This story was corrected on Aug. 31 to note that Blackstone said it planned to sell 3 Ravinia when it bought the building as part of a portfolio last year and that information isn't publicly available to determine whether the building was sold at a loss or a profit.

Blackstone Real Estate Investment Trust sold an Atlanta office tower after the New York investment giant has cut exposure to office properties.

The REIT sold 3 Ravinia in Atlanta’s Central Perimeter area this month for $175 million to Estein USA, according to public records. Estein assumed a $115.5 million mortgage from John Hancock Life Insurance as part of the transaction.

Blackstone has sold other office properties as it aims “to invest in sectors with strong fundamentals propelled by macro demand trends” such as logistics, student housing and data centers, spokeswoman Jillian Kary said in an emailed statement. Less than 2% of Blackstone’s portfolio is traditional U.S. office, she said.

While the firm has been selling properties at the same time shareholders are seeking redemptions, Blackstone said the sale of the building was based on the fact that it didn't fit its strategy and that it had nothing to do with redemptions. Blackstone is regularly selling properties, agreeing just last month to sell Simply Self Storage to Public Storage for $2.2 billion.

The REIT said earlier this month that its rate of shareholder redemption requests has recently slowed, with it receiving $3.7 billion in redemption requests, 30% less than in January when the rate peaked, and the lowest monthly rate in 2023.

Blackstone REIT is a perpetual life nontraded REIT that raises money on a continual basis through public stock offerings. It is a unit of New York private equity giant Blackstone Group, billed as the world’s largest commercial property owner.

The REIT acquired 3 Ravinia in June 2022 as part of its purchase of Preferred Apartment Communities for $5.8 billion. Kary declined to provide the amount that Blackstone paid for 3 Ravinia, saying only it was part of the Preferred Apartment Communities portfolio acquisition. A Blackstone spokesperson said the plan was always to sell the 3 Ravinia property.

Most of the Preferred real estate portfolio included multifamily properties but also comprised grocery-anchored retail centers and office buildings.

Three Ravinia was developed by Hines and opened in 1991. The 800,000-square-foot building’s largest tenants are IHG Hotels & Resorts and shipper Hapag-Lloyd. Residential real estate marketplace Zillow has listed about 51,000 square feet of space at 3 Ravinia for sublease, according to CoStar data.

Womble Bond Dickinson and Shutts & Bowen were legal counsel on the 3 Ravinia sale.