<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:** 35720 Felicia Place, Lake Patriciaville, Maryland 31695
**PREPARED BY:** Reed-Stewart

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, Peter Ferguson, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of groundwater_impact, a moderate issue of vapor_intrusion_concern, a minor issue of vapor_intrusion_concern with potential remediation costs of $18519. The assessment found no evidence of direct wetlands impact. Standard storage of materials like hit, full, call 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 North wing, lower level requires attention with an estimated repair cost of $99,911. Specifically, foundation_settlement in the North wing, lower level requires attention. Specifically, electrical_system_outdated in the East wing, upper level requires attention with an estimated repair cost of $184,789. 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 80,963 sqft of a total 93,815 sqft, implying a vacancy of 13.7%. The rent roll is anchored by major tenants such as Ramos, Perry and Lewis and Li, Ramirez and Gomez. The weighted average lease term (WALT) is approximately 3.6 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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 M-1 (Proactive mission-critical task-force), 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": "35720 Felicia Place, Lake Patriciaville, Maryland 31695",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Many region agency work something spring former director imagine.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Keep marriage picture administration community bad information across chance.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Treat husband hand of place bar.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 18519
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "hit",
      "full",
      "call"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Parent near Republican any dream. South least billion late fire family.",
        "estimated_repair_cost": 99911
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Couple than house whose. Song contain act American can."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Practice concern way billion this. Method trouble story prevent.",
        "estimated_repair_cost": 184789
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 80963,
    "weighted_average_lease_term_years": 3.6,
    "major_tenants": [
      {
        "tenant_name": "Ramos, Perry and Lewis",
        "lease_start_date": "2020-01-23",
        "lease_end_date": "2030-01-03",
        "annual_rent": 637517,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Li, Ramirez and Gomez",
        "lease_start_date": "2021-05-10",
        "lease_end_date": "2024-11-26",
        "annual_rent": 244842,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Murray Inc",
        "lease_start_date": "2022-03-08",
        "lease_end_date": "2026-06-14",
        "annual_rent": 174408,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 13.7,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Proactive mission-critical task-force)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Reed-Stewart"
}