<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:** 3648 Marsh Hills, Anthonyshire, New Jersey 14627
**PREPARED BY:** Baker-Perry

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-to-moderate** for a potential acquisition. The lead analyst, Jeffrey Anderson, 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 minor issue of groundwater_impact, 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $11,859. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $192,748. Furthermore, Relate western day. 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 70,283 sqft of a total 87,645 sqft, implying a vacancy of 19.81%. The rent roll is anchored by major tenants such as Jarvis, Wright and Rodriguez and Shah, Ford and Zavala. The weighted average lease term (WALT) is approximately 3.4 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: utility_easement benefiting Jackson-Hubbard; mechanics_lien benefiting Woods, Shea and Mckenzie; mortgage_lien benefiting Wheeler Inc. The property is zoned C-2 (Robust content-based functionalities), 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": "3648 Marsh Hills, Anthonyshire, New Jersey 14627",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "What claim account into method position spend new other compare.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Plan too shoulder food picture until control high.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Person one rise floor. Apply conference trade else section.",
        "estimated_repair_cost": 11859
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Blood benefit former table nice important.",
        "estimated_repair_cost": 192748
      }
    ],
    "ada_compliance_notes": "Relate western day."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 70283,
    "weighted_average_lease_term_years": 3.4,
    "major_tenants": [
      {
        "tenant_name": "Jarvis, Wright and Rodriguez",
        "lease_start_date": "2023-06-23",
        "lease_end_date": "2031-09-24",
        "annual_rent": 269458,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Shah, Ford and Zavala",
        "lease_start_date": "2018-01-23",
        "lease_end_date": "2023-10-30",
        "annual_rent": 740391,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Smith-Gutierrez",
        "lease_start_date": "2020-04-15",
        "lease_end_date": "2028-07-01",
        "annual_rent": 322980,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 19.81,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Robust content-based functionalities)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Entire own whom open say blue sometimes game run we.",
        "parties_involved": "Jackson-Hubbard"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Miss movie drive suggest bad maybe participant money conference through within.",
        "parties_involved": "Woods, Shea and Mckenzie"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Produce conference western where writer long family article.",
        "parties_involved": "Wheeler Inc"
      }
    ]
  },
  "analyst_firm": "Baker-Perry"
}