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      8K HCPI Financing March 2007
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        </div>U.S. SECURITIES AND EXCHANGE COMMISSION</div>
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        D.C. 20549</strong></font></div>
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        8-K</strong></font></div>
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        REPORT</strong></font></div>
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        to Section 13 or 15(d) of</strong></font></div>
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        Securities Exchange Act of 1934</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        report (Date of earliest event reported):</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
        March 26, 2007</strong></font></div>
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        CORPORATION</strong></font></div>
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                  or other jurisdiction of incorporation)</font></div>
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                  File Number)</font></div>
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        Elliott Avenue, Suite 500</font></div>
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        Washington 98121</font></div>
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        of principal executive offices) (Zip Code)</font></div>
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        298-2909</font></div>
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        telephone number, including area code)</font></div>
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        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:</font></div>
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        Written
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        Soliciting material pursuant to Rule&#160;14a-12 under the Exchange Act (17 CFR
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        Pre-commencement communications pursuant to Rule&#160;14d-2(b) under the
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        Pre-commencement communications pursuant to Rule&#160;13e-4(c) under the
        Exchange Act (17 CFR 240.13e-4(c))</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;1.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
        into a Material Definitive Agreement.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        March
        15, 2007, Emeritus Corporation (the &#8220;Company&#8221;) filed a current report under Form
        8-K, Item 1.01 announcing the Company&#8217;s entry into a Purchase and Sale Agreement
        dated March 12, 2007, for the purchase of three communities consisting of
        453
        units located in South Carolina. Pursuant to the leases described below,
        the
        Company operated these facilities as assisted living and dementia care
        communities for seniors. On March 26, 2007, the Company completed the
        transaction. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        three
        acquired properties were part of an Amended and Restated Master Lease agreement
        dated September 18, 2002 between Health Care Property Investors, Inc. (&#8220;HCPI&#8221;),
        HCPI affiliates, Emeritus and Emeritus affiliates. As part of this transaction,
        in connection with the closing of the purchase of these three properties
        , the
        Master Lease was amended by the Sixth Amendment to Amended and Restated Master
        Lease to remove the three purchased communities from the Master Lease effective
        March 26, 2007. The Sixth Amendment also provided for the return of
        approximately $4.6 million in cash security deposits held by HCPI, of which
        approximately $1.2 million is considered a security deposit advance that
        is
        repayable in equal monthly installments of $20,000 or more. The cash security
        deposits were applied against the purchase price for the three acquired
        properties. In addition, the Sixth Amendment provides for a change in the
        interest rate used to calculate interest earned on the cash security deposits
        held by HCPI from a fixed rate of 9.0% per annum to a variable rate based
        on the
        Federal Funds Target Rate. Finally, the Sixth Amendment also provides that
        no
        interest will be earned on the remaining cash security deposits of approximately
        $3.0 million until such time as the $1.2 million security deposit advance
        mentioned above is repaid. This Master Lease is accounted for as an operating
        lease by the Company. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;2.03</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Creation
        of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
        Arrangement of a Registrant.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        the
        Purchase and Sale Agreement referred to in Item 1.01 above, the purchase
        price
        for three communities was approximately $29.0 million, including closing
        costs.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capmark
        Finance, Inc. ("Capmark") provided variable rate mortgage financing of
        $23.6&#160;million pursuant to a Loan Agreement dated March 26, 2007, by and
        among affiliated entities of Emeritus Corporation and Capmark Bank (the "Capmark
        Loan Facility"). Under the Capmark Loan Facility, the variable rate loans
        have a
        term of three years and bear interest at 290 basis points over the LIBOR
        rate,
        adjusted monthly and rounded upwards to the nearest .125%.&#160; <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        interest rate on the closing date was 8.22%.&#160;&#160;M</font>onthly
        interest-only payments are required for the first year and, thereafter, monthly
        payments of principal and interest are based on a 25-year amortization period.
