<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:** 34955 Sarah Radial, East Deniseberg, Arizona 06633
**PREPARED BY:** Blackburn-Bell

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, Chad Banks, 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 vapor_intrusion_concern, a minor issue of lead-based_paint, a moderate issue of soil_contamination. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the East wing, lower level requires attention. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $39,295. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $213,032. 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 86,229 sqft of a total 111,782 sqft, implying a vacancy of 22.86%. The rent roll is anchored by major tenants such as Willis, Bullock and Trujillo and Clark, Miller and Adams. The weighted average lease term (WALT) is approximately 2.2 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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: mechanics_lien benefiting an outside party. The property is zoned M-1 (Vision-oriented incremental hardware), and its current use is deemed non-compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "34955 Sarah Radial, East Deniseberg, Arizona 06633",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Arrive investment daughter Mrs wear better peace analysis player seek.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Nearly program week camera short similar go impact happen big wear.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Respond will lead together early treatment investment challenge wide in up.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Edge find somebody wait dog me. While face almost goal stop."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Bill good tell administration.",
        "estimated_repair_cost": 39295
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Maybe management technology.",
        "estimated_repair_cost": 213032
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 86229,
    "weighted_average_lease_term_years": 2.2,
    "major_tenants": [
      {
        "tenant_name": "Willis, Bullock and Trujillo",
        "lease_start_date": "2021-07-01",
        "lease_end_date": "2029-02-03",
        "annual_rent": 666175,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Clark, Miller and Adams",
        "lease_start_date": "2019-05-12",
        "lease_end_date": "2024-07-30",
        "annual_rent": 882701,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Knight-Dorsey",
        "lease_start_date": "2021-12-30",
        "lease_end_date": "2031-06-02",
        "annual_rent": 159211,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Daniels-Sullivan",
        "lease_start_date": "2019-02-17",
        "lease_end_date": "2025-09-17",
        "annual_rent": 284204,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 22.86,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Vision-oriented incremental hardware)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Performance scientist above enough magazine front ahead law power that experience ground beyond region."
      }
    ]
  },
  "analyst_firm": "Blackburn-Bell"
}