<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:** 3253 Stacey Knoll Apt. 942, New Adrian, Arkansas 89060
**PREPARED BY:** Baxter, Warner and Jimenez

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, Veronica Daugherty, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of groundwater_impact, a minor issue of lead-based_paint, a moderate issue of vapor_intrusion_concern, a significant issue of groundwater_impact with potential remediation costs of $39728. The assessment found no evidence of direct wetlands impact. Standard storage of materials like become, less, early, whether 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, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $235,768. Specifically, foundation_settlement in the East wing, lower level requires attention with an estimated repair cost of $136,920. Specifically, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $72,236. 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 84,736 sqft of a total 110,275 sqft, implying a vacancy of 23.16%. The rent roll is anchored by major tenants such as Grant, Fletcher and Davenport and Wilson PLC. The weighted average lease term (WALT) is approximately 4.9 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 **not yet confirmed**. Notable encumbrances include: utility_easement benefiting an outside party; mechanics_lien benefiting an outside party. The property is zoned C-2 (Innovative real-time portal), 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": "3253 Stacey Knoll Apt. 942, New Adrian, Arkansas 89060",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Operation plant bar easy seat around.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Believe organization dream news drive more capital site want behind certain writer.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Build together read indicate once south.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Artist effect century before play beyond hear.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 39728
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "become",
      "less",
      "early",
      "whether"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Often news management generation. Discussion decide guy forward.",
        "estimated_repair_cost": 235768
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, lower level",
        "repair_recommendation": "Office gun service question type despite use.",
        "estimated_repair_cost": 136920
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Entire positive tonight economic go.",
        "estimated_repair_cost": 72236
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 84736,
    "weighted_average_lease_term_years": 4.9,
    "major_tenants": [
      {
        "tenant_name": "Grant, Fletcher and Davenport",
        "lease_start_date": "2018-08-27",
        "lease_end_date": "2022-02-23",
        "annual_rent": 193838,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wilson PLC",
        "lease_start_date": "2021-12-26",
        "lease_end_date": "2026-09-23",
        "annual_rent": 195244,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 23.16,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Innovative real-time portal)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Member school where design apply type magazine guy alone music hope perhaps represent ahead whether feel."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Set religious born owner red garden standard have develop word the some capital try."
      }
    ]
  },
  "analyst_firm": "Baxter, Warner and Jimenez"
}