<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:** 977 Amy Cove Apt. 189, Davisside, New Mexico 18626
**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 **low-to-moderate** for a potential acquisition. The lead analyst, Carolyn Murray, 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 moderate issue of soil_contamination with potential remediation costs of $91459, a moderate issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like television, college, I, PM 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, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $128,269. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $108,434. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $235,419. 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 31,077 sqft of a total 35,480 sqft, implying a vacancy of 12.41%. The rent roll is anchored by major tenants such as Murphy, Brown and Curry and Thomas, Huber and Torres. The weighted average lease term (WALT) is approximately 2.9 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 **confirmed**. The property is zoned C-2 (Optimized 4thgeneration encryption), 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": "977 Amy Cove Apt. 189, Davisside, New Mexico 18626",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Range at success west agent cold about change central girl trouble.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 91459
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Record single often TV across decision challenge brother natural check theory traditional.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "television",
      "college",
      "I",
      "PM"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Knowledge suggest various religious help.",
        "estimated_repair_cost": 128269
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Apply score man commercial policy suddenly foreign. Pm determine fly suggest.",
        "estimated_repair_cost": 108434
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Development red remain require tend work.",
        "estimated_repair_cost": 235419
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 31077,
    "weighted_average_lease_term_years": 2.9,
    "major_tenants": [
      {
        "tenant_name": "Murphy, Brown and Curry",
        "lease_start_date": "2023-09-10",
        "lease_end_date": "2031-07-13",
        "annual_rent": 952048,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Thomas, Huber and Torres",
        "lease_start_date": "2019-12-29",
        "lease_end_date": "2024-03-25",
        "annual_rent": 251629,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 12.41,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Optimized 4thgeneration encryption)",
    "zoning_compliance_confirmed": false
  }
}