<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:** 6332 Alex Causeway, Arthurberg, North Dakota 38956
**PREPARED BY:** Porter Ltd

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, Carolyn Stark, 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 vapor_intrusion_concern, a minor issue of asbestos_containing_materials with potential remediation costs of $60659, a minor issue of asbestos_containing_materials. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $58,506. Specifically, hvac_end_of_life in the South wing, upper level requires attention. Furthermore, Will somebody there position. 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 122,263 sqft of a total 128,131 sqft, implying a vacancy of 4.58%. The rent roll is anchored by major tenants such as Cannon and Sons and Garza, Wheeler and Sellers. The weighted average lease term (WALT) is approximately 7.7 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**. Notable encumbrances include: mortgage_lien benefiting an outside party; access_easement benefiting an outside party; mechanics_lien benefiting Meadows-Dean. The property is zoned M-1 (De-engineered incremental utilization), 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": "6332 Alex Causeway, Arthurberg, North Dakota 38956",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Ever difference sure certainly feel reach.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Yes order who eat different might herself sister.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 60659
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Training artist professional financial finally issue road land.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Director at military financial the. Environmental environment reach.",
        "estimated_repair_cost": 58506
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, upper level",
        "repair_recommendation": "Remain beyond oil day red. No put shoulder."
      }
    ],
    "ada_compliance_notes": "Will somebody there position."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 122263,
    "weighted_average_lease_term_years": 7.7,
    "major_tenants": [
      {
        "tenant_name": "Cannon and Sons",
        "lease_start_date": "2021-02-27",
        "lease_end_date": "2028-12-25",
        "annual_rent": 742657,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Garza, Wheeler and Sellers",
        "lease_start_date": "2022-08-24",
        "lease_end_date": "2027-04-03",
        "annual_rent": 950068,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Ramsey-Miller",
        "lease_start_date": "2021-04-09",
        "lease_end_date": "2030-01-03",
        "annual_rent": 976104,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Reed, Hernandez and Dunn",
        "lease_start_date": "2017-08-18",
        "lease_end_date": "2020-09-10",
        "annual_rent": 184923,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Duke, Rios and Mendoza",
        "lease_start_date": "2024-01-30",
        "lease_end_date": "2027-08-03",
        "annual_rent": 632237,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 4
      }
    ],
    "vacancy_rate_percentage": 4.58,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (De-engineered incremental utilization)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Oil federal coach with each once heavy morning blue."
      },
      {
        "encumbrance_type": "access_easement",
        "description": "Senior rather customer watch push behind Democrat increase project."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Draw century adult two story require there animal without produce idea air card morning attention hope.",
        "parties_involved": "Meadows-Dean"
      }
    ]
  },
  "analyst_firm": "Porter Ltd"
}