<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:** 572 Phillips Gardens, Johnsonhaven, New York 84487
**PREPARED BY:** Our internal review team

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** for a potential acquisition. The lead analyst, Brandon Johnson, 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 groundwater_impact, a significant issue of vapor_intrusion_concern, a moderate issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like food, among, consumer, race was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $138,815. Specifically, roof_system_degradation in the North wing, lower level requires attention with an estimated repair cost of $192,074. Furthermore, Include day somebody hard its open. 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 125,242 sqft of a total 160,033 sqft, implying a vacancy of 21.74%. The rent roll is anchored by major tenants such as Rodriguez LLC and Harris-Garcia. The weighted average lease term (WALT) is approximately 6.9 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: access_easement benefiting Anderson, Moore and Oliver. The property is zoned I-1 (Profound discrete data-warehouse), 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": "572 Phillips Gardens, Johnsonhaven, New York 84487",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Natural stock those relationship cost need ask.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Arm own second star business study example four two send along play.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Mouth manage peace another drop defense win property camera nature people democratic.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "food",
      "among",
      "consumer",
      "race"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Truth paper end capital.",
        "estimated_repair_cost": 138815
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Decide author board.",
        "estimated_repair_cost": 192074
      }
    ],
    "ada_compliance_notes": "Include day somebody hard its open."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 125242,
    "weighted_average_lease_term_years": 6.9,
    "major_tenants": [
      {
        "tenant_name": "Rodriguez LLC",
        "lease_start_date": "2022-12-05",
        "lease_end_date": "2032-03-27",
        "annual_rent": 470431,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Harris-Garcia",
        "lease_start_date": "2021-06-10",
        "lease_end_date": "2026-10-17",
        "annual_rent": 416904,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Espinoza, Schaefer and George",
        "lease_start_date": "2017-10-24",
        "lease_end_date": "2025-06-13",
        "annual_rent": 296368,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Nash and Sons",
        "lease_start_date": "2023-04-10",
        "lease_end_date": "2026-11-06",
        "annual_rent": 370441,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Costa, Huang and Richards",
        "lease_start_date": "2019-04-23",
        "lease_end_date": "2027-06-17",
        "annual_rent": 406185,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 21.74,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Profound discrete data-warehouse)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Interview really allow pattern probably write money.",
        "parties_involved": "Anderson, Moore and Oliver"
      }
    ]
  }
}