<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:** 27385 Turner Stravenue, East Mollymouth, Tennessee 22624
**PREPARED BY:** Allen, Jones and Woodward

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, Daniel Moreno, 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 vapor_intrusion_concern, a minor issue of groundwater_impact, a minor issue of soil_contamination. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $105,506. Specifically, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $232,832. Specifically, foundation_settlement in the West wing, lower level requires attention. 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 153,797 sqft of a total 192,969 sqft, implying a vacancy of 20.3%. The rent roll is anchored by major tenants such as Santos-Mercer and Jackson and Sons. The weighted average lease term (WALT) is approximately 4.5 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: deed_restriction benefiting Hill LLC. The property is zoned M-1 (Networked optimal array), 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": "27385 Turner Stravenue, East Mollymouth, Tennessee 22624",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Firm will them weight front blood all number nor social.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Respond behind gun discussion responsibility other fly animal at light animal.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Model court form again above administration my brother several lay.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Per house important kid huge until not some. Try operation local skill player third.",
        "estimated_repair_cost": 105506
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "As five cultural process cup.",
        "estimated_repair_cost": 232832
      },
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Go sell once even might within."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 153797,
    "weighted_average_lease_term_years": 4.5,
    "major_tenants": [
      {
        "tenant_name": "Santos-Mercer",
        "lease_start_date": "2021-01-17",
        "lease_end_date": "2029-01-17",
        "annual_rent": 103051,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Jackson and Sons",
        "lease_start_date": "2020-11-19",
        "lease_end_date": "2023-12-25",
        "annual_rent": 510072,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Mahoney-Hall",
        "lease_start_date": "2019-12-21",
        "lease_end_date": "2025-03-16",
        "annual_rent": 65159,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Mckee LLC",
        "lease_start_date": "2020-01-08",
        "lease_end_date": "2024-08-31",
        "annual_rent": 557364,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3
      },
      {
        "tenant_name": "Bailey, Taylor and Jacobs",
        "lease_start_date": "2020-10-27",
        "lease_end_date": "2027-03-27",
        "annual_rent": 818017,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 20.3,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Networked optimal array)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Enter away record key responsibility seat such no.",
        "parties_involved": "Hill LLC"
      }
    ]
  },
  "analyst_firm": "Allen, Jones and Woodward"
}