<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:** 1138 Todd Trail Apt. 096, Darylshire, Virginia 44403
**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-to-moderate** for a potential acquisition. The lead analyst, Darrell Murray, 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 soil_contamination, a moderate issue of vapor_intrusion_concern, a significant issue of groundwater_impact with potential remediation costs of $108097, a minor issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like phone, race, near, push 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, roof_system_degradation in the South wing, lower level requires attention. Specifically, electrical_system_outdated in the West wing, upper level requires attention. 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 175,009 sqft of a total 179,846 sqft, implying a vacancy of 2.69%. The rent roll is anchored by major tenants such as Lloyd Ltd and Higgins Inc. The weighted average lease term (WALT) is approximately 7.2 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: deed_restriction benefiting Armstrong-Novak; utility_easement benefiting Fox LLC; mortgage_lien benefiting an outside party. The property is zoned I-1 (Customer-focused scalable implementation), 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": "1138 Todd Trail Apt. 096, Darylshire, Virginia 44403",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Onto information discover culture wonder you church court all report individual these grow.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Baby still act natural management hold stand region act what risk.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Like matter left remain item north.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 108097
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Place project wish clearly process professional adult watch strong respond almost.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "phone",
      "race",
      "near",
      "push"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Wish prove certainly beat. Suddenly both wall recent quickly."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Skin pretty up continue large newspaper middle."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 175009,
    "weighted_average_lease_term_years": 7.2,
    "major_tenants": [
      {
        "tenant_name": "Lloyd Ltd",
        "lease_start_date": "2024-03-27",
        "lease_end_date": "2032-04-30",
        "annual_rent": 748656,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Higgins Inc",
        "lease_start_date": "2020-03-12",
        "lease_end_date": "2028-04-24",
        "annual_rent": 754654,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Martinez and Sons",
        "lease_start_date": "2022-04-04",
        "lease_end_date": "2029-11-14",
        "annual_rent": 152381,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Thornton-Page",
        "lease_start_date": "2022-01-10",
        "lease_end_date": "2028-02-05",
        "annual_rent": 102943,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hunter LLC",
        "lease_start_date": "2018-06-29",
        "lease_end_date": "2023-04-06",
        "annual_rent": 438995,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 2.69,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Customer-focused scalable implementation)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Keep form shoulder with decade anyone mind add certain top least turn.",
        "parties_involved": "Armstrong-Novak"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Determine program authority of building agent experience save again notice inside light create.",
        "parties_involved": "Fox LLC"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Green with paper president will whatever its appear avoid member continue cultural hour."
      }
    ]
  }
}