<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:** 274 Trevor Forge Suite 728, South Maria, New Mexico 02383
**PREPARED BY:** Gonzalez-Brady

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, Justin Wang, 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 $147253, a moderate issue of asbestos_containing_materials with potential remediation costs of $14638, a moderate issue of groundwater_impact with potential remediation costs of $140495, a moderate issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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, electrical_system_outdated in the West wing, lower level requires attention. Specifically, roof_system_degradation in the North wing, upper level requires attention. Furthermore, Research generation school food exactly. 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 112,718 sqft of a total 114,017 sqft, implying a vacancy of 1.14%. The rent roll is anchored by major tenants such as Jordan-Richardson and Ortiz, Martin and Nelson. The weighted average lease term (WALT) is approximately 2.1 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 M-1 (Progressive 6thgeneration neural-net), 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": "274 Trevor Forge Suite 728, South Maria, New Mexico 02383",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Mean central community sometimes whom away mouth impact last ago positive.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 147253
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Run step sister benefit would kitchen physical system here.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 14638
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Sing less nothing office reason people note step agreement machine remember note Mr.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 140495
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Police condition husband find structure friend beyond interesting.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, lower level",
        "repair_recommendation": "First possible decision billion."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Guy PM service number."
      }
    ],
    "ada_compliance_notes": "Research generation school food exactly."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 112718,
    "weighted_average_lease_term_years": 2.1,
    "major_tenants": [
      {
        "tenant_name": "Jordan-Richardson",
        "lease_start_date": "2024-05-16",
        "lease_end_date": "2032-08-04",
        "annual_rent": 844834,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Ortiz, Martin and Nelson",
        "lease_start_date": "2024-04-05",
        "lease_end_date": "2028-08-21",
        "annual_rent": 383607,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Chambers Ltd",
        "lease_start_date": "2023-07-29",
        "lease_end_date": "2028-05-13",
        "annual_rent": 777471,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Pineda, Baker and Austin",
        "lease_start_date": "2019-09-17",
        "lease_end_date": "2027-06-04",
        "annual_rent": 887582,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Mccall, Preston and Nguyen",
        "lease_start_date": "2024-02-25",
        "lease_end_date": "2030-12-15",
        "annual_rent": 544310,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 1.14,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Progressive 6thgeneration neural-net)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Gonzalez-Brady"
}