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General Growth shares jumped 10.6 percent to $10.40 in trading before the market opened.  Simon expects the transaction to add to its funds from operations, a key profit measure for a real estate investment trust, in the first year after closing.

General Growth’s official unsecured creditors committee supports the offer, Simon said in a statement.

The offer would provide a 100 percent cash recovery of par value plus accrued interest and dividends to all General Growth creditors, an amount totaling about $7 billion.  (Reuters)  READ MORE

Summary:   The global commercial real estate market is becoming stronger—slowly.

Economies are rebounding and commercial real estate is too, but not with the same gusto. There are pockets of solid recovery in leasing and investment activity, but there are also concerns about the sustainability of these improvements. Of particular note is that investment markets are ahead of leasing markets across all global regions. Yields on prime, core properties have compressed, but positive leasing indicators are not as definitive.

Although China’s economy and real estate market command most of the headlines, it is the Pacific region that seems best poised to succeed in 2010. Yields have compressed in each property sector, volume is up and our man in Sydney says that the “sweetest spot” in the investment cycle may have already passed. 

Asia, too, had a good 4Q, which saw significant improvements over the first nine months of the year. Most of the activity was in China, Hong Kong and Taiwan, prompting concern about potential overheating.

Europe also saw investment yields come in ahead of leasing fundamentals, but only for prime properties. Transaction volume was up significantly compared with earlier quarters of 2009, but rents are just stabilizing in some markets.

In the U.S. we again see cap rates on prime properties coming in a bit, while secondary and tertiary properties and markets see no improvements. Leasing markets are improving at a slower pace.

2010 will be better than 2009.

It purchased an 86-year-old, two-story building at Boren Avenue and Stewart Street on Thursday from Boilermakers Local 104, according to county records. A dance hall is on the building’s second floor.  Touchstone Vice President A-P Hurd said the company has no immediate plans for the 0.16-acre property but considers it a likely site for an office or hotel tower. Touchstone acquired a 0.16-acre parcel next door in 2007.

Zoning allows nonresidential buildings up to 340 feet tall and residential buildings up to 400 feet on the properties.

The Denny Triangle has been a hotbed of redevelopment in recent years, although activity has cooled with the recession. Los Angeles-based Urban Partners is completing a 37-story apartment tower, called Aspira, a block southwest of Touchstone’s property.  And Security Properties of Seattle has permits for a 40-story apartment building a block to the northeast.

Touchstone itself last year completed West 8th, a 28-story office tower at Eighth Avenue and Westlake Avenue.  While that building, like other new downtown office towers, has had trouble attracting tenants, Touchstone is pursuing opportunities elsewhere.  (DJC)