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TO: Rachel Rawson
FROM: Jones Day Associate
DATE: March 24, 2014
RE: Potential property purchase, Cleveland Clinic, due diligence report,

Preliminary Due Diligence
The following memorandum discusses a preliminary due diligence investigation regarding the
quality of the properties that the Clinic is interested in acquiring in the Cedar Avenue/Fairfax
Area of Cleveland. Furthermore, this report intends that explore the characteristics of these
properties so that the Clinic may adequately balance its risk and evaluate if the value of the
purchase price matches the reality of the condition of that real estate.

This report evaluates public documents and information readily accessible online, which found
that at least two separate interests own the properties. My research was non-conclusive on most
matters however; it did locate some useful cursory information. The public records that are
available online are incomplete and one of the parcels (9908) is not listed with Cuyahoga County
at all.

The first step in this process is to determine if the purported owner’s have actual title to the
properties. This is done with a title search through the County Recorder’s Office. Here, the
owner’s names were not readily available and the given addresses did not trigger a result in the
Recorder’s Online Property Search Tool. After a “Google” search of the addresses, I secured
parcel numbers for two of the properties on private real estate websites (9904 and 9808). The last
property (9908) did not have its own parcel number but the Clinic already owns some property in
the area that does not display an address.

Address Parcel
Present Recorded Owner Last Recorded
9904 Cedar Ave 121-16-016 Fairfax Renaissance Development
Frances Cole
9808 Cedar Ave 121-16-015 Dorothy L. Fort
Jacqueline Bryant Fort
Dorothy L. Fort
Jacqueline Bryant Fort
Charisee Zelane
9908 Cedar Ave Not found N/A N/A
Nearby Property
(Corner of E.97th and Cedar)

Cleveland Clinic Josie Bailey

Nearby Property 121-16-011 Cleveland Clinic Sunrise Land Co, Inc.


The next step is to determine the past, present and potential future value of the property. This
ensures that the Clinic can make an informed decision before purchased based on the history and
projected values.

Address Parcel Number Present Value Last Est. Value
9904 Cedar Ave 121-16-016 $2,300.00 Not known
9808 Cedar Ave 121-16-015 $105,700.00 Not known
9908 Cedar Ave Not known Not known Not known
Nearby Property (Corner
of E.97th and Cedar)

Not known Not known
Nearby Property 121-16-011 $254,000.00 Not known

Use and Compliance with Laws
The next step is to determine what the zoning determination is for each property (residential
housing or commercial). Additionally, the diligence process should confirm that the property is
not currently in violation of any federal, state, county or city laws, including laws governing the
use and operation of the building, health and safety codes as well as zoning and environmental
laws. Also it is important to know if the Clinic intends to use the property in a manner that
differs from the seller's historical use because the Clinic may need to conduct additional
diligence to ensure that its intended use is permitted under existing laws.

Address Parcel Number Zoning Designation Land Use Designations
9904 Cedar Ave 121-16-016 Residential 5000
9808 Cedar Ave 121-16-015 Commercial 4970
9908 Cedar Ave Not found Not known
Nearby Property (Corner of E.97th
and Cedar)

LW 5799
Nearby Property 121-16-011 Commercial 5799


The last tentative preliminary due diligence step is to determine whether the properties have any
past or present legal propositions. The due diligence process should determine that the properties
are free of any liabilities because the Clinic doesn’t want to assume any liabilities from the
purchase. It is important to look for any potential legal propositions potentially like future default
on the mortgage.
Address Parcel Number Present Legal
Past Legal
Other Considerations
9904 Cedar Ave 121-16-016 None Known None Known Tax Balance=$70.43
9808 Cedar Ave 121-16-015 None Known None Known Tax Balance=$3,300.58
9908 Cedar Ave Not found None Known None Known None Known
Nearby Property (Corner of 121-16-014 None Known None Known None Known

E.97th and Cedar)
Nearby Property 121-16-011 None Known None Known None Known


Date: 3/24/14

Project: Due Diligence Project

Name: Mutajah Hussein

I. Project Goals and Objectives

A. Description of client, constituents and beneficiary being served:

Cleveland Clinic Foundation is a public hospital

B. Statement of client's problem, need or issue:

Client is considering buying commercial property in the Fairfax neighborhood.
Client plans to secure a loan for this investment so they need a due diligence report before
approaching the seller

C. Statement of client's goal:

Client wants to become as informed as possible about the properties before
approaching the seller

D. Objectives to reach client's goal:
• Complete Due Diligence Report

II. Project Work Plan

A. Description of the work product:
Short Due Diligence Report that summarizes all preliminary findings

B. Resources Needed:
• Google
• Westlaw
• Cuyahoga County Recorder Site
Search Site e.g. library,
Lexis, Westlaw,
Practical Law Co.
Citation of Source Evaluation
Google Zillow Basic information about
Google Legal Solutions Due diligence forms (mostly
demand letters)
Google Due Diligence Checklist

Very helpful because provided
outline of areas to explore in due
Google Due Diligence Process

Lays out important stages of due
1. Preliminary Research
2. Seller’s Document Check
3. Independent Check

Google www.buildingsbyowner.com Legal Due Diligence
Commercial Real Estate Blog
Google www.foxbusiness.com Real Estate Due Diligence
Article: provided tips for
thorough research
Lexis Due Diligence Dashboard
Due Diligence Corporate
Dashboard Tool (not accessible
under our plan)
Cuyahoga County
Cuyahoga County Fiscal
Provided basic information on
9904 and 9808 but none for 9908
Westlaw Public record search:
People Pages
Not accessible under our plan
Google Property Shark Provided parcel numbers for
9808 and 9904 (no information
for 9808)
Google City Data Gave owners (information that
was missing from other sources)
Cuyahoga County
Inquiry Form Form to submit for more
information (if decide to move
Google Public Records Online
Cost for resources but directed
me to some free ones (not
helpful for this assignment)
Westlaw State v. Roberts

Due Diligence Supporting Documents