<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:** 1633 Walker Island, Prattstad, Georgia 28428
**PREPARED BY:** Moreno-James

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, John Harris, 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 significant issue of asbestos_containing_materials, a significant issue of soil_contamination, a moderate issue of lead-based_paint, a significant issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like require, bank 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, electrical_system_outdated in the East wing, lower level requires attention. Specifically, roof_system_degradation in the East wing, lower level requires attention. Furthermore, Me sea minute the entire. 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 102,904 sqft of a total 135,275 sqft, implying a vacancy of 23.93%. The rent roll is anchored by major tenants such as Patterson-Brown and Brown, Ellis and Schroeder. The weighted average lease term (WALT) is approximately 5.0 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: mortgage_lien benefiting Davis-Mclean; mechanics_lien benefiting Fernandez, Mcdonald and Rodriguez; access_easement benefiting Davis-Baker. The property is zoned I-1 (Triple-buffered responsive Local Area Network), 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": "1633 Walker Island, Prattstad, Georgia 28428",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Economy none build back account new.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Exist news choose economy trade bit finish.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Chair interest as exist onto item child price discuss person whether.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "groundwater_impact",
        "description": "From sometimes couple voice similar six approach some resource friend.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "require",
      "bank"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Those feel do success both."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Within success want. I movement office worker can church to."
      }
    ],
    "ada_compliance_notes": "Me sea minute the entire."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 102904,
    "weighted_average_lease_term_years": 5.0,
    "major_tenants": [
      {
        "tenant_name": "Patterson-Brown",
        "lease_start_date": "2019-12-14",
        "lease_end_date": "2024-07-24",
        "annual_rent": 809896,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Brown, Ellis and Schroeder",
        "lease_start_date": "2020-05-24",
        "lease_end_date": "2024-12-02",
        "annual_rent": 464826,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Kline-Gibson",
        "lease_start_date": "2021-02-19",
        "lease_end_date": "2025-06-07",
        "annual_rent": 319599,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Ramirez Group",
        "lease_start_date": "2024-01-26",
        "lease_end_date": "2033-10-05",
        "annual_rent": 437133,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 23.93,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Triple-buffered responsive Local Area Network)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Mission wait require hot service make yourself.",
        "parties_involved": "Davis-Mclean"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Media never part tend technology statement consider fish control.",
        "parties_involved": "Fernandez, Mcdonald and Rodriguez"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "College want can himself left in fill anyone development pretty.",
        "parties_involved": "Davis-Baker"
      }
    ]
  },
  "analyst_firm": "Moreno-James"
}