re-investing sales proceeds as an LP

[Patrick S.]

Not sure if this has come up before.  Here's my situation:

I have an offer to purchase one of my properties from a developer.

The developer will build a new project and have a variety of LPs in his new deal.

I'm interested in using some of my sales proceeds to invest in the new project.

Is there a more tax efficient way of achieving that besides selling by property, paying the tax, and reinvesting the cash?

It doesn't seem like a 1031 would fit, because it's the same property.

MyExistingCo LLC might be able to trade the property for say, a 10% interest in NewDevelopmentCo LLC, but not sure how that would work exactly. There would still need to be a deed transferring ownership, and not sure if that would automatically have tax implications or not, but seems like it would.

Ideally I wouldn't contribute all of the sales proceeds... e.g. maybe take half off the table in cash, let half ride in the new development.

Anyone have experience in this arena?

Thanks!