Seller wants to donate to charity - how to structure seller carry

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There is an owner of a 40 unit complex that a friend of mine just bought a 14 unit from. My understanding is that he use to have hundreds of units but down sized as he got older. The 40 unit is the last one and worth around 2M. His wish is to donate it to his Alma-mater (he just made a multi million cash donation already) but they 'do not take physical gifts'. He is around 80 years old, in great health.

What would be a creative way to buy this with seller financing where most of the value would eventually go to the university as 'step up basis' if set up right in his will/trust?

My initial thought on the simple side was to do a seller finance at say 5% with 30 or more year amortization with just enough down to cover his depreciation tax, if he wanted that. It seems like the more that is financed the more that might pass on as a stepped up basis, if my thinking is correct?

I was not sure of there would be more 'creative ways' to do it such as maybe where he could donate the 'seller carry note' to the university since that would not be physical property? 


How about selling through and 170 exchange to the non-profit? I have a friend who specializes in helping the non-profit through the transactions and the seller can see the tax benefits.