1031 my portion or total sales price

[Moshe S.]

In a 1031 exchange, does the replacement property need to be more valuable than the total sale price of the deal I sold (including other investors), or just my individual portion of the investment?

Here’s why I’m asking:

Say we sell a short-term rental (STR) for $700K, with $150K in equity we want to 1031. I'd like to put it into a large deal as a limited partner (LP). My concern is whether I'd then be locked into only larger deals in the future.

Example Scenario:

• - I sell a property for $700K, walking away with $150K.
• - I invest that $150K as an LP in a syndication deal.
• - The syndication sells later for $5M, and my share grows to $200K.
• - I want to 1031 exchange again.

Question:
Does my next deal have to be larger than $5M (the overall deal size) or just larger than my share of the equity in that deal - meaning, if 200k was 20% ownership then it has to be more than $1M (20% of sales price)? Because if I'm trapped going larger than $5M in the future, I'd probably look for something smaller that I can control now rather than always having to use it in a syndication