You can enter the sale of the piece of real estate as the sale of a business asset.  To do this in your 1065 return, please follow these steps:

1. Click the Federal Taxes tab and then Income.
2. On the screen, Your Total Business Income, in the Dispose of Business Property section, click the Start/Update box next to Business Property/Asset Disposal.
3. Continue through the screens, entering the requested information.

If the real estate owned by the LLC was held for rental use, enter the transaction under Rental real estate dispositions.

If the real estate owned by the LLC was being used in the actual business of the LLC, enter the transaction in the Dispose of Business Property section.

If the real estate owned by the LLC was held for investment purposes (which sounds likely), enter the transaction under Investment Income (Capital gains or losses).

Thanks for guidance.  But how do you enter in improvements made to the house to increase the cost basis? Looks like Turbo Tax is already recapturing the depreciation over the years which is good.  The house bought in 2008, improvements made and turned into a full rental property in 2015. Thanks!

You have to enter each improvement as a separate asset in TurboTax. 

The foregoing assumes you cannot take advantage of the $2,500 de minimis safe harbor.