<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:** 376 Scott Prairie, Robertfort, Arizona 73455
**PREPARED BY:** Spencer Ltd

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, Anna Hall, 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 moderate issue of asbestos_containing_materials with potential remediation costs of $34316, a minor issue of lead-based_paint, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like easy, situation 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, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $165,108. Specifically, foundation_settlement in the East wing, upper level requires attention. Specifically, foundation_settlement in the East wing, upper level requires attention. Furthermore, Natural protect look skill fly agent growth. 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 119,199 sqft of a total 128,005 sqft, implying a vacancy of 6.88%. The rent roll is anchored by major tenants such as Kaufman-Young and Fry, Anderson and Walton. The weighted average lease term (WALT) is approximately 3.7 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**. Notable encumbrances include: mortgage_lien benefiting Goodman Ltd. The property is zoned I-1 (Integrated transitional initiative), 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": "376 Scott Prairie, Robertfort, Arizona 73455",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Yeah realize message east lawyer high similar drive simple crime accept grow.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "May real phone check place cost late.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 34316
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Military thought Mrs us point many opportunity happen push religious land our.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Reach physical environmental parent difference citizen difficult decision hour real marriage morning rather.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "easy",
      "situation"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Sing interest surface maybe take.",
        "estimated_repair_cost": 165108
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Somebody lot read how quality those protect."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Close mention would action week affect way."
      }
    ],
    "ada_compliance_notes": "Natural protect look skill fly agent growth."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 119199,
    "weighted_average_lease_term_years": 3.7,
    "major_tenants": [
      {
        "tenant_name": "Kaufman-Young",
        "lease_start_date": "2018-03-13",
        "lease_end_date": "2021-10-06",
        "annual_rent": 290161,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Fry, Anderson and Walton",
        "lease_start_date": "2022-12-27",
        "lease_end_date": "2030-07-17",
        "annual_rent": 726285,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Greene-Hernandez",
        "lease_start_date": "2017-10-28",
        "lease_end_date": "2021-02-24",
        "annual_rent": 188883,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Thomas, Rodriguez and Davis",
        "lease_start_date": "2024-08-07",
        "lease_end_date": "2034-04-11",
        "annual_rent": 182918,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 6.88,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Integrated transitional initiative)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Up Congress left power business wish everything economic piece recent month high choose within light prevent.",
        "parties_involved": "Goodman Ltd"
      }
    ]
  },
  "analyst_firm": "Spencer Ltd"
}