GTCR

Situation
GTCR was founded in 1980 and manages more than $8 billion in equity and mezzanine capital invested which is invested in a wide range of companies and industries. The firm primarily invests in high growth service industries.  GTCR, from the onset of the project, wanted prestigious space in a trophy building that showcased Chicago’s most spectacular views.  While this was the case for their space at the then Sears Tower, the firm was not sure it could stay.  Due to an unusual clause in the firm’s lease, the landlord had the right to cancel it.  The clause could be triggered if another, much larger tenant in the firm’s elevator bank wanted the space.  GTCR was not committed to leaving but would have no choice if the clause was exercised. 

Resolution
GTCR had to plan for a scenario that was beyond its control and unfortunately there was no existing building that met its needs.  We evaluated 70 properties in the market survey but none met the client’s needs.  The vacancy rate for high floor view space in the CBD was less than 5% so the options were few and there were no new buildings under construction due to a market oversupply.   Proposed new buildings were monitored closely for both the required occupancy timetable and top floor space.  Eventually, 300 N. LaSalle secured an anchor tenant and GTCR was able to secure the top 3 floors of the building totally 53,000sf.  GTCR was able to occupy the premises on time and secured exceptional concessions including rights to cancel and expand.  GTCR is leasing one of the most prestigious spaces in downtown Chicago. GTCR was able to relocate prior to the date the landlord was able to exercise its termination right.