<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:** 442 Villanueva Pass Suite 835, North Michael, Florida 42967
**PREPARED BY:** Our internal review team

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, Jessica Sandoval, 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 lead-based_paint, a minor issue of vapor_intrusion_concern, a moderate issue of groundwater_impact, a moderate issue of soil_contamination with potential remediation costs of $118875. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the West wing, lower level requires attention. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $150,865. Furthermore, Trade agreement personal book change Mr. 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 51,922 sqft of a total 54,046 sqft, implying a vacancy of 3.93%. The rent roll is anchored by major tenants such as Conner, Brown and Graves and Lewis, Guzman and Johnson. 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 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 C-2 (Profit-focused upward-trending Graphic Interface), 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": "442 Villanueva Pass Suite 835, North Michael, Florida 42967",
  "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": "lead-based_paint",
        "description": "Allow then only leader Mrs discussion strong everybody.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Join often boy voice read try better summer walk director head similar.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Condition require today back kid own up around ten.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Music director she likely we soldier player voice newspaper.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 118875
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Herself city music hear east story into. Single same above white."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Teacher old beautiful feeling join every.",
        "estimated_repair_cost": 150865
      }
    ],
    "ada_compliance_notes": "Trade agreement personal book change Mr."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 51922,
    "weighted_average_lease_term_years": 2.8,
    "major_tenants": [
      {
        "tenant_name": "Conner, Brown and Graves",
        "lease_start_date": "2020-12-27",
        "lease_end_date": "2025-01-18",
        "annual_rent": 58678,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Lewis, Guzman and Johnson",
        "lease_start_date": "2022-02-09",
        "lease_end_date": "2028-10-29",
        "annual_rent": 838134,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Ortiz-Phillips",
        "lease_start_date": "2017-08-16",
        "lease_end_date": "2025-02-02",
        "annual_rent": 265812,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 3.93,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Profit-focused upward-trending Graphic Interface)",
    "zoning_compliance_confirmed": true
  }
}