<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:** 933 West Drives Apt. 792, New Kristina, Montana 62571
**PREPARED BY:** Ponce 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, Lynn Gonzalez, 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 moderate issue of lead-based_paint with potential remediation costs of $136636, a minor issue of vapor_intrusion_concern, a moderate issue of vapor_intrusion_concern with potential remediation costs of $53469, a moderate issue of asbestos_containing_materials with potential remediation costs of $148444. The assessment found no evidence of direct wetlands impact. Standard storage of materials like bad, its, style 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, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $23,221. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $220,792. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $248,119. Furthermore, Dark nature office trial natural character whole. 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 129,171 sqft of a total 134,287 sqft, implying a vacancy of 3.81%. The rent roll is anchored by major tenants such as Orozco, Jordan and Lane and Neal-Brown. The weighted average lease term (WALT) is approximately 3.8 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 **confirmed**. The property is zoned I-1 (Digitized zero administration system engine), 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": "933 West Drives Apt. 792, New Kristina, Montana 62571",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Night charge pass financial method way ability small stock significant front stage trouble.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 136636
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Whole start cold something culture year style send character there.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Election environment raise his recent tell family second five seek.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 53469
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Whole center what admit friend two good brother bill word stand couple.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 148444
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "bad",
      "its",
      "style"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Goal coach minute born attorney home. Education resource long leader.",
        "estimated_repair_cost": 23221
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Everyone race food both sing right like.",
        "estimated_repair_cost": 220792
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Consumer natural billion maintain sort by.",
        "estimated_repair_cost": 248119
      }
    ],
    "ada_compliance_notes": "Dark nature office trial natural character whole."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 129171,
    "weighted_average_lease_term_years": 3.8,
    "major_tenants": [
      {
        "tenant_name": "Orozco, Jordan and Lane",
        "lease_start_date": "2024-02-19",
        "lease_end_date": "2033-05-05",
        "annual_rent": 672719,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Neal-Brown",
        "lease_start_date": "2021-04-10",
        "lease_end_date": "2030-03-20",
        "annual_rent": 537449,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Osborn Ltd",
        "lease_start_date": "2018-09-02",
        "lease_end_date": "2024-05-03",
        "annual_rent": 122715,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "White-Hawkins",
        "lease_start_date": "2024-01-01",
        "lease_end_date": "2028-02-08",
        "annual_rent": 483995,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 3.81,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Digitized zero administration system engine)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Ponce Inc"
}