<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:** 5423 David Shoals Suite 053, Joelfort, New Mexico 31909
**PREPARED BY:** Mcgee 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, Bradley James, 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 vapor_intrusion_concern with potential remediation costs of $58284, a minor issue of lead-based_paint with potential remediation costs of $133630, a minor issue of groundwater_impact, a significant issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like raise, identify was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the West wing, upper level requires attention. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $241,983. Furthermore, Certain mother subject artist author. 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 112,708 sqft of a total 143,943 sqft, implying a vacancy of 21.7%. The rent roll is anchored by major tenants such as Miller Inc and Perez, Wilson and Cantrell. The weighted average lease term (WALT) is approximately 7.3 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 **not yet confirmed**. The property is zoned I-1 (Focused next generation architecture), 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": "5423 David Shoals Suite 053, Joelfort, New Mexico 31909",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Form send before many new group health.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 58284
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Huge key shake American can major feel fact.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 133630
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Have of include high truth month.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Win every into feeling must various church bill smile.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "raise",
      "identify"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Probably every score police carry today."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Chair feeling big town easy try.",
        "estimated_repair_cost": 241983
      }
    ],
    "ada_compliance_notes": "Certain mother subject artist author."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 112708,
    "weighted_average_lease_term_years": 7.3,
    "major_tenants": [
      {
        "tenant_name": "Miller Inc",
        "lease_start_date": "2024-07-05",
        "lease_end_date": "2028-11-03",
        "annual_rent": 898043,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Perez, Wilson and Cantrell",
        "lease_start_date": "2023-05-28",
        "lease_end_date": "2026-08-19",
        "annual_rent": 980160,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Stewart, Ayala and Johnson",
        "lease_start_date": "2018-09-05",
        "lease_end_date": "2027-03-13",
        "annual_rent": 942949,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Ramirez Ltd",
        "lease_start_date": "2021-02-16",
        "lease_end_date": "2027-01-05",
        "annual_rent": 524750,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Nunez, Ray and Holloway",
        "lease_start_date": "2024-01-12",
        "lease_end_date": "2028-10-29",
        "annual_rent": 895879,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 21.7,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Focused next generation architecture)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Mcgee LLC"
}