This should not be S corp, because you know the issue, sort of: "My thought is to elect S Corp treatment, with pass through to the TP's personal return, however, no salaries were paid through this LLC, so my concern is that it may appear we are circumventing payment of SE taxes."

It's not SE taxes; it's Payroll. You don't have an employment condition. Also, you don't want to hold property in an S Corp, and it's a bit late to do so with the Property Titles, anyway. You didn't mention if the properties were properly owned by the LLC(s), and that is something to confirm.

Or, you want to run two S Corps and pay payroll as property management and as property development/remodel? Again, these are payroll operations, not SE. Payroll is a requirement for S Corps.

It would seem you likely have one or two 1065 entities; you will know more once you understand how the property is /was titled.