Document:

<PAGE>

                                                                   EXHIBIT 10.94

                               DEED OF TRUST NOTE

$2,207,400.00                                            Los Angeles, California
                                                                December 1, 2001

    FOR VALUE RECEIVED, the undersigned, ARV FULLERTON, L.P., a California
limited partnership, promises to pay RED MORTGAGE CAPITAL, INC., an Ohio
corporation, or order, at its principal office at 150 East Gay Street, 22nd
Floor, Columbus, Ohio 43215 or at such other place as may be designated in
writing by the holder of this Note, the principal sum of TWO MILLION TWO HUNDRED
SEVEN THOUSAND FOUR HUNDRED AND 00/100THS DOLLARS ($2,207,400.00), with interest
thereon from the date hereof at the rate of Seven and one-quarter per centum
(7.25 %) per annum on the unpaid balance until paid. The principal and interest
of this Note are to be paid in monthly installments as follows:

            Interest alone shall be due and payable on the first day of January,
        2002. Thereafter, commencing on February 1, 2002, monthly installments
        of principal and interest at the rate of Seven and one-quarter per
        centum (7.25 %) per annum shall be due and payable in the sum of
        FOURTEEN THOUSAND FOUR HUNDRED NINETY AND 86/100THS DOLLARS ($14,490.86)
        each, such payments to continue monthly thereafter on the first day of
        each succeeding month until the entire indebtedness has been paid in
        full. In any event, the balance of principal (if any) remaining unpaid,
        plus accrued interest, shall be due and payable on January 1, 2037. The
        installments of principal and interest shall be applied first to
        interest at the rate aforesaid upon the principal sum or so much thereof
        as shall from time to time remain unpaid, and the balance thereof shall
        be applied on account of principal.

    Both principal and interest under this Note, as well as the additional
payments set forth in the Deed of Trust, shall be payable at the office of RED
MORTGAGE CAPITAL, INC., at its principal office at 150 East Gay Street, 22nd
Floor, Columbus, Ohio 43215 or such other place as the holder may designate in
writing.

    Prepayment of this Note is subject to the terms and provisions set forth in
Allonge #1 attached hereto and incorporated herein by this reference. Commencing
on February 1, 2007, privilege is reserved to pay the debt in whole or in an
amount equal to one or more monthly payments of principal next due, on the last
day of any month prior to maturity upon at least thirty (30) days' prior written
notice to holder upon the terms and conditions set forth in Paragraph 1 of said
Allonge #1.

    If default be made in the payment of any installment under this Note, and if
the default is not made good prior to the due date of the next such installment,
the entire principal sum and accrued interest shall at once become due and
payable without notice at the option of the holder of this Note. Failure to
exercise this option shall not constitute a waiver of the right to exercise the
same in the event of any subsequent default.

    The makers and endorsers severally waive diligence, presentment, protest,
and demand, and also notice of protest, dishonor, and nonpayment of this Note,
and expressly agree that this Note, or any payment thereunder, may be extended
from time to time, and consent to the acceptance of further security for this
Note, including other types of security, all without in any way affecting the
liability of the makers and endorsers hereof. The right to plead any and all
statutes of limitations as a defense to any demand on this Note, or any guaranty
thereof, or to any agreement to pay the same, or to any demand secured by the
Deed of Trust or other security, securing this Note, or any and all obligations
or liabilities arising out of or in connection with said Note or Deed of Trust
by any of the parties hereto, is expressly waived by each and every of the
makers, endorsers, guarantors or sureties.

    Principal and interest are payable in lawful money of the United States. If
action be instituted on this Note, the undersigned promise(s) to pay in addition
to the costs and disbursements allowed by law such sum as the Court may adjudge
reasonable as attorney's fees in said action. This Note is secured by a Deed of
Trust, of even date herewith, to Fidelity National Title Insurance Company, as
Trustee, on real estate situated in the City of Fullerton, County of Orange,
California (the "Deed of Trust").

    In the event any installment or part of any installment due hereunder
becomes delinquent for more than fifteen (15) days, there shall be due, at the
option of the holder, in addition to other sums due hereunder, a sum equal to
two percent (2%) of the amount of such installment of principal and interest so
delinquent. Whenever under the law of the jurisdiction where the

<PAGE>

                                     - 2 -

property is located, the amount of any such late charge is considered to be
additional interest, this provision shall not be effective if the rate of
interest specified in this Note, together with the amount of the late charge,
would aggregate an amount in excess of the maximum rate of interest permitted
and would constitute usury.

    Notwithstanding any other provision contained in this Note, it is agreed
that the execution of this Note shall impose no personal liability on the maker
hereof for payment of the indebtedness evidenced hereby and in the event of a
default, the holder of this Note shall look solely to the property described in
the Deed of Trust and to the rents, issues and profits thereof in satisfaction
of the indebtedness evidenced hereby and will not seek or obtain any deficiency
or personal judgment against the maker hereof except such judgment or decree as
may be necessary to foreclose and bar its interest in the property and all other
property mortgaged, pledged, conveyed or assigned to secure payment of this
Note, except as set out in the Deed of Trust of even date given to secure this
indebtedness.

