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Investors are increasingly looking to cash out of private REITs amid a growing disparity in their returns and those generated by public REITS.

"REITS had a fantastic performance for a couple of months but when you have that outperformance, investors don't react to traditional fundamental signals such as rising rates," she said.

The redemptions have fueled investor concerns about the future of the REIT.

A Blackstone spokesperson said the REIT's portfolio was concentrated in rental housing and logistics and relied on a long-term fixed rate debt structure, making it resilient.

Annaly Capital Management, the largest mortgage REIT, recently said its book value — the value of its assets minus its liabilities — had fallen around 15 percent as result of the sell-off in the mortgage market.