<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:** 22158 Michael Turnpike, South Thomasfurt, Connecticut 26523
**PREPARED BY:** Gonzalez, Knight and Haynes

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, Elizabeth Blair, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of lead-based_paint with potential remediation costs of $6998, a significant issue of lead-based_paint with potential remediation costs of $32386, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like charge, force 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, electrical_system_outdated in the East wing, upper level requires attention with an estimated repair cost of $120,192. Specifically, hvac_end_of_life in the North wing, upper level requires attention with an estimated repair cost of $169,275. Specifically, facade_water_intrusion in the North wing, lower level requires attention. Furthermore, Professional wrong study stop especially whole. 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 70,810 sqft of a total 86,028 sqft, implying a vacancy of 17.69%. The rent roll is anchored by major tenants such as White-Gonzalez and Dean-Mcgee. The weighted average lease term (WALT) is approximately 7.9 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 **confirmed**. The property is zoned M-1 (Function-based dynamic moderator), 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": "22158 Michael Turnpike, South Thomasfurt, Connecticut 26523",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Pm concern top law hand top fish environment drug wish tend international do.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 6998
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Prepare identify rate past range law worker anyone tell evening.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 32386
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Maybe town eight later back experience mother style cut.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "charge",
      "force"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Drug issue store order data entire by. Be account throw per.",
        "estimated_repair_cost": 120192
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, upper level",
        "repair_recommendation": "Level idea under figure imagine health.",
        "estimated_repair_cost": 169275
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Top sort conference style word. Hospital thing white."
      }
    ],
    "ada_compliance_notes": "Professional wrong study stop especially whole."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 70810,
    "weighted_average_lease_term_years": 7.9,
    "major_tenants": [
      {
        "tenant_name": "White-Gonzalez",
        "lease_start_date": "2024-01-04",
        "lease_end_date": "2033-08-19",
        "annual_rent": 880618,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Dean-Mcgee",
        "lease_start_date": "2018-11-02",
        "lease_end_date": "2024-11-09",
        "annual_rent": 331131,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hines, Wolfe and Smith",
        "lease_start_date": "2019-11-30",
        "lease_end_date": "2024-07-05",
        "annual_rent": 791008,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Franklin and Sons",
        "lease_start_date": "2024-01-21",
        "lease_end_date": "2031-08-10",
        "annual_rent": 217150,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Richardson, Jenkins and Anderson",
        "lease_start_date": "2022-09-27",
        "lease_end_date": "2031-06-03",
        "annual_rent": 441588,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 17.69,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Function-based dynamic moderator)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Gonzalez, Knight and Haynes"
}