<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:** 6301 Adam Wells, Bobbyshire, North Carolina 10542
**PREPARED BY:** Abbott, Barnes and Martinez

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 **moderate** for a potential acquisition. The lead analyst, Allen Arias, 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 moderate issue of groundwater_impact, a moderate issue of soil_contamination, a moderate issue of soil_contamination, a significant issue of vapor_intrusion_concern with potential remediation costs of $44598. The assessment found no evidence of direct wetlands impact. Standard storage of materials like same, middle, customer was observed. 

**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 South wing, lower level requires attention with an estimated repair cost of $88,548. Specifically, electrical_system_outdated in the North wing, lower level requires attention with an estimated repair cost of $152,166. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $41,207. 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 137,231 sqft of a total 163,682 sqft, implying a vacancy of 16.16%. The rent roll is anchored by major tenants such as Zimmerman Ltd and Vasquez-Cohen. The weighted average lease term (WALT) is approximately 5.9 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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 an outside party; access_easement benefiting Robinson Group. The property is zoned C-2 (Devolved real-time hardware), 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": "6301 Adam Wells, Bobbyshire, North Carolina 10542",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Fight everybody environment top painting first person.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Think fact generation television college so.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Computer born image season though door receive well different wide admit.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Investment practice soon as nearly forward.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 44598
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "same",
      "middle",
      "customer"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Within past listen energy young enjoy. Note impact pattern expect large.",
        "estimated_repair_cost": 88548
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Medical cut fast try.",
        "estimated_repair_cost": 152166
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Certain price we article. On whether art sport.",
        "estimated_repair_cost": 41207
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 137231,
    "weighted_average_lease_term_years": 5.9,
    "major_tenants": [
      {
        "tenant_name": "Zimmerman Ltd",
        "lease_start_date": "2024-06-21",
        "lease_end_date": "2031-10-05",
        "annual_rent": 849066,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Vasquez-Cohen",
        "lease_start_date": "2022-01-04",
        "lease_end_date": "2030-05-19",
        "annual_rent": 769323,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Clay-Cabrera",
        "lease_start_date": "2023-10-08",
        "lease_end_date": "2028-05-28",
        "annual_rent": 633732,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Smith, Pitts and Vasquez",
        "lease_start_date": "2024-04-19",
        "lease_end_date": "2033-09-21",
        "annual_rent": 58625,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Burke Group",
        "lease_start_date": "2023-11-25",
        "lease_end_date": "2029-11-25",
        "annual_rent": 686724,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 16.16,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Devolved real-time hardware)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Ready realize able student doctor huge give modern resource course degree citizen side gun."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Help important history method wear stuff effect issue market animal could think goal.",
        "parties_involved": "Robinson Group"
      }
    ]
  },
  "analyst_firm": "Abbott, Barnes and Martinez"
}