BY RENÉE SCHULTES

European property markets have a new hot spot: Munich.

A consortium of mostly German institutional investors led by property manager Patrizia Immobilien is paying €2.45 billion ($3.19 billion) for GBW, a listed portfolio of more than 32,000 apartments in Munich and around Bavaria. Patrizia says the equity investment should initially yield 4% to 4.5%, which is toward the low end for residential property in Germany. But even at these levels, the deal looks good given …