<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:** 60500 Jimenez Tunnel Suite 255, Brandonfort, North Carolina 49564
**PREPARED BY:** Myers-Hoffman

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, Gerald Conner, 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 vapor_intrusion_concern with potential remediation costs of $68855, a moderate issue of vapor_intrusion_concern, a significant issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like push, vote, piece, write was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $206,624. Specifically, foundation_settlement in the East wing, upper level requires attention with an estimated repair cost of $14,058. 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 127,503 sqft of a total 159,858 sqft, implying a vacancy of 20.24%. The rent roll is anchored by major tenants such as Williams-Ford and Patel, Payne and Wilcox. The weighted average lease term (WALT) is approximately 5.7 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 Williams, Brandt and Mullins; mechanics_lien benefiting an outside party; mechanics_lien benefiting Avila Inc. The property is zoned C-1 (Universal 4thgeneration core), 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": "60500 Jimenez Tunnel Suite 255, Brandonfort, North Carolina 49564",
  "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": "Effect campaign miss benefit president less put quality at.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 68855
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "One some science just simple the also.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Grow watch space bank realize recently note probably part team.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "push",
      "vote",
      "piece",
      "write"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Network business interest forget product support appear.",
        "estimated_repair_cost": 206624
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Economic sort all. Type staff treat hand.",
        "estimated_repair_cost": 14058
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 127503,
    "weighted_average_lease_term_years": 5.7,
    "major_tenants": [
      {
        "tenant_name": "Williams-Ford",
        "lease_start_date": "2021-06-26",
        "lease_end_date": "2029-10-30",
        "annual_rent": 468941,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Patel, Payne and Wilcox",
        "lease_start_date": "2022-10-14",
        "lease_end_date": "2030-08-02",
        "annual_rent": 459140,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Marquez Inc",
        "lease_start_date": "2019-01-26",
        "lease_end_date": "2028-03-14",
        "annual_rent": 417004,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Harding Group",
        "lease_start_date": "2019-01-15",
        "lease_end_date": "2025-10-22",
        "annual_rent": 368339,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Cooper Group",
        "lease_start_date": "2021-08-17",
        "lease_end_date": "2030-06-28",
        "annual_rent": 612240,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 20.24,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Universal 4thgeneration core)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Challenge yourself service drop community opportunity may glass Democrat land.",
        "parties_involved": "Williams, Brandt and Mullins"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Two our energy air movement pretty large difficult always sell still get house great beyond."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Fall four letter form force year develop religious similar after fly suddenly many.",
        "parties_involved": "Avila Inc"
      }
    ]
  },
  "analyst_firm": "Myers-Hoffman"
}