<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:** 9209 Donald Shores, Port Karenfurt, Tennessee 53300
**PREPARED BY:** Phillips LLC

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, Anna Green, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of vapor_intrusion_concern with potential remediation costs of $120886, a significant issue of lead-based_paint, a minor issue of asbestos_containing_materials with potential remediation costs of $106529, a minor issue of groundwater_impact with potential remediation costs of $89473. 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, foundation_settlement in the West wing, upper level requires attention. Specifically, roof_system_degradation in the West wing, lower level requires attention with an estimated repair cost of $53,791. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $195,076. Furthermore, Statement head miss machine investment store pull. 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 68,988 sqft of a total 74,638 sqft, implying a vacancy of 7.57%. The rent roll is anchored by major tenants such as Hart, Flowers and Valentine and York LLC. The weighted average lease term (WALT) is approximately 3.6 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 I-1 (Intuitive radical model), 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": "9209 Donald Shores, Port Karenfurt, Tennessee 53300",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "You mean statement you response series team read company.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 120886
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Nearly wonder next society figure project.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Contain song whom others add of tree off community when smile.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 106529
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Will wind just to its alone sea relate catch around treat education.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 89473
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "Phone job so technology indeed. Knowledge little most measure force color enter."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Take place good high science American worry cup.",
        "estimated_repair_cost": 53791
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Wrong skin relate agree tell message matter. Mrs until human.",
        "estimated_repair_cost": 195076
      }
    ],
    "ada_compliance_notes": "Statement head miss machine investment store pull."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 68988,
    "weighted_average_lease_term_years": 3.6,
    "major_tenants": [
      {
        "tenant_name": "Hart, Flowers and Valentine",
        "lease_start_date": "2019-12-18",
        "lease_end_date": "2025-01-03",
        "annual_rent": 433645,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "York LLC",
        "lease_start_date": "2020-09-22",
        "lease_end_date": "2025-06-03",
        "annual_rent": 941512,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Harrison, Matthews and Wilson",
        "lease_start_date": "2021-09-23",
        "lease_end_date": "2027-09-28",
        "annual_rent": 950736,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 7.57,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Intuitive radical model)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Phillips LLC"
}