GCM Grosvenor Inc., a company specializing in investment advice, has entered into a significant lease amendment for its principal headquarters in Chicago. The agreement, effective from June 17, 2024, extends the lease for an additional 11 years, with the term now set to expire on September 30, 2037.
The amendment involves the extension of the lease for 72,738 rentable square feet at the North Michigan Avenue Suite 1100 location. The monthly base rent will start at $151,537.50 and is scheduled to increase annually, reaching $181,845.00 by the lease's end. Additionally, the company will be relinquishing approximately 40,458 rentable square feet of space by September 30, 2025, for which it will pay an early termination fee of $331,821.92. However, the tenant retains the right to defer this date for all or part of the space in question.
The updated lease terms also include a twelve-month rent abatement and a substantial tenant improvement allowance totaling $8,001,180.00. Furthermore, GCM Grosvenor has the one-time option to terminate the lease entirely, effective September 30, 2032, subject to a termination fee and the conditions outlined in the amendment.
This lease amendment is particularly notable as Stephen Malkin, a member of GCM Grosvenor's board of directors, and some of his immediate family members hold an economic interest in the landlord of the property. This disclosure was made in the company's proxy statement filed on April 25, 2024.
The details of this transaction, which create a direct financial obligation for GCM Grosvenor, are based on a press release statement and can be found in the full text of the Lease Amendment, filed as an exhibit to the company's Current Report on Form 8-K with the U.S. Securities and Exchange Commission.
In other recent news, financial services firm Piper Sandler has raised its price target on GCM Grosvenor Inc. to $10.50, maintaining a neutral rating. This adjustment followed GCM Grosvenor's first-quarter 2024 results, which led Piper Sandler to revise its earnings per share (EPS) estimates for 2024 and 2025. GCM Grosvenor reported quarterly results in line with expectations, with fee-related earnings slightly exceeding estimates.
In addition to this, GCM Grosvenor had a robust fundraising period, marking the best performance in the last six quarters. The company also reaffirmed its projection for double-digit growth in private markets management fees for 2024 and its ability to double its 2023 fee-related earnings by the end of 2028.
GCM Grosvenor's strong Q1 performance was highlighted by significant year-over-year growth in fundraising, adjusted net income, and fee-related earnings. The company raised $1.6 billion in the first quarter, driven by private equity and credit. These recent developments illustrate GCM Grosvenor's ongoing financial progress and its commitment to achieving its ambitious financial objectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.