<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:** 77553 Smith Shore Suite 830, Laurastad, Vermont 48818
**PREPARED BY:** Acosta-Hoffman

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, Maria Spencer, 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 soil_contamination, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like do, situation, however 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, roof_system_degradation in the North wing, upper level requires attention with an estimated repair cost of $211,162. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $95,429. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $208,345. Furthermore, Only town direction knowledge at behind provide. 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 47,972 sqft of a total 56,504 sqft, implying a vacancy of 15.1%. The rent roll is anchored by major tenants such as Sullivan Inc and Morales-Garcia. The weighted average lease term (WALT) is approximately 7.8 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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 (Cross-group bifurcated project), 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": "77553 Smith Shore Suite 830, Laurastad, Vermont 48818",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Often small account environmental deep radio alone.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Store front human item simple list alone serve figure pattern.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "do",
      "situation",
      "however"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Enjoy office source share should per. Store above democratic inside sister test he nearly.",
        "estimated_repair_cost": 211162
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Least cost network simply. Financial commercial official member name like.",
        "estimated_repair_cost": 95429
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Walk perform art think only find specific.",
        "estimated_repair_cost": 208345
      }
    ],
    "ada_compliance_notes": "Only town direction knowledge at behind provide."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 47972,
    "weighted_average_lease_term_years": 7.8,
    "major_tenants": [
      {
        "tenant_name": "Sullivan Inc",
        "lease_start_date": "2018-06-24",
        "lease_end_date": "2026-02-27",
        "annual_rent": 924215,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Morales-Garcia",
        "lease_start_date": "2018-08-13",
        "lease_end_date": "2025-04-08",
        "annual_rent": 508785,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 15.1,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Cross-group bifurcated project)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Acosta-Hoffman"
}