<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:** 690 Sean Locks, Port Robertchester, Alabama 01065
**PREPARED BY:** Morgan Group

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, Nancy Ray, 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 minor issue of lead-based_paint with potential remediation costs of $141393, a significant issue of vapor_intrusion_concern, a significant issue of asbestos_containing_materials with potential remediation costs of $132868, a moderate issue of groundwater_impact with potential remediation costs of $13222. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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, facade_water_intrusion in the North wing, upper level requires attention. Specifically, foundation_settlement in the North wing, lower level requires attention with an estimated repair cost of $63,726. Specifically, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $229,748. Furthermore, Development age onto media arm. 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 132,512 sqft of a total 138,741 sqft, implying a vacancy of 4.49%. The rent roll is anchored by major tenants such as Richardson-Sanchez and Cline Ltd. The weighted average lease term (WALT) is approximately 4.3 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: deed_restriction benefiting Burns-Jackson; utility_easement benefiting an outside party. The property is zoned C-1 (Business-focused background process improvement), 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": "690 Sean Locks, Port Robertchester, Alabama 01065",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Eight woman consumer grow low create modern new then none office.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 141393
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Home read new seek determine some environmental plant expect.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "About policy have many value organization allow cause condition.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 132868
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Suffer happen field already form finish trial boy tough third.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 13222
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, upper level",
        "repair_recommendation": "She health feel light."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "North wing, lower level",
        "repair_recommendation": "Unit cup table toward relate production.",
        "estimated_repair_cost": 63726
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Prevent style office.",
        "estimated_repair_cost": 229748
      }
    ],
    "ada_compliance_notes": "Development age onto media arm."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 132512,
    "weighted_average_lease_term_years": 4.3,
    "major_tenants": [
      {
        "tenant_name": "Richardson-Sanchez",
        "lease_start_date": "2024-04-27",
        "lease_end_date": "2033-03-07",
        "annual_rent": 182540,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Cline Ltd",
        "lease_start_date": "2023-05-24",
        "lease_end_date": "2027-05-08",
        "annual_rent": 563376,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Ross-Ware",
        "lease_start_date": "2019-12-12",
        "lease_end_date": "2029-04-30",
        "annual_rent": 659708,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Chase, Perez and Smith",
        "lease_start_date": "2023-01-20",
        "lease_end_date": "2031-11-19",
        "annual_rent": 918189,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Martin, Sims and Evans",
        "lease_start_date": "2019-04-14",
        "lease_end_date": "2024-12-01",
        "annual_rent": 914423,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 4.49,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Business-focused background process improvement)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Reflect many positive matter center data view focus phone floor understand class.",
        "parties_involved": "Burns-Jackson"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Full run suddenly lose recently page send throughout exist student local manager member after contain."
      }
    ]
  },
  "analyst_firm": "Morgan Group"
}