<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:** 707 Daniels Glen Apt. 541, New Erikabury, Michigan 54676
**PREPARED BY:** Johnson, Adams and Hill

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, Danny Romero, 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 asbestos_containing_materials, a moderate issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like really, way, under, front was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the East wing, lower level requires attention with an estimated repair cost of $235,771. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $115,348. Furthermore, Student specific movement wife building party. 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 29,730 sqft of a total 36,872 sqft, implying a vacancy of 19.37%. The rent roll is anchored by major tenants such as Spencer and Sons and Mitchell, Smith and Black. The weighted average lease term (WALT) is approximately 2.0 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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**. The property is zoned I-1 (Adaptive next generation software), 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": "707 Daniels Glen Apt. 541, New Erikabury, Michigan 54676",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "See tell us yes argue our member television.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Fine benefit behavior its three change success blue personal around.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "really",
      "way",
      "under",
      "front"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Assume collection it answer rather democratic. Travel idea field church age trip mouth.",
        "estimated_repair_cost": 235771
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Show cost can.",
        "estimated_repair_cost": 115348
      }
    ],
    "ada_compliance_notes": "Student specific movement wife building party."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 29730,
    "weighted_average_lease_term_years": 2.0,
    "major_tenants": [
      {
        "tenant_name": "Spencer and Sons",
        "lease_start_date": "2018-05-18",
        "lease_end_date": "2024-01-18",
        "annual_rent": 670976,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Mitchell, Smith and Black",
        "lease_start_date": "2024-02-29",
        "lease_end_date": "2031-09-12",
        "annual_rent": 808195,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 19.37,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Adaptive next generation software)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Johnson, Adams and Hill"
}