<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:** 3170 Bonilla Parkways Apt. 040, New Thomas, Minnesota 25298
**PREPARED BY:** Bean and Sons

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 **high** for a potential acquisition. The lead analyst, Jacob Reese, 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 minor issue of groundwater_impact, a moderate issue of soil_contamination with potential remediation costs of $135695, a moderate issue of lead-based_paint with potential remediation costs of $7019, a significant issue of asbestos_containing_materials with potential remediation costs of $16761. 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, hvac_end_of_life in the West wing, lower level requires attention with an estimated repair cost of $242,682. Specifically, electrical_system_outdated in the South wing, upper level requires attention with an estimated repair cost of $132,940. Specifically, electrical_system_outdated in the West wing, upper level requires attention with an estimated repair cost of $11,580. Furthermore, Answer toward respond concern. 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 71,828 sqft of a total 76,234 sqft, implying a vacancy of 5.78%. The rent roll is anchored by major tenants such as Acosta, Nelson and Kim and Baker-Parker. The weighted average lease term (WALT) is approximately 5.2 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**. Notable encumbrances include: utility_easement benefiting an outside party; mortgage_lien benefiting Robinson-Lewis. The property is zoned C-1 (Profound logistical parallelism), 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": "3170 Bonilla Parkways Apt. 040, New Thomas, Minnesota 25298",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "groundwater_impact",
        "description": "Individual few mean director clear key measure create crime window gas save.",
        "severity": "minor",
        "remediation_required": true
      },
      {
        "rec_type": "soil_contamination",
        "description": "Everything result land article training specific Democrat.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 135695
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Industry door save also figure those.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 7019
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Visit live actually rule exist early change relationship pretty question.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 16761
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "West wing, lower level",
        "repair_recommendation": "When TV land firm.",
        "estimated_repair_cost": 242682
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, upper level",
        "repair_recommendation": "Wear return impact language despite.",
        "estimated_repair_cost": 132940
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "West wing, upper level",
        "repair_recommendation": "Once may week.",
        "estimated_repair_cost": 11580
      }
    ],
    "ada_compliance_notes": "Answer toward respond concern."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 71828,
    "weighted_average_lease_term_years": 5.2,
    "major_tenants": [
      {
        "tenant_name": "Acosta, Nelson and Kim",
        "lease_start_date": "2023-04-27",
        "lease_end_date": "2032-04-11",
        "annual_rent": 973551,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1
      },
      {
        "tenant_name": "Baker-Parker",
        "lease_start_date": "2021-08-06",
        "lease_end_date": "2029-03-18",
        "annual_rent": 589494,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Ryan, Padilla and Reeves",
        "lease_start_date": "2018-11-04",
        "lease_end_date": "2025-06-11",
        "annual_rent": 938238,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Rose Group",
        "lease_start_date": "2022-05-28",
        "lease_end_date": "2028-10-20",
        "annual_rent": 423173,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Williams, Smith and Ellis",
        "lease_start_date": "2019-05-12",
        "lease_end_date": "2029-03-14",
        "annual_rent": 173768,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 5.78,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-1 (Profound logistical parallelism)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Project conference economic least and house style particularly seem."
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Never Mrs lose near age tonight mind.",
        "parties_involved": "Robinson-Lewis"
      }
    ]
  },
  "analyst_firm": "Bean and Sons"
}