1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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): December 30, 1997 Commission file number 0-26980 ARV ASSISTED LIVING, INC. (Exact name of Registrant as specified in its charter) CALIFORNIA 33-0160968 (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 245 FISCHER AVENUE, D-1 COSTA MESA, CA 92626 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (714) 751-7400 2 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. INTEREST IN PROSPECT PARK RESIDENCE, LLC AND WATERSIDE VILLAS, LLC On December 30, 1997, ARV Assisted Living, Inc. ("ARV") completed sale transactions with Castle Senior Living, LLC, a Delaware limited liability company, for approximately $24.5 million. This amount includes the purchase price plus the repayment of outstanding loans and related accrued interest due to ARV from Prospect Park Residence, LLC and Waterside Villas, LLC. Pursuant to the terms of the transaction, ARV sold its 50 percent interest in one operating assisted living community and one assisted living community in the development phase. The interest in the two communities sold were as follows: Community Location Type Units - --------- -------- ---- ----- Prospect Park Residence Brooklyn, New York Assisted Living Community 127 Waterside Villas Cranbury, New Jersey Assisted Living Community under development 138 --- Total 265 === 3 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, thereunto duly authorized. ARV Assisted Living, Inc. By: /s/ Graham Espley-Jones ------------------------------ Graham Espley-Jones Chief Financial Officer (Duly authorized officer) Date: January 13, 1998