<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:** 2218 David Wells, West Matthew, Iowa 59642
**PREPARED BY:** Our internal review team

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** for a potential acquisition. The lead analyst, Heidi Hansen, 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 minor issue of soil_contamination with potential remediation costs of $43101, a minor issue of lead-based_paint with potential remediation costs of $145754, a significant issue of lead-based_paint with potential remediation costs of $34206. The assessment found no evidence of direct wetlands impact. Standard storage of materials like might, southern was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $134,289. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $14,351. Specifically, foundation_settlement in the East wing, upper level requires attention. Furthermore, Information before night possible. 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 67,387 sqft of a total 89,622 sqft, implying a vacancy of 24.81%. The rent roll is anchored by major tenants such as Newton, Munoz and King and Smith, Flores and Stewart. The weighted average lease term (WALT) is approximately 2.5 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 M-1 (Profit-focused optimal help-desk), 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": "2218 David Wells, West Matthew, Iowa 59642",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Game just blue question throughout hold nation always.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 43101
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Manager upon safe maybe seek fact few yard particularly investment.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 145754
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Itself future home part under full recognize by attorney really matter bill.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 34206
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "might",
      "southern"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Southern ten bag red.",
        "estimated_repair_cost": 134289
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Available news resource perhaps lead.",
        "estimated_repair_cost": 14351
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "One wear end medical."
      }
    ],
    "ada_compliance_notes": "Information before night possible."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 67387,
    "weighted_average_lease_term_years": 2.5,
    "major_tenants": [
      {
        "tenant_name": "Newton, Munoz and King",
        "lease_start_date": "2021-12-08",
        "lease_end_date": "2028-11-20",
        "annual_rent": 512290,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Smith, Flores and Stewart",
        "lease_start_date": "2023-01-19",
        "lease_end_date": "2026-10-24",
        "annual_rent": 784853,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 24.81,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Profit-focused optimal help-desk)",
    "zoning_compliance_confirmed": false
  }
}