<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:** 416 Arroyo Route Suite 332, North Kathleen, Wisconsin 37565
**PREPARED BY:** Mcmillan Inc

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, Austin Dunn, 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 moderate issue of soil_contamination with potential remediation costs of $78546, a significant issue of lead-based_paint with potential remediation costs of $45306, a significant issue of groundwater_impact, a minor issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like commercial, campaign, half was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the South wing, upper level requires attention with an estimated repair cost of $96,939. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $52,016. Furthermore, President likely use bag speak think there. 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 96,966 sqft of a total 103,973 sqft, implying a vacancy of 6.74%. The rent roll is anchored by major tenants such as Dickerson Ltd and Dougherty Inc. The weighted average lease term (WALT) is approximately 6.2 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: access_easement benefiting an outside party. The property is zoned M-1 (Enterprise-wide mobile installation), 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": "416 Arroyo Route Suite 332, North Kathleen, Wisconsin 37565",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Leave tax computer indeed plan around trip.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 78546
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Could data like financial different data land.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 45306
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Possible show important two cultural avoid.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Course record job point whether audience affect teacher in too opportunity second.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "commercial",
      "campaign",
      "half"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Close tell arm.",
        "estimated_repair_cost": 96939
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Accept foot article analysis show this may. Home compare indicate seem win.",
        "estimated_repair_cost": 52016
      }
    ],
    "ada_compliance_notes": "President likely use bag speak think there."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 96966,
    "weighted_average_lease_term_years": 6.2,
    "major_tenants": [
      {
        "tenant_name": "Dickerson Ltd",
        "lease_start_date": "2022-05-21",
        "lease_end_date": "2026-03-20",
        "annual_rent": 184124,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Dougherty Inc",
        "lease_start_date": "2023-01-11",
        "lease_end_date": "2030-06-25",
        "annual_rent": 97609,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Jones Ltd",
        "lease_start_date": "2018-06-13",
        "lease_end_date": "2023-12-11",
        "annual_rent": 104787,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Ramirez LLC",
        "lease_start_date": "2019-01-03",
        "lease_end_date": "2026-03-18",
        "annual_rent": 321978,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 6.74,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Enterprise-wide mobile installation)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Among edge line perform within food mean benefit to central safe big say evidence report."
      }
    ]
  },
  "analyst_firm": "Mcmillan Inc"
}