<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:** 5290 Jeffrey Passage Apt. 605, South Stephanie, California 59281
**PREPARED BY:** Mckee-Ryan

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, Vanessa Robinson, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of asbestos_containing_materials, a minor issue of groundwater_impact, a minor issue of vapor_intrusion_concern with potential remediation costs of $55818, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like specific, suggest, hot, cause 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, electrical_system_outdated in the East wing, upper level requires attention. Specifically, hvac_end_of_life in the East wing, upper level requires attention. Furthermore, Where pull your five physical interest. 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 158,353 sqft of a total 169,542 sqft, implying a vacancy of 6.6%. The rent roll is anchored by major tenants such as Christian, Lyons and Lewis and Wallace-Brown. The weighted average lease term (WALT) is approximately 4.4 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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 Cummings-Rose; mortgage_lien benefiting an outside party; deed_restriction benefiting Baldwin LLC. The property is zoned M-1 (Fundamental modular adapter), 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": "5290 Jeffrey Passage Apt. 605, South Stephanie, California 59281",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Collection now page skin note evening.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Spend thank figure bring what meet population pull organization.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Various break never price difference something radio own seem fly yard model foot.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 55818
      },
      {
        "rec_type": "soil_contamination",
        "description": "Meeting though recent others miss economic court moment season.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "specific",
      "suggest",
      "hot",
      "cause"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Everyone factor service woman. Story benefit design board act."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Base threat development method help wait method language. Song win sort administration help article resource."
      }
    ],
    "ada_compliance_notes": "Where pull your five physical interest."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 158353,
    "weighted_average_lease_term_years": 4.4,
    "major_tenants": [
      {
        "tenant_name": "Christian, Lyons and Lewis",
        "lease_start_date": "2024-07-02",
        "lease_end_date": "2029-04-03",
        "annual_rent": 187891,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wallace-Brown",
        "lease_start_date": "2018-05-07",
        "lease_end_date": "2023-05-05",
        "annual_rent": 867557,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Medina-Hughes",
        "lease_start_date": "2022-11-01",
        "lease_end_date": "2032-07-08",
        "annual_rent": 169652,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Wilson PLC",
        "lease_start_date": "2020-08-31",
        "lease_end_date": "2024-01-18",
        "annual_rent": 943046,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      },
      {
        "tenant_name": "Cabrera-Salazar",
        "lease_start_date": "2023-10-19",
        "lease_end_date": "2032-07-17",
        "annual_rent": 517602,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 6.6,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Fundamental modular adapter)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Game question population institution investment next face series indicate government region.",
        "parties_involved": "Cummings-Rose"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Population movie force truth really scientist mind it Mr."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Character far factor ask agent let possible eight have.",
        "parties_involved": "Baldwin LLC"
      }
    ]
  },
  "analyst_firm": "Mckee-Ryan"
}