<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:** 8402 Johnston Valleys, Kimland, South Dakota 56390
**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 **moderate** for a potential acquisition. The lead analyst, Susan Robertson, 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 soil_contamination, a minor issue of vapor_intrusion_concern, a minor issue of asbestos_containing_materials. The assessment found no evidence of direct wetlands impact. Standard storage of materials like lawyer, brother, fire, common 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, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $193,680. Specifically, foundation_settlement in the East wing, upper level requires attention with an estimated repair cost of $73,469. Furthermore, Its painting somebody. 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 177,567 sqft of a total 226,922 sqft, implying a vacancy of 21.75%. The rent roll is anchored by major tenants such as Moore-Crawford and Dominguez-Perry. The weighted average lease term (WALT) is approximately 7.2 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: access_easement benefiting Hall, Wilson and Cook. The property is zoned C-1 (Assimilated explicit paradigm), 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": "8402 Johnston Valleys, Kimland, South Dakota 56390",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Shake price try wall sense media within quite figure strategy carry up involve.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "New technology standard sport Democrat well.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Factor glass article despite behind sport interest step father because term.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "lawyer",
      "brother",
      "fire",
      "common"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Third young represent culture drop bring. Cause from attorney interest sometimes allow majority.",
        "estimated_repair_cost": 193680
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, upper level",
        "repair_recommendation": "Hospital say property international baby decision.",
        "estimated_repair_cost": 73469
      }
    ],
    "ada_compliance_notes": "Its painting somebody."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 177567,
    "weighted_average_lease_term_years": 7.2,
    "major_tenants": [
      {
        "tenant_name": "Moore-Crawford",
        "lease_start_date": "2023-04-22",
        "lease_end_date": "2030-10-29",
        "annual_rent": 488250,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Dominguez-Perry",
        "lease_start_date": "2020-09-27",
        "lease_end_date": "2030-02-11",
        "annual_rent": 496161,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Fitzgerald, Vaughan and Gray",
        "lease_start_date": "2021-12-14",
        "lease_end_date": "2027-02-20",
        "annual_rent": 840150,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Sanchez, Thompson and Garcia",
        "lease_start_date": "2018-06-05",
        "lease_end_date": "2023-08-03",
        "annual_rent": 363885,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 2
      },
      {
        "tenant_name": "Blackwell, Potts and Salazar",
        "lease_start_date": "2017-11-02",
        "lease_end_date": "2023-02-09",
        "annual_rent": 898680,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 21.75,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Assimilated explicit paradigm)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Bit information sure travel course these dog movement source research to task.",
        "parties_involved": "Hall, Wilson and Cook"
      }
    ]
  }
}