1031 w/ assumption of financing?

[Adam Tafel]

Doing my best to put together a win-win-win...

I have a client who would like to sell his triplex and 1031 funds into a larger apartment building. He has the triplex financed on a 30 year fixed @ 3.75% with a balance of 390,000. Asking price is 550,000 which is fair market value and building has the rents to support this. He will be purchasing the new property on a CD, likely 5-10 year term. 

Question:

If we find him a buyer who can assume the mortgage and pay him the 160,000 difference in cash at closing, and he takes the cash and puts it down on the CD purchase - can he avoid paying capital gains through a 1031 exchange? 

Yes we are contacting our CPA, I just thought I might get a more creative answer crowd sourcing this unique situation.