Developing NNN Properties

Does anyone have any experience developing single tenant NNN properties for credit tenants like CVS, Walgreen's, etc.? Here are some specific questions:

1. How do you select sites for these properties? I know most of the larger companies have specific criteria for site selection.
2. How difficult is it to break into -- do these types of tenants have exclusive developers they work with in a certain region?
3. What financing terms can you get on acquisition and construction loans? I've seen some companies offering 100% LTV construction loans and 100% LTV with a DSCR of 1.02 to 1.05 on the takeout loan for credit tenants.
4. What's the typical spread between development cost (incl. land) and finished value? I've been considering the purchase of a NNN property, but developing them should be much more lucrative.

Any info is greatly appreciated.

Thanks,
Mark

I have found that alot of time I get a great idea of there criteria, then reswarch the area and demographics. Many find the land, tie it up, then present it to single tenants. Once you do that and get an LOI fron them, its very east to get them financed. You have to be proficient in your seach and knowing these tenants you are selecting, and THEN you have to be persistant contacting them and getting them to move unless its a slam dunk land.

To Answer your questions:
1. They usually look for traffic controled intersections with mid to heavy population density.
2. While they usually don't have exclusive developers, they do have preferred developers they like to work with, but this doesn't mean they won't work with someone else if it is a main and main location.
3. Financing can be tricky. I doubt you'll get 100% loans for these types of deals (if you do please let me know where).
4. Developing them is much more lucrative, but much more to do as well. these properties sell at relatively low cap rates because they are considered investment grade properties that instituational investors will purchase. As far as spread on developing, around here (Atlanta area) you can pretty much double your money (if it costs $2.5 mill for land & construction, then it will be worth around $5 mill)