Blackstone noted that it has completely written down the value of Playa District, the Los Angeles office campus the company bought in 2016 as "part of a broader portfolio, the remainder of which was sold prior to the pandemic," according to an emailed statement from Blackstone.

"Given the challenges facing the property, we began writing this property down over three years ago and completely wrote it off earlier this year," the statement continued. "We aim to invest in sectors with strong fundamentals propelled by macro demand trends, which is why the majority of the real estate we own is in sectors like logistics, student housing and data centers and why less than 2% of our owned portfolio is traditional U.S. office."

The purchase was bought as part of the Blackstone Real Estate Partners VIII (BREP VIII) fund. A September 30, 2023 earnings release said as of that time, BREP VIII had seen a total IRR of 15%.