South Florida Business Journal

July 9, 2007, by Robin Londner Rothberg

To upgrade both the Riverside Hotel at its surrounding shopping area, the property's owner has planned a 135-room addition that also could more than double retail space on the hotel's block of Las Olas Boulevard.

Irv Bowen, chairman and chief executive officer of the Las Olas Co., stressed the company's plan is preliminary and has not yet received city approval.

So far, though, it calls for seven tenants to be displaced by 18 months of construction that could begin as soon as the end of the year.

"We cherish every tenant," Bowen said. "Whether it's a temporary or permanent move, we are taking it on a tenant-by-tenant basis."

Bowen said Ibiza and Needlepoint Originals are already planning to relocate elsewhere on Las Olas Boulevard.

If the retail space on the hotel's block eventually returns, as the company has planned, it will total 40,000 to 50,000 square feet. That's up from the current 20,000 square feet.

Bowen said supply and demand will determine the new lease rates.

"Rents on the boulevard have been going up for quite some time," he acknowledged."

Plans call for the new retail space to be 15 feet to 20 feet high, 22 feet back from the curb. Current retail in 15 feet back.

"We like the village atmosphere on the street," Bowen said. "We plan on keeping that."

In keeping with that idea, he new hotel rooms would be above the new retail space, set back an additional 10 feet from the curb.

Fort Lauderdale Mayor Jim Naugle called the Riverside Hotel, at 628 E. Las Olas Blvd., a long-standing success story.

"I'm sure they will come up with a program that will be approved," he said. "It used to be that was the beginning of Las Olas. But now, street activity begins on Third Avenue, and there are stores and clubs on the north side, as well. It will be a burden during construction, but I'm sure they will have takers for that space - even possibly tenants that are already there."

One tenant, who did not wish to be identified, said the business was unsure of its plans and did not want to say what they might be.

As for the hotel expansion itself, the increase, to about 350 rooms, would be the hotel's fourth expansion since the Wells family built it in the 1930s.

The Riverside Hotel is to remain family-owned and unflagged, but Bowen said the property will strive for a four- or five-star Mobil rating. Mobil has never rated the hotel.

"We will be keeping the hotel open during construction," he said, adding that all older rooms are to be refurbished over two years once the project begins.