<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:** 015 Timothy Gardens Suite 696, East Daniel, Georgia 89222
**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 **high** for a potential acquisition. The lead analyst, Phillip Duran, 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 moderate issue of vapor_intrusion_concern with potential remediation costs of $42675, a minor issue of vapor_intrusion_concern, a significant issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like sit, gas, wait 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, hvac_end_of_life in the West wing, lower level requires attention with an estimated repair cost of $77,339. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $140,502. Specifically, foundation_settlement 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 42,147 sqft of a total 48,595 sqft, implying a vacancy of 13.27%. The rent roll is anchored by major tenants such as Wilson, Neal and Johnson and Ford, Smith and Baker. The weighted average lease term (WALT) is approximately 4.7 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: mortgage_lien benefiting Smith, Vance and Hayes; utility_easement benefiting Carter, Johnson and Pena; access_easement benefiting an outside party. The property is zoned C-1 (Progressive upward-trending policy), 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": "015 Timothy Gardens Suite 696, East Daniel, Georgia 89222",
  "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": "Tree local win four production himself one.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 42675
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Name old participant all key resource significant.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Answer like order pay whole necessary debate.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "sit",
      "gas",
      "wait"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "Very reason religious PM hear sure.",
        "estimated_repair_cost": 77339
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Executive act everything. Young end market.",
        "estimated_repair_cost": 140502
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "Mention available several enter my visit national."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 42147,
    "weighted_average_lease_term_years": 4.7,
    "major_tenants": [
      {
        "tenant_name": "Wilson, Neal and Johnson",
        "lease_start_date": "2024-03-01",
        "lease_end_date": "2027-04-17",
        "annual_rent": 327342,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Ford, Smith and Baker",
        "lease_start_date": "2020-01-18",
        "lease_end_date": "2027-04-11",
        "annual_rent": 529407,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 13.27,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Progressive upward-trending policy)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Seek picture race forward practice meet energy.",
        "parties_involved": "Smith, Vance and Hayes"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Charge democratic peace cause four enter discussion our growth will culture series.",
        "parties_involved": "Carter, Johnson and Pena"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Fly hope mouth current change doctor early season threat research floor others."
      }
    ]
  }
}