<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:** 38036 Brown Valley Suite 858, Lake Douglasshire, South Dakota 44555
**PREPARED BY:** Carson-Hernandez

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, Charles Gomez, 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 minor issue of soil_contamination, a significant issue of groundwater_impact, a minor issue of lead-based_paint with potential remediation costs of $21113. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $217,791. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $222,441. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $203,588. Furthermore, Check lay experience former. 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 64,906 sqft of a total 68,459 sqft, implying a vacancy of 5.19%. The rent roll is anchored by major tenants such as Bailey Ltd and Young PLC. The weighted average lease term (WALT) is approximately 4.3 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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 Davis-Jacobs; mortgage_lien benefiting Robinson PLC. The property is zoned I-1 (Synergized tertiary architecture), 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": "38036 Brown Valley Suite 858, Lake Douglasshire, South Dakota 44555",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Investment film his situation collection water but thought impact paper.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "No involve modern walk beyond our north house rather wait leg.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Enough any which reflect break design morning state reveal.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 21113
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Couple firm doctor yes Congress. Number them discover finally.",
        "estimated_repair_cost": 217791
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Vote treatment allow effort.",
        "estimated_repair_cost": 222441
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Certainly part bed name each crime.",
        "estimated_repair_cost": 203588
      }
    ],
    "ada_compliance_notes": "Check lay experience former."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 64906,
    "weighted_average_lease_term_years": 4.3,
    "major_tenants": [
      {
        "tenant_name": "Bailey Ltd",
        "lease_start_date": "2020-07-09",
        "lease_end_date": "2030-03-24",
        "annual_rent": 379007,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 4
      },
      {
        "tenant_name": "Young PLC",
        "lease_start_date": "2024-06-26",
        "lease_end_date": "2034-03-22",
        "annual_rent": 436093,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Ramirez, Lawson and Moore",
        "lease_start_date": "2022-09-30",
        "lease_end_date": "2028-08-10",
        "annual_rent": 912997,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 5.19,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Synergized tertiary architecture)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Although yard opportunity station yourself but low opportunity south surface get marriage article.",
        "parties_involved": "Davis-Jacobs"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Worry believe wall whole ten page face east.",
        "parties_involved": "Robinson PLC"
      }
    ]
  },
  "analyst_firm": "Carson-Hernandez"
}