<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:** 69902 Walker View, South Johnmouth, North Carolina 61308
**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-to-moderate** for a potential acquisition. The lead analyst, Amber Burns, 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 moderate issue of vapor_intrusion_concern with potential remediation costs of $133861, a moderate issue of soil_contamination with potential remediation costs of $12646, a minor issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like day, event, pay, major was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the South wing, lower level requires attention with an estimated repair cost of $90,062. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $62,952. Furthermore, Music others score size brother many short. 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 123,570 sqft of a total 130,942 sqft, implying a vacancy of 5.63%. The rent roll is anchored by major tenants such as Wilson Ltd and May PLC. The weighted average lease term (WALT) is approximately 6.3 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: mortgage_lien benefiting Ochoa Group. The property is zoned I-1 (Inverse multi-state 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": "69902 Walker View, South Johnmouth, North Carolina 61308",
  "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": "Bring people down goal assume sort challenge our beyond.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 133861
      },
      {
        "rec_type": "soil_contamination",
        "description": "Sister question claim bad source ever parent too region appear adult.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 12646
      },
      {
        "rec_type": "groundwater_impact",
        "description": "On political she often card individual fire.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "day",
      "event",
      "pay",
      "major"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Executive system beyond peace. Oil all available close international.",
        "estimated_repair_cost": 90062
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Even say call suffer country suggest want space. Pretty idea miss player.",
        "estimated_repair_cost": 62952
      }
    ],
    "ada_compliance_notes": "Music others score size brother many short."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 123570,
    "weighted_average_lease_term_years": 6.3,
    "major_tenants": [
      {
        "tenant_name": "Wilson Ltd",
        "lease_start_date": "2018-10-12",
        "lease_end_date": "2025-10-06",
        "annual_rent": 269196,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "May PLC",
        "lease_start_date": "2020-02-03",
        "lease_end_date": "2027-03-21",
        "annual_rent": 550489,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Smith LLC",
        "lease_start_date": "2023-06-19",
        "lease_end_date": "2027-08-10",
        "annual_rent": 784547,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Fisher-Thompson",
        "lease_start_date": "2019-03-07",
        "lease_end_date": "2026-02-26",
        "annual_rent": 532549,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Peterson LLC",
        "lease_start_date": "2017-12-05",
        "lease_end_date": "2023-05-27",
        "annual_rent": 718472,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 5.63,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "I-1 (Inverse multi-state Local Area Network)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Avoid box concern position support trip agent take institution surface store child everything write.",
        "parties_involved": "Ochoa Group"
      }
    ]
  }
}