Bridge Exit Readiness Calculator

Bridge lenders exit via refinance; readiness determines survival at maturity.

Stabilized NOI

Bridge loan balance

Market cap rate %

Perm DSCR requirement

Perm max LTV %

Debt constant %

Cash-in required at maturity

Max permanent proceeds

$34,133,333

Stabilized value

$49,230,769

How the math works

Value = NOI ÷ cap. LTV limit = value × LTV. DSCR limit = (NOI ÷ DSCR) ÷ constant. Proceeds = min.

$3.2M / 6.5% = $49.2M value × 75% = $36.9M LTV / $3.2M / 1.25 / 7.5% = $34.1M DSCR = $34.1M proceeds.

How to Use

Enter stabilized NOI.
Enter bridge loan balance.
Enter market cap rate %.
Enter perm lender DSCR requirement.
Enter perm lender max LTV %.
Read refinance readiness.

Frequently Asked Questions

Why is bridge exit critical?

Bridge loans (12-36 month floating-rate value-add financing) have hard maturity dates. Must exit via sale, refinance, or pay off from reserves. Failure to exit = maturity default = acceleration or workout. Pre-maturity (6-12 months before), sponsor should validate exit readiness: NOI hitting stabilized pro forma, value supporting permanent loan LTV, market rates allowing DSCR coverage. Many bridge defaults are surprise-at-maturity, not pre-emptive.

What does perm lending look at?

Stabilized NOI (trailing 3-6 months, annualized). Debt Service Coverage Ratio (typical 1.15-1.40x agency; 1.25x+ bank; 1.10-1.25x life insurance). Loan-to-Value (agency: 75-80%; bank: 65-75%; life: 65-70%). Asset class appetite. Market liquidity. Borrower experience and credit. Lease roll over loan term. Capital improvement completion. Institutional bridge exits take 60-120 days; don't start at 30 days pre-maturity.

Refinance proceeds?

Max proceeds = min(NOI ÷ required DSCR ÷ debt constant, Value × max LTV). Example: $3M NOI, 1.25 DSCR, 7.5% constant = $3M ÷ 1.25 ÷ 7.5% = $32M DSCR-limited. $40M value × 75% LTV = $30M LTV-limited. Take the lower = $30M. Compare to bridge balance $28M = $2M cash-out available. If proceeds < bridge balance = cash-in needed or extension negotiation.

How to prepare?

12 months pre-maturity: validate NOI trajectory, confirm lease-up completion, freeze CapEx unless essential. 9 months: shop perm lenders, get quotes. 6 months: select lender, submit application. 3 months: complete due diligence, lock rate, close. If bridge matures in <6 months with misalignment, options narrow to (1) extension with penalty, (2) sale, (3) workout. Institutional sponsors manage exits as formal projects — not afterthoughts.