EXHIBIT (A)(1)(E)

                           OFFER TO PURCHASE FOR CASH

                     UP TO 10,000 LIMITED PARTNERSHIP UNITS

                                       OF

                AMERICAN RETIREMENT VILLAS PROPERTIES III, L.P.

                                       AT

                               $360 NET PER UNIT

                                       BY

                             ARVP ACQUISITION, L.P.

     THE OFFER, WITHDRAWAL RIGHTS AND PRORATION PERIOD WILL EXPIRE AT 12:00
MIDNIGHT, EASTERN TIME, ON THURSDAY, NOVEMBER 15, 2001, UNLESS THE OFFER IS
EXTENDED.

                                                                October 18, 2001

To Brokers, Dealers, Banks,
Trust Companies and other Nominees:

     ARVP Acquisition, L.P. (the "Purchaser"), a California limited partnership
which is wholly-owned by ARV Assisted Living, Inc., the General Partner of
American Retirement Villas Properties III, L.P., a California limited
partnership (the "Partnership"), is offering to purchase up to 10,000 of the
outstanding limited partnership units ("Units") of the Partnership at a net cash
price of $360 per Unit, without interest reduced by the amount of distributions,
if any, made by the Partnership from the date hereof until the date on which the
Purchaser purchases the Units tendered pursuant hereto (the "Offer Price"), upon
the terms and subject to the conditions set forth in the Purchaser's Offer to
Purchase dated October 18, 2001 (the "Offer to Purchase"), and in the related
Letter of Transmittal (which, together with any amendments or supplements
thereto, constitute the "Offer").

     The Offer is conditioned upon, among other things, there being validly
tendered and not withdrawn a number of Units that, together with the Units
already owned by the General Partner, constitute at least a majority of the
outstanding Units as of the date Units are accepted for purchase pursuant to the
Offer.

     Please furnish copies of the enclosed materials to those of your clients
for whom you hold Units registered in your name or in the name of your nominee.

     Enclosed herewith for your information and forwarding to your clients are
copies of the following documents:

          1.  Offer to Purchase dated October 18, 2001;

          2.  Letter of Transmittal to be used by unitholders of the Partnership
     in accepting the Offer (facsimile copies of the Letter of Transmittal with
     original signatures and all required signature guarantees may be used to
     tender the Units);

          3.  A printed form of letter that may be sent to your clients for
     whose account you hold Units in your name or in the name of a nominee, with
     space provided for obtaining such client's instructions with regard to the
     Offer;

          4.  Guidelines for Certification of Taxpayer Identification Number on
     Substitute Form W-9;

          5.  Return envelope addressed to Alpine Fiduciary Services, Inc., as
     Depositary;


          6.  Solicitation/Recommendation Statement on Schedule 14D-9;

          7.  Notice of Withdrawal and accompanying envelope; and

          8.  Urgent Instructions.

     YOUR PROMPT ACTION IS REQUESTED. WE URGE YOU TO CONTACT YOUR CLIENTS AS
PROMPTLY AS POSSIBLE. PLEASE NOTE THAT THE OFFER, WITHDRAWAL RIGHTS AND
PRORATION PERIOD WILL EXPIRE AT 12:00 MIDNIGHT, EASTERN TIME, ON THURSDAY,
NOVEMBER 15, 2001, UNLESS THE OFFER IS EXTENDED.

     In all cases, payment for Units accepted for payment pursuant to the Offer
will be made only after timely receipt by the Depositary, at the applicable
address set forth on the back cover of the Offer to Purchase, of (a) a Letter of
Transmittal (or a facsimile thereof), properly completed and duly executed,
together with any required signature guarantees, and (b) any other documents
required by the Letter of Transmittal. UNDER NO CIRCUMSTANCES WILL INTEREST BE
PAID ON THE PURCHASE PRICE OF THE UNITS TO BE PAID BY THE PURCHASER, REGARDLESS
OF ANY EXTENSION OF THE OFFER OR ANY DELAY IN MAKING SUCH PAYMENT.

     Neither the Purchaser nor the General Partner will pay any fees or
commissions to any broker or dealer or other person in connection with the
solicitation of tenders of Units pursuant to the Offer. You will be reimbursed
by the Purchaser upon request for customary mailing and handling expenses
incurred by you in forwarding the enclosed Offer materials to your customers.

     The Purchaser will pay or cause to be paid any transfer taxes payable on
the transfer of Units to it, except as otherwise provided in Instruction 6 of
the Letter of Transmittal.

     Questions and requests for additional copies of the enclosed material may
be directed to the Information Agent at its address and telephone numbers set
forth on the back cover of the enclosed Offer to Purchase.

                                          Very truly yours,
                                          ARVP ACQUISITION, L.P.

     NOTHING CONTAINED HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL RENDER YOU OR
ANY OTHER PERSON THE AGENT OF THE PURCHASER, THE GENERAL PARTNER, THE
PARTNERSHIP, THE DEPOSITARY, THE INFORMATION AGENT OR ANY AFFILIATE THEREOF OR
AUTHORIZE YOU OR ANY OTHER PERSON TO GIVE ANY INFORMATION OR MAKE ANY
REPRESENTATION ON BEHALF OF ANY OF THEM WITH RESPECT TO THE OFFER OTHER THAN THE
DOCUMENTS ENCLOSED AND THE STATEMENTS CONTAINED THEREIN.

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