8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


 Date of report (Date of earliest event reported): June 16, 2006 (June 12, 2006)

                         AMERICAN RETIREMENT CORPORATION
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               (Exact Name of Registrant as Specified in Charter)

           Tennessee                   01-13031                62-1674303
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 (State or Other Jurisdiction        (Commission            (I.R.S. Employer
       of Incorporation)             File Number)          Identification No.)

            111 Westwood Place, Suite 200
                 Brentwood, Tennessee                              37027
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       (Address of Principal Executive Offices)                  (Zip Code)

                                 (615) 221-2250
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              (Registrant's Telephone Number, Including Area Code)

                                 Not Applicable
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          (Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

     |_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

     |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)

     |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

     |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))



Item 1.01.      Entry into a Material Definitive Agreement

Item 2.03.      Creation of a Direct Financial Obligation or an Obligation under
                an Off-Balance Sheet Arrangement of a Registrant

         On June 12, 2006, we closed our acquisition, through a newly-formed
joint venture, of Freedom Village of Bradenton, a continuing care retirement
community located in Bradenton, Florida. The aggregate purchase price for the
acquired assets was $95 million plus the assumption of certain resident refund
liabilities and other liabilities and customary transaction expenses.

         We consummated the acquisition through a joint venture formed with
investors in a senior housing strategy fund managed by Prudential Real Estate
Investors, the real estate investment management business of Prudential
Financial, Inc. The joint venture is owned 20% by us and 80% by our joint
venture partner. Capmark Bank provided the joint venture with $61.2 million of
non-recourse mortgage debt financing for the transaction. The remainder of the
purchase price was funded by proportional capital contributions from us and our
joint venture partner. We have agreed to manage the independent living component
of the community pursuant to a long-term management agreement and lease the
health center (assisted living and skilled nursing components) from the joint
venture.

         The loan from Capmark to the joint venture is evidenced by a loan
agreement and a promissory note, and is secured by a mortgage lien on the
community. The loan matures on June 9, 2009, and the joint venture has two
one-year extension options. The outstanding principal balance of the loan will
bear interest at a variable rate equal to LIBOR plus 2.50%. The joint venture
will be required to make monthly payments of principal (based on a 30 year
amortization schedule) plus interest through the scheduled maturity date.
Although the loan is non-recourse, we guaranty certain customary "non-recourse
carveouts" for the benefit of Capmark.

         We will act as the lessee of the skilled nursing and assisted living
facility components of the community pursuant to a ten year, triple-net lease
agreement with the joint venture. We will be required to make monthly base
rental payments, percentage rent payments, and certain operating cost payments,
such as taxes and insurance, and other customary payments of additional rent.
Base monthly rent for the first year of the lease will be $153,333.33, and
thereafter will increase by 2.5% annually. Percentage rent payments will equal
50% of all operating cash flow for each lease year, to the extent that such cash
flow exceeds a predetermined amount, which is $100,000 for the first year,
increasing by 2.5% each year thereafter. We will also make annual payments to
the joint venture for capital replacements at the community, with the first
payment equaling $50,000, and payments in subsequent years equaling the greater
of (i) $300,000 or (ii) 2% of gross revenue for such year.


Risks Associated with Forward-Looking Statements
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         This Current Report on Form 8-K contains certain forward-looking
statements within the meaning of the federal securities laws, which are intended
to be covered by the safe harbors created thereby. Those forward-looking
statements include all statements that are not historical statements of fact and
those regarding the intent, belief or expectations of us or our management,
including, but not limited to, all statements regarding the formation of the
joint venture and the consummation of the acquisition and the related financing,
and all statements regarding our expectations concerning the future financial
performance of the acquired communities and their effect on our financial
performance. All forward-looking statements may be affected by certain risks and
uncertainties, including without limitation the following: (i) our ability to
successfully integrate the acquisition into our operations, (ii) our ability to
resell units at the community, (ii) the risk that we will be unable to improve
our results of operations, increase cash flow and reduce expenses, (iii) the
risks associated with adverse market conditions of the senior housing industry
and the United States economy in general, (iv) the risks associated with our
debt and lease obligations, and (v) the risk factors described in our Annual
Report on Form 10-K for the year ended December 31, 2005 under the caption "Risk
Factors" and in our other filings with the SEC.

