In most investment opportunities, the end of the target investment period assumes an exit event in which the sponsor sells the property.  To project the sales value of the property at the end of the investment period, the sponsor assumes that by then the property is stabilized, i.e., the property achieves a stable level of NOI in all future years after the disposition.   In this case, the projected value of the property is simply the expected stable annual NOI divided by a discount rate, which is referred to as an “exit cap rate”.  For example, if the projected stabilized NOI is $1,000,000 and the sponsor believes that s/he can sell the property at an exit cap rate of 5%, the sponsor therefore believes that the building can be sold for at least $20,000,000 (=$1,000,000/.05) at the conclusion of the investment period.