WASHINGTON, DC 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):
                        March 28, 2006 (March 22, 2006)

               (Exact Name of Registrant as Specified in Charter)

          Tennessee                   01-13031                 62-1674303
----------------------------    --------------------      ----------------------
(State or Other Jurisdiction        (Commission             (I.R.S. Employer
      of Incorporation)             File Number)           Identification No.)

               111 Westwood Place, Suite 200
                    Brentwood, Tennessee                            37027
-------------------------------------------------------     --------------------
          (Address of Principal Executive Offices)               (Zip Code)

                                 (615) 221-2250
              (Registrant's Telephone Number, Including Area Code)

                                 Not Applicable
          (Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

     |_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

     |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)

     |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

     |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))

Item 1.01.  Entry into a Material Definitive Agreement

     On March 22, 2006, we entered into an Asset Purchase Agreement with Allen
Park Two, Inc. and Allen Park Three, Inc. (collectively, "Allen Park") to
acquire two senior living communities from Allen Park. The communities are
located in Shawnee, Kansas. The aggregate purchase price for the acquired assets
is $29,500,000, subject to customary closing adjustments and transaction
expenses. We expect to fund the purchase price with cash.

     The consummation of the transaction, which is subject to satisfaction of
certain closing conditions and contingencies, including satisfactory completion
of due diligence, is expected to be April 1, 2006.

Risks Associated with Forward-Looking Statements

     This Current Report on Form 8-K contains certain forward-looking statements
within the meaning of the federal securities laws, which are intended to be
covered by the safe harbors created thereby. Those forward-looking statements
include all statements that are not historical statements of fact and those
regarding the intent, belief or expectations of us or our management, including,
but not limited to, all statements regarding the consummation of the acquisition
and all statements regarding our expectations concerning the future financial
performance of the acquired communities and their effect on our financial
performance. All forward-looking statements may be affected by certain risks and
uncertainties, including without limitation the following: (i) the Company's
ability to satisfy all of the closing conditions and contingencies necessary to
consummate the acquisition, (ii) the Company's ability to integrate the
communities into the Company's operations, (iii) the Company's ability to
re-lease units at the community, (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 the Company's debt and lease obligations,
and (vi) 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.

     Should one or more of those risks materialize, actual results could differ
materially from those forecasted or expected. Although we believe that the
assumptions underlying the forward-looking statements contained herein are
reasonable, any of these assumptions could prove to be inaccurate, and
therefore, there can be no assurance that the forward-looking statements
included in this Form 8-K will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a representation by us
or any other person that our forecasts, expectations, objectives or plans will
be achieved. We undertake no 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


     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, hereunto duly authorized.

                                     AMERICAN RETIREMENT CORPORATION

                                     By:   /s/ Bryan D. Richardson
                                           Bryan D. Richardson
                                           Executive Vice President - Finance
                                           and Chief Financial Officer

Date:  March 28, 2006