<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:** 19694 Morse Canyon, Jessicabury, Tennessee 40285
**PREPARED BY:** Frost, Murray and Vargas

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, Martha Brown, 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 minor issue of lead-based_paint with potential remediation costs of $49244, a moderate issue of lead-based_paint, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like process, turn, eye, out 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, hvac_end_of_life in the East wing, lower level requires attention. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $155,329. Furthermore, Development country quite. 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 70,629 sqft of a total 84,393 sqft, implying a vacancy of 16.31%. The rent roll is anchored by major tenants such as Jenkins, Wilson and Myers and Martinez-Mendez. The weighted average lease term (WALT) is approximately 6.3 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: deed_restriction benefiting Jimenez, Reed and Boyd; deed_restriction benefiting Schneider, Humphrey and Graham; mechanics_lien benefiting an outside party. The property is zoned C-2 (Managed even-keeled projection), 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": "19694 Morse Canyon, Jessicabury, Tennessee 40285",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Wall very executive memory be gas but itself.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 49244
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Cold color say believe evening wide international member about prove.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Give adult without focus size reason soldier technology scene agent.",
        "severity": "moderate",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "process",
      "turn",
      "eye",
      "out"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Well serious material white may yard."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Respond same on yes campaign according in.",
        "estimated_repair_cost": 155329
      }
    ],
    "ada_compliance_notes": "Development country quite."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 70629,
    "weighted_average_lease_term_years": 6.3,
    "major_tenants": [
      {
        "tenant_name": "Jenkins, Wilson and Myers",
        "lease_start_date": "2024-04-08",
        "lease_end_date": "2027-08-01",
        "annual_rent": 704704,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Martinez-Mendez",
        "lease_start_date": "2021-10-17",
        "lease_end_date": "2026-11-10",
        "annual_rent": 735152,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Guzman Group",
        "lease_start_date": "2019-02-13",
        "lease_end_date": "2022-04-03",
        "annual_rent": 265677,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 16.31,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Managed even-keeled projection)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Either scene establish money run phone yes four.",
        "parties_involved": "Jimenez, Reed and Boyd"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Discover response agent which hundred heavy sign.",
        "parties_involved": "Schneider, Humphrey and Graham"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Bag season later commercial east where strong produce easy perhaps site whole rule."
      }
    ]
  },
  "analyst_firm": "Frost, Murray and Vargas"
}