         Should one or more of those risks materialize, actual results could
differ materially from those forecasted or expected. Although we believe that
the assumptions underlying the forward-looking statements contained herein are
reasonable, any of these assumptions could prove to be inaccurate, and
therefore, there can be no assurance that the forward-looking statements
included in this Form 8-K will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a representation by us
or any other person that our forecasts, expectations, objectives or plans will
be achieved. We undertake no obligation to publicly release any revisions to any
forward-looking statements contained herein to reflect events and circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events.

Item 7.01.  Regulation FD Disclosure

         On June 16, 2006, we issued a press release describing the foregoing
transaction. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 9.01.  Financial Statements and Exhibits

      (d)     Exhibits

              99.1   Press Release dated June 16, 2006



                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.

                                 AMERICAN RETIREMENT CORPORATION


                                 By:   /s/ Bryan D. Richardson
                                       ----------------------------------------
                                       Bryan D. Richardson
                                       Executive Vice President - Finance
                                       and Chief Financial Officer

Date:  June 16, 2006



                                  EXHIBIT INDEX
Exhibit
 Number        Description
- -------        -----------

 99.1          Press Release dated June 16, 2006

EX-99.1

                                                                    Exhibit 99.1

      American Retirement Corporation Acquires Florida Community

    NASHVILLE, Tenn.--(BUSINESS WIRE)--June 16, 2006--American
Retirement Corporation (NYSE: ACR) ("ARC" or the "Company"), a leading
national provider of senior living housing and care, today announced
that it completed the acquisition, through a newly-formed joint
venture, of Freedom Village of Bradenton, an entry fee continuing care
retirement community located in Bradenton, Florida, for an aggregate
purchase price of $95 million plus the assumption of certain resident
refund liabilities that are generally paid out of the entry-fee units.
The community consists of 500 independent living retirement
apartments, a 120 bed skilled nursing facility and a 140 bed assisted
living facility.
    The Company consummated the acquisition through a joint venture
owned 20% by ARC and 80% by investors in a senior housing strategy
fund managed by Prudential Real Estate Investors (PREI(R)), the real
estate investment management business of Prudential Financial, Inc.
Capmark Bank provided approximately $62 million of senior mortgage
debt financing for the transaction. The remainder of the purchase
price was funded by proportional capital contributions from the
members of the joint venture entity. ARC will manage the independent
living component of the community pursuant to a long-term management
agreement and will lease the health center (assisted living and
skilled nursing components) from the joint venture.

    Company Profile

    American Retirement Corporation is a national senior living and
health care services provider offering a broad range of care and
services to seniors, including independent living, assisted living,
skilled nursing and Alzheimer's care. Established in 1978, the Company
believes that it is a leader in the operation and management of senior
living communities, including independent living communities,
continuing care retirement communities, free-standing assisted living
communities, and the development of specialized care programs for
residents with Alzheimer's and other forms of dementia. The Company's
operating philosophy is to enhance the lives of seniors by striving to
provide the highest quality of care and services in well-operated
communities designed to improve and protect the quality of life,
independence, personal freedom, privacy, spirit, and dignity of its
residents. The Company currently operates 83 senior living communities
in 19 states, with an aggregate unit capacity of approximately 16,200
units and resident capacity of approximately 17,800. The Company owns
34 communities (including 14 communities in joint ventures), leases 44
communities, and manages 5 communities pursuant to management
agreements.

    Safe Harbor Statement

    Statements contained in this press release and statements made by
or on behalf of ARC relating hereto may be deemed to constitute
forward-looking information made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include all statements that are not
historical statements of fact and those regarding the intent, belief
or expectations of the Company or its management, including, without
limitation, all statements regarding the Company's expectations
concerning the future financial performance of the community and its
effect on the Company's financial performance. These forward-looking
statements may be affected by certain risks and uncertainties,
including without limitation the following: (i) the Company's ability
to integrate the community into the Company's operations, (ii) the
risk that the Company will be unable to improve its results of
operations, increase cash flow and reduce expenses, (iii) the risks
associated with adverse market conditions of the senior housing
industry and the United States economy in general, (iv) the risk
associated with the Company's significant debt and lease obligations,
and (v) the risk factors described in the Company's Annual Report on
Form 10-K for the year ended December 31, 2005 under the caption "Risk
Factors" and in the Company's other filings with the SEC. In light of
the significant uncertainties inherent in the forward-looking
statements included herein, the Company's actual results could differ
materially from such forward-looking statements. The Company does not
undertake any obligation to publicly release any revisions to any
forward-looking statements contained herein to reflect events and
circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events.

    CONTACT: American Retirement Corporation, Nashville
             Ross C. Roadman, 615-376-2412