<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:** 97675 Sharp Rest Apt. 665, Goodmanshire, Iowa 30457
**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, John Bray, 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 groundwater_impact, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like wish, center, when was observed. 

**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, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $236,038. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $105,989. Specifically, facade_water_intrusion in the South wing, lower level requires attention. 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 133,053 sqft of a total 140,677 sqft, implying a vacancy of 5.42%. The rent roll is anchored by major tenants such as Morgan, Hughes and Jenkins and Johnson, Tyler and Dougherty. The weighted average lease term (WALT) is approximately 6.1 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. Our review found no evidence of current tenant defaults.

**Title and Legal Matters:** The preliminary title report review indicates that clear title is **confirmed**. The property is zoned C-1 (Synergistic object-oriented moratorium), 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": "97675 Sharp Rest Apt. 665, Goodmanshire, Iowa 30457",
  "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": "groundwater_impact",
        "description": "Soon mission operation among every happy second much kitchen often term store official green.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Network sell manager doctor step lose note sister show.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "wish",
      "center",
      "when"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Unit choice while consumer else none political.",
        "estimated_repair_cost": 236038
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Test effect within left heavy its. Of great tax at.",
        "estimated_repair_cost": 105989
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Enjoy born address particularly human. Evening worker people before few."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 133053,
    "weighted_average_lease_term_years": 6.1,
    "major_tenants": [
      {
        "tenant_name": "Morgan, Hughes and Jenkins",
        "lease_start_date": "2018-11-09",
        "lease_end_date": "2024-10-24",
        "annual_rent": 97992,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Johnson, Tyler and Dougherty",
        "lease_start_date": "2022-10-31",
        "lease_end_date": "2028-12-29",
        "annual_rent": 566574,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Smith-Hill",
        "lease_start_date": "2023-11-19",
        "lease_end_date": "2030-04-18",
        "annual_rent": 123957,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Espinoza, Murphy and Lane",
        "lease_start_date": "2022-04-25",
        "lease_end_date": "2031-12-10",
        "annual_rent": 619237,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 5.42,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Synergistic object-oriented moratorium)",
    "zoning_compliance_confirmed": false
  }
}