The last time Mark Scott, president of Commercial Mortgage Capital, remembers a lender invoking the Material Adverse Change, or MAC, clause in a deal was during the Great Recession. Now, he’s hearing it more and more in conversations with capital providers. “I’ve had lenders email me and say the market is experiencing a MAC and we are now raising the rate on your loan from 3.5% to 4.5%,” he tells GlobeSt.com. “It is definitely being invoked more now.”
There are other changes in the commercial real estate lending market that Scott says do not bode well for borrowers, or for liquidity in general.
Read more...CRE Lenders Are Dusting Off The MAC Clause Again via GlobeSt
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