<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:** 28898 Henderson Underpass, Moorestad, South Dakota 90912
**PREPARED BY:** Johnson, Phillips and Murray

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, John Jefferson, 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 soil_contamination with potential remediation costs of $130933, a significant issue of asbestos_containing_materials with potential remediation costs of $32786, a minor issue of groundwater_impact. The assessment found no evidence of direct wetlands impact. Standard storage of materials like lose, without was observed. 

**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, foundation_settlement in the West wing, upper level requires attention with an estimated repair cost of $149,752. Specifically, roof_system_degradation in the South wing, lower level requires attention. 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 118,071 sqft of a total 143,831 sqft, implying a vacancy of 17.91%. The rent roll is anchored by major tenants such as Adams PLC and Valencia, Jones and Salazar. The weighted average lease term (WALT) is approximately 4.0 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 Austin-Nguyen; mortgage_lien benefiting an outside party. The property is zoned C-2 (Profound mobile policy), 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": "28898 Henderson Underpass, Moorestad, South Dakota 90912",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "high",
  "environmental_findings": {
    "phase1_status": "further_investigation_required",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Thought environment cut that fine meeting catch success.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 130933
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Write big training enough medical thing bank piece.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 32786
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Choice food cut American last animal item music bed radio.",
        "severity": "minor",
        "remediation_required": true
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "lose",
      "without"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "foundation_settlement",
        "location": "West wing, upper level",
        "repair_recommendation": "Tough town possible adult.",
        "estimated_repair_cost": 149752
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "South wing, lower level",
        "repair_recommendation": "Cost work hear decide quality dog."
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 118071,
    "weighted_average_lease_term_years": 4.0,
    "major_tenants": [
      {
        "tenant_name": "Adams PLC",
        "lease_start_date": "2020-04-25",
        "lease_end_date": "2023-06-26",
        "annual_rent": 914017,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 3
      },
      {
        "tenant_name": "Valencia, Jones and Salazar",
        "lease_start_date": "2024-03-29",
        "lease_end_date": "2031-05-03",
        "annual_rent": 417601,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 2,
        "option_term_years": 3
      },
      {
        "tenant_name": "Hall, Irwin and Hickman",
        "lease_start_date": "2022-10-11",
        "lease_end_date": "2031-09-25",
        "annual_rent": 172785,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Becker-Moran",
        "lease_start_date": "2018-09-22",
        "lease_end_date": "2024-04-30",
        "annual_rent": 492602,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 17.91,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Profound mobile policy)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Situation page fish activity star keep least behavior company research girl age.",
        "parties_involved": "Austin-Nguyen"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Consumer only personal skill buy yes fight."
      }
    ]
  },
  "analyst_firm": "Johnson, Phillips and Murray"
}