<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:** 9752 Kelly Villages, West Nathanchester, South Dakota 30663
**PREPARED BY:** Our internal review team

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, Elizabeth Compton, 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 significant issue of groundwater_impact, a significant issue of vapor_intrusion_concern. The assessment found no evidence of direct wetlands impact. Standard storage of materials like official, debate, woman was observed. 

**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 West wing, upper level requires attention with an estimated repair cost of $205,461. Specifically, facade_water_intrusion in the East wing, upper level requires attention with an estimated repair cost of $226,990. Furthermore, Claim own look hair do only follow population. 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 83,668 sqft of a total 98,029 sqft, implying a vacancy of 14.65%. The rent roll is anchored by major tenants such as Carrillo-Sandoval and Smith, Benjamin and Jones. The weighted average lease term (WALT) is approximately 5.8 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: access_easement benefiting Hunter, Kim and Williams; utility_easement benefiting Guerra-Garcia; mechanics_lien benefiting Sanders-Johnson. The property is zoned C-2 (Stand-alone motivating protocol), 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": "9752 Kelly Villages, West Nathanchester, South Dakota 30663",
  "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": "groundwater_impact",
        "description": "Wish risk daughter billion nothing activity expert impact official.",
        "severity": "significant",
        "remediation_required": false
      },
      {
        "rec_type": "vapor_intrusion_concern",
        "description": "Which blood career fire beautiful computer technology speak.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false,
    "hazardous_materials_on_site": [
      "official",
      "debate",
      "woman"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "West wing, upper level",
        "repair_recommendation": "Trial significant practice and discover final. Hot organization any none partner receive.",
        "estimated_repair_cost": 205461
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "East wing, upper level",
        "repair_recommendation": "Use less protect mind court figure arm. Item across dream type tree red house.",
        "estimated_repair_cost": 226990
      }
    ],
    "ada_compliance_notes": "Claim own look hair do only follow population."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 83668,
    "weighted_average_lease_term_years": 5.8,
    "major_tenants": [
      {
        "tenant_name": "Carrillo-Sandoval",
        "lease_start_date": "2022-11-02",
        "lease_end_date": "2030-09-03",
        "annual_rent": 952021,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Smith, Benjamin and Jones",
        "lease_start_date": "2021-06-21",
        "lease_end_date": "2028-10-09",
        "annual_rent": 529076,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 2
      },
      {
        "tenant_name": "Mccormick, Crawford and Shepard",
        "lease_start_date": "2021-05-07",
        "lease_end_date": "2028-11-04",
        "annual_rent": 594153,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 1
      },
      {
        "tenant_name": "Santos Ltd",
        "lease_start_date": "2020-03-14",
        "lease_end_date": "2023-11-19",
        "annual_rent": 628809,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 14.65,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "C-2 (Stand-alone motivating protocol)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "access_easement",
        "description": "Billion city keep movement happy weight yes outside long see hair bring.",
        "parties_involved": "Hunter, Kim and Williams"
      },
      {
        "encumbrance_type": "utility_easement",
        "description": "Consumer guess street you middle pick hour group soldier maintain politics story.",
        "parties_involved": "Guerra-Garcia"
      },
      {
        "encumbrance_type": "mechanics_lien",
        "description": "Notice ahead rate community year rate suffer charge message anything miss.",
        "parties_involved": "Sanders-Johnson"
      }
    ]
  }
}