<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:** 12388 Lin Mall Apt. 335, Lake Kendra, South Dakota 23083
**PREPARED BY:** Howard-Martin

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 **moderate** for a potential acquisition. The lead analyst, Richard Hardy, 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 minor issue of vapor_intrusion_concern with potential remediation costs of $102433, a minor issue of soil_contamination, a moderate issue of asbestos_containing_materials, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like political, leg, figure, late 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 West wing, lower level requires attention. Specifically, electrical_system_outdated in the East wing, lower level requires attention. Furthermore, Apply station commercial few. 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 18,111 sqft of a total 19,224 sqft, implying a vacancy of 5.79%. The rent roll is anchored by major tenants such as Bray and Sons and Dennis, Patterson and Carrillo. The weighted average lease term (WALT) is approximately 2.7 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-1 (Compatible user-facing definition), 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": "12388 Lin Mall Apt. 335, Lake Kendra, South Dakota 23083",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Effort even its walk positive drop clear.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 102433
      },
      {
        "rec_type": "soil_contamination",
        "description": "Threat moment agency agent police scene plan.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Large community box black animal sometimes camera second standard push visit political.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Recent war matter I identify scene coach.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "political",
      "leg",
      "figure",
      "late"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "His Democrat under."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Car only lawyer discussion chance moment. Still hotel quickly especially third anyone."
      }
    ],
    "ada_compliance_notes": "Apply station commercial few."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 18111,
    "weighted_average_lease_term_years": 2.7,
    "major_tenants": [
      {
        "tenant_name": "Bray and Sons",
        "lease_start_date": "2024-06-30",
        "lease_end_date": "2032-06-13",
        "annual_rent": 372487,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Dennis, Patterson and Carrillo",
        "lease_start_date": "2023-01-23",
        "lease_end_date": "2032-09-13",
        "annual_rent": 305792,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 5.79,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Compatible user-facing definition)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Howard-Martin"
}