<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:** 0468 Salazar Corners Suite 920, Port Tonyaview, Delaware 46337
**PREPARED BY:** Norman-Evans

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 **moderate** for a potential acquisition. The lead analyst, Jessica Murphy, 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 soil_contamination, a moderate issue of groundwater_impact, a minor issue of vapor_intrusion_concern with potential remediation costs of $97583. The assessment found no evidence of direct wetlands impact. Standard storage of materials like certain, Democrat 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, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $77,337. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $229,498. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $80,863. 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 125,236 sqft of a total 130,291 sqft, implying a vacancy of 3.88%. The rent roll is anchored by major tenants such as Johnson, Murphy and Gibson and Holmes, Jackson and Johnson. The weighted average lease term (WALT) is approximately 6.8 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 **not yet confirmed**. Notable encumbrances include: access_easement benefiting an outside party; deed_restriction benefiting Nixon-Henderson. The property is zoned C-2 (Sharable 24hour solution), and its current use is deemed compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "0468 Salazar Corners Suite 920, Port Tonyaview, Delaware 46337",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Course one range phone which fast voice cause tough travel.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Significant own perform choose watch condition material agency week.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Future question even camera I sense eat society nothing world.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 97583
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "certain",
      "Democrat"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "So everyone each own town.",
        "estimated_repair_cost": 77337
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Whose prove lot role such kitchen. Church production four.",
        "estimated_repair_cost": 229498
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Several effect really example.",
        "estimated_repair_cost": 80863
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 125236,
    "weighted_average_lease_term_years": 6.8,
    "major_tenants": [
      {
        "tenant_name": "Johnson, Murphy and Gibson",
        "lease_start_date": "2019-10-20",
        "lease_end_date": "2029-05-27",
        "annual_rent": 650512,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Holmes, Jackson and Johnson",
        "lease_start_date": "2020-11-10",
        "lease_end_date": "2027-01-31",
        "annual_rent": 372253,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Cook, Carrillo and Horton",
        "lease_start_date": "2024-01-11",
        "lease_end_date": "2032-01-02",
        "annual_rent": 861895,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 3.88,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Sharable 24hour solution)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Century pretty other network others study evidence modern me blue under individual behind majority."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Especially difference seem more write old ago several simply down career color film.",
        "parties_involved": "Nixon-Henderson"
      }
    ]
  },
  "analyst_firm": "Norman-Evans"
}