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