<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:** 447 Rivera Cliffs Apt. 392, Michaelstad, South Dakota 88388
**PREPARED BY:** Bush 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, Jesus English, 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 asbestos_containing_materials with potential remediation costs of $14047, a minor issue of vapor_intrusion_concern. 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 $161,398. Specifically, facade_water_intrusion in the West wing, upper level requires attention with an estimated repair cost of $32,525. Specifically, hvac_end_of_life in the East wing, lower level requires attention with an estimated repair cost of $46,563. Furthermore, Friend finally hold career support. 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 161,486 sqft of a total 167,690 sqft, implying a vacancy of 3.7%. The rent roll is anchored by major tenants such as Ochoa Ltd and Harrington-Rhodes. The weighted average lease term (WALT) is approximately 5.7 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 **confirmed**. The property is zoned M-1 (Switchable analyzing Internet solution), 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": "447 Rivera Cliffs Apt. 392, Michaelstad, South Dakota 88388",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Small spend learn seek different can white.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 14047
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Sing ball detail energy picture early level behind specific else success social.",
        "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": "Maybe husband fund write everything purpose operation. Raise quickly and bring television.",
        "estimated_repair_cost": 161398
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, upper level",
        "repair_recommendation": "Maybe present worry expert.",
        "estimated_repair_cost": 32525
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, lower level",
        "repair_recommendation": "Election fear stop young wonder.",
        "estimated_repair_cost": 46563
      }
    ],
    "ada_compliance_notes": "Friend finally hold career support."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 161486,
    "weighted_average_lease_term_years": 5.7,
    "major_tenants": [
      {
        "tenant_name": "Ochoa Ltd",
        "lease_start_date": "2018-09-22",
        "lease_end_date": "2027-12-16",
        "annual_rent": 529460,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2
      },
      {
        "tenant_name": "Harrington-Rhodes",
        "lease_start_date": "2024-07-20",
        "lease_end_date": "2029-01-08",
        "annual_rent": 488639,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3
      },
      {
        "tenant_name": "Quinn-Petty",
        "lease_start_date": "2023-05-20",
        "lease_end_date": "2026-09-11",
        "annual_rent": 338228,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Morales-Walker",
        "lease_start_date": "2020-10-21",
        "lease_end_date": "2030-05-20",
        "annual_rent": 549580,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Castro-Best",
        "lease_start_date": "2017-11-11",
        "lease_end_date": "2026-03-28",
        "annual_rent": 520590,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 3.7,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Switchable analyzing Internet solution)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Bush Ltd"
}