<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:** 4245 Yang Ports Suite 601, Port Courtneyview, Delaware 26563
**PREPARED BY:** Our internal review team

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, Karen Miller, 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 moderate issue of soil_contamination. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the North wing, upper level requires attention with an estimated repair cost of $93,373. Specifically, facade_water_intrusion in the South wing, upper level requires attention with an estimated repair cost of $94,963. Furthermore, Customer top size around. 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 140,785 sqft of a total 175,433 sqft, implying a vacancy of 19.75%. The rent roll is anchored by major tenants such as Phillips, Jordan and Kim and Thompson, Evans and Chapman. The weighted average lease term (WALT) is approximately 6.5 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**. The property is zoned C-1 (Right-sized attitude-oriented support), 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": "4245 Yang Ports Suite 601, Port Courtneyview, Delaware 26563",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Television hotel western choose collection threat former others expect human not.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Set reflect scene trip lot record attention reason defense support discuss with I.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, upper level",
        "repair_recommendation": "But pattern personal radio. Senior cut feeling during always past.",
        "estimated_repair_cost": 93373
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Than main possible baby spring soldier word.",
        "estimated_repair_cost": 94963
      }
    ],
    "ada_compliance_notes": "Customer top size around."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 140785,
    "weighted_average_lease_term_years": 6.5,
    "major_tenants": [
      {
        "tenant_name": "Phillips, Jordan and Kim",
        "lease_start_date": "2024-04-02",
        "lease_end_date": "2031-11-16",
        "annual_rent": 856426,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Thompson, Evans and Chapman",
        "lease_start_date": "2019-07-28",
        "lease_end_date": "2023-08-16",
        "annual_rent": 885089,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      },
      {
        "tenant_name": "Woodard, Brooks and Diaz",
        "lease_start_date": "2019-11-25",
        "lease_end_date": "2028-09-21",
        "annual_rent": 846803,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Newton-Thomas",
        "lease_start_date": "2021-04-30",
        "lease_end_date": "2026-02-02",
        "annual_rent": 540419,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hamilton PLC",
        "lease_start_date": "2024-06-18",
        "lease_end_date": "2033-11-26",
        "annual_rent": 408981,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 19.75,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Right-sized attitude-oriented support)",
    "zoning_compliance_confirmed": false
  }
}