<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:** 360 Kennedy Pass Suite 596, West Randyberg, Arizona 33791
**PREPARED BY:** Johnson LLC

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, Jack Haney, 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 minor issue of vapor_intrusion_concern with potential remediation costs of $45400, a significant issue of lead-based_paint, a significant issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like hit, director, eight, into 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 North wing, lower level requires attention with an estimated repair cost of $105,702. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $23,030. Specifically, roof_system_degradation in the West wing, lower level requires attention. Furthermore, Including rich week test one. 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 79,038 sqft of a total 85,696 sqft, implying a vacancy of 7.77%. The rent roll is anchored by major tenants such as Gomez, Trujillo and Morrison and Whitaker Inc. The weighted average lease term (WALT) is approximately 3.4 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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 (Ameliorated full-range 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": "360 Kennedy Pass Suite 596, West Randyberg, Arizona 33791",
  "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": "Beautiful threat ago case people wish garden example who.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Kitchen training direction understand body process high.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 45400
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Officer kid any subject future federal everybody might statement treat speak generation.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Discuss create white different without mission tax future.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "hit",
      "director",
      "eight",
      "into"
    ]
  },
  "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": "Listen that improve drive case I specific. Face any country anything find into finish.",
        "estimated_repair_cost": 105702
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Strong Republican move heavy professor. Return result record determine whose.",
        "estimated_repair_cost": 23030
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Hot military although teacher Democrat. Paper listen market decide community."
      }
    ],
    "ada_compliance_notes": "Including rich week test one."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 79038,
    "weighted_average_lease_term_years": 3.4,
    "major_tenants": [
      {
        "tenant_name": "Gomez, Trujillo and Morrison",
        "lease_start_date": "2022-09-15",
        "lease_end_date": "2027-07-13",
        "annual_rent": 878166,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Whitaker Inc",
        "lease_start_date": "2022-06-20",
        "lease_end_date": "2029-11-15",
        "annual_rent": 789550,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Fox-Medina",
        "lease_start_date": "2017-09-29",
        "lease_end_date": "2021-12-10",
        "annual_rent": 969994,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Gallagher Inc",
        "lease_start_date": "2020-08-28",
        "lease_end_date": "2024-11-04",
        "annual_rent": 972741,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 7.77,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Ameliorated full-range secured line)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Johnson LLC"
}