John Kuhl and Amy Wells, partners at law firm Cox Castle & Nicholson, answer this month’s reader’s question: “I’m an investor who has invested into a joint venture strategy that no longer works in this economic environment. What are my options for getting out?”

As a result of the drastic changes in the economy, investors are questioning joint venture investment strategies that, in different times, seemed like good ideas. Investors are particularly questioning development ventures, given the paucity of available financing and the current or anticipated vacancies in existing product. In addition, as a result of the “denominator effect,” overall declines in portfolio values may result in investors exceeding their allocation to real estate in general or to a specific asset class. To address these concerns, an investor may believe its best business decision is to either curtail the investment activities or to cause the early termination of certain joint