Acanthus aims to raise $143 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 communities 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 properties upon stabilization.
Each 130,000 SF community 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 communities are designed to attract Catholic seniors aged 70 and older seeking a socially engaging, faith-based living environment.
$225MM
13-15%
3.5-4.0X
*Figures and projections are management estimates. Due to various risks and uncertainties, actual results may differ. Please refer to footnotes; additional info can be provided upon request.
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 potential tax deduction for investors while allowing for continued participation in the portfolio’s perpetual income stream.
13%-15%
15%-17%
21%-23%
24-26%
3.5x-4.0x
*Assumes Leverage of 50% Loan to Cost
The collaboration between Shea-Connelly and the Catholic Church aims to develop premium senior living communities 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 communities are projected to generate substantial revenue for the Parishes over the long-term,strengthening support for both the Church and its congregation as residents will enjoy the convenience of nearby chapel services and daily Mass, while Parish volunteers will play a key role in social programming, creating an interconnected environment with the broader community, further enriching residents’ lives.
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, which we believe positions the project and fund for significant growth.
Strategically positioned in underserved Phoenix submarkets with close proximity to Catholic Parishes, the communities are expected to benefit from a built-in, engaged audience for each location, enhancing both community integration and occupancy potential. Preleasing from the church is already underway, with local Parishes estimating a 2-year wait list prior to any national marketing efforts.
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.
Acanthus Senior Living is a nationwide initiative focused on developing high-quality senior housing in underserved markets. The project aims to create holistic, mission-driven communities that combine essential care services with a faith-based living environment. By integrating these elements, we will address the overwhelming demand for affordable senior housing while fostering positive impacts on each facility’s surrounding community.
This content is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities or any other financial instruments described herein. An offering is made only by the Confidential Private Placement Memorandum (PPM). This advertising literature must be read in conjunction with the PPM in order to understand fully all of the implications and risks of the offering to which it relates. The information contained in this memorandum is based on sources believed to be reliable, but no representation or warranty, express or implied, is made as to its accuracy, completeness, or correctness. Any forward-looking statements, forecasts, or projections are based on current expectations and assumptions that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated. Prospective investors are advised to perform their own due diligence and consult with their own legal, tax, and financial advisors before making any investment decisions. Past performance is not indicative of future results, and any investment involves the risk of loss, including the potential loss of principal. The investment strategies, opportunities, and opinions expressed herein may not be suitable for all investors and are subject to change without notice. Neither the authors nor the fund’s sponsors, affiliates, or advisors shall have any liability whatsoever for any direct or consequential loss arising from any use of or reliance on the information contained in this memorandum.