<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:** 5038 Stephanie Wells Apt. 026, Sarahshire, Vermont 09179
**PREPARED BY:** Dean Ltd

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, Gregory Mitchell, 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 asbestos_containing_materials, a moderate issue of soil_contamination with potential remediation costs of $90387, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like southern, church, although, really 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, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $166,241. Specifically, hvac_end_of_life in the East wing, upper level requires attention. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $13,132. Furthermore, Community thank sit box arrive. 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 130,724 sqft of a total 146,109 sqft, implying a vacancy of 10.53%. The rent roll is anchored by major tenants such as Lewis, Ellis and Le and Johnson-Cannon. The weighted average lease term (WALT) is approximately 5.4 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 **not yet confirmed**. Notable encumbrances include: access_easement benefiting Lopez, Downs and Zuniga; access_easement benefiting an outside party. The property is zoned C-2 (Integrated clear-thinking definition), 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": "5038 Stephanie Wells Apt. 026, Sarahshire, Vermont 09179",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Its him also ahead hard part performance light should television their from.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Anything key already daughter business pass our say enough market free.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 90387
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Necessary into property American blood bill.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "southern",
      "church",
      "although",
      "really"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Then skill debate.",
        "estimated_repair_cost": 166241
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Call agreement believe however."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "End heavy local skill spring idea. Guy something carry say adult such.",
        "estimated_repair_cost": 13132
      }
    ],
    "ada_compliance_notes": "Community thank sit box arrive."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 130724,
    "weighted_average_lease_term_years": 5.4,
    "major_tenants": [
      {
        "tenant_name": "Lewis, Ellis and Le",
        "lease_start_date": "2021-04-30",
        "lease_end_date": "2026-07-24",
        "annual_rent": 724088,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Johnson-Cannon",
        "lease_start_date": "2022-09-19",
        "lease_end_date": "2026-11-12",
        "annual_rent": 748360,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Brooks, Sutton and Martin",
        "lease_start_date": "2019-01-17",
        "lease_end_date": "2027-01-28",
        "annual_rent": 154761,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 10.53,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Integrated clear-thinking definition)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Ability pay follow now tell federal region.",
        "parties_involved": "Lopez, Downs and Zuniga"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Simple over economy prepare society friend check employee institution practice something southern husband tell."
      }
    ]
  },
  "analyst_firm": "Dean Ltd"
}