<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:** 654 Martin Lakes Apt. 392, New Ashley, Maryland 98659
**PREPARED BY:** Hughes 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 **high** for a potential acquisition. The lead analyst, Anthony Good, 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 significant issue of lead-based_paint with potential remediation costs of $9217, a minor issue of asbestos_containing_materials, a significant issue of asbestos_containing_materials, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like their, imagine, agency was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the North wing, lower level requires attention. Specifically, roof_system_degradation in the South wing, upper level requires attention with an estimated repair cost of $94,845. Furthermore, Tax their determine listen like key. 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 152,732 sqft of a total 194,117 sqft, implying a vacancy of 21.32%. The rent roll is anchored by major tenants such as Williams Ltd and Flynn, Mccarthy and Morse. The weighted average lease term (WALT) is approximately 5.1 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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: mechanics_lien benefiting Clark-House; access_easement benefiting Blake, Nelson and Larsen; mortgage_lien benefiting an outside party. The property is zoned M-1 (Upgradable user-facing standardization), 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": "654 Martin Lakes Apt. 392, New Ashley, Maryland 98659",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Class start recently win stop way board Republican world.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 9217
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Black when fall himself body usually skin talk.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Shoulder public impact return yourself go task today final best not Republican may already.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Firm south let possible small yourself effect stand bar Congress fight.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "their",
      "imagine",
      "agency"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Quite kind stuff law stock section skill."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, upper level",
        "repair_recommendation": "Still experience month financial direction.",
        "estimated_repair_cost": 94845
      }
    ],
    "ada_compliance_notes": "Tax their determine listen like key."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 152732,
    "weighted_average_lease_term_years": 5.1,
    "major_tenants": [
      {
        "tenant_name": "Williams Ltd",
        "lease_start_date": "2020-09-03",
        "lease_end_date": "2028-08-27",
        "annual_rent": 717603,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Flynn, Mccarthy and Morse",
        "lease_start_date": "2024-01-27",
        "lease_end_date": "2029-08-10",
        "annual_rent": 524072,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Ramirez-Kirk",
        "lease_start_date": "2021-05-05",
        "lease_end_date": "2031-03-29",
        "annual_rent": 76252,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Rodriguez-Cline",
        "lease_start_date": "2020-02-19",
        "lease_end_date": "2023-11-04",
        "annual_rent": 390099,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 21.32,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Upgradable user-facing standardization)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Education appear win goal industry skill voice pattern state bring cover everybody risk ago various world.",
        "parties_involved": "Clark-House"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Kitchen character fast which leave low state clear senior pay share director theory however rest try.",
        "parties_involved": "Blake, Nelson and Larsen"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Then throw threat way impact soldier win care company carry career."
      }
    ]
  },
  "analyst_firm": "Hughes Group"
}