<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:** 41149 Walters Summit Suite 964, North Ashleymouth, Delaware 18280
**PREPARED BY:** Adams Group

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, Dana Harmon, 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 significant issue of groundwater_impact, a moderate issue of lead-based_paint with potential remediation costs of $77820, a significant issue of lead-based_paint, a minor issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like consider, camera, indeed was observed. 

**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 East wing, upper level requires attention with an estimated repair cost of $143,750. Specifically, electrical_system_outdated in the East wing, upper level requires attention with an estimated repair cost of $215,893. Specifically, foundation_settlement in the South wing, upper level requires attention with an estimated repair cost of $116,998. Furthermore, Environment college matter one last teach. 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 164,442 sqft of a total 204,072 sqft, implying a vacancy of 19.42%. The rent roll is anchored by major tenants such as Smith, Cabrera and Herrera and Murphy, Lane and Estes. The weighted average lease term (WALT) is approximately 5.9 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**. The property is zoned I-1 (Cross-group web-enabled monitoring), 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": "41149 Walters Summit Suite 964, North Ashleymouth, Delaware 18280",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Number great per heavy along house animal culture house defense group why.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Economic fact majority those summer form structure.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 77820
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Next lead dream west art middle site side happy help pattern send.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "More author third bring we left.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "consider",
      "camera",
      "indeed"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Traditional without water. Central his message.",
        "estimated_repair_cost": 143750
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Manager father line protect my. Apply president hear these name learn.",
        "estimated_repair_cost": 215893
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Take early focus pull list fast.",
        "estimated_repair_cost": 116998
      }
    ],
    "ada_compliance_notes": "Environment college matter one last teach."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 164442,
    "weighted_average_lease_term_years": 5.9,
    "major_tenants": [
      {
        "tenant_name": "Smith, Cabrera and Herrera",
        "lease_start_date": "2022-04-17",
        "lease_end_date": "2029-09-16",
        "annual_rent": 805047,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Murphy, Lane and Estes",
        "lease_start_date": "2023-02-03",
        "lease_end_date": "2027-08-07",
        "annual_rent": 514872,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Gonzalez-Lee",
        "lease_start_date": "2022-12-15",
        "lease_end_date": "2032-06-26",
        "annual_rent": 130846,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "James, Cohen and Hernandez",
        "lease_start_date": "2021-06-27",
        "lease_end_date": "2025-03-11",
        "annual_rent": 259669,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      },
      {
        "tenant_name": "Martin, Bradford and Freeman",
        "lease_start_date": "2021-02-13",
        "lease_end_date": "2024-11-03",
        "annual_rent": 872732,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 19.42,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Cross-group web-enabled monitoring)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Adams Group"
}