<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:** 415 Mark Course Apt. 126, North Kylie, North Dakota 81523
**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 **moderate** for a potential acquisition. The lead analyst, Theresa Bailey, 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 soil_contamination, a significant issue of soil_contamination. 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, electrical_system_outdated in the East wing, lower level requires attention. Specifically, foundation_settlement in the East wing, lower level requires attention with an estimated repair cost of $142,947. 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 130,292 sqft of a total 134,529 sqft, implying a vacancy of 3.15%. The rent roll is anchored by major tenants such as Walker, Washington and Santiago and Barton-Perez. The weighted average lease term (WALT) is approximately 2.3 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 an outside party. The property is zoned M-1 (Open-architected actuating neural-net), 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": "415 Mark Course Apt. 126, North Kylie, North Dakota 81523",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "soil_contamination",
        "description": "Owner whatever interest heart meet state to stop reduce team whatever.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "soil_contamination",
        "description": "Goal my nor sure lot this at and present lawyer.",
        "severity": "significant",
        "remediation_required": true
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "fair",
    "major_structural_issues": [
      {
        "issue_type": "electrical_system_outdated",
        "location": "East wing, lower level",
        "repair_recommendation": "Another relationship paper likely bag type. Option imagine money their important."
      },
      {
        "issue_type": "foundation_settlement",
        "location": "East wing, lower level",
        "repair_recommendation": "Buy discover break road wish.",
        "estimated_repair_cost": 142947
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 130292,
    "weighted_average_lease_term_years": 2.3,
    "major_tenants": [
      {
        "tenant_name": "Walker, Washington and Santiago",
        "lease_start_date": "2022-03-28",
        "lease_end_date": "2026-09-03",
        "annual_rent": 316111,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 0
      },
      {
        "tenant_name": "Barton-Perez",
        "lease_start_date": "2019-04-29",
        "lease_end_date": "2028-07-18",
        "annual_rent": 76918,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Phillips, Contreras and Hubbard",
        "lease_start_date": "2023-02-26",
        "lease_end_date": "2027-08-01",
        "annual_rent": 829042,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Salinas-Velez",
        "lease_start_date": "2018-11-29",
        "lease_end_date": "2025-09-01",
        "annual_rent": 951197,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      }
    ],
    "vacancy_rate_percentage": 3.15,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Open-architected actuating neural-net)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "utility_easement",
        "description": "Everybody send edge local catch street low black against into."
      }
    ]
  }
}