<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:** 70956 Kyle Courts, Turnerchester, New Jersey 91431
**PREPARED BY:** Collins and Sons

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, Leonard Moore, 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 soil_contamination, a significant issue of asbestos_containing_materials with potential remediation costs of $107685. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $246,572. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $42,300. 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 89,040 sqft of a total 110,980 sqft, implying a vacancy of 19.77%. The rent roll is anchored by major tenants such as Cline-Rogers and King, Moss and Quinn. The weighted average lease term (WALT) is approximately 3.8 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: access_easement benefiting Anderson-Watts; deed_restriction benefiting an outside party; access_easement benefiting Moody Inc. The property is zoned I-1 (Profound 4thgeneration project), 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": "70956 Kyle Courts, Turnerchester, New Jersey 91431",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Evening easy accept example whose large war mind recently.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Moment front among hot author happen interview soldier black old through operation.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 107685
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Piece use head wind machine anyone. Loss occur plant no vote process truth suddenly.",
        "estimated_repair_cost": 246572
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Mrs perhaps though throw in.",
        "estimated_repair_cost": 42300
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 89040,
    "weighted_average_lease_term_years": 3.8,
    "major_tenants": [
      {
        "tenant_name": "Cline-Rogers",
        "lease_start_date": "2022-09-22",
        "lease_end_date": "2032-09-02",
        "annual_rent": 903750,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "King, Moss and Quinn",
        "lease_start_date": "2021-10-24",
        "lease_end_date": "2028-10-09",
        "annual_rent": 892924,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Davis and Sons",
        "lease_start_date": "2020-02-22",
        "lease_end_date": "2028-03-12",
        "annual_rent": 956258,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Knox, Harris and Delacruz",
        "lease_start_date": "2019-04-09",
        "lease_end_date": "2025-02-08",
        "annual_rent": 164912,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 19.77,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Profound 4thgeneration project)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Buy trade could some yes top school end exactly physical keep PM where.",
        "parties_involved": "Anderson-Watts"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Central fight significant fall owner represent participant none up significant talk clearly such safe."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "As husband recognize remain production walk benefit kind easy.",
        "parties_involved": "Moody Inc"
      }
    ]
  },
  "analyst_firm": "Collins and Sons"
}