seller 1031 if buyer is acquiring through a step acquisition

[Evan Smith]

Im hoping someone can confirm my thoughts on this. 

Im looking at a portfolio acquisition and intending to perform through a step acquisition of the LLC as opposed to going through a traditional purchase. The seller is considering a 1031. The question I have, can the seller perform a 1031 if the real estate didnt actually change hands? Im thinking no, as the company holding the portfolio is being sold, not the portfolio.

Open to thoughts