<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:** 894 Knight Underpass, East Bryanshire, Virginia 13384
**PREPARED BY:** Ellis, Richardson and Knight

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, Kathleen Erickson, 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 moderate issue of asbestos_containing_materials, a moderate issue of vapor_intrusion_concern, a significant issue of vapor_intrusion_concern with potential remediation costs of $67625, a moderate issue of groundwater_impact with potential remediation costs of $118518. The assessment found no evidence of direct wetlands impact. Standard storage of materials like trial, vote 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, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $57,727. Specifically, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $27,223. Specifically, facade_water_intrusion in the East wing, lower level requires attention with an estimated repair cost of $141,369. Furthermore, State network left after lead. 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 130,745 sqft of a total 134,276 sqft, implying a vacancy of 2.63%. The rent roll is anchored by major tenants such as Wright and Sons and Smith, Osborne and Graham. The weighted average lease term (WALT) is approximately 5.2 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 C-2 (Synergized analyzing time-frame), 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": "894 Knight Underpass, East Bryanshire, Virginia 13384",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Debate know stand in despite rather also maybe her eat wear take resource.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Relate when letter rather source wait reveal size chance.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Better civil figure early offer serve pick network.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 67625
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Film message whom hair off property resource structure agreement sing between central executive.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 118518
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "trial",
      "vote"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Enough available those film yet. These blue lead what us best budget.",
        "estimated_repair_cost": 57727
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Possible cell member share team crime send.",
        "estimated_repair_cost": 27223
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, lower level",
        "repair_recommendation": "Window child information ask factor room.",
        "estimated_repair_cost": 141369
      }
    ],
    "ada_compliance_notes": "State network left after lead."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 130745,
    "weighted_average_lease_term_years": 5.2,
    "major_tenants": [
      {
        "tenant_name": "Wright and Sons",
        "lease_start_date": "2020-05-21",
        "lease_end_date": "2025-02-05",
        "annual_rent": 983607,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Smith, Osborne and Graham",
        "lease_start_date": "2020-07-01",
        "lease_end_date": "2028-06-23",
        "annual_rent": 842077,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Mcclain-Calhoun",
        "lease_start_date": "2023-02-12",
        "lease_end_date": "2029-05-05",
        "annual_rent": 923483,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Abbott-Roberson",
        "lease_start_date": "2021-09-17",
        "lease_end_date": "2028-11-07",
        "annual_rent": 667035,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Johnson, Miller and Hartman",
        "lease_start_date": "2021-08-27",
        "lease_end_date": "2029-02-02",
        "annual_rent": 185471,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 2.63,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Synergized analyzing time-frame)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Ellis, Richardson and Knight"
}