1031 Exchange - $400k

[Brian Adams]

I buy 100 to 400 unit apartment buildings and I have an investor that owns an apartment building who is 67 years old. 

She has owned and managed the property for years. With her age she is wanting to sell the property and invest in my investment model of her being a passive investor and not be involved in the day to day grind. My model is that she would secure her ownership in my deals via LLC units.

I am a CPA and my understanding of the 1031 rules don't allow like kind treatment in this case for a swap of property in exchange of LLC units or a partnership interest.

If she sells her building she would net 400k available to invest in my deal before taxes so curious to get your thoughts. 

Is there a way to utilize the 1031 provisions to defer her taxes and invest in my deal?