Handling of Illiquid Investments When Profit Sharing Plan is Amended to Self-Directed 401(k)

An Employer has a pooled PSP that holds, among other assets, raw real estate as well as trust deeds.  She would like to amend the plan to a self-directed 401k with brokerage accounts, however, she would like to keep the RE and trust deeds - is there any way to do this without having any kind of pooled arrangement?  Could she allocate these assets in the brokerage account to all the participants like a stock, or possibly allocate them all to herself if the plan never adds any more of these types of investments going forward?  

BRF

Unfortunately this raises questions about past practices, like whether full appraisals were done every year. Assuming yes, about which I have to be skeptical, then I think the only option would be to carve out these illiquid assets and leave them as pooled and the rest self-directed. If the owner keeps them you have a BRF issue as noted.

Thanks guys!