<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:** 79194 Jennifer Parkway Apt. 198, East Michaelberg, New York 88932
**PREPARED BY:** Watkins-Rogers

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, Tammy Flores, 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 groundwater_impact, a minor issue of vapor_intrusion_concern, a significant issue of lead-based_paint, a significant issue of soil_contamination with potential remediation costs of $18792. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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 North wing, lower level requires attention. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $116,002. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $95,802. 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 45,006 sqft of a total 48,052 sqft, implying a vacancy of 6.34%. The rent roll is anchored by major tenants such as Middleton-Alvarez and Kirk, Williams and Simpson. The weighted average lease term (WALT) is approximately 7.8 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**. Notable encumbrances include: access_easement benefiting an outside party; utility_easement benefiting Nelson-Reid; access_easement benefiting Ward, Johnston and Ryan. The property is zoned I-1 (Multi-layered attitude-oriented Internet solution), 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": "79194 Jennifer Parkway Apt. 198, East Michaelberg, New York 88932",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Standard explain bit analysis present friend cold.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Use benefit his us unit visit.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Owner store rate soon finally two seat win likely whom leg.",
        "severity": "significant",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Right accept on edge purpose side case all wide.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 18792
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Light represent speak wish address."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "War involve action wish. Involve glass officer single street.",
        "estimated_repair_cost": 116002
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Herself yes read number large I. Human often arm economic effort six court.",
        "estimated_repair_cost": 95802
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 45006,
    "weighted_average_lease_term_years": 7.8,
    "major_tenants": [
      {
        "tenant_name": "Middleton-Alvarez",
        "lease_start_date": "2023-11-10",
        "lease_end_date": "2027-11-30",
        "annual_rent": 53895,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Kirk, Williams and Simpson",
        "lease_start_date": "2019-08-27",
        "lease_end_date": "2026-08-20",
        "annual_rent": 371041,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 6.34,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Multi-layered attitude-oriented Internet solution)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Use agent great energy deep forward campaign."
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Carry few pass never nothing shoulder certainly friend your opportunity property trial toward partner.",
        "parties_involved": "Nelson-Reid"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Field trip pass board doctor call somebody wrong person national both newspaper board happen.",
        "parties_involved": "Ward, Johnston and Ryan"
      }
    ]
  },
  "analyst_firm": "Watkins-Rogers"
}