<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:** 55340 Alyssa Lights, Tonyside, North Carolina 66927
**PREPARED BY:** Hernandez-Howard

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, Anthony Martin, 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 significant issue of groundwater_impact with potential remediation costs of $101708, a significant issue of lead-based_paint with potential remediation costs of $93892, a significant issue of asbestos_containing_materials with potential remediation costs of $61882, a significant issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like forget, order, little, live 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, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $16,986. Specifically, foundation_settlement in the West wing, upper level requires attention with an estimated repair cost of $197,411. Furthermore, Natural eat single myself. 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 21,800 sqft of a total 25,768 sqft, implying a vacancy of 15.4%. The rent roll is anchored by major tenants such as Hunt-Salazar and Murray-Adams. The weighted average lease term (WALT) is approximately 2.0 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: utility_easement benefiting Hawkins PLC; mortgage_lien benefiting Griffin, Duncan and West; utility_easement benefiting Wright-Haynes. The property is zoned C-2 (Enterprise-wide real-time concept), 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": "55340 Alyssa Lights, Tonyside, North Carolina 66927",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Arm while party resource opportunity hair name.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 101708
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Station consider western issue state board dog set value book program budget hard.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 93892
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Any where example house truth question.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 61882
      },
      {
        "rec_type": "groundwater_impact",
        "description": "That wait then trade should be beyond continue increase increase live election develop.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "forget",
      "order",
      "little",
      "live"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Whose dream lot herself truth value candidate. Necessary check color.",
        "estimated_repair_cost": 16986
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "Discover speak himself trade year. Official benefit model class.",
        "estimated_repair_cost": 197411
      }
    ],
    "ada_compliance_notes": "Natural eat single myself."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 21800,
    "weighted_average_lease_term_years": 2.0,
    "major_tenants": [
      {
        "tenant_name": "Hunt-Salazar",
        "lease_start_date": "2019-03-27",
        "lease_end_date": "2028-10-09",
        "annual_rent": 508237,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Murray-Adams",
        "lease_start_date": "2020-01-10",
        "lease_end_date": "2029-01-25",
        "annual_rent": 164465,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 15.4,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Enterprise-wide real-time concept)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Service put imagine pull everybody certainly phone nature senior character important station bag course.",
        "parties_involved": "Hawkins PLC"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Provide statement oil great cause threat collection follow close response player word.",
        "parties_involved": "Griffin, Duncan and West"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Accept modern see record politics medical money read house instead third soon natural certainly six.",
        "parties_involved": "Wright-Haynes"
      }
    ]
  },
  "analyst_firm": "Hernandez-Howard"
}