1031 exchange on a short term hold?

[Jeremy D.]

I sold a property that I had owned for 2 years on August 7th and utilized a 1031 exchange transferring the funds into escrow with a qualified intermediary.  I then purchased (2) properties on August 29th with the 1031 funds.  Now almost a month later, someone wants to buy one of the replacement properties, which will result in a short term capital gain.

Can I do a 1031 exchange on this sale and roll the basis into another replacement property?  Are there any issues with this since it would be a short term gain?

Thanks!

Jeremy