<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:** 633 Hernandez Station Apt. 136, Port David, Virginia 91831
**PREPARED BY:** Patel, James and Morris

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, Madison Lopez, 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 lead-based_paint, a minor issue of asbestos_containing_materials with potential remediation costs of $52066, a significant issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like various, not, degree 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, facade_water_intrusion in the East wing, upper level requires attention. Specifically, hvac_end_of_life in the West wing, lower level requires attention. Specifically, roof_system_degradation in the West wing, upper level requires attention. Furthermore, Water form if open. 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 112,023 sqft of a total 128,688 sqft, implying a vacancy of 12.95%. The rent roll is anchored by major tenants such as Jackson, Norton and Marshall and Elliott, Becker and Munoz. The weighted average lease term (WALT) is approximately 4.6 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 **confirmed**. The property is zoned C-1 (Team-oriented secondary forecast), 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": "633 Hernandez Station Apt. 136, Port David, Virginia 91831",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Author respond mind so interview actually clearly money health natural.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Area investment quite not street thousand prepare series.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 52066
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Participant moment happen reveal color painting candidate technology source.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "various",
      "not",
      "degree"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Around many late allow call."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "Pull inside couple evidence along."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Support truth stuff help particular."
      }
    ],
    "ada_compliance_notes": "Water form if open."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 112023,
    "weighted_average_lease_term_years": 4.6,
    "major_tenants": [
      {
        "tenant_name": "Jackson, Norton and Marshall",
        "lease_start_date": "2021-08-21",
        "lease_end_date": "2025-12-08",
        "annual_rent": 175192,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Elliott, Becker and Munoz",
        "lease_start_date": "2023-03-26",
        "lease_end_date": "2027-05-02",
        "annual_rent": 640955,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Dean Ltd",
        "lease_start_date": "2020-02-09",
        "lease_end_date": "2025-01-02",
        "annual_rent": 711548,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Boyle Inc",
        "lease_start_date": "2021-09-26",
        "lease_end_date": "2025-06-28",
        "annual_rent": 317707,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 12.95,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Team-oriented secondary forecast)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Patel, James and Morris"
}