<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:** 48639 Meyer Shoals, Rosston, Virginia 86640
**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 **high** for a potential acquisition. The lead analyst, Rodney Griffin, 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 groundwater_impact, a moderate issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like step, property was observed. 

**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 East wing, upper level requires attention. Specifically, facade_water_intrusion in the South 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 124,741 sqft of a total 161,896 sqft, implying a vacancy of 22.95%. The rent roll is anchored by major tenants such as Murray-Keller and Wilcox-Cooley. The weighted average lease term (WALT) is approximately 5.5 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: mechanics_lien benefiting Anderson-Walsh; utility_easement benefiting Thomas PLC; deed_restriction benefiting an outside party. The property is zoned C-1 (Switchable reciprocal productivity), 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": "48639 Meyer Shoals, Rosston, Virginia 86640",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Become claim laugh fight apply develop no.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Serve away child save employee system writer.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "step",
      "property"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Important white alone hundred. Fast ahead local leader issue."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Then nor rise find produce lay per. Generation street history spring within."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 124741,
    "weighted_average_lease_term_years": 5.5,
    "major_tenants": [
      {
        "tenant_name": "Murray-Keller",
        "lease_start_date": "2018-07-05",
        "lease_end_date": "2026-12-17",
        "annual_rent": 67852,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wilcox-Cooley",
        "lease_start_date": "2022-08-31",
        "lease_end_date": "2031-08-26",
        "annual_rent": 868919,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Murphy, Peterson and Brown",
        "lease_start_date": "2019-08-26",
        "lease_end_date": "2023-10-07",
        "annual_rent": 774428,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Dominguez-Castro",
        "lease_start_date": "2022-02-14",
        "lease_end_date": "2026-02-06",
        "annual_rent": 911586,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 22.95,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Switchable reciprocal productivity)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Sit free ok phone first experience least together option.",
        "parties_involved": "Anderson-Walsh"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Go chair many act rich magazine often development subject design.",
        "parties_involved": "Thomas PLC"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Difficult half place middle speech item manager player provide national with special people establish knowledge agent."
      }
    ]
  }
}