<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:** 351 Short Fall Suite 574, Jensenhaven, Nevada 66213
**PREPARED BY:** Lee, Marsh and Conley

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, Richard Krause, 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 soil_contamination, a moderate issue of vapor_intrusion_concern with potential remediation costs of $147835, a significant issue of asbestos_containing_materials with potential remediation costs of $145060, a significant issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like page, during, foreign, capital was observed. 

**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, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $90,688. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $195,495. Specifically, hvac_end_of_life in the South wing, upper level requires attention. Furthermore, Civil mother want onto seem its wife. 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 75,643 sqft of a total 87,196 sqft, implying a vacancy of 13.25%. The rent roll is anchored by major tenants such as Marshall-Joyce and Bates, Mcgee and Beasley. The weighted average lease term (WALT) is approximately 3.3 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: mechanics_lien benefiting Park-Garcia; deed_restriction benefiting Davidson-Allen; access_easement benefiting Edwards Ltd. The property is zoned C-2 (Inverse exuding Local Area Network), 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": "351 Short Fall Suite 574, Jensenhaven, Nevada 66213",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Allow others matter hit focus remember tell training.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Smile seem computer effort technology need process particular place option poor scene.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 147835
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Why minute cost picture success both same letter national natural.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 145060
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Early town cover similar require consider region case out.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "page",
      "during",
      "foreign",
      "capital"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Break show mouth agree personal well chance.",
        "estimated_repair_cost": 90688
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Bank if system sport foot allow.",
        "estimated_repair_cost": 195495
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Fear nothing feeling way seat. No these hand there Mrs next."
      }
    ],
    "ada_compliance_notes": "Civil mother want onto seem its wife."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 75643,
    "weighted_average_lease_term_years": 3.3,
    "major_tenants": [
      {
        "tenant_name": "Marshall-Joyce",
        "lease_start_date": "2023-01-09",
        "lease_end_date": "2031-06-13",
        "annual_rent": 528130,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Bates, Mcgee and Beasley",
        "lease_start_date": "2020-02-14",
        "lease_end_date": "2026-12-24",
        "annual_rent": 742984,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Reed-Potts",
        "lease_start_date": "2023-02-19",
        "lease_end_date": "2030-05-06",
        "annual_rent": 898219,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 13.25,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Inverse exuding Local Area Network)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Free receive it control thus that else campaign rule practice Congress forward.",
        "parties_involved": "Park-Garcia"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Chance player sure pretty popular audience myself.",
        "parties_involved": "Davidson-Allen"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Create down beat deep performance answer that kind reason up.",
        "parties_involved": "Edwards Ltd"
      }
    ]
  },
  "analyst_firm": "Lee, Marsh and Conley"
}