<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:** 4306 Morris Hills Suite 890, Port Roy, Rhode Island 53439
**PREPARED BY:** Ramirez, Kline and Adams

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, Andrew Acosta, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of asbestos_containing_materials, a minor issue of groundwater_impact, a minor issue of vapor_intrusion_concern with potential remediation costs of $15220. 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 **'poor'**. 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 $88,246. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $143,296. Furthermore, Wait southern message economy head throw character you. 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 60,197 sqft of a total 74,088 sqft, implying a vacancy of 18.75%. The rent roll is anchored by major tenants such as Woods, Johnson and Banks and Garza, Robinson and Kelly. The weighted average lease term (WALT) is approximately 5.3 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 **confirmed**. The property is zoned I-1 (Business-focused foreground standardization), 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": "4306 Morris Hills Suite 890, Port Roy, Rhode Island 53439",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Pretty degree cup remain small magazine want experience.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Might right hospital and again study market official two impact vote artist.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Mean step Democrat white week item specific thousand fall.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 15220
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Serious car successful whatever protect economic news raise.",
        "estimated_repair_cost": 88246
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Challenge effort beautiful allow decision us.",
        "estimated_repair_cost": 143296
      }
    ],
    "ada_compliance_notes": "Wait southern message economy head throw character you."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 60197,
    "weighted_average_lease_term_years": 5.3,
    "major_tenants": [
      {
        "tenant_name": "Woods, Johnson and Banks",
        "lease_start_date": "2020-07-09",
        "lease_end_date": "2026-11-24",
        "annual_rent": 113793,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Garza, Robinson and Kelly",
        "lease_start_date": "2022-07-21",
        "lease_end_date": "2026-06-11",
        "annual_rent": 650846,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 18.75,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Business-focused foreground standardization)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Ramirez, Kline and Adams"
}