Tax deductions when 1031 Exchange unavailable

[David Pope]

I inherited 5.6% of a commercial property that is worth approximately $27m with $11m remaining on a loan. My stepped-up basis is $21m. For reasons I don't yet understand, if the property is sold I cannot take advantage of a 1031 Exchange and my gains will be taxed as income, which will be 35% federal and 11.3% CA income tax. 

At 5.6% ownership, I would expect to make approximately $900k = ($27m - $11m) * 5.6%.

I expect my taxable gains to be approzimately $336k = ($27m - $21m) * 5.6% 

Does this sound right? Is it possible to avoid taxes on the gains if I buy another property for $564k ($900k - $336k) and make capital investments of $336k? Are there other ways to avoid the high tax on these gains? 

Thanks!

:dave