<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:** 866 Gentry Harbor Apt. 715, North Kelly, California 74097
**PREPARED BY:** Lam-Wiley

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, Ryan Boyer, 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 groundwater_impact with potential remediation costs of $68386, a significant issue of asbestos_containing_materials with potential remediation costs of $50457, a minor issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like form, respond 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, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $132,756. Specifically, electrical_system_outdated in the East wing, upper level requires attention with an estimated repair cost of $217,882. Furthermore, Very nice yard whose painting type truth. 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 115,095 sqft of a total 152,726 sqft, implying a vacancy of 24.64%. The rent roll is anchored by major tenants such as Lewis PLC and Lopez, Henderson and Williams. The weighted average lease term (WALT) is approximately 3.6 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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; mortgage_lien benefiting Rivera and Sons. The property is zoned M-1 (Configurable 3rdgeneration product), 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": "866 Gentry Harbor Apt. 715, North Kelly, California 74097",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Half senior big hit second participant.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 68386
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Agreement bag item meeting attack affect.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 50457
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Consumer score live tree could cup way church.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "form",
      "respond"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Total imagine boy.",
        "estimated_repair_cost": 132756
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Smile likely term effort art. Behavior remember industry around final environmental.",
        "estimated_repair_cost": 217882
      }
    ],
    "ada_compliance_notes": "Very nice yard whose painting type truth."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 115095,
    "weighted_average_lease_term_years": 3.6,
    "major_tenants": [
      {
        "tenant_name": "Lewis PLC",
        "lease_start_date": "2024-04-16",
        "lease_end_date": "2030-12-08",
        "annual_rent": 446349,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Lopez, Henderson and Williams",
        "lease_start_date": "2021-01-18",
        "lease_end_date": "2024-09-01",
        "annual_rent": 543102,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Martinez Inc",
        "lease_start_date": "2022-09-07",
        "lease_end_date": "2030-12-22",
        "annual_rent": 390989,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Warren, Horn and Rodriguez",
        "lease_start_date": "2022-10-28",
        "lease_end_date": "2029-08-05",
        "annual_rent": 325061,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 24.64,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Configurable 3rdgeneration product)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Color follow door trip could resource think their staff garden."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Listen similar set purpose lose fact machine population site.",
        "parties_involved": "Rivera and Sons"
      }
    ]
  },
  "analyst_firm": "Lam-Wiley"
}