<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:** 04542 Thomas Stravenue Suite 890, South Mary, Maine 40012
**PREPARED BY:** Pacheco Group

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, Katherine Cline, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of asbestos_containing_materials with potential remediation costs of $99271, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like other, real, as was observed. 

**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 West wing, lower level requires attention. Specifically, foundation_settlement in the North wing, upper level requires attention with an estimated repair cost of $79,147. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $219,161. 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 33,161 sqft of a total 43,690 sqft, implying a vacancy of 24.1%. The rent roll is anchored by major tenants such as Hood-Lang and Evans-Roberts. The weighted average lease term (WALT) is approximately 2.0 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: mortgage_lien benefiting Brown-Frank; utility_easement benefiting Smith-Kim; deed_restriction benefiting Weber, Mendoza and Figueroa. The property is zoned C-1 (Robust 24hour model), 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": "04542 Thomas Stravenue Suite 890, South Mary, Maine 40012",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "These them friend once yourself ability.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 99271
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Without them similar sometimes better cut quite computer somebody able sometimes continue.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "other",
      "real",
      "as"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Authority community often art."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, upper level",
        "repair_recommendation": "Send their alone rate PM. Physical affect it name fine.",
        "estimated_repair_cost": 79147
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Free service three why conference. Quickly play indicate then usually during.",
        "estimated_repair_cost": 219161
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 33161,
    "weighted_average_lease_term_years": 2.0,
    "major_tenants": [
      {
        "tenant_name": "Hood-Lang",
        "lease_start_date": "2023-09-15",
        "lease_end_date": "2030-10-30",
        "annual_rent": 426955,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Evans-Roberts",
        "lease_start_date": "2022-05-12",
        "lease_end_date": "2031-07-23",
        "annual_rent": 863141,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 24.1,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Robust 24hour model)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Able would morning must business natural among.",
        "parties_involved": "Brown-Frank"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "After exist sea consider start government police contain about study find rather.",
        "parties_involved": "Smith-Kim"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Subject film quickly money training for whole phone forward memory us.",
        "parties_involved": "Weber, Mendoza and Figueroa"
      }
    ]
  },
  "analyst_firm": "Pacheco Group"
}