• shapeshape

    Acanthus Is

    A new
    mission-driven
    investment opportunity

    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.

  • 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 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.

Project Highlights

5

Properties

$45MM

Cost Per Facility

21%-23%

Tax-adjusted IRR

$225MM

Total Project Cost

$70MM-$75MM

Stabilized Value Per Facility

90 Years

Fixed-Ground Leases

Investment

Highlights

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.

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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.

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Cost Efficiency & Yield on Cost

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.

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Capital Preservation & Long-Term Cash Flow

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.

Depreciation Benefits and Tax Credits

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.

Investment Composition and Returns

$238MM

Total Equity Raise

10%-12%

Cash-on-Cash Through Year 10

15%-17%

Target 8yr IRR

2.5x – 3.0x

Target Equity Multiple

20%-22%

Cash-on-Cash By Year 15

13%

Yield-on-Cost

Market Opportunity &

Mission-driven Impact

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.

Key

Differentiators

Symbiotic Church Relationship & Positive Community Impact

The facilities 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 enriching social programming and fostering community engagement.

Unmatched 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, positioning the project and fund for significant growth.

Superior Locations & Captive Audience

Strategically positioned in underserved Phoenix submarkets with close proximity to Catholic Parishes, the facilities will 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 minimum 2 year wait list at this time, 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

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).

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

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 – Sept

INVESTOR SUMMARY

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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.