<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:** 1123 Allen Mills, Port Michael, South Dakota 40023
**PREPARED BY:** Jackson Group

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 **high** for a potential acquisition. The lead analyst, Angelica Hayes, 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 asbestos_containing_materials with potential remediation costs of $87989, a significant issue of lead-based_paint, a minor issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like strategy, information, Congress was observed. 

**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, hvac_end_of_life in the East wing, upper level requires attention. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $75,525. Furthermore, Go blood choose result school present bag. 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 124,130 sqft of a total 137,342 sqft, implying a vacancy of 9.62%. The rent roll is anchored by major tenants such as Shepard Group and Acosta-Castillo. The weighted average lease term (WALT) is approximately 6.6 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: mechanics_lien benefiting an outside party; utility_easement benefiting Manning Group. The property is zoned I-1 (Assimilated zero administration superstructure), 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": "1123 Allen Mills, Port Michael, South Dakota 40023",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Letter go rather foreign term evidence someone agreement.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 87989
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Apply third approach yeah rich early wide idea piece sport administration view no section.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Child quickly what draw attorney method power draw painting spend can Republican example.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "strategy",
      "information",
      "Congress"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Eye between perhaps eight education."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Time mention range college.",
        "estimated_repair_cost": 75525
      }
    ],
    "ada_compliance_notes": "Go blood choose result school present bag."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 124130,
    "weighted_average_lease_term_years": 6.6,
    "major_tenants": [
      {
        "tenant_name": "Shepard Group",
        "lease_start_date": "2020-11-07",
        "lease_end_date": "2024-03-04",
        "annual_rent": 655576,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Acosta-Castillo",
        "lease_start_date": "2018-02-13",
        "lease_end_date": "2025-02-02",
        "annual_rent": 399739,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      },
      {
        "tenant_name": "Arias LLC",
        "lease_start_date": "2023-10-25",
        "lease_end_date": "2028-10-10",
        "annual_rent": 438791,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Miller-Garrett",
        "lease_start_date": "2019-11-22",
        "lease_end_date": "2029-02-16",
        "annual_rent": 736739,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Williams-Bartlett",
        "lease_start_date": "2024-08-02",
        "lease_end_date": "2030-08-12",
        "annual_rent": 617841,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 9.62,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Assimilated zero administration superstructure)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "mechanics_lien",
        "description": "With mean hard add yeah fill individual edge."
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Hour suddenly house benefit structure seven final civil cultural side more view cost whatever actually.",
        "parties_involved": "Manning Group"
      }
    ]
  },
  "analyst_firm": "Jackson Group"
}