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., a developer of senior housing, has finalized five ground leases with Valley Catholic parishes and is in talks with 10 to 15 more, Christopher Bayley, general counsel and COO of Acanthus Development said.

The projects will be roughly 150 units and include traditional senior housing options like independent living, assisted living and memory care. The first development is planned at St. Benedict Catholic Church in Ahwatukee and will begin construction in April.

Bayley said the conversation between the Roman Catholic Diocese of Phoenix and Acanthus has gone on for several years, trying to find a way to incorporate senior living into the church grounds.

“Almost everyone at Acanthus has gone through the senior living process with our parents,” Bayley said. “It really would have been nice for a parishioner to go through assisted living, maybe even hospice and end-of-life care, close to their church.”

Acanthus is leasing land from each parish to build the housing. Residents will pay rent on their units, and Acanthus will also donate back 10% of the annual operating revenue to the churches, Bayley said. Units will be close to but slightly under market rate rent, Bayley said.

“It’s designed to be affordable for the population we serve,” he said. The facilities will be like “cruise ships,” he said, with Class A amenities, dining and care.

Many of the churches also have elementary schools on their sites, which could give families a chance to have multiple generations on campus at once.

“Can you imagine the synergy?” Bayley said. “There could be at least three generations of people, at school, at church and at assisted living, and during the school year maybe residents will have their grandkids at school there. That synergy will really revitalize the parishes.”

Other churches that have leased land to Acanthus are St. Clare of Assisi in Surprise, St. Raphael Catholic Church in Glendale and St. Gabriel Catholic Church in Cave Creek.

The developments will operate independently from the churches and will be open to residents of any faith, but they will have a strong connection to the churches.

“Our parish is thrilled to be one of the five initial parishes in the Diocese of Phoenix partnering with Acanthus Senior Living,” Father Thaddeus McGuire of St. Clare Parish said in a statement. “In addition to there being tremendous enthusiasm amongst our senior parishioners about the prospect of living in the planned senior living center, there is also great enthusiasm amongst those still in the workplace who are excited about the opportunity to work in an environment where they would be free to live and share their Catholic faith while serving and journeying with those in residence.”

Bayley said construction on each site will take between 12 to 14 months, and residents will likely move in after 14 to 16 months.

Churches around the Valley and nationwide have struggled to maintain attendance after the pandemic, with many opting to sell their buildings as contributions from their congregations dwindled. Bayley said the senior living component on the sites will offer a boost for the churches.

“People at the parishes and at the diocese see this as a very important step to bring people back home to the church,” he said.

Article written by Corina Vanek Arizona Republic