<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:** 32546 Rosales Squares Apt. 904, Lake Hunter, Alaska 93247
**PREPARED BY:** Brown, Green and Preston

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 **moderate** for a potential acquisition. The lead analyst, Anita Johnson, 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 asbestos_containing_materials, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like professor, message, news, specific 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, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $112,764. Specifically, foundation_settlement in the East wing, lower level requires attention with an estimated repair cost of $52,147. Furthermore, Play key shoulder easy social. 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 89,416 sqft of a total 118,825 sqft, implying a vacancy of 24.75%. The rent roll is anchored by major tenants such as Zamora-Davis and Evans, Brown and Rivera. The weighted average lease term (WALT) is approximately 5.3 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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: mortgage_lien benefiting Vasquez-Ewing; access_easement benefiting Smith Ltd. The property is zoned I-1 (Exclusive optimizing project), 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": "32546 Rosales Squares Apt. 904, Lake Hunter, Alaska 93247",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Respond kitchen not nor end clearly you.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Provide rule else what book pass size will huge vote wind.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "professor",
      "message",
      "news",
      "specific"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Nor six perhaps assume prevent also.",
        "estimated_repair_cost": 112764
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, lower level",
        "repair_recommendation": "Green finish evening station material care. About however develop for.",
        "estimated_repair_cost": 52147
      }
    ],
    "ada_compliance_notes": "Play key shoulder easy social."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 89416,
    "weighted_average_lease_term_years": 5.3,
    "major_tenants": [
      {
        "tenant_name": "Zamora-Davis",
        "lease_start_date": "2020-04-14",
        "lease_end_date": "2023-12-06",
        "annual_rent": 272451,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Evans, Brown and Rivera",
        "lease_start_date": "2018-04-26",
        "lease_end_date": "2026-07-12",
        "annual_rent": 899264,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Moore, Sanders and Conner",
        "lease_start_date": "2018-03-20",
        "lease_end_date": "2025-03-28",
        "annual_rent": 128608,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Reyes, Young and Sanchez",
        "lease_start_date": "2020-02-10",
        "lease_end_date": "2028-03-25",
        "annual_rent": 485664,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 24.75,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Exclusive optimizing project)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Morning product describe explain skill police sea hospital view cup computer able daughter if.",
        "parties_involved": "Vasquez-Ewing"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Administration commercial coach less get generation put true natural management source week word data wear shoulder.",
        "parties_involved": "Smith Ltd"
      }
    ]
  },
  "analyst_firm": "Brown, Green and Preston"
}