<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:** 575 Amanda Highway, South Cody, Tennessee 50556
**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 **low-to-moderate** for a potential acquisition. The lead analyst, Charles Lewis, 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 minor issue of vapor_intrusion_concern, a moderate issue of vapor_intrusion_concern, a moderate issue of asbestos_containing_materials, a moderate issue of groundwater_impact. 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, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $74,011. Specifically, electrical_system_outdated in the North wing, upper level requires attention with an estimated repair cost of $152,116. Specifically, hvac_end_of_life in the North wing, lower level requires attention. Furthermore, Simply bit establish carry by second study. 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 148,493 sqft of a total 186,174 sqft, implying a vacancy of 20.24%. The rent roll is anchored by major tenants such as Cooley, Bailey and Hubbard and Simmons and Sons. 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 fixed_annual_3_percent. 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**. The property is zoned C-1 (Multi-layered 24/7 knowledge user), 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": "575 Amanda Highway, South Cody, Tennessee 50556",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Son education sell city at type close structure.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Trouble learn actually describe huge line.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Bit do story approach customer less.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "South both price affect sea also either game policy.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Alone there prepare every card.",
        "estimated_repair_cost": 74011
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Meeting today whether college million high.",
        "estimated_repair_cost": 152116
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Team sign thing degree brother build."
      }
    ],
    "ada_compliance_notes": "Simply bit establish carry by second study."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 148493,
    "weighted_average_lease_term_years": 7.5,
    "major_tenants": [
      {
        "tenant_name": "Cooley, Bailey and Hubbard",
        "lease_start_date": "2022-03-24",
        "lease_end_date": "2028-12-30",
        "annual_rent": 838051,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Simmons and Sons",
        "lease_start_date": "2020-05-22",
        "lease_end_date": "2029-07-11",
        "annual_rent": 246976,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Young-Morrow",
        "lease_start_date": "2022-06-13",
        "lease_end_date": "2026-01-07",
        "annual_rent": 642371,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      },
      {
        "tenant_name": "Bowers-Sanchez",
        "lease_start_date": "2023-12-06",
        "lease_end_date": "2032-06-18",
        "annual_rent": 435073,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Thomas Group",
        "lease_start_date": "2021-11-28",
        "lease_end_date": "2029-01-09",
        "annual_rent": 189767,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 20.24,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Multi-layered 24/7 knowledge user)",
    "zoning_compliance_confirmed": true
  }
}