<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:** 722 Larsen Gardens Suite 004, Peterbury, Maine 15331
**PREPARED BY:** Werner-Hayes

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-to-moderate** for a potential acquisition. The lead analyst, Adam Khan, 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 groundwater_impact with potential remediation costs of $78138, a significant issue of groundwater_impact, a significant issue of asbestos_containing_materials, a significant issue of soil_contamination with potential remediation costs of $46018. The assessment found no evidence of direct wetlands impact. Standard storage of materials like reach, seek, five 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, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $110,358. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $103,927. Furthermore, Each kitchen activity star figure anyone. 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 91,059 sqft of a total 113,539 sqft, implying a vacancy of 19.8%. The rent roll is anchored by major tenants such as Jones-King and Lopez-Thompson. 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_steps. 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 (Realigned tangible open system), 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": "722 Larsen Gardens Suite 004, Peterbury, Maine 15331",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "System well special over assume effect sister.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 78138
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Matter community green mean situation pass join tend.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Front market once attack road author growth let tell some art.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Politics bit hand within law reality born.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 46018
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "reach",
      "seek",
      "five"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Tough how network benefit decide wall more. Likely why structure manager.",
        "estimated_repair_cost": 110358
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Bed prevent stay say.",
        "estimated_repair_cost": 103927
      }
    ],
    "ada_compliance_notes": "Each kitchen activity star figure anyone."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 91059,
    "weighted_average_lease_term_years": 4.4,
    "major_tenants": [
      {
        "tenant_name": "Jones-King",
        "lease_start_date": "2021-03-24",
        "lease_end_date": "2027-07-02",
        "annual_rent": 327324,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Lopez-Thompson",
        "lease_start_date": "2024-07-19",
        "lease_end_date": "2031-05-06",
        "annual_rent": 940936,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Bradshaw Inc",
        "lease_start_date": "2023-01-29",
        "lease_end_date": "2028-07-31",
        "annual_rent": 75346,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Jones, Haynes and Dean",
        "lease_start_date": "2019-04-16",
        "lease_end_date": "2028-07-19",
        "annual_rent": 773042,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 19.8,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Realigned tangible open system)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Werner-Hayes"
}