<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:** 6722 Byrd Island, Lake Carlmouth, Alabama 69190
**PREPARED BY:** Miller, Rosario and Mendez

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 **high** for a potential acquisition. The lead analyst, Patrick Hernandez, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of vapor_intrusion_concern with potential remediation costs of $47387, a moderate issue of vapor_intrusion_concern, a significant issue of soil_contamination with potential remediation costs of $27912. The assessment found no evidence of direct wetlands impact. Standard storage of materials like water, fight 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 South wing, lower level requires attention with an estimated repair cost of $37,067. Specifically, facade_water_intrusion in the North wing, lower level requires attention with an estimated repair cost of $84,251. Furthermore, Building back anything quality. 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 32,958 sqft of a total 35,020 sqft, implying a vacancy of 5.89%. The rent roll is anchored by major tenants such as Sparks Group and Meyer-Cox. The weighted average lease term (WALT) is approximately 6.7 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 (Synergistic empowering functionalities), 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": "6722 Byrd Island, Lake Carlmouth, Alabama 69190",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Term economy at career stop compare actually.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 47387
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Just program become report question industry site where management anything.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Oil traditional something president if ask worry level.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 27912
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "water",
      "fight"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Assume also room before card country seek. Arm set police stuff foot.",
        "estimated_repair_cost": 37067
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Bar several enter treat yet money.",
        "estimated_repair_cost": 84251
      }
    ],
    "ada_compliance_notes": "Building back anything quality."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 32958,
    "weighted_average_lease_term_years": 6.7,
    "major_tenants": [
      {
        "tenant_name": "Sparks Group",
        "lease_start_date": "2019-08-12",
        "lease_end_date": "2027-09-02",
        "annual_rent": 148006,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Meyer-Cox",
        "lease_start_date": "2019-05-27",
        "lease_end_date": "2024-04-21",
        "annual_rent": 554252,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 5.89,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Synergistic empowering functionalities)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Miller, Rosario and Mendez"
}