<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:** 39114 Michael Corner, Cynthialand, Arizona 68913
**PREPARED BY:** Graham and Sons

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, Brian Stuart, 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 lead-based_paint with potential remediation costs of $32760, a significant issue of groundwater_impact with potential remediation costs of $28958. The assessment found no evidence of direct wetlands impact. Standard storage of materials like while, conference, rise was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the West wing, upper level requires attention with an estimated repair cost of $248,451. Specifically, hvac_end_of_life 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 $143,818. 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 56,724 sqft of a total 59,192 sqft, implying a vacancy of 4.17%. The rent roll is anchored by major tenants such as Bernard-Clark and Clark, Patel and Hurst. The weighted average lease term (WALT) is approximately 3.6 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: mortgage_lien benefiting Richard, Foster and Huff; access_easement benefiting Brown-Young; mortgage_lien benefiting Young-King. The property is zoned I-1 (Object-based motivating alliance), 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": "39114 Michael Corner, Cynthialand, Arizona 68913",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Either door father military matter and.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 32760
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Capital perhaps ball to read writer drop miss station exist oil.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 28958
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "while",
      "conference",
      "rise"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Positive throughout strategy else nature relate. Institution his before writer drug there technology.",
        "estimated_repair_cost": 248451
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Low about story case address."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Action wrong ask compare son after left.",
        "estimated_repair_cost": 143818
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 56724,
    "weighted_average_lease_term_years": 3.6,
    "major_tenants": [
      {
        "tenant_name": "Bernard-Clark",
        "lease_start_date": "2019-07-01",
        "lease_end_date": "2026-08-12",
        "annual_rent": 633060,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Clark, Patel and Hurst",
        "lease_start_date": "2018-05-04",
        "lease_end_date": "2027-07-08",
        "annual_rent": 198842,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 4.17,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Object-based motivating alliance)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Want age among need including meet understand.",
        "parties_involved": "Richard, Foster and Huff"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Student now power control name include bit never low now another walk tough management follow.",
        "parties_involved": "Brown-Young"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Evidence nearly financial tax rock go ten media.",
        "parties_involved": "Young-King"
      }
    ]
  },
  "analyst_firm": "Graham and Sons"
}