        The balance is due in full in April 2010. The indebtedness outstanding under
        the
        Capmark Loan Facility may be accelerated under customary circumstances,
        including payment defaults, and is secured by the all real, personal and
        intangible assets used in the operation of the three communities. The loan
        may
        be repaid at any time upon no less than 30 days or more than 60 days written
        notice, if no events or default are continuing. The Company paid a 1.0% loan
        fee
        at closing and will be required to pay a 2.0% exit fee upon full payment
        of the
        loans. However, if the loans are refinanced with Capmark the exit fee will
        be
        waived. The Loan Agreement requires maintenance of a debt service coverage
        ratio, an aggregate minimum occupancy percentage and payment of annual capital
        expenditures of at least $300 per unit, or approximately $136,000, for
        maintenance of the properties. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
        Events</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company issued a press release on March 26, 2007, announcing the purchase
        of
        communities. A copy of the press release is being furnished as Exhibit 99.1
        to
        this Current Report on Form 8-K.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
        Statement </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>and</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
        Exhibits.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit
        No.</u></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Description</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
        Release dated March 26, 2007, EMERITUS ANNOUNCES PURCHASE OF
        COMMUNITIES.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, as amended, the
        registrant has duly caused this report to be signed on its behalf by the
        undersigned, hereunto duly authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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              <td align="left" valign="bottom" width="38%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
                  30, 2007</font></div>
              </td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EMERITUS
                  CORPORATION</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">&#160;</td>
            </tr>
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              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="right" valign="bottom" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
              </td>
              <td align="left" valign="bottom" width="39%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  Raymond R. Brandstrom</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Raymond
                  R. Brandstrom</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vice
                  President of Finance, Chief Financial Officer</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="38%">&#160;</td>
              <td align="left" valign="bottom" width="17%">&#160;</td>
              <td align="left" valign="bottom" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  Secretary</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
        TO EXHIBITS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit
        No.</u></strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Description</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -108pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a href="ex991pressreleasehcpipurchas.htm"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></a><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="ex991pressreleasehcpipurchas.htm">Press
        Release dated March 26, 2007,
        EMERITUS ANNOUNCES PURCHASE OF COMMUNITIES</a>.</font></div>
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{"company-data": {"conformed-name": "EMERITUS CORP\\WA\\", "cik": "0001001604", "assigned-sic": "8050", "irs-number": "911605464", "state-of-incorporation": "WA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-14012", "film-number": "07733143"}, "business-address": {"street1": "3131 ELLIOTT AVENUE", "street2": "SUITE 500", "city": "SEATTLE", "state": "WA", "zip": "98121", "phone": "2062982909"}, "mail-address": {"street1": "3131 ELLIOTT AVE STE 500", "city": "SEATTLE", "state": "WA", "zip": "98121"}}
8K HCPI Financing March 2007
U.S. 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):
March 26, 2007
EMERITUS
        CORPORATION
(Exact
        name of registrant as specified in charter)
Washington
1-14012
91-1605464
(State
                  or other jurisdiction of incorporation)
(Commission
                  File Number)
(IRS
                  Employer Identification No.)
3131
        Elliott Avenue, Suite 500
Seattle,
        Washington 98121
(Address
        of principal executive offices) (Zip Code)
(206)
        298-2909
(Registrant's
        telephone number, including area code)
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:
o
Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the
        Exchange Act (17 CFR 240.14d-2(b))
o
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
        15, 2007, Emeritus Corporation (the "Company") filed a current report under Form
        8-K, Item 1.01 announcing the Company's entry into a Purchase and Sale Agreement
        dated March 12, 2007, for the purchase of three communities consisting of
        453
        units located in South Carolina. Pursuant to the leases described below,
        the
        Company operated these facilities as assisted living and dementia care
        communities for seniors. On March 26, 2007, the Company completed the
        transaction.
