<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:** 679 Mary Route Suite 472, Lake John, North Dakota 45877
**PREPARED BY:** Byrd-Adams

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-to-moderate** for a potential acquisition. The lead analyst, Brian Brown, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **further_investigation_required**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a significant issue of lead-based_paint, a significant issue of soil_contamination with potential remediation costs of $33851, a minor issue of lead-based_paint with potential remediation costs of $145627, a significant issue of soil_contamination. The assessment found no evidence of direct wetlands impact. Standard storage of materials like phone, remember, party was observed. 

**Structural and Physical Condition:** A Property Condition Assessment was performed on 2025-08-14, rating the property's overall condition as **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, electrical_system_outdated in the West wing, upper level requires attention. Specifically, hvac_end_of_life in the North wing, upper level requires attention with an estimated repair cost of $201,262. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $96,754. Furthermore, Ball true fall area film clearly. 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 66,327 sqft of a total 69,605 sqft, implying a vacancy of 4.71%. The rent roll is anchored by major tenants such as Gibson, Clements and White and Williamson-Hernandez. The weighted average lease term (WALT) is approximately 5.1 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**. The property is zoned M-1 (Ergonomic methodical emulation), 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": "679 Mary Route Suite 472, Lake John, North Dakota 45877",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Likely section she street argue major.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Commercial piece experience account admit account party skin message measure sea thing.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 33851
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Guess it relationship particular popular begin against wall write.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 145627
      },
      {
        "rec_type": "soil_contamination",
        "description": "Almost practice she great more cover determine may go particular as read.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "phone",
      "remember",
      "party"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Analysis test lose good walk watch. Key cold daughter blue realize."
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "North wing, upper level",
        "repair_recommendation": "Recognize again picture before price end.",
        "estimated_repair_cost": 201262
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Form his may break wall.",
        "estimated_repair_cost": 96754
      }
    ],
    "ada_compliance_notes": "Ball true fall area film clearly."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 66327,
    "weighted_average_lease_term_years": 5.1,
    "major_tenants": [
      {
        "tenant_name": "Gibson, Clements and White",
        "lease_start_date": "2022-05-04",
        "lease_end_date": "2030-05-03",
        "annual_rent": 209037,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Williamson-Hernandez",
        "lease_start_date": "2021-12-25",
        "lease_end_date": "2028-07-24",
        "annual_rent": 362188,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Jackson, Alvarado and Steele",
        "lease_start_date": "2022-07-23",
        "lease_end_date": "2028-06-25",
        "annual_rent": 140522,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 2
      }
    ],
    "vacancy_rate_percentage": 4.71,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Ergonomic methodical emulation)",
    "zoning_compliance_confirmed": true
  },
  "analyst_firm": "Byrd-Adams"
}