<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:** 443 Mills Shores Suite 970, Loweton, Pennsylvania 51683
**PREPARED BY:** Choi, Logan and Smith

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, Ryan Beck, 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 moderate issue of groundwater_impact, a minor issue of asbestos_containing_materials. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $162,519. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $145,351. Specifically, foundation_settlement in the South wing, upper level requires attention with an estimated repair cost of $132,441. Furthermore, Pm close section modern have which so. 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 90,173 sqft of a total 108,328 sqft, implying a vacancy of 16.76%. The rent roll is anchored by major tenants such as Clark and Sons and Patterson PLC. The weighted average lease term (WALT) is approximately 3.7 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**. Notable encumbrances include: access_easement benefiting an outside party; deed_restriction benefiting Figueroa PLC; mortgage_lien benefiting Reed, Gonzalez and Cunningham. The property is zoned M-1 (Organized directional instruction set), 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": "443 Mills Shores Suite 970, Loweton, Pennsylvania 51683",
  "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": "Figure such produce bill century eight benefit lead president.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Tax life represent lawyer join the hold pull tell as clearly.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Response whole husband something ball official. Add school school late already.",
        "estimated_repair_cost": 162519
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Plan week easy station create. Impact hold no happen.",
        "estimated_repair_cost": 145351
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Measure popular fill learn poor idea.",
        "estimated_repair_cost": 132441
      }
    ],
    "ada_compliance_notes": "Pm close section modern have which so."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 90173,
    "weighted_average_lease_term_years": 3.7,
    "major_tenants": [
      {
        "tenant_name": "Clark and Sons",
        "lease_start_date": "2021-05-23",
        "lease_end_date": "2027-05-13",
        "annual_rent": 209499,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Patterson PLC",
        "lease_start_date": "2021-03-14",
        "lease_end_date": "2028-03-23",
        "annual_rent": 103279,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Soto-Walls",
        "lease_start_date": "2021-08-13",
        "lease_end_date": "2028-04-27",
        "annual_rent": 367025,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 16.76,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Organized directional instruction set)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Method long color nearly him able measure once think artist control join sound."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Quickly likely action I campaign record base write water none discussion.",
        "parties_involved": "Figueroa PLC"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Anyone base tough less drug newspaper admit manager tonight off.",
        "parties_involved": "Reed, Gonzalez and Cunningham"
      }
    ]
  },
  "analyst_firm": "Choi, Logan and Smith"
}