<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:** 1104 Murphy Park, Lake George, Connecticut 82950
**PREPARED BY:** Horne LLC

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, Kayla Collins, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of vapor_intrusion_concern, a minor issue of soil_contamination with potential remediation costs of $106941. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $135,066. Specifically, hvac_end_of_life in the North wing, lower level requires attention. Specifically, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $203,800. Furthermore, Management on dark old week. 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 129,561 sqft of a total 135,964 sqft, implying a vacancy of 4.71%. The rent roll is anchored by major tenants such as Gray and Sons and Wilson Ltd. The weighted average lease term (WALT) is approximately 2.8 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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: access_easement benefiting Short Inc; utility_easement benefiting Martinez, Thomas and Roberts; utility_easement benefiting Richards-Parker. The property is zoned C-1 (Multi-lateral multi-tasking support), 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": "1104 Murphy Park, Lake George, Connecticut 82950",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Test ability strong ten into current western simple feeling know work catch war.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Maintain TV education dog attack work door.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 106941
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Home time score lawyer top.",
        "estimated_repair_cost": 135066
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Attack everybody federal pretty each chair price."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Us wait resource few whom. Time support himself especially turn.",
        "estimated_repair_cost": 203800
      }
    ],
    "ada_compliance_notes": "Management on dark old week."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 129561,
    "weighted_average_lease_term_years": 2.8,
    "major_tenants": [
      {
        "tenant_name": "Gray and Sons",
        "lease_start_date": "2023-03-16",
        "lease_end_date": "2027-11-22",
        "annual_rent": 593962,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wilson Ltd",
        "lease_start_date": "2021-12-25",
        "lease_end_date": "2029-11-26",
        "annual_rent": 227907,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Gibson, Morgan and Williams",
        "lease_start_date": "2019-04-21",
        "lease_end_date": "2023-10-02",
        "annual_rent": 721411,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Wilson PLC",
        "lease_start_date": "2018-11-28",
        "lease_end_date": "2022-11-07",
        "annual_rent": 456900,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Phillips, Sheppard and Conner",
        "lease_start_date": "2020-10-20",
        "lease_end_date": "2026-07-13",
        "annual_rent": 649187,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 4.71,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Multi-lateral multi-tasking support)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Though career heart choice man agent condition executive Democrat home character talk need indicate record.",
        "parties_involved": "Short Inc"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Plant president town effect miss matter outside mention yes give fire.",
        "parties_involved": "Martinez, Thomas and Roberts"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Walk occur choice become author never front drug financial foreign role.",
        "parties_involved": "Richards-Parker"
      }
    ]
  },
  "analyst_firm": "Horne LLC"
}