The Investment Case
Scarcity Is the Strategy
Why 301 Ocean Drive may be the most defensible pre-construction allocation in South Florida.
Extreme Scarcity
No new condominium has been delivered on Key Biscayne in more than a decade, and the island is effectively built out. 56 residences will serve pent-up demand accumulated over ten-plus years.
A $205M Pricing Floor
The land alone cost $205 million — roughly $3.7M per future residence before a single foundation is poured. That basis effectively anchors pricing and signals the developers' conviction in the market.
Appreciation History
Key Biscayne condo values have compounded steadily for decades, outperforming much of Miami-Dade in downturns thanks to limited supply and a deeply committed owner base. Trophy oceanfront product on the island rarely trades.
Comparable Sales
Recent island benchmarks — penthouse sales at Oceana Key Biscayne above $20M and consistent $2,000+/SF pricing for turnkey oceanfront product — support the projected $4M–$25M+ range for brand-new construction.
Why Pre-Construction Buyers Win
Early registrants historically capture the best line selection and launch pricing. In supply-starved markets, the delta between launch pricing and delivered resale value has been substantial across comparable Terra and Fortune projects.
Deposit Structure
South Florida pre-construction typically follows a staged deposit schedule (often 20% at contract, stepping to 30–50% through construction), with the balance at closing in 2028–2029. Official terms will be released at launch.
The Expected Payment Structure
South Florida pre-construction is a staged-payment purchase, not a mortgage at contract. The typical sequence at this price point begins with a reservation deposit of roughly 10% to hold a specific residence, converts to a binding purchase agreement at around 20% total, adds a further 10–20% at groundbreaking, and reaches 30–50% cumulative through construction milestones. The balance is due at closing when the building receives its certificate of occupancy — anticipated for 2028–2029 at 301 Ocean Drive.
Because deposits are staged over several years, buyers effectively control a trophy oceanfront asset while committing capital gradually. Official terms, escrow provisions, and use-of-deposit language will be published in the condominium documents at the Fall 2026 launch and should be reviewed with your own attorney.
Carrying Costs: HOA, Taxes & Insurance
Underwriting a Key Biscayne residence means underwriting the carry. New oceanfront condominiums of this caliber in Miami-Dade typically run monthly HOA fees of roughly $1.50–$2.50 per square foot, covering staffing, amenity operations, master insurance, and statutory reserves — meaning a 4,000 SF residence may carry $6,000–$10,000 monthly. Miami-Dade property taxes generally run near 2% of assessed value annually, with the Homestead Exemption and Save Our Homes cap available to primary residents. Owner insurance (contents and liability, plus flood where applicable) sits on top.
New construction is a meaningful advantage here: post-Surfside milestone inspection and reserve-funding requirements have driven large special assessments at older island buildings. A brand-new building starts with fully funded reserves, current code compliance, and no deferred-maintenance overhang.
Rental Policy & Income Expectations
Boutique luxury buildings on Key Biscayne typically permit longer-term leasing with minimum lease terms and board approval, and prohibit short-term rentals. Buyers should plan on the residence as a primary or seasonal home with the option of annual leasing — not as a nightly-rental yield play. The recorded rental restrictions will be confirmed in the condominium documents.
Foreign Buyer Eligibility & Structure
There is no restriction on foreign ownership of U.S. real estate. International buyers purchase personally, through a U.S. LLC, or through a foreign holding structure, in cash or with foreign-national financing that commonly funds 50–65% of value. On resale, FIRPTA requires the buyer to withhold 15% of the gross sale price for the IRS, which the seller reconciles on a U.S. return. Structure should be designed with U.S. tax counsel before contract, not after. Our guide for international buyers on Key Biscayne walks through entity choice, FIRPTA, and wiring logistics in detail.
Financing Options for Pre-Construction
Deposits during construction are almost always paid in cash — lenders do not finance staged developer deposits — so financing planning applies to the closing balance in 2028–2029. Domestic buyers typically pursue a jumbo portfolio loan from a private-bank or wealth-management relationship, where the residence and a broader asset relationship are underwritten together; these programs commonly reach 60–75% loan-to-value at this price point and are quoted closer to delivery rather than at contract. Securities-backed lines of credit are frequently used to fund interim deposits without liquidating portfolios, though rate exposure and margin risk should be modeled explicitly.
Foreign-national mortgage programs from South Florida–active lenders generally fund 50–65% of appraised value, require larger interest reserves, and price above domestic jumbo terms. Buyers should obtain an indicative term sheet before contract so the closing plan is not being invented in the final ninety days. Because the certificate of occupancy date drives the loan timeline, a delivery slip of a quarter or two can require a rate-lock extension — build that into your assumptions alongside the island's historical return profile and the supply constraints unique to Key Biscayne.
Buyer Questions
What is the deposit structure for 301 Ocean Drive?+
South Florida pre-construction typically begins with a reservation deposit of roughly 10% at contract, stepping to 20% at groundbreaking and 30–50% total through construction, with the balance due at closing. Official terms are released at the Fall 2026 launch.
When is the closing and delivery timeline?+
Private sales are expected to open in Fall 2026, with construction and closings anticipated for 2028–2029. Buyers close and take title at delivery, not at contract.
What are the estimated HOA fees at 301 Ocean Drive?+
New oceanfront Miami condominiums of this caliber typically carry monthly HOA fees in the range of $1.50–$2.50 per square foot, covering amenities, staffing, insurance, and reserves. Final budgets are published with the condominium documents.
Can residences be rented out?+
Boutique luxury buildings on Key Biscayne generally permit longer-term leasing with minimum lease periods and board approval, and prohibit short-term or nightly rentals. The recorded rental policy will be confirmed in the condominium documents at launch.
Can foreign buyers purchase at 301 Ocean Drive?+
Yes. There is no restriction on foreign ownership of U.S. real estate. International buyers may purchase personally, through a U.S. LLC, or through a foreign entity, in cash or with foreign-national financing typically at 50–65% loan-to-value.
What financing options are available for a pre-construction purchase?+
Construction-period deposits are paid in cash, so financing applies to the closing balance in 2028–2029. Domestic buyers typically use a private-bank jumbo or portfolio loan at roughly 60–75% loan-to-value, sometimes alongside a securities-backed line of credit for interim deposits. Foreign nationals use foreign-national mortgage programs that generally fund 50–65% of appraised value. Terms are quoted closer to delivery, so obtain an indicative term sheet before contract.
This page is for informational purposes only and does not constitute investment, legal, or tax advice. Figures are estimates based on publicly available data and are subject to change. Always consult your own advisors.