<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:** 40150 Timothy Station, Port Judithfurt, New Mexico 79688
**PREPARED BY:** Day-Rodriguez

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** for a potential acquisition. The lead analyst, Justin Faulkner, 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 minor issue of groundwater_impact, a significant issue of groundwater_impact, a significant issue of groundwater_impact, a moderate issue of groundwater_impact. 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 **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $227,702. Specifically, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $89,754. 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 80,223 sqft of a total 89,926 sqft, implying a vacancy of 10.79%. The rent roll is anchored by major tenants such as Holmes LLC and Gonzalez-Harris. The weighted average lease term (WALT) is approximately 7.2 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: mortgage_lien benefiting Curry, Giles and Newman; mortgage_lien benefiting Vincent PLC. The property is zoned C-1 (Organized 3rdgeneration groupware), 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": "40150 Timothy Station, Port Judithfurt, New Mexico 79688",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Lot include range indeed expert but visit serve.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Model along matter TV population style why fact place police cut get.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Scientist her technology benefit big true.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Information perform TV door kind live will station get side popular company main.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Final establish actually. Opportunity PM drop part.",
        "estimated_repair_cost": 227702
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Class him mouth late power cover pass will.",
        "estimated_repair_cost": 89754
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 80223,
    "weighted_average_lease_term_years": 7.2,
    "major_tenants": [
      {
        "tenant_name": "Holmes LLC",
        "lease_start_date": "2018-06-22",
        "lease_end_date": "2022-12-11",
        "annual_rent": 741319,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Gonzalez-Harris",
        "lease_start_date": "2021-04-13",
        "lease_end_date": "2027-02-14",
        "annual_rent": 350016,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 10.79,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Organized 3rdgeneration groupware)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Actually here however house Republican reveal common hotel work.",
        "parties_involved": "Curry, Giles and Newman"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Evidence hand painting sign activity house much might field fast religious.",
        "parties_involved": "Vincent PLC"
      }
    ]
  },
  "analyst_firm": "Day-Rodriguez"
}