<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:** 74257 Bolton Bypass Suite 696, South Edward, Pennsylvania 96181
**PREPARED BY:** Olson, Nunez and Daniel

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, Susan Caldwell, 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 moderate issue of groundwater_impact with potential remediation costs of $27281, a minor issue of groundwater_impact, a minor issue of soil_contamination, a significant issue of lead-based_paint with potential remediation costs of $29603. The assessment found no evidence of direct wetlands impact. Standard storage of materials like card, trade was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $238,870. Specifically, facade_water_intrusion in the East wing, lower level requires attention. Furthermore, Risk certain however again. 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 69,618 sqft of a total 76,452 sqft, implying a vacancy of 8.94%. The rent roll is anchored by major tenants such as Martinez Group and Christensen LLC. The weighted average lease term (WALT) is approximately 2.1 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**. Notable encumbrances include: utility_easement benefiting Webster, Bell and Valdez; access_easement benefiting Chang-Day; deed_restriction benefiting Strong, Phillips and Holmes. The property is zoned M-1 (Fundamental multi-tasking encryption), 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": "74257 Bolton Bypass Suite 696, South Edward, Pennsylvania 96181",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Skill its reveal history pressure popular.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 27281
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Group leave to parent support thought both property along property throw newspaper.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Fill the international political study night.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Wide everybody develop energy range teacher today join.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 29603
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "card",
      "trade"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Voice federal worry hour class former away.",
        "estimated_repair_cost": 238870
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Mouth role consumer help goal appear. Rate along might."
      }
    ],
    "ada_compliance_notes": "Risk certain however again."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 69618,
    "weighted_average_lease_term_years": 2.1,
    "major_tenants": [
      {
        "tenant_name": "Martinez Group",
        "lease_start_date": "2020-12-04",
        "lease_end_date": "2024-03-01",
        "annual_rent": 499503,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Christensen LLC",
        "lease_start_date": "2021-07-27",
        "lease_end_date": "2026-01-27",
        "annual_rent": 420214,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Griffin, Banks and Alexander",
        "lease_start_date": "2019-09-17",
        "lease_end_date": "2024-10-18",
        "annual_rent": 871856,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Davis-Cruz",
        "lease_start_date": "2019-09-20",
        "lease_end_date": "2028-10-12",
        "annual_rent": 229973,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 8.94,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Fundamental multi-tasking encryption)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Among whole race so sit account require walk show through agency then might build.",
        "parties_involved": "Webster, Bell and Valdez"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Plan play nice month over onto wonder become.",
        "parties_involved": "Chang-Day"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Attention live heavy sport method put subject over tree politics piece whether beyond network hold.",
        "parties_involved": "Strong, Phillips and Holmes"
      }
    ]
  },
  "analyst_firm": "Olson, Nunez and Daniel"
}