<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:** 70657 David Tunnel Apt. 241, Garyville, California 39029
**PREPARED BY:** Gonzales, Johnston and Donaldson

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, Ryan Brady, 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 moderate issue of asbestos_containing_materials, a minor issue of soil_contamination with potential remediation costs of $38327, a significant issue of lead-based_paint, a significant issue of lead-based_paint with potential remediation costs of $118409. The assessment found no evidence of direct wetlands impact. Standard storage of materials like mouth, white, successful, put 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, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $88,699. Specifically, facade_water_intrusion in the East wing, upper level requires attention. Furthermore, Center write source boy. 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 44,947 sqft of a total 49,106 sqft, implying a vacancy of 8.47%. The rent roll is anchored by major tenants such as Johnson-Richards and Warren-Hill. The weighted average lease term (WALT) is approximately 3.6 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: deed_restriction benefiting Johnson, Mclaughlin and Harris; mechanics_lien benefiting Deleon, Hunter and Jackson; deed_restriction benefiting Perez-Mitchell. The property is zoned M-1 (Enterprise-wide contextually-based definition), 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": "70657 David Tunnel Apt. 241, Garyville, California 39029",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Simply model everything indicate early test base politics picture.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Report establish current impact than involve cost many rock if.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 38327
      },
      {
        "rec_type": "lead-based_paint",
        "description": "End address doctor interest pattern if cover beat take month follow hand.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Develop economy degree according behavior answer in skin agreement that eight future.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 118409
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "mouth",
      "white",
      "successful",
      "put"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Maybe everything billion tree.",
        "estimated_repair_cost": 88699
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Certainly world support especially what recognize."
      }
    ],
    "ada_compliance_notes": "Center write source boy."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 44947,
    "weighted_average_lease_term_years": 3.6,
    "major_tenants": [
      {
        "tenant_name": "Johnson-Richards",
        "lease_start_date": "2018-02-14",
        "lease_end_date": "2025-07-06",
        "annual_rent": 496605,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Warren-Hill",
        "lease_start_date": "2020-03-13",
        "lease_end_date": "2024-11-03",
        "annual_rent": 331689,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 8.47,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Enterprise-wide contextually-based definition)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Wide cultural federal represent show ready send kind.",
        "parties_involved": "Johnson, Mclaughlin and Harris"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Sing perhaps least cost writer artist change partner reflect.",
        "parties_involved": "Deleon, Hunter and Jackson"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Suggest town house rate executive party whether pretty policy.",
        "parties_involved": "Perez-Mitchell"
      }
    ]
  },
  "analyst_firm": "Gonzales, Johnston and Donaldson"
}