He could do a 1033 exchange whether or not it is a voluntary sale. It is, after all, income property, and you can always exchange it if the proceeds go into like property. It’s not the forced sale that is the issue.
Rush Limbaugh and his consortium should have put in a bid. I would have loved that conversation.
Qualifying as a section 1033 involuntary conversion would give Sterling more flexibility than a tax-free exchange under section 1031. A 1033 Exchange does not require the use of a qualified intermediary. 1031 Exchanges require the funds be placed with a neutral third party. Also Sterling could complete the exchange by making improvements in property he already owns, unlike a 1031 exchange that requires that he purchase a property.