Acanthus Development, based in Scottsdale, is planning to create senior living communities on Catholic church campuses in the metro Phoenix area. This project aims to utilize underused church land to address the increasing demand for senior housing. According to the Phoenix Business Journal, the initiative, supported by the Roman Catholic Diocese of Phoenix, will involve five church properties and is expected to cost between $235 million and $250 million.
Groundbreaking for the first facility is set for April 2025 at St. Benedict Catholic Church in Ahwatukee. Additional projects will follow at St. Clare of Assisi in Surprise, St. Raphael Catholic Church in Glendale, and St. Gabriel Catholic Church in Cave Creek. Chris Bayley, COO of Acanthus Development, noted that while the schedule depends on zoning and entitlement processes, they expect to start two or three projects in 2025, as reported by Phoenix Business Journal.
With a funding strategy that includes both equity investments and discussions for straight debt construction financing, Acanthus is aiming to set senior housing rental rates slightly below the market standard. "The idea is to make sure as many people as possible at each parish can have access to it," Bayley told Phoenix Business Journal. The constructed senior living residences will include independent living, assisted living, and memory care units, averaging 150 rooms per community.
Acanthus Development will provide a steady revenue stream to participating parishes as part of the project. Each church will receive a base monthly rental payment of $10,000. Once the senior living communities are stabilized and generating rental income, Acanthus promises to donate 10% of the net operating revenues to each parish, as mentioned by ABC15 News. The senior living projects will cover three to four acres each, featuring ample parking and secure outdoor areas, especially for memory care residents.
Acanthus Development plans to expand its model beyond Arizona, with developments already in progress in Texas with the Diocese of Galveston-Houston. CEO Bart Shea mentioned that there are also international opportunities being explored in Canada, Chile, and Poland. These initiatives will operate independently from the Diocese and will not require residents to be Catholics or parish members, making them appealing to a broader family demographic. "During the school year, residents can volunteer at the school," Bayley noted in a statement to Phoenix Business Journal.
