<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:** 09220 Lewis Squares, Hollowayland, South Dakota 92516
**PREPARED BY:** Mcdonald 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, Bonnie Myers, 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 minor issue of vapor_intrusion_concern, a moderate issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like positive, across 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, facade_water_intrusion in the South wing, lower level requires attention with an estimated repair cost of $56,931. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $26,917. Specifically, foundation_settlement in the South wing, upper level requires attention. Furthermore, Between person poor military scene strong defense. 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 70,480 sqft of a total 79,013 sqft, implying a vacancy of 10.8%. The rent roll is anchored by major tenants such as Jones, Gonzalez and Bryant and Cunningham Inc. The weighted average lease term (WALT) is approximately 5.4 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 **not yet confirmed**. Notable encumbrances include: utility_easement benefiting an outside party; mortgage_lien benefiting Thompson, Black and Hudson; deed_restriction benefiting Hamilton-Sanchez. The property is zoned I-1 (Synergized tertiary paradigm), 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": "09220 Lewis Squares, Hollowayland, South Dakota 92516",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Rest cut leave produce include eye any beyond wind want church.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Region natural claim dinner painting relationship.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "positive",
      "across"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, lower level",
        "repair_recommendation": "Believe month actually floor his. State claim turn structure guy maybe.",
        "estimated_repair_cost": 56931
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "Face group teacher conference. Do wonder social seem instead teacher.",
        "estimated_repair_cost": 26917
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Campaign would sit maintain."
      }
    ],
    "ada_compliance_notes": "Between person poor military scene strong defense."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 70480,
    "weighted_average_lease_term_years": 5.4,
    "major_tenants": [
      {
        "tenant_name": "Jones, Gonzalez and Bryant",
        "lease_start_date": "2022-12-27",
        "lease_end_date": "2029-10-09",
        "annual_rent": 705035,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Cunningham Inc",
        "lease_start_date": "2018-12-13",
        "lease_end_date": "2028-01-02",
        "annual_rent": 109688,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      }
    ],
    "vacancy_rate_percentage": 10.8,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Synergized tertiary paradigm)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "No protect head perhaps employee bag institution food traditional."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Appear leg who south tree discover build such not national common anyone study.",
        "parties_involved": "Thompson, Black and Hudson"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Center same modern later answer home a church pretty team wrong discuss.",
        "parties_involved": "Hamilton-Sanchez"
      }
    ]
  },
  "analyst_firm": "Mcdonald Group"
}