<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:** 2468 Stephen Roads, Rodneystad, Vermont 08681
**PREPARED BY:** Baker PLC

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, Christina Holloway, 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 minor issue of groundwater_impact, a moderate issue of groundwater_impact, a significant issue of soil_contamination, a minor issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like arrive, more 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, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $136,132. Specifically, foundation_settlement in the South wing, upper level requires attention with an estimated repair cost of $45,723. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $106,360. 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 87,215 sqft of a total 97,730 sqft, implying a vacancy of 10.76%. The rent roll is anchored by major tenants such as Perez, Brown and Bean and Ward, Orozco and Novak. The weighted average lease term (WALT) is approximately 3.9 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 **confirmed**. The property is zoned I-1 (Ameliorated explicit toolset), 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": "2468 Stephen Roads, Rodneystad, Vermont 08681",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Speech herself structure tree democratic quality six.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Possible expect carry citizen hope range.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Able minute institution hear response author they possible read financial indicate significant feeling.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Raise popular smile rock wife course artist.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "arrive",
      "more"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Ready boy where. Discover at learn provide agent we.",
        "estimated_repair_cost": 136132
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Employee might series wish behind.",
        "estimated_repair_cost": 45723
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Walk environment until idea specific.",
        "estimated_repair_cost": 106360
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 87215,
    "weighted_average_lease_term_years": 3.9,
    "major_tenants": [
      {
        "tenant_name": "Perez, Brown and Bean",
        "lease_start_date": "2020-10-05",
        "lease_end_date": "2023-12-10",
        "annual_rent": 730935,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Ward, Orozco and Novak",
        "lease_start_date": "2023-02-22",
        "lease_end_date": "2030-05-25",
        "annual_rent": 587070,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Swanson Ltd",
        "lease_start_date": "2023-12-11",
        "lease_end_date": "2032-03-04",
        "annual_rent": 254050,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 10.76,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Ameliorated explicit toolset)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Baker PLC"
}