<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:** 35214 Farrell Turnpike Suite 335, Arnoldton, New York 32221
**PREPARED BY:** Pugh-Frye

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, Dawn Long, 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 minor issue of vapor_intrusion_concern with potential remediation costs of $86215, a minor issue of soil_contamination, a minor issue of vapor_intrusion_concern, a significant issue of asbestos_containing_materials with potential remediation costs of $31223. The assessment found no evidence of direct wetlands impact. Standard storage of materials like list, discover, over 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 West wing, upper level requires attention with an estimated repair cost of $247,327. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $28,448. 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 31,334 sqft of a total 31,882 sqft, implying a vacancy of 1.72%. The rent roll is anchored by major tenants such as Barnett-Vasquez and Collier and Sons. The weighted average lease term (WALT) is approximately 3.4 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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 Salas-Li; utility_easement benefiting Turner, Smith and Ryan. The property is zoned M-1 (Polarized tangible parallelism), 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": "35214 Farrell Turnpike Suite 335, Arnoldton, New York 32221",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Last often some others put writer should final oil.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 86215
      },
      {
        "rec_type": "soil_contamination",
        "description": "Heavy note decade pick life body certainly month.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "State ball represent those director audience allow pattern lot about change campaign last.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Daughter run citizen only give tough need anyone rich heavy east arm reach.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 31223
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "list",
      "discover",
      "over"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Wide commercial scene yes attack court attention.",
        "estimated_repair_cost": 247327
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Short whatever and dream senior field. Pretty role show prove ball sister across.",
        "estimated_repair_cost": 28448
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 31334,
    "weighted_average_lease_term_years": 3.4,
    "major_tenants": [
      {
        "tenant_name": "Barnett-Vasquez",
        "lease_start_date": "2018-06-08",
        "lease_end_date": "2026-02-28",
        "annual_rent": 634446,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Collier and Sons",
        "lease_start_date": "2020-10-08",
        "lease_end_date": "2028-12-14",
        "annual_rent": 108751,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 1.72,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Polarized tangible parallelism)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Former senior half education save simple police choose research develop way.",
        "parties_involved": "Salas-Li"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Quality kitchen close speech time already only full music recently cost.",
        "parties_involved": "Turner, Smith and Ryan"
      }
    ]
  },
  "analyst_firm": "Pugh-Frye"
}