Jean Francois Roy, CEO, Ocean Land Investments, Inc.

OceanLand Investments, Inc. CEO Jean Francois Roy talked to Invest: about the ways in which the firm has adapted to changing market demands and fluctuating economic trends in order to garner continued success in South Florida in the face of high costs and interest rates.

Reflecting on the past year, what have been the most significant milestones or achievements for OceanLand Investments?

Over the past year, the market presented significant challenges, primarily due to rising interest rates. Many buyers hesitated to move forward and sign contracts, while we also faced elevated construction and insurance costs. Despite these obstacles, we successfully navigated these hurdles and achieved notable milestones. Most significantly, we closed a deal on a construction loan — an exceptional accomplishment in today’s climate, marked by political uncertainties and high expenses.

How have rising interest rates and inflationary pressures impacted your development projects, and what strategies are you using to mitigate these challenges?

Rising interest rates and inflation have certainly impacted our development projects, but we continue to move forward by educating buyers about the reasons behind the increased costs. At the core of our business, land banking remains a key focus. Our challenge is effectively communicating the realities of these cost increases to potential buyers. However, challenging times, like the ones we’ve just experienced, often create new opportunities. We focus on securing the best sites, taking calculated risks that others may avoid, and working to change zoning to unlock the full potential of these properties.

Last year, you mentioned OceanLand’s unique approach to luxury “no compromise” condominiums for empty nesters. How has this concept evolved in the past year?

Our latest condominium caters to a diverse clientele seeking an ultra-luxurious, amenity-rich living experience downtown while enjoying the privacy and exclusivity of Rio Vista. We’ve observed a growing trend among buyers who value the flexibility to travel, which influences their property preferences. While some clients are drawn to expansive residences, the market for 3,000-square-foot condos with $4 million entry points and associated taxes remains limited. As a result, there is increasing demand for more compact units with accessible price ranges of $1.5 to $2.5 million. Despite the smaller size and more affordable pricing, there is no compromise on quality or amenities. Our condominiums continue to offer full access to premium features, including state-of-the-art fitness facilities, ample parking, waterfront locations, and proximity to parks, ensuring residents enjoy the same unparalleled lifestyle synonymous with our brand.

How has the demand for luxury residential properties in South Florida evolved recently, and how is OceanLand adapting to these trends? 

The market remains dynamic and competitive. The price of beachfront properties continues to rise, but not all buyers are willing to meet these high costs. We are observing similar trends both nationally, such as in New York where properties are becoming smaller, and internationally. This is a rapidly changing market, and at OceanLand Investments, we make it a priority to stay ahead of these evolving trends and adjust our strategies accordingly.

What trends are you observing, specifically in South Florida, and what sets South Florida apart from other markets?

We’re seeing a significant influx of people moving to South Florida; however, many newcomers are unable to afford the high cost of acquiring housing, and until recently, there were no viable housing options to meet their needs. Now, we’re seeing major foreign developers stepping in and building smaller units designed for this demographic. This market for smaller units is something new for South Florida. Additionally, there’s been a rise in the rental and Airbnb markets, as many people still want to live here but cannot afford the rising cost of homeownership. As a result, buyers are becoming more strategic, seeking out creative solutions to manage the high cost of living in the area.

How do you approach site selection for your developments, particularly in such competitive and desirable locations?

Since 1990, our team has been thoroughly evaluating site selections, and we have developed an in-depth understanding of the area and the available locations. In many cases, it can take up to 10 years to secure a site. Some property owners are reluctant to sell, with many sites being held since the 1950s. While these locations may be in disrepair, their prime positions make them attractive for future renovation and development. We recognize the potential in these properties and focus on long-term strategies to acquire and transform them.

What steps is OceanLand taking to incorporate sustainability and climate resilience into its waterfront developments?

Most of our projects are located along the ocean, and in Fort Lauderdale, we are actively involved in building a seawall to protect our developments. While our buyers’ priorities have remained consistent, we’ve noticed that clients appreciate our commitment to ‘green’ building practices. Sustainability is a key focus for us, and all of our projects are designed with climate resilience in mind. We work closely with architects who prioritize environmentally friendly designs to ensure our developments are not only sustainable but also contribute to the long-term health of the surrounding environment.

How has the development around Brightline impacted your current projects, and what future opportunities do you see emerging from this investment?

While the Brightline site is not within our typical development model, we chose to engage with it due to the other attractive sites in the surrounding area. Not every project can be waterfront, and this site is one of the few we have that isn’t located on the ocean. We aim to leverage the strategic location near the railway, which is particularly desirable and culturally significant in our community. We don’t try to reinvent the wheel; instead, we see Brightline as offering valuable connectivity and potential for future opportunities in non-waterfront developments.

What challenges do you foresee for South Florida’s real estate market in the next few years, particularly with regard to rising sea levels and climate change?

Brightline is a great example of how we are responding to climate change. While Ocean Land remains primarily focused on waterfront properties, we are diversifying our portfolio by becoming more selective about our building locations. Rising sea levels and climate change are making us more cautious and thoughtful in our site selection process. As we move forward, we’ll continue to evaluate environmental factors and seek out opportunities that align with both sustainability and the evolving needs of the market.

What opportunities do you see in South Florida’s real estate market over the next five years, and how does OceanLand plan to capitalize on them?

We focus primarily on the area between Miami and Palm Beach, where we see continued opportunity. While there is potential in markets north of Tampa and Orlando, we prefer to maintain a more hands-on approach and are not currently looking to expand into those regions. Our success is rooted in our discipline and local expertise. We prefer to push boundaries within the markets we know best, rather than venturing into areas where we don’t have the same level of familiarity.

What are your top priorities for OceanLand in the short term, and how do you plan to navigate the uncertainties in the market?

We have a long-term vision for OceanLand, and our top priority is staying prepared and avoiding overextension. In the short term, we aim to focus on strategic growth while ensuring we maintain a solid foundation. We also want to increase our involvement in philanthropy and community initiatives. It’s important to me that we build a lasting legacy in the communities where we operate, contributing positively both through our developments and our outreach.