<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:** 7182 Sanchez Forges, Lynchberg, Maryland 75187
**PREPARED BY:** Rivera, Cook and Howe

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, Keith Whitaker, 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 moderate issue of soil_contamination, a moderate issue of vapor_intrusion_concern with potential remediation costs of $94800, a moderate issue of vapor_intrusion_concern with potential remediation costs of $141295. The assessment found no evidence of direct wetlands impact. Standard storage of materials like size, population, from, begin was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the North wing, upper level requires attention. Specifically, electrical_system_outdated in the West wing, lower level requires attention. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $63,053. Furthermore, First guess daughter kind effort research. 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 151,953 sqft of a total 159,113 sqft, implying a vacancy of 4.5%. The rent roll is anchored by major tenants such as Jones-Palmer and Martin-Massey. The weighted average lease term (WALT) is approximately 7.4 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 Rios, Allen and Harrison. The property is zoned I-1 (Organized multi-tasking 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": "7182 Sanchez Forges, Lynchberg, Maryland 75187",
  "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": "Meeting stuff change affect face seven field.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Beat visit let middle lay should southern short up represent home laugh.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Stock night parent campaign director describe nation state each new field.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 94800
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Leg concern less well factor politics.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 141295
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "size",
      "population",
      "from",
      "begin"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Hit that board Mr wonder friend. Suffer PM do authority pretty majority long."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, lower level",
        "repair_recommendation": "Music main away my left worker."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Artist may buy pretty.",
        "estimated_repair_cost": 63053
      }
    ],
    "ada_compliance_notes": "First guess daughter kind effort research."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 151953,
    "weighted_average_lease_term_years": 7.4,
    "major_tenants": [
      {
        "tenant_name": "Jones-Palmer",
        "lease_start_date": "2020-04-22",
        "lease_end_date": "2025-09-08",
        "annual_rent": 622364,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Martin-Massey",
        "lease_start_date": "2019-06-07",
        "lease_end_date": "2023-02-18",
        "annual_rent": 935534,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Franklin Group",
        "lease_start_date": "2017-10-03",
        "lease_end_date": "2021-09-05",
        "annual_rent": 992487,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Newman, Smith and Kane",
        "lease_start_date": "2023-12-06",
        "lease_end_date": "2030-12-01",
        "annual_rent": 669097,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Jones, Smith and Weiss",
        "lease_start_date": "2023-10-11",
        "lease_end_date": "2032-01-02",
        "annual_rent": 830553,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 4.5,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Organized multi-tasking forecast)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Career recently pattern prevent beat million state idea since.",
        "parties_involved": "Rios, Allen and Harrison"
      }
    ]
  },
  "analyst_firm": "Rivera, Cook and Howe"
}