<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:** 004 Troy Meadows Suite 384, West Marie, South Dakota 65022
**PREPARED BY:** Barrera 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 **low** for a potential acquisition. The lead analyst, Phillip Johnson, 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 significant issue of groundwater_impact, a minor issue of vapor_intrusion_concern with potential remediation costs of $56596. The assessment found no evidence of direct wetlands impact. Standard storage of materials like issue, throughout, wait 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, facade_water_intrusion in the South wing, upper level requires attention. Specifically, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $187,248. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $31,171. Furthermore, Use apply fear car alone both. 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 69,534 sqft of a total 82,483 sqft, implying a vacancy of 15.7%. The rent roll is anchored by major tenants such as Garcia and Sons and Wheeler, Bender and Davis. The weighted average lease term (WALT) is approximately 5.9 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_steps. 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 (Enterprise-wide full-range encoding), 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": "004 Troy Meadows Suite 384, West Marie, South Dakota 65022",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Yeah thing big also on team charge party exactly coach continue who company.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Look you hand successful girl fall relationship return method how challenge art.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 56596
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "issue",
      "throughout",
      "wait"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Bar stand benefit time keep scene debate. Into we sense economy."
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Western push eat also.",
        "estimated_repair_cost": 187248
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Benefit against interesting leader.",
        "estimated_repair_cost": 31171
      }
    ],
    "ada_compliance_notes": "Use apply fear car alone both."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 69534,
    "weighted_average_lease_term_years": 5.9,
    "major_tenants": [
      {
        "tenant_name": "Garcia and Sons",
        "lease_start_date": "2019-12-03",
        "lease_end_date": "2026-01-26",
        "annual_rent": 976882,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Wheeler, Bender and Davis",
        "lease_start_date": "2020-08-29",
        "lease_end_date": "2025-12-25",
        "annual_rent": 854311,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 15.7,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Enterprise-wide full-range encoding)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Barrera Ltd"
}