By BEX Staff for AZBEX
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 area.
The first project will be St. Benedict Senior Living on South 48th Street south of Chandler Blvd. in Phoenix. A minor General Plan amendment and rezoning requests were approved by the Phoenix City Council in Sept. 2023, according to the DATABEX project database.
The St. Benedict development plans call for 138 units on 4.62 acres of the 19.2-acre campus. According to the announcement, construction is expected to begin in April 2025.
“These senior living communities will incorporate independent and assisted living, as well as memory care, directly on parish grounds,” the announcement said. “The development program is particularly designed to further the goals, mission, and values of the local Catholic Church. Acanthus Senior Living communities will offer residents compassionate care and encourage a sense of belonging and connection with the community.”
Shea Connelly Development, LLC was originally listed as the developer for the St. Benedict project. According to local news reports, Bart Shea formed Acanthus Development earlier this year to build senior living facilities on Catholic church campuses.
The announcement said the average size of each community will be approximately 150 rooms and offer independent living, assisted living and memory care. In addition to St. Benedict, “Plans are also underway 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.”
The article says the total development costs for all the projects are expected to be between $235M and $250M. According to Acanthus COO and General Counsel Chris Bayley, two-to-three of the projects could start construction in 2025, depending on zoning and entitlements. All projects will be designed to blend with the campuses on which they reside.
Despite being situated on Catholic Church grounds and having an expressed intent to “allow each parish to support senior services and senior living, as well as other core objectives like community outreach, education, and support for those in need,” the announcement says each development will be open to people of all faiths.
Bayley said in the article Acanthus has set up a fund to solicit equity investment and is in talks with lenders to also provide debt construction financing.
Rental rates are expected to be slightly less than market rates, but final prices have not yet been determined, the article said.
Under terms of the agreements, the article says Acanthus will pay a rental rate of $10K/month to each of the parishes. When the communities are stabilized and generating income, the company will donate 10% of net operating revenues to the church.
Based on the positive market reaction it has received for its metro Phoenix plans, the announcement says Acanthus has contacted the Diocese of Galveston Houston about similar developments and is also in discussions to expand to international locations, including Canada, Chile and Poland.
