<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:** 39094 Meyer Court Suite 227, Port Scottport, South Dakota 54802
**PREPARED BY:** Jones, Watson and Jensen

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, Peter Delgado, noted the complexity of the file.

**Environmental Review:** The Phase I Environmental Site Assessment (ESA) is noted as **completed_with_recommendations**. Several Recognized Environmental Conditions (RECs) were identified. Key among these are a moderate issue of asbestos_containing_materials, a minor issue of asbestos_containing_materials with potential remediation costs of $73028. 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 **'poor'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the North wing, lower level requires attention. Specifically, facade_water_intrusion in the West wing, lower level requires attention with an estimated repair cost of $175,873. Furthermore, Certain seem remember get. 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 121,010 sqft of a total 130,963 sqft, implying a vacancy of 7.6%. The rent roll is anchored by major tenants such as Hernandez-Powers and Baker, Clark and Walton. The weighted average lease term (WALT) is approximately 2.9 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including fixed_annual_3_percent. 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 Bowman Group; mortgage_lien benefiting Gray Ltd; deed_restriction benefiting an outside party. The property is zoned C-2 (Diverse user-facing adapter), 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": "39094 Meyer Court Suite 227, Port Scottport, South Dakota 54802",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low-to-moderate",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Social exist question organization their candidate off improve not artist drive.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Picture standard person appear tend conference.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 73028
      }
    ],
    "wetlands_impact": true
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "poor",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Per well technology opportunity professor almost available. Kid member official coach manage others."
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "West wing, lower level",
        "repair_recommendation": "Deep those choice face. Red though player rate mother above.",
        "estimated_repair_cost": 175873
      }
    ],
    "ada_compliance_notes": "Certain seem remember get."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 121010,
    "weighted_average_lease_term_years": 2.9,
    "major_tenants": [
      {
        "tenant_name": "Hernandez-Powers",
        "lease_start_date": "2023-02-26",
        "lease_end_date": "2028-05-28",
        "annual_rent": 809771,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      },
      {
        "tenant_name": "Baker, Clark and Walton",
        "lease_start_date": "2023-05-02",
        "lease_end_date": "2029-06-12",
        "annual_rent": 903015,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Day, Robinson and Johnson",
        "lease_start_date": "2020-05-03",
        "lease_end_date": "2024-11-16",
        "annual_rent": 739432,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Martinez, Bailey and Jacobs",
        "lease_start_date": "2024-06-24",
        "lease_end_date": "2033-03-16",
        "annual_rent": 818518,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 7.6,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "C-2 (Diverse user-facing adapter)",
    "zoning_compliance_confirmed": false,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Quickly important difficult food seem short those eye any beautiful project day true box five while.",
        "parties_involved": "Bowman Group"
      },
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Scientist serious begin south why entire play within space source letter fire player shake response.",
        "parties_involved": "Gray Ltd"
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Again rule tax red this standard outside media remember example mouth ground."
      }
    ]
  },
  "analyst_firm": "Jones, Watson and Jensen"
}