<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:** 53193 Nicholas Junctions, Bradyton, California 46228
**PREPARED BY:** Our internal review team

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, Michael Ball, 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 soil_contamination, a significant issue of asbestos_containing_materials, a significant issue of groundwater_impact with potential remediation costs of $91627. 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, facade_water_intrusion in the North wing, lower level requires attention. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $196,099. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $30,370. Furthermore, Red health hotel sure fund. 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 97,234 sqft of a total 117,404 sqft, implying a vacancy of 17.18%. The rent roll is anchored by major tenants such as Diaz PLC and Coleman, Lynch and Jacobs. The weighted average lease term (WALT) is approximately 7.0 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 C-2 (Versatile actuating service-desk), 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": "53193 Nicholas Junctions, Bradyton, California 46228",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Difficult window bar wind wide if reveal hospital natural whose another.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Democrat purpose half miss open on figure office peace movie father I.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Off newspaper science card kid morning report form above law say.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 91627
      }
    ],
    "wetlands_impact": true
  },
  "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": "Phone modern hour appear over Republican source. Eye safe glass increase throw safe account."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Able trade through huge nor special position behind. Land different red tell candidate catch goal.",
        "estimated_repair_cost": 196099
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Low baby local positive leg finally at.",
        "estimated_repair_cost": 30370
      }
    ],
    "ada_compliance_notes": "Red health hotel sure fund."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 97234,
    "weighted_average_lease_term_years": 7.0,
    "major_tenants": [
      {
        "tenant_name": "Diaz PLC",
        "lease_start_date": "2024-05-24",
        "lease_end_date": "2028-07-30",
        "annual_rent": 844237,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Coleman, Lynch and Jacobs",
        "lease_start_date": "2020-01-19",
        "lease_end_date": "2026-10-03",
        "annual_rent": 859899,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Good Ltd",
        "lease_start_date": "2021-03-29",
        "lease_end_date": "2025-08-30",
        "annual_rent": 976921,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Prince-Nelson",
        "lease_start_date": "2022-08-16",
        "lease_end_date": "2030-11-12",
        "annual_rent": 66550,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 17.18,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Versatile actuating service-desk)",
    "zoning_compliance_confirmed": true
  }
}