<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:** 612 Collier Manors Suite 246, South Kellymouth, South Carolina 20508
**PREPARED BY:** Carter, Butler and Mercer

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, Elizabeth Hernandez, 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 soil_contamination with potential remediation costs of $98322, a moderate issue of soil_contamination with potential remediation costs of $63556, a minor issue of soil_contamination with potential remediation costs of $42621. The assessment found no evidence of direct wetlands impact. Standard storage of materials like brother, treat 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, facade_water_intrusion in the North wing, lower level requires attention with an estimated repair cost of $121,757. Specifically, electrical_system_outdated in the North wing, upper level requires attention with an estimated repair cost of $226,090. 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 193,905 sqft of a total 251,530 sqft, implying a vacancy of 22.91%. The rent roll is anchored by major tenants such as Moore PLC and Watson-Jones. The weighted average lease term (WALT) is approximately 4.6 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 **confirmed**. The property is zoned I-1 (Managed bifurcated circuit), 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": "612 Collier Manors Suite 246, South Kellymouth, South Carolina 20508",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Have yes buy goal take attack.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 98322
      },
      {
        "rec_type": "soil_contamination",
        "description": "Personal six up he stop forget individual range.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 63556
      },
      {
        "rec_type": "soil_contamination",
        "description": "Seven national father administration thank adult heart chair line opportunity travel run two.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 42621
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "brother",
      "treat"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Term decide nearly base each want. Sport I right him bag.",
        "estimated_repair_cost": 121757
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Notice political character voice month out huge. Under treat sell bring cup.",
        "estimated_repair_cost": 226090
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 193905,
    "weighted_average_lease_term_years": 4.6,
    "major_tenants": [
      {
        "tenant_name": "Moore PLC",
        "lease_start_date": "2020-01-16",
        "lease_end_date": "2025-08-04",
        "annual_rent": 361502,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Watson-Jones",
        "lease_start_date": "2023-02-22",
        "lease_end_date": "2032-07-04",
        "annual_rent": 424161,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Lopez and Sons",
        "lease_start_date": "2019-10-06",
        "lease_end_date": "2028-07-31",
        "annual_rent": 376102,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Washington-Norman",
        "lease_start_date": "2018-05-29",
        "lease_end_date": "2028-04-25",
        "annual_rent": 182632,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Freeman, Lamb and Wilson",
        "lease_start_date": "2020-11-30",
        "lease_end_date": "2027-12-26",
        "annual_rent": 722202,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 22.91,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Managed bifurcated circuit)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Carter, Butler and Mercer"
}