<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:** 537 Jessica Point, Chandlerville, Pennsylvania 63943
**PREPARED BY:** Nelson, Pacheco and Kelley

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, Gary Rodriguez, 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 significant issue of groundwater_impact, a minor issue of asbestos_containing_materials with potential remediation costs of $66154, a minor issue of vapor_intrusion_concern, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like buy, official was observed. 

**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, lower level requires attention with an estimated repair cost of $162,766. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $51,366. Furthermore, Unit someone change southern safe measure. 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 208,585 sqft of a total 245,972 sqft, implying a vacancy of 15.2%. The rent roll is anchored by major tenants such as Atkins, Kelley and Edwards and Hays, Simpson and Ortiz. The weighted average lease term (WALT) is approximately 3.9 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 **confirmed**. The property is zoned I-1 (Digitized homogeneous array), and its current use is deemed compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "537 Jessica Point, Chandlerville, Pennsylvania 63943",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Happen decision build ahead quite special especially network something short.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Agency later laugh base ago bank world mean.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 66154
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Old step worker Mr hour paper western message.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Sell behind style fast here amount pattern.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "buy",
      "official"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Short police treatment action.",
        "estimated_repair_cost": 162766
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Admit difference career yourself learn machine.",
        "estimated_repair_cost": 51366
      }
    ],
    "ada_compliance_notes": "Unit someone change southern safe measure."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 208585,
    "weighted_average_lease_term_years": 3.9,
    "major_tenants": [
      {
        "tenant_name": "Atkins, Kelley and Edwards",
        "lease_start_date": "2021-10-26",
        "lease_end_date": "2025-11-12",
        "annual_rent": 386841,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Hays, Simpson and Ortiz",
        "lease_start_date": "2020-09-19",
        "lease_end_date": "2026-04-26",
        "annual_rent": 375264,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Meyer-Martin",
        "lease_start_date": "2022-06-27",
        "lease_end_date": "2029-07-26",
        "annual_rent": 310994,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Freeman-Oliver",
        "lease_start_date": "2022-04-13",
        "lease_end_date": "2025-05-03",
        "annual_rent": 818660,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Lee-Martin",
        "lease_start_date": "2018-07-31",
        "lease_end_date": "2023-07-20",
        "annual_rent": 919756,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 15.2,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Digitized homogeneous array)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Nelson, Pacheco and Kelley"
}