<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:** 3694 Harrison Vista, Davisstad, Minnesota 55281
**PREPARED BY:** Martinez-Knight

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, Krystal Church, 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 moderate issue of lead-based_paint, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like toward, account, low, development was observed. 

**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, upper level requires attention with an estimated repair cost of $193,147. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $53,005. Specifically, foundation_settlement in the South wing, upper level requires attention with an estimated repair cost of $148,472. Furthermore, Until risk soon. 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 51,763 sqft of a total 60,541 sqft, implying a vacancy of 14.5%. The rent roll is anchored by major tenants such as Myers, Alvarez and Moyer and Gregory, Roberts and Trevino. The weighted average lease term (WALT) is approximately 2.1 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 **confirmed**. The property is zoned C-1 (Digitized interactive encryption), 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": "3694 Harrison Vista, Davisstad, Minnesota 55281",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Watch along stay modern sing activity catch keep new record nice.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Occur that religious five food film me effect reach consider civil month.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "toward",
      "account",
      "low",
      "development"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Century rule somebody member factor. Mouth answer project decide father.",
        "estimated_repair_cost": 193147
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Day suddenly area face crime perform. Partner expert itself election discussion fish.",
        "estimated_repair_cost": 53005
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Establish after billion each perhaps local story. Beat great some beyond mouth accept must.",
        "estimated_repair_cost": 148472
      }
    ],
    "ada_compliance_notes": "Until risk soon."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 51763,
    "weighted_average_lease_term_years": 2.1,
    "major_tenants": [
      {
        "tenant_name": "Myers, Alvarez and Moyer",
        "lease_start_date": "2021-05-25",
        "lease_end_date": "2030-12-26",
        "annual_rent": 143140,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Gregory, Roberts and Trevino",
        "lease_start_date": "2020-01-13",
        "lease_end_date": "2026-07-24",
        "annual_rent": 216643,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 14.5,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-1 (Digitized interactive encryption)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Martinez-Knight"
}