    Should this Note be signed by more than one person and/or firm and/or
corporation, all of the obligations herein contained shall be considered joint
and several obligations of each signer.

    Signed and sealed as of the 1st day of December, 2001.

                          ARV FULLERTON, L.P.
                          a California limited partnership

                          By: American Retirement Villas Properties II
                              a California limited partnership
                              General Partner

                              By: ARV Assisted Living, Inc.
                                  a Delaware corporation
                                  General Partner

                                  By:
                                      -----------------------------------
                                      Douglas Armstrong
                                      Vice President

    I HEREBY CERTIFY that this is the Note described in and secured by the Deed
of Trust of even date herewith, and in the same principal amount as herein
stated, to Fidelity National Title Insurance Company, Trustee(s), on real estate
in the City of Fullerton, Orange County, California.

    Dated this ____ day of December, 2001.

[SEAL]                                  ----------------------------------------
                                                      Notary Public

My Commission Expires:
                      -------------------------------

--------------------------------------------------------------------------------

                               STATE OF CALIFORNIA

                          LOAN NO. 143-22015 PM/ALF/REF

               --------------------------------------------------

                               Deed of Trust Note

               --------------------------------------------------

                               ARV FULLERTON, L.P.
                                       TO
                           RED MORTGAGE CAPITAL, INC.

                            No. 143-22015 PM/ALF/REF

        Insured under ss.232 pursuant to 223 (f) of the National Housing
                    Act and Regulations published thereunder

                          In effect on October 23, 2001

                     A total sum of $ 2,207,400.00 has been
          approved for insurance hereunder by the Secretary of Housing
             and Urban Development acting by and through the Federal
                              Housing Commissioner

                    By
                      ------------------------------------
                               (Authorized Agent)

                      Date
                          --------------------------------

         Reference is made to the Act and to the Regulations thereunder
        covering assignments of the insurance protections on this note.

--------------------------------------------------------------------------------<PAGE>

                                                                   EXHIBIT 10.95

                                  ALLONGE #1 TO
                              DEED OF TRUST NOTE OF
                               ARV FULLERTON, L.P.
                                       TO
                           RED MORTGAGE CAPITAL, INC.
                 IN THE ORIGINAL PRINCIPAL SUM OF $2,207,400.00
                             DATED DECEMBER 1, 2001

================================================================================

    1. Except as provided in Paragraphs 2, and 3 below, Maker may not prepay any
sums due under the Mortgage Note (the "Note") prior to February 1, 2007.
Commencing on February 1, 2007, upon thirty (30) days advance written notice to
the Holder, Maker may prepay the indebtedness evidenced by this Note, in whole
or in an amount equal to one or more monthly payments of principal next due, on
the last day of any month, provided such prepayment is accompanied by the
prepayment penalty (expressed as a percentage of the principal amount so
prepaid) set forth below:

<TABLE>
<CAPTION>
                PREPAYMENT PERIODS                  PREPAYMENT PENALTY
                ------------------                  ------------------
<S>                                                     <C>
    February 1, 2007 through January 31, 2008             5  %
    February 1, 2008 through January 31, 2009             4  %
    February 1, 2009 through January 31, 2010             3  %
    February 1, 2010 through January 31, 2011             2  %
    February 1, 2011 through January 31, 2012             1  %
    February 1, 2012 and thereafter                       None
</TABLE>

    All such prepayments, including the principal sum and interest thereon to
and including the date of such prepayment, shall be paid in immediately
available Federal Funds.

    2. Notwithstanding any prepayment prohibition imposed and/or penalty
required by this Allonge #1 with respect to voluntary prepayments made prior to
February 1, 2011, the indebtedness may be prepaid in whole or in part without
the consent of the holder and without prepayment premium if the Commissioner
determines that prepayment will avoid a mortgage insurance claim and is
therefore in the best interest of the Federal Government.

    3. The provisions of Paragraph 1 of this Allonge #1 shall not apply and no
prepayment premium shall be collected by the holder with respect to any
prepayment which is made by or on behalf of Maker from insurance proceeds as a
result of damage to the property or condemnation awards which may, at the option
of the holder, be applied to reduce the indebtedness evidenced by the Note
pursuant to the terms of the Mortgage given of even date to secure the
indebtedness evidenced by the Note.

    4. A reduction in the principal amount of the Note required by the
Commissioner at the time of Initial/Final Endorsement by the Commissioner as a
result of the Commissioner's cost certification requirements shall not be
construed as a prepayment hereunder. If a reduction is required by the
Commissioner as aforesaid, or if any prepayment from any source (to the extent
permitted herein) is made, the remaining payments due on the Note may, with the
approval of the holder and the Commissioner, be recast such that the required
monthly payments of principal and interest shall be in equal amounts sufficient
to amortize the Note over the then remaining term thereof.

                          ARV FULLERTON, L.P.
                          a California limited partnership

                          By: American Retirement Villas Properties II
                              a California limited partnership, General Partner

                              By: ARV Assisted Living, Inc.
                                  a Delaware corporation, General Partner

                                  By:
                                      ----------------------------------------
                                      Douglas Armstrong
                                      Vice President

<PAGE>

                                      - 2 -

                                END OF ALLONGE #1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]