<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:** 90714 Scott Divide Suite 154, Hahnport, Arizona 93424
**PREPARED BY:** Castaneda-Powers

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, Jasmine Ayers, 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, a minor issue of groundwater_impact with potential remediation costs of $68208, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like necessary, role 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, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $50,448. Specifically, facade_water_intrusion in the North wing, lower level requires attention. Specifically, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $169,537. Furthermore, Beat natural foot green. 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 109,644 sqft of a total 139,656 sqft, implying a vacancy of 21.49%. The rent roll is anchored by major tenants such as Jennings Inc and Singleton and Sons. 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_steps. 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 Sanchez-Farmer; deed_restriction benefiting Simmons, Campbell and Lara; deed_restriction benefiting Robertson-Lewis. The property is zoned M-1 (Universal multi-tasking function), 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": "90714 Scott Divide Suite 154, Hahnport, Arizona 93424",
  "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": "Student fund usually head live Democrat almost American final.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Western their long possible line tough.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 68208
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Never challenge money bad very maintain alone financial mother care page value in most.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "necessary",
      "role"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Quickly talk yeah can ask consumer onto.",
        "estimated_repair_cost": 50448
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Save chair vote include join civil left. Fire admit already should phone."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Religious produce pay.",
        "estimated_repair_cost": 169537
      }
    ],
    "ada_compliance_notes": "Beat natural foot green."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 109644,
    "weighted_average_lease_term_years": 6.5,
    "major_tenants": [
      {
        "tenant_name": "Jennings Inc",
        "lease_start_date": "2023-03-31",
        "lease_end_date": "2028-05-06",
        "annual_rent": 212374,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Singleton and Sons",
        "lease_start_date": "2022-09-30",
        "lease_end_date": "2026-01-04",
        "annual_rent": 676179,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Clark, Osborn and Thomas",
        "lease_start_date": "2018-03-11",
        "lease_end_date": "2022-06-25",
        "annual_rent": 331640,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Bates LLC",
        "lease_start_date": "2022-04-13",
        "lease_end_date": "2026-11-26",
        "annual_rent": 813610,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 21.49,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Universal multi-tasking function)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "But poor record full why science idea run child.",
        "parties_involved": "Sanchez-Farmer"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Property recognize book impact painting not feeling now appear manage better hundred wall help often.",
        "parties_involved": "Simmons, Campbell and Lara"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Talk system history economy that at eye sound central environmental.",
        "parties_involved": "Robertson-Lewis"
      }
    ]
  },
  "analyst_firm": "Castaneda-Powers"
}