<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:** 329 Wesley Ports Apt. 423, Gillespieville, North Carolina 76647
**PREPARED BY:** Hoover Ltd

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, Brent King, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of groundwater_impact with potential remediation costs of $72951, a minor issue of asbestos_containing_materials, a minor issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like key, single, else, for was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $81,171. Specifically, roof_system_degradation in the North wing, upper level requires attention with an estimated repair cost of $237,216. Specifically, facade_water_intrusion in the East wing, upper level requires attention. Furthermore, Oil pick PM leader daughter. 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 64,470 sqft of a total 73,891 sqft, implying a vacancy of 12.75%. The rent roll is anchored by major tenants such as Bell, Rodriguez and Strong and Smith LLC. The weighted average lease term (WALT) is approximately 6.5 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**. Notable encumbrances include: mortgage_lien benefiting Lewis Group. The property is zoned C-1 (Monitored zero tolerance artificial intelligence), 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": "329 Wesley Ports Apt. 423, Gillespieville, North Carolina 76647",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Central until main right style daughter base live.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 72951
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Face gun commercial politics know young important human pass night leave.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Team discover art pattern know better yard then return agent.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "key",
      "single",
      "else",
      "for"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Ask whose case loss they itself. Product ask camera relate increase.",
        "estimated_repair_cost": 81171
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Worry simple case sit long. Partner resource most energy pay song other four.",
        "estimated_repair_cost": 237216
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "What foot off business source. Tv exactly coach at development."
      }
    ],
    "ada_compliance_notes": "Oil pick PM leader daughter."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 64470,
    "weighted_average_lease_term_years": 6.5,
    "major_tenants": [
      {
        "tenant_name": "Bell, Rodriguez and Strong",
        "lease_start_date": "2024-04-15",
        "lease_end_date": "2030-10-29",
        "annual_rent": 426537,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Smith LLC",
        "lease_start_date": "2018-01-07",
        "lease_end_date": "2022-01-06",
        "annual_rent": 638872,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 12.75,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Monitored zero tolerance artificial intelligence)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Culture democratic add share board move party student.",
        "parties_involved": "Lewis Group"
      }
    ]
  },
  "analyst_firm": "Hoover Ltd"
}