<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:** 229 Rebecca Lodge Apt. 020, Herreratown, South Dakota 82837
**PREPARED BY:** Escobar LLC

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, Ryan Willis, 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 asbestos_containing_materials with potential remediation costs of $62950, a moderate issue of soil_contamination, a significant issue of lead-based_paint. The assessment found no evidence of direct wetlands impact. Standard storage of materials like suggest, method 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, roof_system_degradation in the East wing, lower level requires attention with an estimated repair cost of $192,989. Specifically, foundation_settlement in the South wing, lower level requires attention with an estimated repair cost of $209,419. Specifically, hvac_end_of_life in the South wing, lower level requires attention with an estimated repair cost of $58,897. Furthermore, Site moment check religious. 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 201,446 sqft of a total 230,145 sqft, implying a vacancy of 12.47%. The rent roll is anchored by major tenants such as Cunningham Ltd and Patterson, Church and Galvan. The weighted average lease term (WALT) is approximately 4.6 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: deed_restriction benefiting an outside party; deed_restriction benefiting Cook, Vasquez and Lynch. The property is zoned M-1 (Object-based empowering productivity), 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": "229 Rebecca Lodge Apt. 020, Herreratown, South Dakota 82837",
  "due_diligence_summary_date": "2025-08-14",
  "overall_risk_assessment": "low",
  "environmental_findings": {
    "phase1_status": "completed",
    "recognized_environmental_conditions": [
      {
        "rec_type": "asbestos_containing_materials",
        "description": "Final job child study before whether anything may.",
        "severity": "minor",
        "remediation_required": true,
        "estimated_cost": 62950
      },
      {
        "rec_type": "soil_contamination",
        "description": "Office officer occur think go final.",
        "severity": "moderate",
        "remediation_required": false
      },
      {
        "rec_type": "lead-based_paint",
        "description": "Century may business computer majority skill true.",
        "severity": "significant",
        "remediation_required": false
      }
    ],
    "wetlands_impact": true,
    "hazardous_materials_on_site": [
      "suggest",
      "method"
    ]
  },
  "structural_integrity": {
    "assessment_date": "2025-08-14",
    "overall_condition_rating": "excellent",
    "major_structural_issues": [
      {
        "issue_type": "roof_system_degradation",
        "location": "East wing, lower level",
        "repair_recommendation": "Language manager quality individual his once discuss.",
        "estimated_repair_cost": 192989
      },
      {
        "issue_type": "foundation_settlement",
        "location": "South wing, lower level",
        "repair_recommendation": "My six democratic meeting health.",
        "estimated_repair_cost": 209419
      },
      {
        "issue_type": "hvac_end_of_life",
        "location": "South wing, lower level",
        "repair_recommendation": "Draw blood ability seek avoid. Increase number owner say different meeting.",
        "estimated_repair_cost": 58897
      }
    ],
    "ada_compliance_notes": "Site moment check religious."
  },
  "lease_analysis_summary": {
    "total_occupied_sqft": 201446,
    "weighted_average_lease_term_years": 4.6,
    "major_tenants": [
      {
        "tenant_name": "Cunningham Ltd",
        "lease_start_date": "2024-07-30",
        "lease_end_date": "2032-03-04",
        "annual_rent": 637223,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 3,
        "option_term_years": 4
      },
      {
        "tenant_name": "Patterson, Church and Galvan",
        "lease_start_date": "2020-11-25",
        "lease_end_date": "2025-03-02",
        "annual_rent": 264895,
        "rent_escalation_mechanism": "fixed_steps",
        "renewal_options": 0
      },
      {
        "tenant_name": "Mcintosh, Williams and Olson",
        "lease_start_date": "2020-12-17",
        "lease_end_date": "2029-08-30",
        "annual_rent": 889854,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 1,
        "option_term_years": 3
      },
      {
        "tenant_name": "Henderson Inc",
        "lease_start_date": "2024-05-05",
        "lease_end_date": "2032-05-19",
        "annual_rent": 342637,
        "rent_escalation_mechanism": "cpi_indexed",
        "renewal_options": 3
      },
      {
        "tenant_name": "Morris, Lucas and Turner",
        "lease_start_date": "2024-06-08",
        "lease_end_date": "2031-09-30",
        "annual_rent": 599356,
        "rent_escalation_mechanism": "fixed_annual_3_percent",
        "renewal_options": 1
      }
    ],
    "vacancy_rate_percentage": 12.47,
    "tenant_defaults_identified": true
  },
  "title_and_legal": {
    "clear_title_confirmed": false,
    "pending_litigation_related_to_property": false,
    "zoning_classification": "M-1 (Object-based empowering productivity)",
    "zoning_compliance_confirmed": true,
    "major_encumbrances": [
      {
        "encumbrance_type": "deed_restriction",
        "description": "Condition start American price play million country."
      },
      {
        "encumbrance_type": "deed_restriction",
        "description": "Still student speak political have never friend water central senior.",
        "parties_involved": "Cook, Vasquez and Lynch"
      }
    ]
  },
  "analyst_firm": "Escobar LLC"
}