Sam Nazarian has spun off the real estate development arm of his company SBE, allowing the company to at once manage hotels and build projects for outside investors, reports the Los Angeles Times. The new subsidiary, Dakota Development, will reportedly still develop projects for SBE, while also doing planning, development and construction management for third parties.
The arm will be led by Joe Faust, who leads SBE's hotel, casino, residential, restaurant and nightclub development operations.
Dakota, which is based in Los Angeles, will also form a new single-family residential division that will buy, build and renovate high-end estates.
Among the projects Dakota has completed for SBE are hotels in Las Vegas, Beverly Hills, Hollywood and South Beach. It also developed restaurants Katsuya by Starck and Cleo.
Current Dakota projects include Nazarian's SLS brand hotels in Seattle, New York, Philadelphia, Miami and Washington, D.C., in the U.S.; Cancun and Cabo San Lucas in Mexico; and Nassau, the Bahamas. Dakota is also working on projects for SBE's planned new hotel brand, Hyde Hotels and Resorts, which is to have more than 25 locations in the next five years.
The news comes on the heels of Sbe's sale of the SLS South Beach.