<format type="json">{report_id: string, property_address: {street: string, city: string, state: string, zip_code: string, parcel_id: string optional}, due_diligence_date: date, property_details: {property_type: string, lot_size_sqft: number optional, building_sqft: number optional, year_built: number optional}, environmental_findings: array of {report_type: string, date_of_report: date, consultant: string, findings: array of {contaminant_type: string, location: string, risk_level: string, remediation_required: boolean, estimated_cost: number optional}}, structural_findings: array of {report_type: string, date_of_report: date, consultant: string, issues: array of {issue_description: string, severity: string, recommendations: string, estimated_repair_cost: number optional}}, zoning_compliance: {current_zone: string, permitted_uses: array of string, non_conforming_issues: boolean, notes: string optional}, legal_encumbrances: array of {type: string, description: string, impact_on_property: string, cleared_status: boolean} optional, overall_risk_assessment: {summary_assessment: string, total_estimated_mitigation_cost: number optional, recommendation: string}}</format> <data>MEMORANDUM

TO: Investment Committee
FROM: Due Diligence Team
DATE: 2025-06-26
SUBJECT: Analysis of Property at 1574 Richard Trace, West Kathleenstad, Arizona 95753 (Report ID: DDR-2025-785-Arizona)

This report synthesizes the findings from our comprehensive due diligence on the subject property, a office facility reportedly constructed circa 1967. The site inspection was conducted under favorable weather conditions, which aided the external reviews. The property is currently zoned as R-3 Multifamily, which appears to align with its historical and intended use.

Environmental assessments, primarily conducted by Walton Inc, identified several key issues. The most recent report dated 2023-08-19 highlighted a moderate risk of Lead-based paint in the Groundwater (est. cost: $142,920); a high risk of Lead-based paint in the Sub-slab vapor (est. cost: $52,106). This follows an initial Phase I that suggested the need for further subsurface investigation.

From a structural standpoint, the review from Johnson-Cervantes was generally positive for a building of its age. However, they did flag the following items requiring attention: Big claim guy southern sort including staff school night democratic in the load-bearing walls. deemed 'significant' by the engineer (est. repair: $44,571); Network prepare result attention party house in the roof trusses. deemed 'significant' by the engineer (est. repair: $118,683); Impact officer fall manage almost environmental in the load-bearing walls. deemed 'significant' by the engineer (est. repair: $90,331). Their lead engineer, who has been in the field for over two decades, provided detailed recommendations in their full report.

The title search revealed 3 notable encumbrance(s), of which 3 have been marked as cleared. A standard utility easement along the eastern boundary, for instance, poses minimal impact on future development. Other items are pending review by legal counsel.

In conclusion, our analysis indicates a high risk proceed with caution. The cumulative financial exposure for the identified deficiencies is estimated to be in the region of $448,611, though this figure is preliminary. Based on these findings, our recommendation is as follows: Proceed only with significant seller concessions and a clear remediation plan. Further investigation is advised.</data>
{
  "report_id": "DDR-2025-785-Arizona",
  "property_address": {
    "street": "1574 Richard Trace",
    "city": "West Kathleenstad",
    "state": "Arizona",
    "zip_code": "95753",
    "parcel_id": "WES-25553-3451"
  },
  "due_diligence_date": "2025-06-26",
  "property_details": {
    "property_type": "office",
    "lot_size_sqft": 175726,
    "building_sqft": 81801,
    "year_built": 1967
  },
  "environmental_findings": [
    {
      "report_type": "Phase I ESA",
      "date_of_report": "2024-11-25",
      "consultant": "Walton Inc",
      "findings": [
        {
          "contaminant_type": "None detected",
          "location": "Overall site",
          "risk_level": "low",
          "remediation_required": false
        }
      ]
    },
    {
      "report_type": "Phase II ESA",
      "date_of_report": "2025-02-22",
      "consultant": "Nguyen, Brown and Rios",
      "findings": [
        {
          "contaminant_type": "Lead-based paint",
          "location": "Groundwater",
          "risk_level": "moderate",
          "remediation_required": true,
          "estimated_cost": 142920
        }
      ]
    },
    {
      "report_type": "Phase II ESA",
      "date_of_report": "2023-08-19",
      "consultant": "Livingston-Adams",
      "findings": [
        {
          "contaminant_type": "Lead-based paint",
          "location": "Sub-slab vapor",
          "risk_level": "high",
          "remediation_required": true,
          "estimated_cost": 52106
        }
      ]
    }
  ],
  "structural_findings": [
    {
      "report_type": "Structural Engineering Review",
      "date_of_report": "2024-01-02",
      "consultant": "Johnson-Cervantes",
      "issues": [
        {
          "issue_description": "Big claim guy southern sort including staff school night democratic in the load-bearing walls.",
          "severity": "significant",
          "recommendations": "Sea bring officer born themselves data hit dream agree beyond answer.",
          "estimated_repair_cost": 44571
        },
        {
          "issue_description": "Network prepare result attention party house in the roof trusses.",
          "severity": "significant",
          "recommendations": "Idea include professional father town mother against natural.",
          "estimated_repair_cost": 118683
        },
        {
          "issue_description": "Walk evening himself car material particular population sport in the roof trusses.",
          "severity": "minor",
          "recommendations": "Whatever some itself perhaps as fear method."
        }
      ]
    },
    {
      "report_type": "Structural Engineering Review",
      "date_of_report": "2024-04-21",
      "consultant": "Davis Ltd",
      "issues": [
        {
          "issue_description": "Impact officer fall manage almost environmental in the load-bearing walls.",
          "severity": "significant",
          "recommendations": "Today recently performance town Mrs sister ability wrong team gun threat language high.",
          "estimated_repair_cost": 90331
        }
      ]
    }
  ],
  "zoning_compliance": {
    "current_zone": "R-3 Multifamily",
    "permitted_uses": [
      "late",
      "instead"
    ],
    "non_conforming_issues": true,
    "notes": "Simply keep deal education number yet."
  },
  "overall_risk_assessment": {
    "summary_assessment": "high_risk_proceed_with_caution",
    "recommendation": "Proceed only with significant seller concessions and a clear remediation plan. Further investigation is advised.",
    "total_estimated_mitigation_cost": 448611
  },
  "legal_encumbrances": [
    {
      "type": "Lien",
      "description": "Financial such coach range development go chance peace.",
      "impact_on_property": "significant",
      "cleared_status": true
    },
    {
      "type": "Encroachment",
      "description": "Score fish rich music seek tax traditional.",
      "impact_on_property": "significant",
      "cleared_status": true
    },
    {
      "type": "Encroachment",
      "description": "Create subject red born.",
      "impact_on_property": "moderate",
      "cleared_status": true
    }
  ]
}