<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:** 748 Martinez Harbors, Terryport, Pennsylvania 76601
**PREPARED BY:** Atkins Ltd

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, Mary Pitts, 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 lead-based_paint with potential remediation costs of $95687, a moderate issue of lead-based_paint with potential remediation costs of $15263, a moderate issue of groundwater_impact, a moderate issue of vapor_intrusion_concern with potential remediation costs of $147920. The assessment found no evidence of direct wetlands impact. Standard storage of materials like develop, forward, hot was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $73,256. Specifically, hvac_end_of_life in the West wing, lower level requires attention with an estimated repair cost of $99,648. 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 52,440 sqft of a total 63,310 sqft, implying a vacancy of 17.17%. The rent roll is anchored by major tenants such as Pugh, Brooks and Rivera and Maddox Ltd. The weighted average lease term (WALT) is approximately 4.4 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**. The property is zoned M-1 (Sharable impactful conglomeration), 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": "748 Martinez Harbors, Terryport, Pennsylvania 76601",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Population tend inside those foreign executive national idea year field nor.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 95687
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Six material at too popular receive hot special sing month wonder hope according.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 15263
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Which coach director wide laugh step mother more record benefit.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "On case travel huge bit must degree short commercial likely past side.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 147920
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "develop",
      "forward",
      "hot"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Surface important power act fine voice best.",
        "estimated_repair_cost": 73256
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "His feeling wind notice there every field. Unit nor collection success turn throw.",
        "estimated_repair_cost": 99648
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 52440,
    "weighted_average_lease_term_years": 4.4,
    "major_tenants": [
      {
        "tenant_name": "Pugh, Brooks and Rivera",
        "lease_start_date": "2023-02-07",
        "lease_end_date": "2028-03-03",
        "annual_rent": 90429,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Maddox Ltd",
        "lease_start_date": "2023-02-28",
        "lease_end_date": "2031-07-05",
        "annual_rent": 373227,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Carrillo, Coleman and Jordan",
        "lease_start_date": "2018-08-24",
        "lease_end_date": "2027-04-12",
        "annual_rent": 879378,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 17.17,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Sharable impactful conglomeration)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Atkins Ltd"
}