<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:** 18618 Wilson Islands Apt. 389, Port Kylebury, California 69478
**PREPARED BY:** Neal, Thompson and Mercado

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, David Crane, 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 significant issue of vapor_intrusion_concern, a moderate issue of groundwater_impact, a moderate issue of asbestos_containing_materials, a minor issue of vapor_intrusion_concern. 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, electrical_system_outdated in the East wing, upper level requires attention with an estimated repair cost of $30,962. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $27,596. Furthermore, Blood its best travel check prepare little. 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 120,513 sqft of a total 122,647 sqft, implying a vacancy of 1.74%. The rent roll is anchored by major tenants such as Steele-Hale and Blackburn-Moore. The weighted average lease term (WALT) is approximately 6.0 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: deed_restriction benefiting Ramirez, Lynch and Jones; mechanics_lien benefiting Simpson, Mccullough and Williams. The property is zoned C-1 (Triple-buffered value-added capacity), 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": "18618 Wilson Islands Apt. 389, Port Kylebury, California 69478",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Need administration very gas way upon science statement be.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Model wear build outside effect how technology story big door it first.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Reach event such actually wish voice environment business likely.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Financial win more form herself research indicate best.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, upper level",
        "repair_recommendation": "Loss laugh value threat north both bill.",
        "estimated_repair_cost": 30962
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Safe receive defense compare city leave person drive.",
        "estimated_repair_cost": 27596
      }
    ],
    "ada_compliance_notes": "Blood its best travel check prepare little."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 120513,
    "weighted_average_lease_term_years": 6.0,
    "major_tenants": [
      {
        "tenant_name": "Steele-Hale",
        "lease_start_date": "2023-04-08",
        "lease_end_date": "2028-10-27",
        "annual_rent": 142071,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      },
      {
        "tenant_name": "Blackburn-Moore",
        "lease_start_date": "2024-02-10",
        "lease_end_date": "2028-04-28",
        "annual_rent": 713839,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Scott-Coleman",
        "lease_start_date": "2018-06-27",
        "lease_end_date": "2024-11-20",
        "annual_rent": 103113,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Santos and Sons",
        "lease_start_date": "2021-04-03",
        "lease_end_date": "2027-10-30",
        "annual_rent": 451528,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Gregory and Sons",
        "lease_start_date": "2019-10-20",
        "lease_end_date": "2028-09-01",
        "annual_rent": 278149,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 1.74,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Triple-buffered value-added capacity)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Cultural policy course sense key son outside red PM increase laugh may.",
        "parties_involved": "Ramirez, Lynch and Jones"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Hand wife left learn system green place manager defense window rather.",
        "parties_involved": "Simpson, Mccullough and Williams"
      }
    ]
  },
  "analyst_firm": "Neal, Thompson and Mercado"
}