• shapeshape

    Acanthus Is

    A new
    mission-driven
    investment opportunity

    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.

  • shapeshape

    Acanthus Is

    Faith-based living environments
    for seniors.

    The objective is to meet the growing demand for senior housing, enhance community engagement, and generate sustainable revenue for Catholic Parishes.

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Offering

Summary

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.

Project Highlights

5

Properties

150

Units Per Facility

$45MM

Cost Per Facility

$225MM

Total Project Cost

90 Years

Fixed-Ground Lease Terms

13-15%

Average Annual Distribution

3.5-4.0X

Multiple on Invested Capital

*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.

Investment

Highlights

Acanthus Senior Living presents investors with the opportunity to participate in a well-positioned, socially responsible project with the potential for growth and multiple layers of value creation. By aiming to address the unmet need for faith-affiliated senior housing in Phoenix, this investment aspires to deliver consistent, above-average returns while striving to create a positive financial impact on each Parish and its congregation.
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Sustained Above-Average Return Potential

Forecasted average annual cash-on-cash returns exceeding 13% through 8 years, with potential for increased annual cash flows driven by anticipated growth in demand for senior housing.
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Operational Efficiency & Return on Cost

With zero land acquisition costs and steamlined operations, each Facility is projected to achieve a 14% return on cost at stabilization, demonstrated by Shea Connelly’s track record with similar projects throughout Arizona.
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Capital Preservation & Long-Term Cash Flow Goal

The evergreen fund structure, coupled with the 90-year fixed ground leases, facilitates the secure preservation of a long- term income stream, projected to increase annually through the lease term.

Depreciation Benefits and Tax Deductions

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.

Targeted

Returns

Expected Returns at Year 8*

13%-15%

Average Annual Distribution

15%-17%

Tax-Equivalent Return

21%-23%

Net IRR

24-26%

Tax-Adjusted IRR

3.5x-4.0x

Multiple on Invested Capital

*Assumes Leverage of 50% Loan to Cost

5% targeted annual distributions to investors in years 1 and 2

Market Opportunity &

Mission-driven Impact

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.

Key

Differentiators

Symbiotic Church Relationship & Positive Community Impact

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.

Unprecedented Scalability & Barriers to Entry

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.

Superior Locations & Captive Audience

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.

Favorable

Market Dynamics

With the rapidly aging Baby Boomer population and limited available inventory, demand for premium senior living is soaring both locally and nationwide. National projections estimate the need for 156,000 more senior housing units by 2025, 549,000 by 2028, and 806,000 by 2030, requiring approximately $400 billion in new development to meet this demand. In Maricopa County alone, where over 1 million seniors reside, there are just 30,000 existing senior housing units, with fewer than 1,000 new units currently under development, further emphasizing the pressing need.

Fund

Overview

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 commitment timing.

Investment

Terms

Fund Structure

Private Real Esta

te Evergreen Fund

Direct / Indirect Security

Distribution Ownership in five

(5) Senior Housing developments

Share Type

Preferred Units – Tranche 1

Common Units – Tranche 2

Investment Vehicle

PV Acanthus LP

Acanthus Assisted Living Fund I LLC

Target Raise

$27,000,000

$211,000,000

Unlevered Target Raise

$27,000,000

$131,000,000

Minimum Investment

$100,000

$1,000,000

Closing Increments

Rolling

$40,000,000

Inception Date

August 2024

October 2024

Deployment

Immediately

Q1 2025

Fund Term

8 Years

Evergreen

Extensions

1YR + 1YR + 1YR

Unlimited

Distributions / Reporting

Quarterly / Quarterly

Quarterly / Quarterly

Fund Distribution Allocation

15%

85%

Annual Management Fee

1.00%

2.00%

Developer Promote

None

None

Suitability

Accredited Investors Only

Accredited Investors Only

Lockout Period

5 Years

5 Years

Redemption Notification

180 Days

180 Days

Tax Reporting

K-1

K-1

0

Years of
Collective
Experience

DEveloper

Overview

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.

Bart’s experience in real estate entitlements is paramount to the organization’s success.

Bart Shea
President | CEO
Acanthus Investor Deck

INVESTOR SUMMARY

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ACANTHUS IN THE NEWS

Checkout Latest Project News and Updates

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‘Multigenerational’ parish campuses coming to Phoenix with new senior living facilities

A rendering at St. Raphael Catholic Church in Glendale, outside of Phoenix where Acanthus Development is set to build senior living. | Credit: Acanthus Development A property development group is…
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How and why Phoenix-area churches, developer partner for senior living on church land

As some churches struggle with dwindling congregations, a handful of Catholic parishes around the Valley are looking at a creative solution: adding senior housing on their campuses. Acanthus Development Co.,…
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Developer Plans Senior/Assisted Living on Catholic Campuses

Acanthus Development recently announced an agreement with the Roman Catholic Diocese of Phoenix in which it will undertake ground leases to build and manage senior housing developments on parish campuses in the metro…

Investment

Disclaimer

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.