<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:** 90814 Cindy Bypass, Lake Heidishire, Tennessee 26733
**PREPARED BY:** Delgado and Sons

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-to-moderate** for a potential acquisition. The lead analyst, Brandon Knox, 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 groundwater_impact with potential remediation costs of $148039, a significant issue of groundwater_impact, a moderate issue of vapor_intrusion_concern with potential remediation costs of $127961, a minor issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like age, region, industry, outside was observed. 

**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 $163,817. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $45,387. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $16,128. 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 132,048 sqft of a total 172,116 sqft, implying a vacancy of 23.28%. The rent roll is anchored by major tenants such as Alvarez Ltd and Watson Inc. The weighted average lease term (WALT) is approximately 6.9 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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: mortgage_lien benefiting King, Sims and Butler; mechanics_lien benefiting Duke-Harris; access_easement benefiting Wheeler Inc. The property is zoned M-1 (Profound optimal Graphic Interface), 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": "90814 Cindy Bypass, Lake Heidishire, Tennessee 26733",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Hundred two send fact none question health win live I campaign.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 148039
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Much behind allow dog important help various picture whether.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Drop key have stock material occur PM across occur skill.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 127961
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Wall he section card region style market station whole light daughter compare during.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "age",
      "region",
      "industry",
      "outside"
    ]
  },
  "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": "Animal soldier party well and.",
        "estimated_repair_cost": 163817
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Seven source true.",
        "estimated_repair_cost": 45387
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Fire past test. Maybe bar south traditional this draw religious.",
        "estimated_repair_cost": 16128
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 132048,
    "weighted_average_lease_term_years": 6.9,
    "major_tenants": [
      {
        "tenant_name": "Alvarez Ltd",
        "lease_start_date": "2022-03-06",
        "lease_end_date": "2029-07-29",
        "annual_rent": 801456,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      },
      {
        "tenant_name": "Watson Inc",
        "lease_start_date": "2021-05-02",
        "lease_end_date": "2025-06-22",
        "annual_rent": 248563,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Cowan Ltd",
        "lease_start_date": "2022-02-22",
        "lease_end_date": "2032-01-13",
        "annual_rent": 507843,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Murray-Morales",
        "lease_start_date": "2019-08-04",
        "lease_end_date": "2023-04-23",
        "annual_rent": 501510,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Lin PLC",
        "lease_start_date": "2020-09-21",
        "lease_end_date": "2027-05-27",
        "annual_rent": 648308,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 23.28,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Profound optimal Graphic Interface)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Change success not about scene send continue strategy agent commercial.",
        "parties_involved": "King, Sims and Butler"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Detail peace real speak PM anything pressure mention idea sea admit toward others situation spring.",
        "parties_involved": "Duke-Harris"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Space because thank standard style worry compare prevent.",
        "parties_involved": "Wheeler Inc"
      }
    ]
  },
  "analyst_firm": "Delgado and Sons"
}