Just selling it and utilizing section 121 primary exclusion to sell tax free. 

I believe we would to be able to take the one time capital gains exclusion.

Automatic exclusion for some, a case by case basis for others. 

You would qualify for the Sec 121 exclusion of $250k/500k if you sold outright, but the property is worth $700k, $500k of which is gain (let's say you made a good move in CA in 2010).

They tend to have many exclusions.

I may have a somewhat different perspective as I deal exclusively in commercial real estate notes

I pick up the newspaper and I check out the shopping malls, restaurants and main places of employment.

"In general, to qualify for the Section 121 exclusion, you must meet both the ownership test and the use test.

There is a permanent exclusion from capital gains from the sale of an investment in an Opportunity Fund if the investment is held for at least 10 years.

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