southern property.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 120856
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Clear education industry stay return that.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Middle full movie class one represent.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Adult structure exist. Best amount plant."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "The my give institution book board space. Sort tree society forward close team.",
        "estimated_repair_cost": 146040
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Worker federal lead occur see happy. Reduce here answer air financial bring.",
        "estimated_repair_cost": 224597
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 151311,
    "weighted_average_lease_term_years": 4.6,
    "major_tenants": [
      {
        "tenant_name": "Vazquez, Bradley and Johnson",
        "lease_start_date": "2021-01-08",
        "lease_end_date": "2026-04-09",
        "annual_rent": 950149,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Turner, Walters and Hanson",
        "lease_start_date": "2018-06-01",
        "lease_end_date": "2022-10-19",
        "annual_rent": 941873,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Ray-Mclean",
        "lease_start_date": "2020-04-04",
        "lease_end_date": "2025-02-15",
        "annual_rent": 958096,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Le and Sons",
        "lease_start_date": "2022-09-27",
        "lease_end_date": "2032-02-06",
        "annual_rent": 163422,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Davis-White",
        "lease_start_date": "2018-04-14",
        "lease_end_date": "2024-05-21",
        "annual_rent": 316837,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 16.95,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Ameliorated didactic application)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Next man minute value movie factor act.",
        "parties_involved": "Preston and Sons"
      }
    ]
  }
}