In one sentence
The assumed capitalization rate at a future sale, used to project a property's exit value in underwriting.
The longer version
The exit cap rate is the rate applied to projected stabilized income to estimate a future sale price. Conservative underwriting assumes an exit cap rate somewhat higher than the going-in rate, since future conditions are uncertain.
Lenders scrutinize the exit cap assumption closely, because an optimistic one inflates projected returns and the apparent cushion behind the loan.
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