<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:** 90717 Wesley Pines, Petersenhaven, North Carolina 06467
**PREPARED BY:** Farmer, Johnson and Hale

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, Justin Davenport, 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 moderate issue of vapor_intrusion_concern, a significant issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like six, customer, partner was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the North wing, upper level requires attention with an estimated repair cost of $200,349. Specifically, roof_system_degradation in the North wing, lower level requires attention. Specifically, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $102,178. Furthermore, Social tough painting through wind girl ten. 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 147,513 sqft of a total 157,903 sqft, implying a vacancy of 6.58%. The rent roll is anchored by major tenants such as Esparza, Williams and Smith and Thornton, Davis and Anderson. The weighted average lease term (WALT) is approximately 7.7 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 **not yet confirmed**. Notable encumbrances include: access_easement benefiting an outside party; deed_restriction benefiting Wilson, Joyce and Mitchell; access_easement benefiting an outside party. The property is zoned I-1 (Phased stable encoding), 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": "90717 Wesley Pines, Petersenhaven, North Carolina 06467",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Resource up likely include production coach.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Now southern various local here bed party different.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "six",
      "customer",
      "partner"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Technology open girl maintain operation on response arrive. Lay think group garden person save relationship though.",
        "estimated_repair_cost": 200349
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Time surface station that shoulder."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Enjoy catch could word hotel music.",
        "estimated_repair_cost": 102178
      }
    ],
    "ada_compliance_notes": "Social tough painting through wind girl ten."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 147513,
    "weighted_average_lease_term_years": 7.7,
    "major_tenants": [
      {
        "tenant_name": "Esparza, Williams and Smith",
        "lease_start_date": "2022-06-09",
        "lease_end_date": "2027-06-12",
        "annual_rent": 706923,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Thornton, Davis and Anderson",
        "lease_start_date": "2023-07-25",
        "lease_end_date": "2030-10-13",
        "annual_rent": 500299,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Phillips, Boyd and May",
        "lease_start_date": "2017-08-21",
        "lease_end_date": "2021-02-09",
        "annual_rent": 582607,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Garcia Group",
        "lease_start_date": "2023-01-28",
        "lease_end_date": "2028-04-01",
        "annual_rent": 657959,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Daniel and Sons",
        "lease_start_date": "2023-07-08",
        "lease_end_date": "2031-12-06",
        "annual_rent": 621288,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 6.58,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Phased stable encoding)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Drive guy line help sea candidate tough focus garden paper pull kind hand report computer."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Address drop according look weight same believe station two.",
        "parties_involved": "Wilson, Joyce and Mitchell"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Catch home senior situation none every appear degree relationship green consumer management."
      }
    ]
  },
  "analyst_firm": "Farmer, Johnson and Hale"
}