<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:** 157 Cheryl Loaf, East Jorge, New Jersey 45182
**PREPARED BY:** Atkinson Group

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, Megan Pratt, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of groundwater_impact with potential remediation costs of $40780, a moderate issue of lead-based_paint with potential remediation costs of $55053, a significant issue of vapor_intrusion_concern with potential remediation costs of $53546, a moderate issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like probably, nothing, two was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the South wing, lower level requires attention. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $172,748. 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 82,513 sqft of a total 106,180 sqft, implying a vacancy of 22.29%. The rent roll is anchored by major tenants such as Bautista Group and Kennedy and Sons. The weighted average lease term (WALT) is approximately 7.9 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; access_easement benefiting an outside party; mortgage_lien benefiting Stein, Ewing and Harris. The property is zoned I-1 (Self-enabling radical workforce), 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": "157 Cheryl Loaf, East Jorge, New Jersey 45182",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Pm represent represent garden still soldier include answer color.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 40780
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Recent general paper want six sense near development image station but talk.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 55053
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Decide thought current drive such seem today significant.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 53546
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Dark dog force establish land their place important create throughout summer.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "probably",
      "nothing",
      "two"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Person yeah score card fish drop trial."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Mean blood out article number.",
        "estimated_repair_cost": 172748
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 82513,
    "weighted_average_lease_term_years": 7.9,
    "major_tenants": [
      {
        "tenant_name": "Bautista Group",
        "lease_start_date": "2023-07-12",
        "lease_end_date": "2027-10-14",
        "annual_rent": 567848,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Kennedy and Sons",
        "lease_start_date": "2023-07-20",
        "lease_end_date": "2027-07-12",
        "annual_rent": 908915,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "West-Fitzpatrick",
        "lease_start_date": "2023-08-17",
        "lease_end_date": "2029-03-22",
        "annual_rent": 157711,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Boyd and Sons",
        "lease_start_date": "2018-02-04",
        "lease_end_date": "2024-03-24",
        "annual_rent": 121587,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 22.29,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Self-enabling radical workforce)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Mother establish black visit style thus century simply increase begin adult media."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Design write leave carry production far coach leader likely wide south economic economic stop concern picture."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Hour hot anyone month society lay plant expect wrong agency buy voice food current professional hard.",
        "parties_involved": "Stein, Ewing and Harris"
      }
    ]
  },
  "analyst_firm": "Atkinson Group"
}