Exhibit 99.1
American Retirement Corporation Signs Agreement to Develop Nashville Community
NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 16, 2005--American Retirement
Corporation (NYSE: ACR) ("ARC" or the "Company"), a leading national provider of
senior living housing and care, today announced that it has sold land to and
entered into an agreement with ASF of Green Hills, LLC, an affiliate of American
Seniors Foundation (ASF), a not-for-profit organization, to develop a rental
assisted living residence in Nashville. The community, The Cumberland at Green
Hills, will have 93 assisted living units, and 17 Alzheimer's units.
As part of the transaction, ARC conveyed its interest in the land and other
incurred costs (e.g. architectural and engineering) to ASF, and will act as the
developer of the project and manage the community pursuant to a long-term
management agreement. The total development cost of the project is estimated to
be approximately $32.3 million. ARC has obtained $26.3 million of debt financing
for the project from Bank of America. In turn, ARC has provided ASF with an
aggregate of $32.3 million of development financing, including the land purchase
and construction costs, which is secured by a first mortgage lien.
Bill Sheriff, Chairman, President and CEO of the Company added, "We are
pleased to become involved in a second community with ASF. We have secured an
attractive long term management agreement and will also receive fees for
development and marketing services. We have provided interim financing to this
non-profit owner until the community stabilizes and ASF can put in place more
permanent tax-exempt financing. In the meantime we are earning an attractive
return on our capital and have a security interest in the community. We expect
to begin construction this month."
"We are pleased to be able to acquire the land and work with one of the
premier senior housing companies," said Chris Coates, President and CEO of
American Seniors Foundation. "This community is positioned to be the high end
provider in this unique infill site in Green Hills, which is an extremely
attractive and much sought-after location in the Nashville area. There are
virtually no other buildable sites left in Green Hills. The demographics of the
surrounding area are strong and the competition runs continuously full."
The Company will file a Form 8-K with the SEC which provides further
information concerning the transaction.
Profiles
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American Retirement Corporation
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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 76
senior living communities in 19 states, with an aggregate unit capacity of
approximately 14,300 units and resident capacity of approximately 16,000. The
Company owns 27 communities (including 9 communities in joint ventures), leases
43 communities, and manages 6 communities pursuant to management agreements.
Approximately 83% of the Company's revenues come from private pay sources.
American Seniors Foundation
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American Seniors Foundation was founded eight years ago to provide quality
housing and healthcare for seniors and to enhance the number and quality of
healthcare practitioners dedicated to serving seniors. Toward that end, and in
keeping with its charitable nature, American Seniors Foundation plans to offer
nursing school scholarships for those who agree to work in the senior living
industry upon completion of their studies.
Safe Harbor Statement
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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 development of the project and the project's effect
on the Company's financial performance and all statements regarding ASF's
anticipated tax-exempt refinancing of ARC's loans. These forward-looking
statements may be affected by certain risks and uncertainties, including without
limitation the following: (i) our ability to successfully complete the
development and lease up of the project , (ii) ability of ASF to repay any
amounts due under the loans and/or to obtain replacement financing on
satisfactory terms, (iii) the risk that we may experience adverse changes in
operating results and cash flow, (iv) the risks associated with adverse market
conditions of the senior housing industry and the United States economy in
general, (v) the risk associated with our debt and lease obligations, and (vi)
the risk factors described in our Annual Report on Form 10-K/A for the year
ended December 31, 2004 under the caption "Risk Factors" and in our 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