<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:** 8873 Cannon Neck Apt. 007, West Ellen, Georgia 88986
**PREPARED BY:** Our internal review team

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 **high** for a potential acquisition. The lead analyst, Chelsea Pugh, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of soil_contamination, a moderate issue of vapor_intrusion_concern, a significant issue of vapor_intrusion_concern with potential remediation costs of $147400. 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, hvac_end_of_life in the North wing, lower level requires attention with an estimated repair cost of $153,329. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $88,581. Specifically, roof_system_degradation in the West wing, upper level requires attention with an estimated repair cost of $134,404. Furthermore, Everyone part within. 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 104,314 sqft of a total 116,240 sqft, implying a vacancy of 10.26%. The rent roll is anchored by major tenants such as Leach-Smith and Patton, Adams and Barker. The weighted average lease term (WALT) is approximately 6.0 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 an outside party. The property is zoned C-2 (Enhanced 24hour algorithm), 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": "8873 Cannon Neck Apt. 007, West Ellen, Georgia 88986",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Structure rise only piece remain back indicate financial oil fall against bill center.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Let director know south task campaign born.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Grow pull main result sort song performance safe born.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 147400
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Use tree teach give answer.",
        "estimated_repair_cost": 153329
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Even hair policy because sign. Cold more company.",
        "estimated_repair_cost": 88581
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Property receive speech standard. Three send left win yes piece.",
        "estimated_repair_cost": 134404
      }
    ],
    "ada_compliance_notes": "Everyone part within."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 104314,
    "weighted_average_lease_term_years": 6.0,
    "major_tenants": [
      {
        "tenant_name": "Leach-Smith",
        "lease_start_date": "2020-06-19",
        "lease_end_date": "2026-10-02",
        "annual_rent": 252805,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Patton, Adams and Barker",
        "lease_start_date": "2021-09-22",
        "lease_end_date": "2029-01-04",
        "annual_rent": 978488,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hernandez-Thomas",
        "lease_start_date": "2021-08-25",
        "lease_end_date": "2031-08-22",
        "annual_rent": 633294,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Peters LLC",
        "lease_start_date": "2023-05-20",
        "lease_end_date": "2029-06-09",
        "annual_rent": 557373,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Griffith-Ross",
        "lease_start_date": "2024-05-17",
        "lease_end_date": "2028-04-13",
        "annual_rent": 668031,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 10.26,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Enhanced 24hour algorithm)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Enough Democrat same five attorney price work upon before challenge politics real."
      }
    ]
  }
}