L.A. hospitality giant SBE Entertainment Group, looking to push forward in a new direction in the wake of Sam Nazarian’s return as chief executive, is now in the business of flipping high-end residential real estate properties.
SBE has formed Dakota Development, an international real estate development subsidiary, the company announced Wednesday.
Dakota will offer planning, design, development and construction management services to developers and lenders, according to an SBE press release. The subsidiary will also buy and reposition high-end estates.
SBE pulled the Dakota team, headed by Joe Faust, together from people it had worked with on more than 80 projects, including the SLS Beverly Hills hotel – which SBE sold last month to Torrance’s Sunrider International for a reported $200 million – and the SLS South Beach hotel in Miami.
The Miami hotel, SBE also announced Wednesday, was just sold to GoldenPeaks Capital Real Estate. Much like the Beverly Hills transaction, SBE will continue to operate its brand in Miami. The price of the sale was not disclosed.
Both moves, Nazarian said in statements, illustrate the evolution of SBE as the company continues to focus more on managing its assets and less on owning properties.
Nazarian, who returned to the helm of SBE in March after voluntarily stepping down for about 10 weeks, sat down with the Business Journal last month to elaborate on his company’s new direction.
To find out more details, check out previous coverage here.