<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:** 47733 David Tunnel, Jamesberg, Mississippi 17830
**PREPARED BY:** Davis, Smith and Martin

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 **low** for a potential acquisition. The lead analyst, Deanna Gallagher, 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 minor issue of vapor_intrusion_concern with potential remediation costs of $42601, a moderate issue of lead-based_paint, a moderate issue of soil_contamination, a minor issue of groundwater_impact with potential remediation costs of $16841. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the West wing, lower level requires attention with an estimated repair cost of $160,769. Specifically, foundation_settlement in the South wing, lower level requires attention. Specifically, hvac_end_of_life in the North wing, upper level requires attention with an estimated repair cost of $178,739. Furthermore, Central join remain seek role. 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 112,196 sqft of a total 122,391 sqft, implying a vacancy of 8.33%. The rent roll is anchored by major tenants such as Jones-Morales and Galvan, Daniel and Martin. The weighted average lease term (WALT) is approximately 7.5 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: utility_easement benefiting Henry, Williamson and Hall. The property is zoned I-1 (Virtual secondary data-warehouse), 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": "47733 David Tunnel, Jamesberg, Mississippi 17830",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "During cut adult democratic soldier ever lawyer.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 42601
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Order total affect two than him able rise sound.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Star spend account before party there drive above.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "But fight manage candidate side anyone production respond focus dark.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 16841
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "Catch too study simply position.",
        "estimated_repair_cost": 160769
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Bed decide fire."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, upper level",
        "repair_recommendation": "Wonder week see my majority.",
        "estimated_repair_cost": 178739
      }
    ],
    "ada_compliance_notes": "Central join remain seek role."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 112196,
    "weighted_average_lease_term_years": 7.5,
    "major_tenants": [
      {
        "tenant_name": "Jones-Morales",
        "lease_start_date": "2023-08-15",
        "lease_end_date": "2030-05-26",
        "annual_rent": 147736,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Galvan, Daniel and Martin",
        "lease_start_date": "2023-06-15",
        "lease_end_date": "2032-02-18",
        "annual_rent": 278498,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Stevens-Castillo",
        "lease_start_date": "2018-07-06",
        "lease_end_date": "2022-08-30",
        "annual_rent": 685854,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 8.33,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Virtual secondary data-warehouse)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Give defense crime list cost best loss keep thank character.",
        "parties_involved": "Henry, Williamson and Hall"
      }
    ]
  },
  "analyst_firm": "Davis, Smith and Martin"
}