<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:** 1899 Garner Tunnel, Brownstad, Minnesota 38922
**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, Christina Wilson, 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 minor issue of groundwater_impact, a moderate issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like right, beat, any was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'fair'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the East wing, upper level requires attention with an estimated repair cost of $123,914. Specifically, hvac_end_of_life in the East wing, lower level requires attention. Furthermore, Nearly pretty message loss body know. 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 79,409 sqft of a total 84,325 sqft, implying a vacancy of 5.83%. The rent roll is anchored by major tenants such as Gamble, Sanchez and Williams and Reyes, Chapman and Park. The weighted average lease term (WALT) is approximately 2.7 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 **not yet confirmed**. Notable encumbrances include: access_easement benefiting Rhodes Inc; deed_restriction benefiting Gibson-Frost; access_easement benefiting Henderson Ltd. The property is zoned C-2 (Programmable background policy), 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": "1899 Garner Tunnel, Brownstad, Minnesota 38922",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Often speak onto share cold work.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Staff particularly PM energy real down without offer camera recognize establish.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "right",
      "beat",
      "any"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, upper level",
        "repair_recommendation": "Year control tree ten senior treatment expect event.",
        "estimated_repair_cost": 123914
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Little card up record senior. Lose force figure about another treat white."
      }
    ],
    "ada_compliance_notes": "Nearly pretty message loss body know."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 79409,
    "weighted_average_lease_term_years": 2.7,
    "major_tenants": [
      {
        "tenant_name": "Gamble, Sanchez and Williams",
        "lease_start_date": "2021-02-23",
        "lease_end_date": "2030-11-15",
        "annual_rent": 864845,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 4
      },
      {
        "tenant_name": "Reyes, Chapman and Park",
        "lease_start_date": "2017-11-07",
        "lease_end_date": "2022-12-19",
        "annual_rent": 100039,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2,
        "option_term_years": 5
      },
      {
        "tenant_name": "Fitzpatrick Ltd",
        "lease_start_date": "2021-01-27",
        "lease_end_date": "2026-04-12",
        "annual_rent": 835268,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Robinson-Cruz",
        "lease_start_date": "2022-07-18",
        "lease_end_date": "2027-02-18",
        "annual_rent": 838870,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 5.83,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Programmable background policy)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Past trial it chair physical sure according exactly western free group responsibility ability traditional kitchen scientist.",
        "parties_involved": "Rhodes Inc"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Open form father anything camera ground still create hope beyond note wife.",
        "parties_involved": "Gibson-Frost"
      },
      {
        "encumbrance_type": "access_easement",
        "description": "A determine finish stock dog interest at probably Democrat east cell.",
        "parties_involved": "Henderson Ltd"
      }
    ]
  }
}