Sustained Above-Average Return Profile
Average annual cash-on-cash returns of over 10% through the first 8 years, with yields increasing in perpetuity due to fixed ground lease payments for lease duration.
Acanthus aims to raise $238 million to develop and operate five senior living facilities that provide high-quality, faith-based living environments for Catholic seniors.
The objective is to meet the growing demand for senior housing, enhance community engagement, and generate sustainable revenue for Catholic Parishes.
Shea-Connelly Development, in partnership with Patrick Ventures family office, is raising equity capital for Acanthus Senior Living, a development project involving the construction of five Class A senior living facilities in the Phoenix MSA. Each building site is strategically located on Catholic Church-owned land under 90-year fixed-rate ground leases, adjacent to active Catholic Parishes. To finance the project, an evergreen fund has been created to facilitate capital for development, offering investors long-term exposure to the cash flow generated from the facilities upon stabilization.
Each 130,000 SF Facility will house 150 units and provide 180 beds, consisting of 120 Independent Living and Assisted Living units, and 30 units for dedicated Memory Care. Each facility has a development cost of $45 million and will operate under a private-pay model, offering innovative features and amenities that cater to residents’ needs while supporting the operational and programmatic initiatives of each Parish.
Shea Connelly is dedicated to creating holistic, mission-driven communities that integrate essential care services with convenient access to church services and events. This approach aims to address the local demand for quality senior housing while positively impacting each Parish and its surrounding community. Though open to the public, the facilities are designed to attract Catholic seniors aged 70 and older seeking a socially engaging, faith-based living environment.
$225MM
18-20%
4.0-4.5X
Acanthus Senior Living offers investors the opportunity to participate in a well-positioned, socially responsible project with strong growth potential and multiple layers of value creation. By addressing the unmet need for faith-affiliated senior housing in Phoenix, this investment provides consistent, above-average returns while having a positive financial impact on each Parish and its congregation.
Average annual cash-on-cash returns of over 10% through the first 8 years, with yields increasing in perpetuity due to fixed ground lease payments for lease duration.
With no land costs and property tax exemptions, each Facility is expected to yield 13% on cost at stabilization, backed by Shea Connelly’s proven success and cost efficiency in similar projects.
The fund structure, coupled with fixed 90-year Ground Leases, ensures the secure preservation of a long-term income stream that will increase throughout the lease term.
Accelerated depreciation utilized from years 3 through 7 is anticipated to substantially lower taxable income during the initial five income-producing years. Additionally, in year 8, the facilities are planned to be gifted to each Parish as a qualified donation to a religious institution. This transaction will be structured similarly to a sale-leaseback under an absolute triple-net lease, enabling a dollar-for-dollar tax credit to investors at the full market value of each facility.
13%-15%
18%-20%
22%-24%
30-32%
4.0x-4.5x
*Assumes Leverage of 50% Loan to Cost
The collaboration between Shea-Connelly and the Catholic Church aims to develop premium senior living facilities that address a vital societal need while fostering community engagement. This partnership is designed to deliver attractive financial returns for investors, aligning social impact with financial success.
The scalable building design, patented ground lease structure,exclusivity with the Church, and ample supply of available land without acquisition costs, enables a programmatic approach to future developments nationwide. Over 50 additional Parishes in Arizona, Nevada, California, and Texas have already expressed interest, positioning the project and fund for significant growth.
The Acanthus team is pursuing a funding strategy that involves a $143 million total equity raise, supplemented by 50% construction-to-permanent financing at the property level. For the equity portion, the Fund is offering two classes of investor units: Class A – Preferred Units and Class B – Common Units to differentiate between funding rounds.
Years of
Collective
Experience
Shea-Connelly Development is a privately held, vertically integrated commercial real estate development and construction firm based in Scottsdale, Arizona. The company specializes in sustainable commercial properties, including multi-family, mixed-use, and senior housing developments.
