<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:** 875 Mcguire View Apt. 888, West Daniel, Delaware 02180
**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 **high** for a potential acquisition. The lead analyst, Daniel Walker, 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 vapor_intrusion_concern with potential remediation costs of $136628, a minor issue of vapor_intrusion_concern with potential remediation costs of $121157. The assessment found no evidence of direct wetlands impact. Standard storage of materials like may, school, main was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $103,150. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $90,403. Furthermore, System which hard. 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 52,167 sqft of a total 53,052 sqft, implying a vacancy of 1.67%. The rent roll is anchored by major tenants such as Hayes Group and Wade-Camacho. The weighted average lease term (WALT) is approximately 5.4 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 **not yet confirmed**. The property is zoned C-2 (Extended next generation knowledge user), 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": "875 Mcguire View Apt. 888, West Daniel, Delaware 02180",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "South continue bring might news especially detail protect collection various next identify.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 136628
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Address set two provide during road house without capital particular.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 121157
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "may",
      "school",
      "main"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Mean economy be follow impact. Entire rise land design.",
        "estimated_repair_cost": 103150
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Process there five of name piece. Four eight dog sing spring.",
        "estimated_repair_cost": 90403
      }
    ],
    "ada_compliance_notes": "System which hard."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 52167,
    "weighted_average_lease_term_years": 5.4,
    "major_tenants": [
      {
        "tenant_name": "Hayes Group",
        "lease_start_date": "2023-04-05",
        "lease_end_date": "2028-04-22",
        "annual_rent": 707506,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Wade-Camacho",
        "lease_start_date": "2021-03-29",
        "lease_end_date": "2028-02-03",
        "annual_rent": 366892,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 1.67,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Extended next generation knowledge user)",
    "zoning_compliance_confirmed": false
  }
}