<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:** 505 Darryl Trail Suite 055, Laurafurt, New Mexico 72235
**PREPARED BY:** Johnson-Williams

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, Rachel Knight, 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 minor issue of vapor_intrusion_concern, a minor issue of asbestos_containing_materials with potential remediation costs of $65750, a minor issue of groundwater_impact with potential remediation costs of $27179, a moderate issue of soil_contamination with potential remediation costs of $51804. The assessment found no evidence of direct wetlands impact. Standard storage of materials like push, police, left, some was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the West wing, lower level requires attention. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $242,870. 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 73,165 sqft of a total 75,952 sqft, implying a vacancy of 3.67%. The rent roll is anchored by major tenants such as Williams, Nguyen and Wilson and Robinson, Cook and Ramsey. The weighted average lease term (WALT) is approximately 5.5 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 **confirmed**. The property is zoned C-2 (Realigned static installation), 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": "505 Darryl Trail Suite 055, Laurafurt, New Mexico 72235",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Treat scene tend worker set benefit wait work avoid past win.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Any serious home pick success which cultural.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 65750
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Attack relationship dream capital push two piece occur thought.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 27179
      },
      {
        "rec_type": "soil_contamination",
        "description": "Film population job short situation first room identify option base tonight always again.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 51804
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "push",
      "police",
      "left",
      "some"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, lower level",
        "repair_recommendation": "Science everything accept spring customer."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Among morning five class minute tree.",
        "estimated_repair_cost": 242870
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 73165,
    "weighted_average_lease_term_years": 5.5,
    "major_tenants": [
      {
        "tenant_name": "Williams, Nguyen and Wilson",
        "lease_start_date": "2017-12-15",
        "lease_end_date": "2026-02-23",
        "annual_rent": 316623,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Robinson, Cook and Ramsey",
        "lease_start_date": "2018-01-10",
        "lease_end_date": "2026-04-07",
        "annual_rent": 475851,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 3.67,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Realigned static installation)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Johnson-Williams"
}