EXHIBIT (A)(5)(D)


FOR IMMEDIATE RELEASE

October 18, 2001

ARV Assisted Living, Inc. Commences Tender Offer for American Retirement Villas
Properties III, L.P.

COSTA MESA, CA., October 18, 2001. ARV Assisted Living, Inc., the Managing
General Partner of American Retirement Villas Properties III, L.P., today
announced it is commencing a cash tender offer, through a wholly-owned limited
partnership, ARVP Acquisition, L.P., for up to 10,000 limited partnership units
for a net cash purchase price of $360 per unit. The Offer, which begins today,
will expire at 12:00 p.m. (Eastern Time) on Thursday, November 15, 2001. The
Offer is conditioned upon, among other things, there being validly tendered and
not withdrawn a number of units that will constitute at least a majority of the
outstanding units in ARVP III.

The Offer has been made in response to an earlier hostile tender offer made by
C3 Capital, LLC, a newly formed company, to purchase up to 10,000 limited
partnership units in ARVP III at a net cash purchase price of $300 per unit. ARV
has determined that the hostile offer made by C3 Capital is not in the best
interests of limited partners and has recommended that limited partners reject
the hostile offer and not tender their units to C3 Capital.

Founded in 1980, ARV is one of the largest operators of assisted living
communities in the nation, currently operating 57 communities containing
approximately 6,600 units in ten states.

THIS NEWS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE A
SOLICITATION/RECOMMENDATION STATEMENT WITH RESPECT TO THE TENDER OFFER FOR ARVP
III'S LIMITED PARTNERSHIP UNITS. ARVP III'S UNITHOLDERS WILL BE ABLE TO OBTAIN
ARVP III'S SOLICITATION/RECOMMENDATION STATEMENT FOR FREE WHEN IT BECOMES
AVAILABLE AT THE SEC'S WEB SITE AT WWW.SEC.GOV. ARV HAS URGED THE ARVP III
UNITHOLDERS TO CAREFULLY REVIEW ANY SUCH SOLICITATION/RECOMMENDATION STATEMENT
PRIOR TO MAKING ANY DECISIONS WITH RESPECT TO THE TENDER OFFER PROPOSAL.

Contact:
  ARV Assisted Living Inc.
  Abdo H. Khoury, President and
  Chief Financial Officer
  714/751-7400