Grace began as a low pressure area in the middle of the atmosphere. It formed on October 23 south of Bermuda. Reports from a ship said that it was in the lower atmosphere by October 25. At first, the storm was like a subtropical cyclone. There were not many thunderstorms around its center. (For a storm to gain strength, strong thunderstorms need to build around it.) The system started being called a subtropical storm on October 26. A separate area of clouds near Bermuda slowly became involved with this storm. There started to be thunderstorms near the center of the storm. Because of this, on October 27, the storm became a tropical storm and was named "Grace".