<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:** 009 Erika Wells, New Tonyaburgh, New Jersey 86462
**PREPARED BY:** Santos, Ingram and Villegas

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 **moderate** for a potential acquisition. The lead analyst, Brian Wright, 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 significant issue of asbestos_containing_materials, a moderate issue of lead-based_paint, a minor issue of lead-based_paint with potential remediation costs of $50466. 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 North wing, lower level requires attention with an estimated repair cost of $241,166. Specifically, hvac_end_of_life in the West wing, lower level requires attention with an estimated repair cost of $42,203. Furthermore, Summer animal visit season. 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 123,383 sqft of a total 141,380 sqft, implying a vacancy of 12.73%. The rent roll is anchored by major tenants such as Sullivan, Dickerson and White and Sanchez, Edwards and King. The weighted average lease term (WALT) is approximately 2.8 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 C-2 (Multi-lateral reciprocal secured line), 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": "009 Erika Wells, New Tonyaburgh, New Jersey 86462",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Economy north office why thus amount wrong guess worker direction hear season.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Spring very everyone their guess argue change still attention.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Myself dark wrong standard exist way trip standard no.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 50466
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Only be exactly continue although image yes.",
        "estimated_repair_cost": 241166
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "The whatever place body head.",
        "estimated_repair_cost": 42203
      }
    ],
    "ada_compliance_notes": "Summer animal visit season."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 123383,
    "weighted_average_lease_term_years": 2.8,
    "major_tenants": [
      {
        "tenant_name": "Sullivan, Dickerson and White",
        "lease_start_date": "2023-07-17",
        "lease_end_date": "2032-02-17",
        "annual_rent": 66547,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Sanchez, Edwards and King",
        "lease_start_date": "2020-02-07",
        "lease_end_date": "2029-10-13",
        "annual_rent": 751742,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Rogers, Baker and Moon",
        "lease_start_date": "2022-02-22",
        "lease_end_date": "2026-07-26",
        "annual_rent": 506528,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Green PLC",
        "lease_start_date": "2020-04-08",
        "lease_end_date": "2029-12-29",
        "annual_rent": 602108,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Cruz-Beck",
        "lease_start_date": "2018-10-22",
        "lease_end_date": "2027-07-31",
        "annual_rent": 329490,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 12.73,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Multi-lateral reciprocal secured line)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Santos, Ingram and Villegas"
}