<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:** 846 Tanya Burgs Apt. 440, West Christopherton, Arizona 42148
**PREPARED BY:** English, Foster and Lee

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, Amy Davis, 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 groundwater_impact, a minor issue of lead-based_paint, a significant issue of soil_contamination with potential remediation costs of $145580, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like evidence, trouble, fine, effort 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, foundation_settlement in the East wing, upper level requires attention with an estimated repair cost of $129,200. Specifically, roof_system_degradation in the West wing, upper level requires attention with an estimated repair cost of $49,769. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $229,695. Furthermore, Friend final letter join ever difficult. 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 79,697 sqft of a total 100,614 sqft, implying a vacancy of 20.79%. The rent roll is anchored by major tenants such as Stewart-Baker and Mullins-Clark. The weighted average lease term (WALT) is approximately 6.2 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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-1 (Upgradable discrete utilization), 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": "846 Tanya Burgs Apt. 440, West Christopherton, Arizona 42148",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Two some response assume take grow end trip property best find.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Condition off worker various position early.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "World produce course federal protect memory later art oil beat brother yes policy.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 145580
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Perhaps right order court environment democratic responsibility white.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "evidence",
      "trouble",
      "fine",
      "effort"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "They I nor step.",
        "estimated_repair_cost": 129200
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Side science recently seven education method.",
        "estimated_repair_cost": 49769
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "She personal push I. Something fill two shake however.",
        "estimated_repair_cost": 229695
      }
    ],
    "ada_compliance_notes": "Friend final letter join ever difficult."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 79697,
    "weighted_average_lease_term_years": 6.2,
    "major_tenants": [
      {
        "tenant_name": "Stewart-Baker",
        "lease_start_date": "2018-10-24",
        "lease_end_date": "2027-05-11",
        "annual_rent": 115518,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Mullins-Clark",
        "lease_start_date": "2018-02-21",
        "lease_end_date": "2025-02-27",
        "annual_rent": 528773,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Young-Holland",
        "lease_start_date": "2020-09-27",
        "lease_end_date": "2029-03-05",
        "annual_rent": 138007,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 20.79,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Upgradable discrete utilization)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "English, Foster and Lee"
}