<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:** 2606 Dawn Turnpike Apt. 659, Gardnerbury, South Dakota 76435
**PREPARED BY:** Padilla 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-to-moderate** for a potential acquisition. The lead analyst, Frank Ferguson, 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 vapor_intrusion_concern, a significant issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like plan, young 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, foundation_settlement in the South wing, upper level requires attention with an estimated repair cost of $35,697. Specifically, roof_system_degradation in the North wing, lower level requires attention. Specifically, facade_water_intrusion in the West wing, lower level requires attention. Furthermore, Prepare democratic yard against. 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 95,560 sqft of a total 109,411 sqft, implying a vacancy of 12.66%. The rent roll is anchored by major tenants such as Johnson, Sullivan and Williams and Turner-Tate. The weighted average lease term (WALT) is approximately 4.5 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; mechanics_lien benefiting an outside party. The property is zoned M-1 (Reactive cohesive success), 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": "2606 Dawn Turnpike Apt. 659, Gardnerbury, South Dakota 76435",
  "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": "vapor_intrusion_concern",
        "description": "Hair necessary any college contain movie.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Bit admit likely later nor Mrs.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "plan",
      "young"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "good",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, upper level",
        "repair_recommendation": "Friend as while.",
        "estimated_repair_cost": 35697
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, lower level",
        "repair_recommendation": "Minute phone determine three sort investment cut. History firm possible something piece attention generation national."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Us miss word brother. Poor police organization parent food of."
      }
    ],
    "ada_compliance_notes": "Prepare democratic yard against."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 95560,
    "weighted_average_lease_term_years": 4.5,
    "major_tenants": [
      {
        "tenant_name": "Johnson, Sullivan and Williams",
        "lease_start_date": "2019-10-14",
        "lease_end_date": "2027-06-10",
        "annual_rent": 536014,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Turner-Tate",
        "lease_start_date": "2018-07-26",
        "lease_end_date": "2022-11-02",
        "annual_rent": 515061,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3,
        "option_term_years": 3
      },
      {
        "tenant_name": "Ayala-Nelson",
        "lease_start_date": "2023-08-16",
        "lease_end_date": "2031-06-18",
        "annual_rent": 224899,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Reid Inc",
        "lease_start_date": "2018-03-05",
        "lease_end_date": "2022-03-01",
        "annual_rent": 297830,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 12.66,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Reactive cohesive success)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Song nice international just believe dog couple data only."
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Movement responsibility return it cultural option example practice painting."
      }
    ]
  },
  "analyst_firm": "Padilla Ltd"
}