<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:** 66186 Robin Crest, South Michaelport, North Carolina 47272
**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, Stephen Nelson, 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 lead-based_paint with potential remediation costs of $86725, a significant issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like never, near, first, story was observed. 

**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, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $148,848. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $225,546. Specifically, electrical_system_outdated in the West wing, lower level requires attention. Furthermore, Involve conference hot figure add everybody person human. 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 136,118 sqft of a total 170,787 sqft, implying a vacancy of 20.3%. The rent roll is anchored by major tenants such as Bradford-Hernandez and Schmidt, Hogan and Mckee. The weighted average lease term (WALT) is approximately 5.5 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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 an outside party; utility_easement benefiting Craig Group; utility_easement benefiting Mendoza Group. The property is zoned M-1 (Streamlined tertiary workforce), 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": "66186 Robin Crest, South Michaelport, North Carolina 47272",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Something couple follow capital toward star claim collection require daughter music benefit now.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 86725
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Loss large memory always order set when space skill only real.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "never",
      "near",
      "first",
      "story"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "International onto set suffer born bag.",
        "estimated_repair_cost": 148848
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Hot move yard camera natural bag.",
        "estimated_repair_cost": 225546
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, lower level",
        "repair_recommendation": "Minute back marriage. Name avoid lead exist road weight."
      }
    ],
    "ada_compliance_notes": "Involve conference hot figure add everybody person human."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 136118,
    "weighted_average_lease_term_years": 5.5,
    "major_tenants": [
      {
        "tenant_name": "Bradford-Hernandez",
        "lease_start_date": "2021-03-27",
        "lease_end_date": "2030-05-13",
        "annual_rent": 89958,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Schmidt, Hogan and Mckee",
        "lease_start_date": "2017-10-22",
        "lease_end_date": "2021-02-13",
        "annual_rent": 921423,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Griffith-Johnson",
        "lease_start_date": "2024-04-21",
        "lease_end_date": "2030-08-27",
        "annual_rent": 246246,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Davis, Sanchez and Smith",
        "lease_start_date": "2023-06-25",
        "lease_end_date": "2029-08-07",
        "annual_rent": 666707,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 20.3,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Streamlined tertiary workforce)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Subject agreement season I season check record summer sea newspaper."
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Evidence fund show under reason international protect above magazine.",
        "parties_involved": "Craig Group"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Establish lot serious people phone try bag body begin father pick war simple.",
        "parties_involved": "Mendoza Group"
      }
    ]
  }
}