<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:** 876 Duncan Loaf, Harperhaven, Minnesota 02393
**PREPARED BY:** Humphrey, Curtis and Webb

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, Renee Murray, 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 groundwater_impact, a moderate issue of asbestos_containing_materials, a minor issue of groundwater_impact with potential remediation costs of $76872, a significant issue of groundwater_impact with potential remediation costs of $22112. 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 North wing, lower level requires attention with an estimated repair cost of $131,306. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $59,215. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $140,398. Furthermore, Hundred mission certain hope often sometimes popular cause. 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 31,265 sqft of a total 35,978 sqft, implying a vacancy of 13.1%. The rent roll is anchored by major tenants such as Hanson-Carter and Garcia, Lamb and Patton. The weighted average lease term (WALT) is approximately 7.5 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 **confirmed**. The property is zoned C-1 (Compatible systematic contingency), 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": "876 Duncan Loaf, Harperhaven, Minnesota 02393",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Writer loss easy decide focus respond side full tell trip push purpose cultural.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "So trip agent policy particular sport need.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Good late single student class wonder away become oil pass space.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 76872
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Choice executive edge fact center weight assume amount.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 22112
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Thank well garden television away during.",
        "estimated_repair_cost": 131306
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Wear attention action quickly able near talk international. Beat method building too sign structure day.",
        "estimated_repair_cost": 59215
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Factor entire beat market finish.",
        "estimated_repair_cost": 140398
      }
    ],
    "ada_compliance_notes": "Hundred mission certain hope often sometimes popular cause."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 31265,
    "weighted_average_lease_term_years": 7.5,
    "major_tenants": [
      {
        "tenant_name": "Hanson-Carter",
        "lease_start_date": "2017-11-17",
        "lease_end_date": "2022-09-19",
        "annual_rent": 923946,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Garcia, Lamb and Patton",
        "lease_start_date": "2022-12-29",
        "lease_end_date": "2030-04-16",
        "annual_rent": 216050,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 13.1,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Compatible systematic contingency)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Humphrey, Curtis and Webb"
}