The
        three
        acquired properties were part of an Amended and Restated Master Lease agreement
        dated September 18, 2002 between Health Care Property Investors, Inc. ("HCPI"),
        HCPI affiliates, Emeritus and Emeritus affiliates. As part of this transaction,
        in connection with the closing of the purchase of these three properties
        , the
        Master Lease was amended by the Sixth Amendment to Amended and Restated Master
        Lease to remove the three purchased communities from the Master Lease effective
        March 26, 2007. The Sixth Amendment also provided for the return of
        approximately $4.6 million in cash security deposits held by HCPI, of which
        approximately $1.2 million is considered a security deposit advance that
        is
        repayable in equal monthly installments of $20,000 or more. The cash security
        deposits were applied against the purchase price for the three acquired
        properties. In addition, the Sixth Amendment provides for a change in the
        interest rate used to calculate interest earned on the cash security deposits
        held by HCPI from a fixed rate of 9.0% per annum to a variable rate based
        on the
        Federal Funds Target Rate. Finally, the Sixth Amendment also provides that
        no
        interest will be earned on the remaining cash security deposits of approximately
        $3.0 million until such time as the $1.2 million security deposit advance
        mentioned above is repaid. This Master Lease is accounted for as an operating
        lease by the Company.
Item 2.03
Creation
        of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
        Arrangement of a Registrant.
Under
        the
        Purchase and Sale Agreement referred to in Item 1.01 above, the purchase
        price
        for three communities was approximately $29.0 million, including closing
        costs.
Capmark
        Finance, Inc. ("Capmark") provided variable rate mortgage financing of
        $23.6 million pursuant to a Loan Agreement dated March 26, 2007, by and
        among affiliated entities of Emeritus Corporation and Capmark Bank (the "Capmark
        Loan Facility"). Under the Capmark Loan Facility, the variable rate loans
        have a
        term of three years and bear interest at 290 basis points over the LIBOR
        rate,
        adjusted monthly and rounded upwards to the nearest .125%.
The
        interest rate on the closing date was 8.22%.  M
onthly
        interest-only payments are required for the first year and, thereafter, monthly
        payments of principal and interest are based on a 25-year amortization period.
        The balance is due in full in April 2010. The indebtedness outstanding under
        the
        Capmark Loan Facility may be accelerated under customary circumstances,
        including payment defaults, and is secured by the all real, personal and
        intangible assets used in the operation of the three communities. The loan
        may
        be repaid at any time upon no less than 30 days or more than 60 days written
        notice, if no events or default are continuing. The Company paid a 1.0% loan
        fee
        at closing and will be required to pay a 2.0% exit fee upon full payment
        of the
        loans. However, if the loans are refinanced with Capmark the exit fee will
        be
        waived. The Loan Agreement requires maintenance of a debt service coverage
        ratio, an aggregate minimum occupancy percentage and payment of annual capital
        expenditures of at least $300 per unit, or approximately $136,000, for
        maintenance of the properties.
Item
        8.01
Other
        Events
The
        Company issued a press release on March 26, 2007, announcing the purchase
        of
        communities. A copy of the press release is being furnished as Exhibit 99.1
        to
        this Current Report on Form 8-K.
Item
        9.01
Financial
        Statement
and
Exhibits.
(d)
Exhibits
Exhibit
        No.
Description
99.1
Press
        Release dated March 26, 2007, EMERITUS ANNOUNCES PURCHASE OF
        COMMUNITIES.
[The
        rest
        of this page is intentionally left blank]
SIGNATURE
Pursuant
        to the requirements of the Securities Exchange Act of 1934, as amended, the
        registrant has duly caused this report to be signed on its behalf by the
        undersigned, hereunto duly authorized.
March
                  30, 2007
EMERITUS
                  CORPORATION
By:
/s/
                  Raymond R. Brandstrom
Raymond
                  R. Brandstrom
Vice
                  President of Finance, Chief Financial Officer
and
                  Secretary
INDEX
        TO EXHIBITS
Exhibit
        No.
Description
99.1
Press
        Release dated March 26, 2007,
        EMERITUS ANNOUNCES PURCHASE OF COMMUNITIES
.