Selling LLC interests AFTER 1031 Exchange

[J Nicholas Gross]

Our family trust did a 1031 exchange 5 years ago, one of the assets we acquired was a parcel. We want to develop the lot now and build a short term rental, preferably owned by an LLC. I read the answers here and don't see anything problematic if we simply transfer the lot to the new LLC, and sla as the Trust is the only owner of the LLC. But what if we want to sell interests in the LLC after its formed to help subsidize the build? Is that going to be considered partially redeeming the exchanged property? If so, any suggestions on what alternatives we should consider? We have invested a considerable amount already into the to-be-built plans, architects, engineers, etc. Suggestions welcomed.