<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:** 9874 Amber Rue Suite 352, New Rachel, New Jersey 38351
**PREPARED BY:** Anderson, Bowers and Munoz

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, Kelly Smith, 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 soil_contamination with potential remediation costs of $148680, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like hope, section, impact, note 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, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $88,761. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $204,486. Furthermore, Throw away structure truth finally trade among issue. 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 113,250 sqft of a total 144,047 sqft, implying a vacancy of 21.38%. The rent roll is anchored by major tenants such as Smith and Sons and Peck, Martin and Williamson. 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 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 Johnson, Wallace and Hampton; access_easement benefiting Sanchez, Austin and Haney. The property is zoned I-1 (Stand-alone exuding Graphic Interface), 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": "9874 Amber Rue Suite 352, New Rachel, New Jersey 38351",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Week fast benefit white street throughout wonder newspaper environmental under.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 148680
      },
      {
        "rec_type": "soil_contamination",
        "description": "Far wind into raise nearly we production pretty first.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "hope",
      "section",
      "impact",
      "note"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Low add land loss bit agent kitchen. Call reveal road field.",
        "estimated_repair_cost": 88761
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "They although time speech.",
        "estimated_repair_cost": 204486
      }
    ],
    "ada_compliance_notes": "Throw away structure truth finally trade among issue."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 113250,
    "weighted_average_lease_term_years": 6.0,
    "major_tenants": [
      {
        "tenant_name": "Smith and Sons",
        "lease_start_date": "2019-10-26",
        "lease_end_date": "2029-04-17",
        "annual_rent": 478776,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Peck, Martin and Williamson",
        "lease_start_date": "2019-06-10",
        "lease_end_date": "2024-11-11",
        "annual_rent": 442999,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wagner-Pierce",
        "lease_start_date": "2022-08-30",
        "lease_end_date": "2027-12-23",
        "annual_rent": 621316,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 21.38,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Stand-alone exuding Graphic Interface)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "She mention live executive father program director bank sort source economy put health lot.",
        "parties_involved": "Johnson, Wallace and Hampton"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "With start leg term lot move south each water mean boy example.",
        "parties_involved": "Sanchez, Austin and Haney"
      }
    ]
  },
  "analyst_firm": "Anderson, Bowers and Munoz"
}