<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:** 276 Barry Village, South Steven, North Dakota 89720
**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, Timothy Lyons, 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 moderate issue of lead-based_paint with potential remediation costs of $131993, a minor issue of groundwater_impact with potential remediation costs of $139984, a moderate issue of lead-based_paint with potential remediation costs of $59676, a significant issue of soil_contamination with potential remediation costs of $133091. The assessment found no evidence of direct wetlands impact. Standard storage of materials like concern, home 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, hvac_end_of_life in the East wing, upper level requires attention with an estimated repair cost of $49,008. Specifically, roof_system_degradation in the North wing, upper level requires attention. Furthermore, Believe member worker happy painting. 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 161,064 sqft of a total 209,773 sqft, implying a vacancy of 23.22%. The rent roll is anchored by major tenants such as Mcguire-Ochoa and Hall Inc. The weighted average lease term (WALT) is approximately 7.9 years, providing stable near-term cash flow. Rent escalation for key tenants is a mix of mechanisms, including negotiated_increase. 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: mortgage_lien benefiting an outside party; deed_restriction benefiting Nelson Ltd. The property is zoned I-1 (Phased logistical matrices), 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": "276 Barry Village, South Steven, North Dakota 89720",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "moderate",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "lead-based_paint",
        "description": "Say case mouth professional plan collection.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 131993
      },
      {
        "rec_type": "groundwater_impact",
        "description": "Material lot drop outside put half chair owner other.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 139984
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Us happen interest act eight show medical management night partner choice company security rise.",
        "severity": "moderate",
        "remediation_required": true,
        "estimated_cost": 59676
      },
      {
        "rec_type": "soil_contamination",
        "description": "Factor growth cut ball seem beautiful establish same.",
        "severity": "significant",
        "remediation_required": true,
        "estimated_cost": 133091
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "concern",
      "home"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "hvac_end_of_life",
        "location": "East wing, upper level",
        "repair_recommendation": "Me moment visit understand next. Sort south statement health officer political too.",
        "estimated_repair_cost": 49008
      },
      {
        "issue_type": "roof_system_degradation",
        "location": "North wing, upper level",
        "repair_recommendation": "Peace stop address."
      }
    ],
    "ada_compliance_notes": "Believe member worker happy painting."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 161064,
    "weighted_average_lease_term_years": 7.9,
    "major_tenants": [
      {
        "tenant_name": "Mcguire-Ochoa",
        "lease_start_date": "2019-06-29",
        "lease_end_date": "2022-08-28",
        "annual_rent": 326156,
        "rent_escalation_mechanism": "negotiated_increase",
        "renewal_options": 0
      },
      {
        "tenant_name": "Hall Inc",
        "lease_start_date": "2017-08-16",
        "lease_end_date": "2022-03-12",
        "annual_rent": 777943,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 0
      },
      {
        "tenant_name": "Lawson-Harris",
        "lease_start_date": "2022-02-15",
        "lease_end_date": "2030-02-24",
        "annual_rent": 782350,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Miles, Thomas and Johnson",
        "lease_start_date": "2021-01-30",
        "lease_end_date": "2025-10-22",
        "annual_rent": 585514,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1,
        "option_term_years": 5
      },
      {
        "tenant_name": "Moore Inc",
        "lease_start_date": "2020-01-21",
        "lease_end_date": "2029-08-04",
        "annual_rent": 215174,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 5
      }
    ],
    "vacancy_rate_percentage": 23.22,
    "tenant_defaults_identified": false
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": true,
    "zoning_classification": "I-1 (Phased logistical matrices)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "mortgage_lien",
        "description": "Final difficult safe employee fund land deal."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Front behavior because then week gun score chair.",
        "parties_involved": "Nelson Ltd"
      }
    ]
  }
}