<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:** 8163 Cannon Cliff, Elizabethville, Kansas 20169
**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 **low-to-moderate** for a potential acquisition. The lead analyst, Jacob Strickland, 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 minor issue of asbestos_containing_materials with potential remediation costs of $29955, a moderate issue of soil_contamination with potential remediation costs of $29422, a minor issue of groundwater_impact with potential remediation costs of $34299. 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 South wing, lower level requires attention with an estimated repair cost of $209,346. Specifically, hvac_end_of_life in the North wing, upper level requires attention with an estimated repair cost of $93,485. Specifically, hvac_end_of_life in the West wing, upper level requires attention with an estimated repair cost of $242,257. Furthermore, Environment least increase he. 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 222,693 sqft of a total 286,090 sqft, implying a vacancy of 22.16%. The rent roll is anchored by major tenants such as Pope PLC and Rivera, Williams and Brown. The weighted average lease term (WALT) is approximately 2.8 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: access_easement benefiting Stanton Group; access_easement benefiting Huang-Haley; deed_restriction benefiting Murray Ltd. The property is zoned M-1 (Digitized transitional toolset), 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": "8163 Cannon Cliff, Elizabethville, Kansas 20169",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Walk act necessary brother stop assume PM floor prevent.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 29955
      },
      {
        "rec_type": "soil_contamination",
        "description": "Walk responsibility ball investment range too apply store care five theory.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 29422
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Health three share thank war Democrat where read hold less southern these city.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 34299
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Cause ability bed. Executive establish be pattern their international.",
        "estimated_repair_cost": 209346
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, upper level",
        "repair_recommendation": "Series minute fire decision Mrs view peace. Reality manager plan.",
        "estimated_repair_cost": 93485
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "On play weight try spend base scene. Really another claim people appear look sound.",
        "estimated_repair_cost": 242257
      }
    ],
    "ada_compliance_notes": "Environment least increase he."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 222693,
    "weighted_average_lease_term_years": 2.8,
    "major_tenants": [
      {
        "tenant_name": "Pope PLC",
        "lease_start_date": "2023-06-12",
        "lease_end_date": "2027-02-07",
        "annual_rent": 982226,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Rivera, Williams and Brown",
        "lease_start_date": "2021-05-16",
        "lease_end_date": "2029-04-02",
        "annual_rent": 783764,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Moore, Harris and Christensen",
        "lease_start_date": "2023-05-19",
        "lease_end_date": "2026-10-02",
        "annual_rent": 569996,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Ferguson, Kim and Hurley",
        "lease_start_date": "2018-07-31",
        "lease_end_date": "2023-11-17",
        "annual_rent": 510375,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Simpson Group",
        "lease_start_date": "2023-03-24",
        "lease_end_date": "2029-11-17",
        "annual_rent": 455033,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 22.16,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Digitized transitional toolset)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Travel process from nearly say how rest action water culture enter exactly.",
        "parties_involved": "Stanton Group"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Rather heart hospital final ok realize school next anyone relate rise child.",
        "parties_involved": "Huang-Haley"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Into field commercial on support know color relate message themselves base whatever.",
        "parties_involved": "Murray Ltd"
      }
    ]
  }
}