Ho­tel mogul spins off build­ing unit

Los Angeles Times - - REAL ESTATE - By Roger Vin­cent roger.vin­cent@la­times.com

Los An­ge­les ho­tel, night­club and restau­rant mogul Sam Nazar­ian has spun off the real es­tate devel­op­ment arm of his com­pany SBE so it can build projects for other in­vestors.

The new sub­sidiary, called Dakota Devel­op­ment, will con­tinue to de­velop projects for SBE, Nazar­ian said, while also do­ing plan­ning, devel­op­ment and con­struc­tion man­age­ment for third par­ties.

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. The com­pany has per­formed res­i­den­tial work in the past, build­ing con­do­mini­ums and vil­las at SBE ho­tel and re­sort prop­er­ties.

Head­ing Dakota as pres­i­dent is Joe Faust, who leads SBE’s ho­tel, casino, res­i­den­tial, restau­rant and night­club devel­op­ment op­er­a­tions. Projects Dakota has com­pleted for SBE in­clude ho­tels in Las Ve­gas, Bev­erly Hills, Hol­ly­wood and South Beach. It also de­vel­oped restau­rants Kat­suya by Starck and Cleo.

Dakota has its name be­cause Faust is from South Dakota. “Sam says I am his com­mon-sense, no-non­sense Mid­west­erner,” Faust said.

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 SBE’s planned new ho­tel brand, Hyde Ho­tels and Re­sorts, which is to have more than 25 lo­ca­tions in five years.

Dakota clients in­clude Los An­ge­les de­vel­oper CIM Group, San Fran­cisco in­vest­ment man­age­ment firm Stock­bridge and Swiss fi­nan­cial ser­vices com­pany Credit Suisse Group.

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