<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:** 982 Richard Keys Suite 689, Williamfort, Virginia 95456
**PREPARED BY:** Potter and Sons

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, Corey Love, 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 groundwater_impact with potential remediation costs of $57058, a significant issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like believe, little was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $156,367. Specifically, electrical_system_outdated in the East wing, upper level requires attention with an estimated repair cost of $176,542. 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 112,784 sqft of a total 121,796 sqft, implying a vacancy of 7.4%. The rent roll is anchored by major tenants such as Villarreal Ltd and Harrison LLC. The weighted average lease term (WALT) is approximately 5.4 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: mortgage_lien benefiting Hernandez-Stout. The property is zoned C-2 (Polarized high-level infrastructure), 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": "982 Richard Keys Suite 689, Williamfort, Virginia 95456",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Concern thousand write push most technology expect base some with us such nearly.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 57058
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Pattern field Congress until around daughter result notice of smile get note.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "believe",
      "little"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Staff state crime safe show.",
        "estimated_repair_cost": 156367
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Soldier argue audience energy.",
        "estimated_repair_cost": 176542
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 112784,
    "weighted_average_lease_term_years": 5.4,
    "major_tenants": [
      {
        "tenant_name": "Villarreal Ltd",
        "lease_start_date": "2022-11-09",
        "lease_end_date": "2028-12-05",
        "annual_rent": 278448,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Harrison LLC",
        "lease_start_date": "2017-09-12",
        "lease_end_date": "2022-01-31",
        "annual_rent": 116758,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Lindsey-Ray",
        "lease_start_date": "2023-08-07",
        "lease_end_date": "2032-08-19",
        "annual_rent": 755473,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Cox and Sons",
        "lease_start_date": "2022-05-28",
        "lease_end_date": "2027-06-07",
        "annual_rent": 323057,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 7.4,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Polarized high-level infrastructure)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Dog often use wide order local respond modern security support catch many certainly doctor.",
        "parties_involved": "Hernandez-Stout"
      }
    ]
  },
  "analyst_firm": "Potter and Sons"
}