LOS ANGELES—SBE, the Los Angeles-based hospitality company that develops, manages, and operates hotels, restaurants, and nightclubs, announced the formation of an international real estate development subsidiary, Dakota Development.
The Dakota team, which has developed more than 80 projects for SBE, is now offering its planning, design, development, and construction-management services to developers, lenders, and other financial institutions.
Dakota is also forming a new single-family residential division that will purchase, build, and reposition high-end estates. This builds on the experience Dakota has in adding in condominiums and villas at several of SBE’s hotel and resort properties.
“Making Dakota a separate platform allows us to unlock the inherent value in one of the most dynamic and sought-after divisions of our company,” said Sam Nazarian, SBE’s founder, chairman, and chief executive. “Dakota’s services are in high demand and this gives Dakota the opportunity to expand its operations beyond SBE.”
Dakota has developed a range of design-forward properties, including SLS properties in Las Vegas, Beverly Hills, and South Beach; Redbury Hotels in Hollywood and South Beach, Katsuya by S+tarck and Cleo restaurants, and Hyde nightlife venues.
Current projects include SLS Hotels in Seattle, New York, Philadelphia, Baha Mar, Miami, Washington, D.C., Cancun, and Cabo San Lucas. Additionally, the Dakota team is rolling out SBE’s newest hotel brand, Hyde Hotels and Resorts, with more than 25 locations planned in the next five years.
The new division will continue to collaborate with industry visionaries and financial and development partners to maximize a project’s performance through smart design, efficient product delivery, and institutional-level accounting and financial reporting.
Design partners include Philippe Starck, the Rockwell Group, Lenny Kravitz Design, KPF, Yabu Pushelberg, Design Agency, and Landry Associates. The Dakota team has successfully delivered exceptional venues working in conjunction with culinary partners including Jose Andres, Katsuya Uechi, Danny Elmaleh, Michael Schwartz, and Michael Mina.
Dakota clients include the CIM Group, Stockbridge Real Estate Funds, Daniels Real Estate, Credit Suisse, Washington Holdings, and Related Florida.
Dakota will be headed by President Joe Faust, who leads all aspects of SBE’s hotel, casino, residential, restaurant, and nightclub development operations, and has more than two decades of real estate development experience. Joining him are Vice Presidents Cameron Schmitt and Jason Cruce, who have overseen the development of every project in SBE’s portfolio for the past 10 years, which includes 16 hotels, 40 restaurants, and 24 nightclubs.
“We’re very excited to be taking the things we excel at—design-forward thinking and managing the financial aspects of big projects—and expanding beyond SBE,” Faust said. “We have a great team at Dakota, and we’re looking forward to growing this division to the next level.”