MIAMI-A group of investors just snapped up 345 residential and commercial condos on South Beach in a bulk deal worth $124 million. The units cross two projects—the Paradiso and Roney Place—and were acquired by 2377 Collins Resort LP and Roney 3 Investors LP.

Starwood Capital Group, LeFrak and Invesco Limited appear to have pooled funds to acquire the assets, as well as 340 hotel rooms in the former Gansevoort Miami Beach Hotel and more than 50,000 square feet of developable land on the west side of Collins Avenue. The total transaction is worth nearly $230 million, according to CondoVultures.

“There are a lot of pockets of a dozen units here and 20 units there,” Peter Zalewski, principal at CondoVultures, tells GlobeSt.com. “It’s very hard to find one concentration of significant tonnage in terms of unit count. At this particular site, the product may not be the best but the location is spectacular because of the W and the Setai Resort & Residences—and the tonnage.”

Zalewski says the bulk deal will make a major impact on the South Beach condo market. He expects the anxiety level—and the price—to acquire unsold developer inventory in South Beach to change with less than 700 units left on the market.

“I don’t think the product is what drove the investors,” Zalewski says. “I think it’s a combination of the price and the location, more importantly. I’m not going to say they are settling for it but if you look at what’s going on just north of there, they are in the heart of an attractive location. Taking down 685 units is not a bad investment especially as the distressed inventory starts to get whittled away.”