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 LLC, in partnership with Patrick Ventures LLC, is raising $238 million in equity capital for Acanthus Senior Living, an evergreen fund offering investment in the development and long-term cash flow of five Class A senior living facilities in the Phoenix MSA. These facilities will be built on Catholic Church-owned land under 90-year fixed ground leases, adjacent to active Catholic Parishes. Each facility will cost approximately $45 million to develop, with an expected construction timeline of 18 months.
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. The facilities will operate under a private pay structure, offering amenities tailored to residents’ needs while supporting each Catholic Parish’s operations and programs. Acanthus Senior Living strives to create holistic, mission-driven communities that provide necessary care services and convenient access to Church services and events.
Shea-Connelly aims to create facilities that meet the local demand for quality senior housing while positively impacting each Parish and its surrounding community. While open to the public, the properties are designed to attract Catholic seniors aged 70 and older seeking social engagement and a high-quality, faith-based living environment.
$225MM
$70MM-$75MM
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.
$238MM
2.5x – 3.0x
20%-22%
13%
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.
Shea-Connelly plans to fund the Project entirely with equity through two separate tranches facilitated by distinct investment vehicles: one for predevelopment costs and operations (Tranche 1), and the other for vertical construction, lease-up, and stabilization (Tranche 2).
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.
