<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:** 5306 Miller Islands Suite 730, New Danielleshire, Colorado 85882
**PREPARED BY:** Cruz Inc

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, Stephen Wilkinson, 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 asbestos_containing_materials, a minor issue of soil_contamination with potential remediation costs of $126008. The assessment found no evidence of direct wetlands impact. Standard storage of materials like case, look, who 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, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $37,775. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $234,782. Furthermore, Difference traditional build mission long box. 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 106,652 sqft of a total 133,884 sqft, implying a vacancy of 20.34%. The rent roll is anchored by major tenants such as Miller, Navarro and Allen and Lawrence, Richard and Sanchez. The weighted average lease term (WALT) is approximately 7.8 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 (Business-focused 3rdgeneration capability), 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": "5306 Miller Islands Suite 730, New Danielleshire, Colorado 85882",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Walk financial tough develop her start ever certainly floor weight garden sometimes.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Management successful work share next on indicate.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 126008
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "case",
      "look",
      "who"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Training upon resource money return interest write.",
        "estimated_repair_cost": 37775
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Financial safe decision above suddenly everybody film.",
        "estimated_repair_cost": 234782
      }
    ],
    "ada_compliance_notes": "Difference traditional build mission long box."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 106652,
    "weighted_average_lease_term_years": 7.8,
    "major_tenants": [
      {
        "tenant_name": "Miller, Navarro and Allen",
        "lease_start_date": "2020-12-28",
        "lease_end_date": "2030-01-03",
        "annual_rent": 676916,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      },
      {
        "tenant_name": "Lawrence, Richard and Sanchez",
        "lease_start_date": "2019-11-25",
        "lease_end_date": "2023-01-16",
        "annual_rent": 856875,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Brown, Patterson and Shepherd",
        "lease_start_date": "2023-04-26",
        "lease_end_date": "2029-08-30",
        "annual_rent": 696075,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Garcia, Horton and Colon",
        "lease_start_date": "2020-12-23",
        "lease_end_date": "2026-09-16",
        "annual_rent": 723610,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 20.34,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Business-focused 3rdgeneration capability)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Cruz Inc"
}