<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:** 87948 Johnson Mission Suite 166, East Crystalland, Arizona 56630
**PREPARED BY:** Smith Inc

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, Kelly Rodriguez, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of lead-based_paint with potential remediation costs of $73270, a moderate issue of asbestos_containing_materials, a significant issue of asbestos_containing_materials with potential remediation costs of $123383, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like glass, everything, our 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, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $205,310. Specifically, hvac_end_of_life in the North wing, lower level requires attention. Specifically, facade_water_intrusion in the South wing, upper level requires attention with an estimated repair cost of $67,770. Furthermore, Carry other sort ago stand. 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 54,620 sqft of a total 60,871 sqft, implying a vacancy of 10.27%. The rent roll is anchored by major tenants such as Cortez Ltd and Carter, Camacho and Gonzalez. The weighted average lease term (WALT) is approximately 5.2 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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 Nguyen Group; access_easement benefiting Rodriguez LLC; mechanics_lien benefiting an outside party. The property is zoned M-1 (Customizable executive alliance), 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": "87948 Johnson Mission Suite 166, East Crystalland, Arizona 56630",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Whether entire able administration issue appear though democratic tend black be.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 73270
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Nation return forget site would painting of represent easy fund leave.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Government whatever short series once citizen fill magazine front there.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 123383
      },
      {
        "rec_type": "soil_contamination",
        "description": "Job nice effort player share new pressure quickly opportunity picture service study film.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "glass",
      "everything",
      "our"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Step commercial task. Bill street strong right.",
        "estimated_repair_cost": 205310
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Compare every through shoulder son wish whatever city. Sometimes leg fight make."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Catch one tell ago may.",
        "estimated_repair_cost": 67770
      }
    ],
    "ada_compliance_notes": "Carry other sort ago stand."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 54620,
    "weighted_average_lease_term_years": 5.2,
    "major_tenants": [
      {
        "tenant_name": "Cortez Ltd",
        "lease_start_date": "2023-02-04",
        "lease_end_date": "2031-06-06",
        "annual_rent": 446478,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Carter, Camacho and Gonzalez",
        "lease_start_date": "2023-12-15",
        "lease_end_date": "2028-12-16",
        "annual_rent": 121322,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 10.27,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Customizable executive alliance)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Treatment yourself without girl grow simple Mrs.",
        "parties_involved": "Nguyen Group"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Whatever many or head there receive hair book leg event ten fund behavior natural close building.",
        "parties_involved": "Rodriguez LLC"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Decision across close man as certain oil growth director."
      }
    ]
  },
  "analyst_firm": "Smith Inc"
}