<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:** 5347 Schroeder Parkway Apt. 665, Tracibury, Delaware 48134
**PREPARED BY:** Pollard-Keith

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, Ashley Yates, 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 significant issue of soil_contamination, a minor issue of asbestos_containing_materials with potential remediation costs of $10052, a significant issue of asbestos_containing_materials, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like once, event 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, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $201,268. Specifically, roof_system_degradation in the West wing, lower level requires attention. 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 167,510 sqft of a total 174,926 sqft, implying a vacancy of 4.24%. The rent roll is anchored by major tenants such as Allen-Bean and Simon, Davidson and Stevens. The weighted average lease term (WALT) is approximately 7.2 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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: deed_restriction benefiting Hardin PLC; mortgage_lien benefiting Hopkins, Underwood and Wells; deed_restriction benefiting an outside party. The property is zoned M-1 (Future-proofed user-facing functionalities), 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": "5347 Schroeder Parkway Apt. 665, Tracibury, Delaware 48134",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Tree like former how race garden and wide good present follow enough member.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Walk possible him successful treatment per mission name customer different.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 10052
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Necessary activity song see nothing could institution discover a begin road across writer.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Skill who executive run build performance plan.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "once",
      "event"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Like board bank plan official operation finish. Natural sign believe grow family receive that.",
        "estimated_repair_cost": 201268
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Finish herself air cost."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 167510,
    "weighted_average_lease_term_years": 7.2,
    "major_tenants": [
      {
        "tenant_name": "Allen-Bean",
        "lease_start_date": "2018-06-04",
        "lease_end_date": "2025-05-20",
        "annual_rent": 290780,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Simon, Davidson and Stevens",
        "lease_start_date": "2020-06-20",
        "lease_end_date": "2027-07-10",
        "annual_rent": 189083,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Wilson, Johnson and Case",
        "lease_start_date": "2024-02-12",
        "lease_end_date": "2033-09-22",
        "annual_rent": 734386,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Wolf, Buck and Mendez",
        "lease_start_date": "2023-11-06",
        "lease_end_date": "2032-02-17",
        "annual_rent": 791563,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Bridges-Gonzalez",
        "lease_start_date": "2017-12-27",
        "lease_end_date": "2023-08-07",
        "annual_rent": 193350,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 4.24,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Future-proofed user-facing functionalities)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Suffer close sea once yet movement various scene major television we commercial key cost.",
        "parties_involved": "Hardin PLC"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Before young together world game the city tend.",
        "parties_involved": "Hopkins, Underwood and Wells"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "House situation consumer kind left upon media or at paper sing sense."
      }
    ]
  },
  "analyst_firm": "Pollard-Keith"
}