NX3 Commercial Group has completed an approximately $15 million, three-property 1031 exchange for a repeat California-based client. The acquisitions span restaurant, healthcare and drive-thru retail assets in Florida and Texas, reflecting the investor’s strategy to shift capital into growth markets and passive, net lease investments.
Key takeaways
- The exchange included properties in Katy and Longview, Texas, and Coconut Creek, Florida.
- The portfolio emphasizes long leases, contractual rent increases and limited landlord obligations.
- NX3 brokers Josh Ferrito and Matt Wister represented the buyer.
- Ferrito was promoted to vice president of the firm’s investment sales team after recording seven 2026 closings totaling more than $20 million.
The transaction illustrates how investors can use a 1031 exchange to reposition proceeds from one real estate investment into multiple replacement properties. The strategy generally allows eligible investors to defer recognition of capital gains when statutory requirements and timelines are met.
Three-property portfolio supports diversification
The Texas and Florida acquisitions give the client exposure to three different operating categories and regional demand drivers. NX3 said the portfolio was assembled around credit quality, remaining lease term, scheduled rent growth and minimal ownership responsibilities.
The assets are structured as net lease investments, shifting many expenses and operational duties to the tenants. That structure was central to the client’s goal of moving away from active property management.
Fogo de Chão anchors Katy acquisition
In Katy, Texas, the acquired Fogo de Chão restaurant is located near the intersection of Interstate 10 and the Grand Parkway. The property has more than 13 years remaining on its lease and includes 10% rent increases every five years.
The site benefits from nearby Costco, a prominent suburban retail corridor and traffic exposure at 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 restaurant company in 2023.
Healthcare asset adds defensive income
The Longview Regional Emergency Center in Longview, Texas, adds healthcare exposure to the portfolio. The freestanding emergency facility has approximately 11.7 years remaining on an absolute net lease, with no landlord responsibilities identified in the announcement.
The lease is held by Longview Medical Center and guaranteed by Community Health Systems, a publicly traded healthcare operator with hospitals and other care locations nationwide. The corporate backing was a key component of the asset’s income profile.
Florida drive-thru offers newer construction
The third acquisition is a Cali Coffee drive-thru in Coconut Creek, Florida. Built in 2025 as part of a Sprouts-anchored development, the property is located at Lyons Road and Coconut Creek Parkway.
The asset has approximately 14 years remaining on its absolute net lease, 10% rent increases every five years and no landlord obligations. Its newer construction also includes a 20-year roof warranty, further supporting the client’s preference for passive ownership.
Ferrito receives promotion
NX3 also announced Ferrito’s promotion following seven transactions totaling more than $20 million in 2026 volume. Company executives cited his execution of the multi-property exchange and continued work with repeat clients.
The Fort Lauderdale-based brokerage focuses on net lease investment sales and advises private investors, family offices and 1031 exchange clients on acquisitions and dispositions nationwide.
- NX3 Closes $15M 1031 Exchange Across Florida and Texas, ACCESS Newswire.