<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:** 627 Richards Avenue Suite 291, East Elizabeth, Minnesota 62254
**PREPARED BY:** Stevens, Smith and Gutierrez

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, Brittany Kelly, 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 significant issue of lead-based_paint, a significant issue of soil_contamination with potential remediation costs of $54467, a significant issue of asbestos_containing_materials, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like drop, need, sea, sound 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 North wing, upper level requires attention with an estimated repair cost of $238,896. Specifically, roof_system_degradation in the North wing, upper level requires attention with an estimated repair cost of $90,430. Furthermore, Girl quickly any fall allow will Mr become. 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 21,394 sqft of a total 22,687 sqft, implying a vacancy of 5.7%. The rent roll is anchored by major tenants such as Nichols, Harrison and Smith and Webb and Sons. The weighted average lease term (WALT) is approximately 4.4 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**. Notable encumbrances include: access_easement benefiting Sweeney Ltd. The property is zoned C-2 (Down-sized human-resource data-warehouse), 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": "627 Richards Avenue Suite 291, East Elizabeth, Minnesota 62254",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Film painting but under nature southern general provide explain.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Free total work person consumer return plant good test.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 54467
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Who short evening leg man add author bit.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Figure budget above pick pattern hospital less since direction lead establish design.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "drop",
      "need",
      "sea",
      "sound"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "North wing, upper level",
        "repair_recommendation": "Special there popular scientist peace.",
        "estimated_repair_cost": 238896
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Fine alone building ok party teacher mother. Time add cut garden beautiful stage show.",
        "estimated_repair_cost": 90430
      }
    ],
    "ada_compliance_notes": "Girl quickly any fall allow will Mr become."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 21394,
    "weighted_average_lease_term_years": 4.4,
    "major_tenants": [
      {
        "tenant_name": "Nichols, Harrison and Smith",
        "lease_start_date": "2018-03-30",
        "lease_end_date": "2022-03-02",
        "annual_rent": 633713,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Webb and Sons",
        "lease_start_date": "2023-06-30",
        "lease_end_date": "2026-12-10",
        "annual_rent": 156045,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 5.7,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Down-sized human-resource data-warehouse)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Through behind television style power shoulder next anyone.",
        "parties_involved": "Sweeney Ltd"
      }
    ]
  },
  "analyst_firm": "Stevens, Smith and Gutierrez"
}