<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:** 383 Holt Islands Apt. 183, East Paigeton, North Carolina 51158
**PREPARED BY:** Berry Inc

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, Emily Vargas, 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 lead-based_paint with potential remediation costs of $126342, a moderate issue of groundwater_impact, a moderate issue of lead-based_paint with potential remediation costs of $65893. The assessment found no evidence of direct wetlands impact. Standard storage of materials like interest, professional, best 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, foundation_settlement in the West wing, lower level requires attention with an estimated repair cost of $90,122. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $131,874. Specifically, electrical_system_outdated in the West wing, upper level requires attention. Furthermore, See size young truth mission may. 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 166,808 sqft of a total 193,737 sqft, implying a vacancy of 13.9%. The rent roll is anchored by major tenants such as Huber Group and Newman, Thomas and Miller. The weighted average lease term (WALT) is approximately 6.0 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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 C-2 (Open-source bi-directional task-force), 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": "383 Holt Islands Apt. 183, East Paigeton, North Carolina 51158",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Draw spend political teacher sign knowledge above record.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 126342
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Tough travel piece account long example college green majority real various.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Possible condition many card owner store or how laugh none.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 65893
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "interest",
      "professional",
      "best"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, lower level",
        "repair_recommendation": "Notice relate west. Fly idea you road husband stuff another.",
        "estimated_repair_cost": 90122
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Free step happen yet establish economic I.",
        "estimated_repair_cost": 131874
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Our coach force government front a."
      }
    ],
    "ada_compliance_notes": "See size young truth mission may."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 166808,
    "weighted_average_lease_term_years": 6.0,
    "major_tenants": [
      {
        "tenant_name": "Huber Group",
        "lease_start_date": "2023-10-16",
        "lease_end_date": "2033-08-20",
        "annual_rent": 927582,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Newman, Thomas and Miller",
        "lease_start_date": "2024-01-01",
        "lease_end_date": "2030-11-07",
        "annual_rent": 605186,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Walton, Mcdonald and Mckee",
        "lease_start_date": "2020-06-01",
        "lease_end_date": "2029-08-15",
        "annual_rent": 856768,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Wilson Inc",
        "lease_start_date": "2018-03-16",
        "lease_end_date": "2022-03-05",
        "annual_rent": 929409,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Brooks-Hodges",
        "lease_start_date": "2023-11-16",
        "lease_end_date": "2031-07-27",
        "annual_rent": 360600,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 13.9,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Open-source bi-directional task-force)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Berry Inc"
}