NX3 Commercial Group has completed an approximately $15 million, three-property 1031 exchange for a repeat California-based client. The transaction shifted capital into Texas and Florida net-lease assets, combining restaurant, healthcare and drive-thru retail properties designed to provide long-term income with limited landlord responsibilities.
Key takeaways
- The exchange involved three net-lease properties across Texas and Florida.
- The portfolio includes Fogo de Chão, a Longview emergency center and Cali Coffee.
- The buyer sought higher-growth markets and more passive ownership.
- Josh Ferrito was promoted to vice president of the investment sales team.
A multi-state portfolio built for passive ownership
Josh Ferrito and Matt Wister represented the buyer and coordinated the acquisitions within the timeline required for a 1031 exchange. The client’s strategy was to move capital out of California and into markets viewed as more favorable for growth and taxation while reducing day-to-day ownership responsibilities.
The resulting portfolio emphasizes long lease terms, established or nationally backed tenants, contractual rent increases and absolute or traditional triple-net structures. Those features are intended to support predictable income and limit obligations for property maintenance, taxes and insurance.
Fogo de Chão anchors the Texas acquisitions
The Fogo de Chão property is located in Katy, Texas, near the intersection of Interstate 10 and the Grand Parkway. The restaurant operates under a long-term triple-net lease with more than 13 years remaining and 10% rent increases every five years.
The site is adjacent to Costco and benefits from traffic at the nearby I-10 and State Highway 99 interchange. Fogo de Chão has more than 100 locations globally and is backed by Bain Capital, which acquired the company in 2023.
Healthcare and drive-thru assets add diversification
The second Texas acquisition is Longview Regional Emergency Center, a freestanding emergency facility leased to Longview Medical Center and guaranteed by Community Health Systems. Its absolute triple-net lease has approximately 11.7 years remaining and places no landlord responsibilities on the investor.
In Coconut Creek, Florida, the buyer acquired a newly constructed Cali Coffee drive-thru within a Sprouts-anchored development. The asset has about 14 years of lease term remaining, 10% rent increases every five years and a 20-year roof warranty. Its location near Lyons Road and Coconut Creek Parkway adds exposure to South Florida’s retail growth and dense demographics.
Ferrito promoted after strong transaction volume
NX3 announced Ferrito’s promotion alongside the closing. The firm said he has completed seven transactions totaling more than $20 million in volume during 2026. Company executives cited his execution of the multi-property exchange and continued work with repeat clients.
The transaction highlights the operational complexity of coordinating multiple acquisitions across state lines and within a 1031 exchange deadline. For NX3, it also reinforces the firm’s focus on advising private investors, family offices and exchange buyers seeking nationally diversified net-lease portfolios.
- NX3 Commercial Group Completes $15 Million Multi-Property 1031 Exchange Across Florida and Texas, Yahoo Finance.
- NX3 Commercial Group completes $15m multi-property 1031 Exchange across Florida and Texas | News, Institutional Real Estate, Inc..