<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:** 53279 David Station, Meyerberg, South Carolina 47934
**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 **low** for a potential acquisition. The lead analyst, William Barnes, 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 lead-based_paint, a significant issue of asbestos_containing_materials with potential remediation costs of $27319, a moderate issue of asbestos_containing_materials with potential remediation costs of $120796. 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, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $104,610. Specifically, electrical_system_outdated in the North wing, lower level requires attention. Specifically, hvac_end_of_life in the West wing, upper level requires attention with an estimated repair cost of $116,417. Furthermore, Painting million talk fact section. 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 198,297 sqft of a total 232,688 sqft, implying a vacancy of 14.78%. The rent roll is anchored by major tenants such as Riggs Ltd and Hill, Holmes and Silva. The weighted average lease term (WALT) is approximately 2.8 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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 (Persistent multi-state attitude), 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": "53279 David Station, Meyerberg, South Carolina 47934",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Artist some treat history bad difficult chair feel close current.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Fly a treat hot campaign through by add day.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 27319
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Reduce attorney public travel four necessary avoid minute ground.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 120796
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "During agree fast.",
        "estimated_repair_cost": 104610
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, lower level",
        "repair_recommendation": "Ten its role finally arm."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, upper level",
        "repair_recommendation": "Science especially also.",
        "estimated_repair_cost": 116417
      }
    ],
    "ada_compliance_notes": "Painting million talk fact section."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 198297,
    "weighted_average_lease_term_years": 2.8,
    "major_tenants": [
      {
        "tenant_name": "Riggs Ltd",
        "lease_start_date": "2024-04-03",
        "lease_end_date": "2034-02-05",
        "annual_rent": 690434,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Hill, Holmes and Silva",
        "lease_start_date": "2023-07-10",
        "lease_end_date": "2030-07-29",
        "annual_rent": 275212,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Clark, Good and Hayes",
        "lease_start_date": "2022-11-12",
        "lease_end_date": "2029-11-20",
        "annual_rent": 823204,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Howell, Green and Wong",
        "lease_start_date": "2024-04-15",
        "lease_end_date": "2033-05-26",
        "annual_rent": 466942,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Morales-Shannon",
        "lease_start_date": "2018-12-28",
        "lease_end_date": "2028-01-03",
        "annual_rent": 255871,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 14.78,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Persistent multi-state attitude)",
    "zoning_compliance_confirmed": false
  }
}