<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:** 079 Hughes Mountains Apt. 323, North Stephenfort, Tennessee 76654
**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** for a potential acquisition. The lead analyst, Steven Jenkins, 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 moderate issue of groundwater_impact with potential remediation costs of $78282, a significant issue of lead-based_paint, a moderate issue of vapor_intrusion_concern with potential remediation costs of $66782. 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 **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the North wing, lower level requires attention with an estimated repair cost of $44,140. Specifically, facade_water_intrusion in the South wing, lower level requires attention. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $160,575. Furthermore, This mother computer yeah. 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 99,376 sqft of a total 106,660 sqft, implying a vacancy of 6.83%. The rent roll is anchored by major tenants such as Collins-Thompson and Anderson Group. The weighted average lease term (WALT) is approximately 7.8 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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**. The property is zoned M-1 (Versatile foreground model), 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": "079 Hughes Mountains Apt. 323, North Stephenfort, Tennessee 76654",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Kid well cause write source enough nothing series window then type.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 78282
      },
      {
        "rec_type": "lead-based_paint",
        "description": "How fly since would family value.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "American toward enter nearly argue fire we arrive game race.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 66782
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Up street amount quickly thank shoulder piece. Trip study charge generation television.",
        "estimated_repair_cost": 44140
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Partner discuss view phone. Either series shake half former ask executive."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Guy recognize ball least soon modern. Language government probably many price child.",
        "estimated_repair_cost": 160575
      }
    ],
    "ada_compliance_notes": "This mother computer yeah."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 99376,
    "weighted_average_lease_term_years": 7.8,
    "major_tenants": [
      {
        "tenant_name": "Collins-Thompson",
        "lease_start_date": "2022-01-07",
        "lease_end_date": "2025-12-09",
        "annual_rent": 621281,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Anderson Group",
        "lease_start_date": "2018-04-25",
        "lease_end_date": "2025-11-30",
        "annual_rent": 357684,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Davis-Anderson",
        "lease_start_date": "2021-11-02",
        "lease_end_date": "2025-04-20",
        "annual_rent": 487139,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Scott, Gonzalez and Costa",
        "lease_start_date": "2017-12-17",
        "lease_end_date": "2026-09-10",
        "annual_rent": 374573,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hughes and Sons",
        "lease_start_date": "2021-03-04",
        "lease_end_date": "2026-12-27",
        "annual_rent": 916487,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 6.83,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Versatile foreground model)",
    "zoning_compliance_confirmed": false
  }
}