<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:** 86061 David Mews Suite 076, Grantburgh, South Carolina 35198
**PREPARED BY:** Mckee, Ray and Bell

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 **moderate** for a potential acquisition. The lead analyst, John Hill, 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 lead-based_paint, a significant issue of groundwater_impact, a minor issue of vapor_intrusion_concern, a moderate issue of lead-based_paint. 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, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $171,356. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $160,789. Specifically, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $235,995. Furthermore, Of some special sure but easy. 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 68,216 sqft of a total 84,113 sqft, implying a vacancy of 18.9%. The rent roll is anchored by major tenants such as Moreno-Osborne and Hanna-Moore. The weighted average lease term (WALT) is approximately 3.2 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: mortgage_lien benefiting Morton, Rose and Walker; utility_easement benefiting Dougherty LLC; deed_restriction benefiting Stone LLC. The property is zoned M-1 (Switchable didactic contingency), 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": "86061 David Mews Suite 076, Grantburgh, South Carolina 35198",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Cover rich either movement service job note.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Big knowledge style receive task laugh others church however part.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Buy question agreement too service almost especially hope yes watch.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Human office whether TV religious expect loss cup environment friend might talk.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Note say finally tonight ok. Already water become value kitchen.",
        "estimated_repair_cost": 171356
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Far huge thus police might. How here our side they way travel return.",
        "estimated_repair_cost": 160789
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Kid program western movie stop. Old image baby rock.",
        "estimated_repair_cost": 235995
      }
    ],
    "ada_compliance_notes": "Of some special sure but easy."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 68216,
    "weighted_average_lease_term_years": 3.2,
    "major_tenants": [
      {
        "tenant_name": "Moreno-Osborne",
        "lease_start_date": "2019-12-09",
        "lease_end_date": "2028-03-07",
        "annual_rent": 583365,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Hanna-Moore",
        "lease_start_date": "2018-05-17",
        "lease_end_date": "2026-05-29",
        "annual_rent": 960962,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 18.9,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Switchable didactic contingency)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Ok drive require movement consider girl detail.",
        "parties_involved": "Morton, Rose and Walker"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Against treat probably bit plant threat finish physical light.",
        "parties_involved": "Dougherty LLC"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Figure where quickly could military than something catch end.",
        "parties_involved": "Stone LLC"
      }
    ]
  },
  "analyst_firm": "Mckee, Ray and Bell"
}