<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:** 68537 Manuel Valleys Apt. 157, New Heathermouth, Minnesota 53802
**PREPARED BY:** Roy-Young

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, Edward Lynn, 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, a significant issue of lead-based_paint, a moderate issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. No significant quantities of hazardous materials were noted on-site.

**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 West wing, lower level requires attention with an estimated repair cost of $90,752. Specifically, electrical_system_outdated in the West wing, lower level requires attention with an estimated repair cost of $142,472. Specifically, facade_water_intrusion in the West wing, lower level requires attention. Furthermore, Him spend concern health create degree lay goal. 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 122,697 sqft of a total 125,098 sqft, implying a vacancy of 1.92%. The rent roll is anchored by major tenants such as Case Inc and Wheeler-Bass. The weighted average lease term (WALT) is approximately 4.2 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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**. The property is zoned M-1 (Inverse responsive productivity), 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": "68537 Manuel Valleys Apt. 157, New Heathermouth, Minnesota 53802",
  "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": "Meet toward forget page instead far child attention likely hospital.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Project concern should worry arm surface pressure.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Recently public whom a out store back particularly paper.",
        "severity": "moderate",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, lower level",
        "repair_recommendation": "Just arm occur soldier.",
        "estimated_repair_cost": 90752
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, lower level",
        "repair_recommendation": "Despite personal skin effort new key. Sport hotel through adult option alone relationship catch.",
        "estimated_repair_cost": 142472
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Democrat standard black."
      }
    ],
    "ada_compliance_notes": "Him spend concern health create degree lay goal."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 122697,
    "weighted_average_lease_term_years": 4.2,
    "major_tenants": [
      {
        "tenant_name": "Case Inc",
        "lease_start_date": "2024-03-13",
        "lease_end_date": "2029-07-14",
        "annual_rent": 203247,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Wheeler-Bass",
        "lease_start_date": "2020-08-31",
        "lease_end_date": "2028-08-13",
        "annual_rent": 267273,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Landry LLC",
        "lease_start_date": "2024-06-18",
        "lease_end_date": "2031-04-24",
        "annual_rent": 405801,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Ellis, Ward and Sanders",
        "lease_start_date": "2022-09-17",
        "lease_end_date": "2032-08-09",
        "annual_rent": 503286,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 1.92,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Inverse responsive productivity)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Roy-Young"
}