In one sentence
A property's projected value once it reaches normal, sustained occupancy and income, distinct from as-is value.
The longer version
For transitional properties, the stabilized value assumes the business plan succeeds and occupancy and income reach normal levels. Bridge and construction lenders underwrite to both as-is and stabilized values.
The gap between as-is and stabilized value is the business plan, and lenders scrutinize the assumptions that bridge them.
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