Investor Guide to Key Biscayne Village

The Village of Key Biscayne, incorporated in 1991, is located within 1.25 square miles of the barrier island also known as Key Biscayne.

Situated between two parks, Key Biscayne Island is seven miles away from Downtown Miami, which is connected via causeways and bridges. 

This neighborhood guide will introduce you to Key Biscayne's history, current residents, and why it can offer rare opportunities to investors. 

A Short History of Key Biscayne

The Spanish explorer Juan Ponce de Leon landed on Key Biscayne in 1513 and named it Santa Marta. Although stories of Ponce De Leon’s search for the Fountain of Youth on Key Biscayne have been mostly disproved, some residents still enjoy promoting the tale.

Florida became a US territory in 1821. Shortly thereafter, William and Mary Ann Davis purchased the island for $100, planned the first town, and offered plots of land for $500.

Fast-forward to the 1950s, when Key Biscayne builders, the Mackle brothers, began advertising modest homes to retirees, especially “snowbirds” who planned to head south upon retirement. 

Home buyers could get in for an affordable $350 down payment and pay just $4,950 for a three-bedroom, one-bath house. (While few Mackle homes still stand, one was sold in 2023 for $2 million.)

The Mackle brothers were equally busy next door on Mashta Island, a stone’s throw from Key Biscayne. Beginning in 1951, they began constructing new homes priced at $9,540 and a $500 down payment. 

Like their Key Biscayne counterparts, these first homes were a bigger bargain than could be imagined. More recently, Mashta Point, a home built by industrialist William Matheson, sold for $47 million.

While today’s real estate market rarely sees properties priced lower than seven figures, with the median price in 2024 around $1.8 million, the village of Key Biscayne offers residents and investors alike a truly unique vibe with plenty of its history still evident.

Advantages of Living in Key Biscayne Village 

While Key Biscayne has more than its share of high-net-worth individuals, many with roots in Central and South America, its residents are a mix of newer arrivals and long-term sunseekers. 

Here’s what they all enjoy:

• Natural Beauty: The village of Key Biscayne is sandwiched between Crandon Park and Bill Baggs Cape Florida State Park. Visitors to these parks have plenty of options, including relaxing on the beach, playing golf, or kayaking through mangrove forests. 

• Prime Location: A series of ridges and causeways connect Miami to Key Biscayne, providing an easy seven-mile drive or bicycle ride. 

• Fine Dining: A variety of restaurants, bars, and cafes, from casual to black-tie dining, await. Popular restaurants include the Costa Med Bistro and Milanezza. 

Last but not least, one of the most famous hotel names in the world, the Ritz-Carlton, offers guests spectacular views of Key Biscayne Beach and plenty of amenities, including an onsite spa and fitness center.

What Drives the Economy?

While Key Biscayne Village is home to a sometimes eccentric mix of residents, from retirees to musicians, it’s still a small area.

As of 2020, the population of Key Biscayne was only 14,800, with just over 7,000 residential units.

In addition, not all foodies, daytrippers, and shoppers are willing to drive the six miles across the Rickenbacker Causeway when other, closer areas of Miami beckon. 

However, these factors make it a prime destination for high-net-worth individuals looking for something off the beaten path, especially those who prefer an international presence.

Therefore, investors and entrepreneurs may want to consider these options.

Investment Opportunities

Multi-Family Properties: While it’s generally easier to locate one or more condominium units for purchase, single-family homes are also available. 

Residences for sale usually run the gamut from small, older Mackle homes (usually torn down by their buyers) to spacious luxury homes with enough amenities to encourage residents to stay home 24/7.

Retail Properties: The village’s shopping centers and other retail/office space currently total around 232,682 square feet. As mentioned before, new developments are rare because of a lack of space.

However, some successful investors have opened businesses that specifically serve the village residents. For example, both Pilates and yoga studios are popular within Key Biscayne village.

Developments to Watch

For most of 2024, developers and residents alike have been watching negotiations in progress for replacing the Silver Sands Beach Resort with condominiums. 

The Silver Sands opened for business in the early 1960s and is one of the last low-key, affordable beach motels still doing business in the area.

Recently, Silver Sands was approved for demolition to build a 56-unit, 13-story luxury condominium development. Terra Group, the developer of the new condos, submitted a plan for a site with a spa, two pools, a restaurant, and a meeting room that could be used for community functions.

Terra’s budget for the new condominium: $600 million.