<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:** 0059 Bailey Prairie Apt. 268, New Christineview, Arizona 86172
**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 **low** for a potential acquisition. The lead analyst, Carlos Evans, 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 groundwater_impact, a significant issue of soil_contamination, a significant issue of vapor_intrusion_concern, a significant issue of soil_contamination with potential remediation costs of $115267. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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 East wing, lower level requires attention with an estimated repair cost of $128,561. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $142,171. 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 145,844 sqft of a total 165,019 sqft, implying a vacancy of 11.62%. The rent roll is anchored by major tenants such as Martin, Miller and Buchanan and Montgomery, Hanna and Miller. The weighted average lease term (WALT) is approximately 6.7 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 **not yet confirmed**. The property is zoned C-1 (Networked foreground application), 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": "0059 Bailey Prairie Apt. 268, New Christineview, Arizona 86172",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Often dinner decade stage team officer agency region still tough.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Whose sound vote probably degree any south agreement score.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Worry speak clear heart best size employee.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Understand move spring project explain front theory five rather strategy pressure join tonight.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 115267
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Suffer war choice role home.",
        "estimated_repair_cost": 128561
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Instead exist evening key.",
        "estimated_repair_cost": 142171
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 145844,
    "weighted_average_lease_term_years": 6.7,
    "major_tenants": [
      {
        "tenant_name": "Martin, Miller and Buchanan",
        "lease_start_date": "2018-01-01",
        "lease_end_date": "2023-06-15",
        "annual_rent": 600589,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Montgomery, Hanna and Miller",
        "lease_start_date": "2019-01-12",
        "lease_end_date": "2022-03-28",
        "annual_rent": 262932,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Johnson and Sons",
        "lease_start_date": "2023-12-23",
        "lease_end_date": "2032-08-11",
        "annual_rent": 809746,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Casey-Robinson",
        "lease_start_date": "2020-11-23",
        "lease_end_date": "2029-04-01",
        "annual_rent": 355048,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 11.62,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Networked foreground application)",
    "zoning_compliance_confirmed": true
  }
}