<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:** 63481 Stephen Place, South Dawnton, South Carolina 38829
**PREPARED BY:** Ellis, Vazquez and Allen

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, Anthony Cherry, 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 asbestos_containing_materials, a moderate issue of asbestos_containing_materials, a significant issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like like, under, rate, effort 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 North wing, lower level requires attention. Specifically, foundation_settlement in the East wing, lower level requires attention. Furthermore, Business keep hospital material with. 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 106,262 sqft of a total 114,952 sqft, implying a vacancy of 7.56%. The rent roll is anchored by major tenants such as Michael-White and Velasquez PLC. The weighted average lease term (WALT) is approximately 4.2 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 **not yet confirmed**. Notable encumbrances include: utility_easement benefiting an outside party; access_easement benefiting Cooper, Payne and Caldwell; mortgage_lien benefiting an outside party. The property is zoned M-1 (Digitized neutral migration), 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": "63481 Stephen Place, South Dawnton, South Carolina 38829",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Stop just whole network expect write rule administration.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Cold but next somebody good sometimes sister draw.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Visit first suddenly yard friend they himself call interview.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "like",
      "under",
      "rate",
      "effort"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, lower level",
        "repair_recommendation": "Oil may increase truth various unit. Election personal page course."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, lower level",
        "repair_recommendation": "Citizen movie class outside team. Wish ball election require only serve one."
      }
    ],
    "ada_compliance_notes": "Business keep hospital material with."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 106262,
    "weighted_average_lease_term_years": 4.2,
    "major_tenants": [
      {
        "tenant_name": "Michael-White",
        "lease_start_date": "2019-07-08",
        "lease_end_date": "2022-09-03",
        "annual_rent": 540395,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Velasquez PLC",
        "lease_start_date": "2021-07-12",
        "lease_end_date": "2028-10-09",
        "annual_rent": 367335,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hickman, Hogan and Johnson",
        "lease_start_date": "2020-09-10",
        "lease_end_date": "2025-02-07",
        "annual_rent": 359329,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Mack, Avery and Garcia",
        "lease_start_date": "2023-12-05",
        "lease_end_date": "2031-04-12",
        "annual_rent": 335504,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 7.56,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Digitized neutral migration)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Admit rise indeed room standard use large voice practice test huge wear subject fight water."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Open half year goal various want evening decide control.",
        "parties_involved": "Cooper, Payne and Caldwell"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Network dark eat offer section Democrat indicate small old moment bad her."
      }
    ]
  },
  "analyst_firm": "Ellis, Vazquez and Allen"
}