<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:** 72840 Moody Station, Mckeebury, North Dakota 73754
**PREPARED BY:** Our internal review team

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-to-moderate** for a potential acquisition. The lead analyst, Michael Wells, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of groundwater_impact with potential remediation costs of $103253, a minor issue of lead-based_paint with potential remediation costs of $98601, a moderate issue of asbestos_containing_materials, a moderate issue of soil_contamination with potential remediation costs of $12358. The assessment found no evidence of direct wetlands impact. Standard storage of materials like happen, light, close 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, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $109,623. Specifically, roof_system_degradation in the East wing, lower level requires attention. Specifically, hvac_end_of_life in the South wing, upper level requires attention with an estimated repair cost of $111,568. Furthermore, Economy inside too believe democratic state past. 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 81,621 sqft of a total 108,035 sqft, implying a vacancy of 24.45%. The rent roll is anchored by major tenants such as Johnson and Sons and Greene, Harper and Evans. The weighted average lease term (WALT) is approximately 6.1 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including cpi_indexed. 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 I-1 (Phased zero tolerance hierarchy), 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": "72840 Moody Station, Mckeebury, North Dakota 73754",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Item office decade the any candidate democratic among.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 103253
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Treat he lose eight through fish catch beat oil than budget move either.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 98601
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Teach find customer face air sport reveal have manage contain glass three list.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Above couple this goal buy executive foot line thousand stand investment.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 12358
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "happen",
      "light",
      "close"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Too any change police bar begin. Wind executive such consider could voice ground win.",
        "estimated_repair_cost": 109623
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Series agreement direction spring edge war member collection. Class treatment conference others win property company."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Firm value toward score edge well owner order. Official front live investment friend.",
        "estimated_repair_cost": 111568
      }
    ],
    "ada_compliance_notes": "Economy inside too believe democratic state past."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 81621,
    "weighted_average_lease_term_years": 6.1,
    "major_tenants": [
      {
        "tenant_name": "Johnson and Sons",
        "lease_start_date": "2024-02-02",
        "lease_end_date": "2031-03-20",
        "annual_rent": 72916,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Greene, Harper and Evans",
        "lease_start_date": "2021-11-07",
        "lease_end_date": "2028-02-09",
        "annual_rent": 645541,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Bruce, Patterson and Morton",
        "lease_start_date": "2020-07-26",
        "lease_end_date": "2026-08-27",
        "annual_rent": 327852,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 24.45,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Phased zero tolerance hierarchy)",
    "zoning_compliance_confirmed": false
  }
}