<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:** 7522 Mark Freeway, North Krystal, Nebraska 80078
**PREPARED BY:** Castaneda-Merritt

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, William Ortiz, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a minor issue of soil_contamination with potential remediation costs of $35695, a significant issue of lead-based_paint. 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 **'good'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the West wing, upper level requires attention with an estimated repair cost of $102,967. Specifically, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $67,732. 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 55,303 sqft of a total 69,042 sqft, implying a vacancy of 19.9%. The rent roll is anchored by major tenants such as Becker, Wheeler and Lopez and Wright, Vasquez and Mcguire. The weighted average lease term (WALT) is approximately 6.8 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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**. The property is zoned M-1 (Programmable dedicated secured line), and its current use is deemed compliant with local ordinances. We are not aware of any pending litigation concerning the property at this time. </data>
{
  "property_identifier": "7522 Mark Freeway, North Krystal, Nebraska 80078",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Production prove address stuff probably top drug other.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 35695
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Know together anyone agreement material hair throughout these receive can under establish teach.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Religious even dinner make TV. Almost stage choose Mrs.",
        "estimated_repair_cost": 102967
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Mother bag race.",
        "estimated_repair_cost": 67732
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 55303,
    "weighted_average_lease_term_years": 6.8,
    "major_tenants": [
      {
        "tenant_name": "Becker, Wheeler and Lopez",
        "lease_start_date": "2021-08-08",
        "lease_end_date": "2029-09-02",
        "annual_rent": 925108,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Wright, Vasquez and Mcguire",
        "lease_start_date": "2019-07-01",
        "lease_end_date": "2022-11-22",
        "annual_rent": 744124,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 19.9,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Programmable dedicated secured line)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Castaneda-Merritt"
}