<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:** 480 Lambert Light Apt. 326, Guzmanport, North Dakota 16702
**PREPARED BY:** Frye, Rivers and Wong

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** for a potential acquisition. The lead analyst, Frank Jennings, 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 lead-based_paint, a minor issue of asbestos_containing_materials, a minor issue of lead-based_paint. 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 **'excellent'**. The engineer's report highlighted several capital-intensive repairs. Specifically, facade_water_intrusion in the South wing, upper level requires attention with an estimated repair cost of $26,871. Specifically, facade_water_intrusion in the North wing, lower level requires attention. Specifically, electrical_system_outdated in the South wing, lower level requires attention with an estimated repair cost of $134,402. 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 22,839 sqft of a total 28,645 sqft, implying a vacancy of 20.27%. The rent roll is anchored by major tenants such as Anderson, Patterson and Lane and Andersen, Griffith and Holder. The weighted average lease term (WALT) is approximately 2.5 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 **confirmed**. The property is zoned M-1 (Expanded stable strategy), 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": "480 Lambert Light Apt. 326, Guzmanport, North Dakota 16702",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed_with_recommendations",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Occur quality price hear onto near knowledge act turn another send.",
        "severity": "moderate",
        "remediation_required": true
      },
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Difficult campaign interview food court bed single discover believe arrive pressure member first.",
        "severity": "minor",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Tonight while put sort right statement.",
        "severity": "minor",
        "remediation_required": false
      }
    ],
    "wetlands_impact": false
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "facade_water_intrusion",
        "location": "South wing, upper level",
        "repair_recommendation": "Itself establish maintain something shake morning difficult. Name try from work.",
        "estimated_repair_cost": 26871
      },
      {
        "issue_type": "facade_water_intrusion",
        "location": "North wing, lower level",
        "repair_recommendation": "Dog Republican experience debate light try. Throughout health hundred certain."
      },
      {
        "issue_type": "electrical_system_outdated",
        "location": "South wing, lower level",
        "repair_recommendation": "Magazine leave floor. Play blood cause brother eat chair yeah.",
        "estimated_repair_cost": 134402
      }
    ]
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 22839,
    "weighted_average_lease_term_years": 2.5,
    "major_tenants": [
      {
        "tenant_name": "Anderson, Patterson and Lane",
        "lease_start_date": "2020-05-03",
        "lease_end_date": "2028-04-14",
        "annual_rent": 489495,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Andersen, Griffith and Holder",
        "lease_start_date": "2020-07-15",
        "lease_end_date": "2029-05-22",
        "annual_rent": 69258,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 1,
        "option_term_years": 3
      }
    ],
    "vacancy_rate_percentage": 20.27,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": true,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "M-1 (Expanded stable strategy)",
    "zoning_compliance_confirmed": false
  },
  "analyst_firm": "Frye, Rivers and Wong"
}