GCM Grosvenor Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation, Financial Statements and Exhibits
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Item 1.01. Entry Into a Material Definitive Agreement.
On June 17, 2024, Grosvenor Capital Management, L.P., an Illinois limited partnership (the “Tenant”) and 900 North Michigan, LLC, a Delaware limited liability company (the “Landlord”), entered into a Tenth Amendment to Office Lease (the “Lease Amendment”), effective June 17, 2024, related to GCM Grosvenor Inc.’s (the “Company’s”) principal headquarters located at North Michigan Avenue, Suite 1100, Chicago, Illinois 60611 (the “Premises”).
The Lease Amendment amends certain terms of the original Office Lease entered into on December 17, 2004 by LaSalle Bank National Association, the Landlord’s predecessor-in-interest, and the Tenant (as amended, the “Lease”), including the following:
| ● | Extension of the term of the Lease for an additional period of eleven (11) years from and after October 1, 2026, so that the term shall expire on September 30, 2037 (the “Extension Period”) with respect to a total of 72,738 rentable square feet at the Premises. |
| ● | Monthly base rent at an initial rate of $151,537.50 per month (“Base Rent”) during the Extension Period, which will increase annually in accordance with the schedule set forth in the Lease Amendment, up to $181,845.00 per month at the conclusion of the Lease. |
| ● | Termination of the Lease with respect to a total of approximately 40,458 rentable square feet at the Premises (the “Give Back Space”) on or prior September 30, 2025 for a total early termination fee of $331,821.92, pursuant to the terms and conditions of the Lease Amendment and subject to Tenant’s right to defer and extend the early termination date with respect to all or a portion of the Give Back Space. |
| ● | Twelve month rent abatement and tenant improvement allowance of $8,001,180.00 pursuant to the terms and conditions of the Lease Amendment. |
| ● | Tenant’s one-time option to terminate this Lease in its entirety, effective as of September 30, 2032, for a termination fee and pursuant to the terms and conditions of the Lease Amendment. |
This summary is qualified in its entirety by reference to the full text of the Lease Amendment, filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
As previously disclosed in the Company’s definitive proxy statement filed with the U.S. Securities and Exchange Commission on April 25, 2024, Stephen Malkin, a member of the Company’s board of directors, as well as some of his immediate family members, hold an economic interest in the Landlord.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 10.1 | Tenth Amendment to Office Lease, dated June 17, 2024 | |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL Document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GCM Grosvenor Inc. | ||
| Date: June 21, 2024 | By: | /s/ Michael J. Sacks |
| Name: | Michael J. Sacks | |
| Title: | Chief Executive Officer | |
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