NX3 Commercial Group has completed an approximately $15 million, three-property 1031 exchange for a repeat California-based client. The portfolio shifts capital into Texas and Florida net lease assets, spanning restaurant, healthcare and drive-thru retail properties. The transaction also coincides with Josh Ferrito’s promotion to vice president of NX3’s investment sales team.
Key takeaways
- The exchange included properties in Katy and Longview, Texas, and Coconut Creek, Florida.
- The assets provide long-term net lease income with limited or no landlord obligations.
- The portfolio includes Fogo de Chão, a freestanding emergency center and Cali Coffee.
- Josh Ferrito and Matt Wister represented the buyer.
- Ferrito has completed seven transactions totaling more than $20 million in 2026 volume.
A multi-state portfolio built for passive income
The client’s objective was to redeploy capital from California into markets viewed as having stronger growth and tax fundamentals while reducing the responsibilities associated with direct property ownership. NX3 structured the exchange around long lease terms, established corporate backing, scheduled rent increases and absolute or absolute-style net lease arrangements.
By combining three different property types, the transaction also diversified the client’s exposure. Restaurant and drive-thru retail assets add consumer-facing components, while the emergency center provides a healthcare allocation supported by a national operator.
Fogo de Chão anchors the Texas acquisitions
The Fogo de Chão property in Katy is located near the intersection of Interstate 10 and the Grand Parkway, a growing suburban corridor west of Houston. The restaurant is subject to 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 near the I-10 and State Highway 99 interchange. Fogo de Chão operates more than 100 locations globally and is backed by Bain Capital, which acquired the company in 2023.
Healthcare asset adds defensive exposure
The Longview Regional Emergency Center gives the portfolio exposure to mission-critical healthcare real estate. Its lease has approximately 11.7 years remaining and places no landlord responsibilities on the owner, according to NX3.
The property is leased to Longview Medical Center and guaranteed by Community Health Systems, a publicly traded healthcare company. The operator has 64 affiliated hospitals and more than 900 care sites, providing the asset with backing from a national healthcare platform.
Florida drive-thru benefits from new construction
In Coconut Creek, Cali Coffee adds a newly built drive-thru property within a Sprouts-anchored development at Lyons Road and Coconut Creek Parkway. The location benefits from nearby retail, traffic activity and dense South Florida demographics.
The property carries an approximately 14-year lease term, 10% rent increases every five years and no landlord obligations. Its 2025 construction and 20-year roof warranty further support the client’s goal of owning a low-maintenance asset.
Ferrito promoted after strong transaction volume
NX3 announced Ferrito’s promotion alongside the exchange. He has closed seven transactions worth more than $20 million in 2026 volume, including the latest assignment completed with Wister.
The brokerage said the transaction demonstrates its ability to coordinate multi-property 1031 exchanges across state lines while aligning acquisitions with an investor’s income, diversification and management objectives. 1031 exchanges generally allow eligible investors to defer capital-gains taxes when proceeds from a qualifying property are reinvested into replacement real estate under applicable rules and deadlines.