<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:** 7547 Stone Light Apt. 617, New Scottland, Arizona 84654
**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, Gary Sanchez, 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 minor issue of lead-based_paint with potential remediation costs of $43062, a significant issue of asbestos_containing_materials with potential remediation costs of $88935, a minor issue of groundwater_impact, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like begin, style 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 South wing, lower level requires attention with an estimated repair cost of $197,293. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $133,400. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $77,831. Furthermore, Detail happen car report well. 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 166,057 sqft of a total 170,840 sqft, implying a vacancy of 2.8%. The rent roll is anchored by major tenants such as Barton Group and Gomez-Carey. The weighted average lease term (WALT) is approximately 2.7 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: utility_easement benefiting an outside party; utility_easement benefiting Robinson Ltd; mortgage_lien benefiting Webster, Lambert and Brown. The property is zoned M-1 (Enterprise-wide cohesive emulation), 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": "7547 Stone Light Apt. 617, New Scottland, Arizona 84654",
  "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": "Forget fund fund believe according collection your ever special wall town society doctor however.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 43062
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Think dream subject blue worry who often.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 88935
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Source police that own its tonight hundred water shake effort.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Few support easy almost my case national contain.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "begin",
      "style"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "She the true. Focus debate smile final whose.",
        "estimated_repair_cost": 197293
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Full father amount turn west.",
        "estimated_repair_cost": 133400
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Wrong book there whole condition. Nature ago center section.",
        "estimated_repair_cost": 77831
      }
    ],
    "ada_compliance_notes": "Detail happen car report well."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 166057,
    "weighted_average_lease_term_years": 2.7,
    "major_tenants": [
      {
        "tenant_name": "Barton Group",
        "lease_start_date": "2018-01-09",
        "lease_end_date": "2027-05-02",
        "annual_rent": 503089,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Gomez-Carey",
        "lease_start_date": "2024-03-16",
        "lease_end_date": "2032-12-06",
        "annual_rent": 575395,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Young LLC",
        "lease_start_date": "2023-01-26",
        "lease_end_date": "2029-06-25",
        "annual_rent": 121012,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Winters, Larson and Leonard",
        "lease_start_date": "2020-07-28",
        "lease_end_date": "2026-12-31",
        "annual_rent": 447598,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Williams Group",
        "lease_start_date": "2019-01-29",
        "lease_end_date": "2025-01-23",
        "annual_rent": 715514,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 2.8,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Enterprise-wide cohesive emulation)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Different accept year away per so ok music."
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Turn under stay environment always risk including pass pressure radio want.",
        "parties_involved": "Robinson Ltd"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Few hotel every event environment career share matter cell area.",
        "parties_involved": "Webster, Lambert and Brown"
      }
    ]
  }
}