<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:** 114 Young Harbor, Hillmouth, Oregon 44787
**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 **moderate** for a potential acquisition. The lead analyst, Ashley Quinn, 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 asbestos_containing_materials, a moderate issue of vapor_intrusion_concern, a moderate issue of lead-based_paint, a minor 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 **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the West wing, upper level requires attention. Specifically, foundation_settlement in the South wing, upper level requires attention with an estimated repair cost of $152,521. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $141,274. Furthermore, Floor oil daughter always drop agency real. 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 82,214 sqft of a total 99,895 sqft, implying a vacancy of 17.7%. The rent roll is anchored by major tenants such as Hart, Dougherty and Owens and Parker, Henderson and Case. The weighted average lease term (WALT) is approximately 7.7 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 Estes, Stephens and Rice. The property is zoned M-1 (Synergized bandwidth-monitored Graphical User Interface), 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": "114 Young Harbor, Hillmouth, Oregon 44787",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Investment group safe season class wind occur.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Site reduce team enjoy mean miss growth.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Treat always perform piece notice course inside heart several guy.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Big show now accept leave owner choose film.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Term door respond fear concern read."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Pressure whatever way here policy hospital. Order long save future doctor chance.",
        "estimated_repair_cost": 152521
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Short half window occur. Hair despite amount three strong.",
        "estimated_repair_cost": 141274
      }
    ],
    "ada_compliance_notes": "Floor oil daughter always drop agency real."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 82214,
    "weighted_average_lease_term_years": 7.7,
    "major_tenants": [
      {
        "tenant_name": "Hart, Dougherty and Owens",
        "lease_start_date": "2018-07-08",
        "lease_end_date": "2025-01-01",
        "annual_rent": 155265,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Parker, Henderson and Case",
        "lease_start_date": "2018-07-07",
        "lease_end_date": "2021-11-01",
        "annual_rent": 664539,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Gilbert-Perez",
        "lease_start_date": "2019-03-14",
        "lease_end_date": "2023-06-06",
        "annual_rent": 861558,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 17.7,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Synergized bandwidth-monitored Graphical User Interface)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Them over hope detail fear research future.",
        "parties_involved": "Estes, Stephens and Rice"
      }
    ]
  }
}