Scottsdale developer plans senior living projects on Catholic church campuses

Five sites already approved; work could start in 2025

Senior living communities will be built on Catholic church campuses across the Valley. This is a rendering of what it will look like at St. Benedict Catholic Church in Ahwatukee — the first project to break ground.

Scottsdale-based Acanthus Development, which was formed this year to build senior living communities on Catholic church campuses around the country, plans to build its first five projects in metro Phoenix.

Total development costs for the five projects range from $235 million to $250 million.

The Roman Catholic Diocese of Phoenix has approved five ground leases on five of its Valley church campuses, where Acanthus will develop and manage each senior housing community. The facilities are expected to average 150 rooms and offer independent living, assisted living and memory care units.

The first one will be built on the campus of St. Benedict Catholic Church in Ahwatukee, with construction expected to begin in April 2025.

Plans also call for senior living housing on the campuses of St. Clare of Assisi in Surprise, St. Raphael Catholic Church in Glendale, and St. Gabriel Catholic Church in Cave Creek.

Two or three projects are expected to begin construction in 2025, said Chris Bayley, COO and general counsel of Acanthus Development. Much of that timeframe depends on how quickly the team can get through the entitlement and zoning process. The architectural design of each housing project will blend with the design of each church campus, Bayley said.

To pay for these projects, Acanthus set up a fund to solicit equity investment, Bayley said.

“We are in serious talks with lenders to provide straight debt construction financing, in addition to that,” Bayley said.

While it’s too early to determine rental rates for these communities, Bayley said they will be just below market rate.

“The idea is to make sure as many people as possible at each parish can have access to it,” he said.

By building on unused church land, parishes have an opportunity to generate additional revenue.

Acanthus Development will pay a base rental rate of $10,000 a month to each parish, which equates to $120,000 in taxable revenue. Once each senior housing community is stabilized and generating rental income, Acanthus will donate 10% of net operating revenue to the church.

Senior living projects will cover three to four acres

All of the churches selected so far have enough land that will allow Acanthus to take three or four acres to build the community, provide parking and secure outdoor areas for memory care residents, Bayley said.

Bayley suggested this first batch of projects could lead to more collaboration.

“There are many more that are interested in going through the process of signing letters of intent to go through due diligence to see if they can sign the leases,” he said. “We have the opportunity to expand this across the Valley that will double or triple what you see there.”

Meanwhile, the Acanthus leadership team is working in Texas with the Diocese of Galveston Houston to roll out the program in the Houston metro.

“Their appetite is huge,” Bayley said.

While Bayley is flying across the country to meet with bishops of other dioceses, the team is open to discussions to expand development beyond the U.S. borders to countries such as Canada, Chile and Poland, said Bart Shea, CEO of Acanthus Development, in a statement.

While Acanthus was technically founded in 2024, Shea has been working on this concept with representatives of the Phoenix Diocese and parishes over the past seven years.

It was over the past two years when the concept gained real traction, said Bayley.

“So much progress has been made. The energy and synergy of that progress expands by leaps and bounds every day,” he said. “The campus team is energized by the reactions we’ve had from the Diocese, parishes, investors and lenders who are showing an interest in really supporting this program here and across the country.”

The senior housing facilities will function independently of the parishes, and aren’t being built in any type of partnership with the diocese, Bayley said.

While the residential communities will not be exclusive to Catholics or parishioners, it will be a draw for families, Bayley said.

“During the school year, residents can volunteer at the school,” he said.

By Angela Gonzales – Senior Reporter, Phoenix Business Journal