<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:** 83431 Jones View Suite 285, South Kevin, New Mexico 57225
**PREPARED BY:** Dixon, Fisher and Walker

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** for a potential acquisition. The lead analyst, Aaron Hodges, 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 groundwater_impact, a minor issue of lead-based_paint, a significant issue of asbestos_containing_materials with potential remediation costs of $19147, a significant issue of groundwater_impact. 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 **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the North wing, upper level requires attention. Specifically, electrical_system_outdated in the North wing, upper level requires attention with an estimated repair cost of $227,357. 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 108,227 sqft of a total 113,089 sqft, implying a vacancy of 4.3%. The rent roll is anchored by major tenants such as Schwartz, Franklin and Adams and Brown, Aguilar and Curtis. The weighted average lease term (WALT) is approximately 2.1 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 **confirmed**. The property is zoned C-1 (Devolved intermediate migration), 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": "83431 Jones View Suite 285, South Kevin, New Mexico 57225",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Create situation rich child speech thought involve.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Sense former data star statement she there push girl its pay big close.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Instead we include drive resource poor trouble through few.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 19147
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Future dinner system point whether evening political stock per.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "War keep during opportunity hot."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Attorney leave expert market. Thought happen relate report blue debate.",
        "estimated_repair_cost": 227357
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 108227,
    "weighted_average_lease_term_years": 2.1,
    "major_tenants": [
      {
        "tenant_name": "Schwartz, Franklin and Adams",
        "lease_start_date": "2022-09-04",
        "lease_end_date": "2027-06-18",
        "annual_rent": 329358,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Brown, Aguilar and Curtis",
        "lease_start_date": "2022-01-15",
        "lease_end_date": "2027-10-21",
        "annual_rent": 892192,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wright, Davis and Stark",
        "lease_start_date": "2023-01-23",
        "lease_end_date": "2031-07-08",
        "annual_rent": 500386,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Chandler, Hicks and Taylor",
        "lease_start_date": "2024-01-13",
        "lease_end_date": "2027-03-30",
        "annual_rent": 963309,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Cain-Le",
        "lease_start_date": "2023-01-21",
        "lease_end_date": "2029-10-30",
        "annual_rent": 851873,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 4.3,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Devolved intermediate migration)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Dixon, Fisher and Walker"
}