May 1, 1998
Contact:  Tim R. Rose 
(804) 982-4848


	U.VA. FOUNDATION CONSIDERS PURCHASE OF CAVALIER INN 

	The University of Virginia Foundation is studying the Cavalier
Inn and Italian Villa Restaurant for possible acquisition, the
foundation's chief executive officer, Tim R. Rose, announced today.
	In an agreement signed last week, the current owner of the
Cavalier Inn (The Cavalier Inn Limited Partnership) has granted the
Foundation permission to review the business operations and perform
engineering studies to determine the feasibility of acquiring the
two-acre site, the hotel, restaurant and included improvements at
105-129 N. Emmet Street.
	"The Foundation Board has approved the terms of this agreement,"
said Rose, "but a final decision on acquisition will not be made until
late May."
	"This would be a wonderful opportunity for the University to
acquire an important property close to the central Grounds," said
Leonard W. Sandridge, U.Va.'s executive vice president and chief
financial officer.
	"We have no immediate plans to change the use of the hotel and
restaurant operations," he said, "and we consider the conference and
meeting space most useful. Because the property is at the entrance to
the University," Sandridge said, "we are interested in having a role in
its destiny." As with its other for-profit holdings, the foundation
would continue to pay real estate taxes on the hotel and restaurants.
	Incorporated in 1993, the U.Va. Foundation is the parent
corporation to several of the University's related foundations,
including those that manage real estate acquisition, the North Fork and
Fontaine research parks, operations at the Boar's Head and Birdwood Golf
Course, and property management services for fraternities and
sororities.


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	The U.Va. Real Estate Foundation's mission, Rose said, is to
anticipate future land use requirements, to acquire and manage
properties that strengthen the University's mission, to secure the
integrity of the University's boundaries by developing contiguous
properties, and to realize
investment returns to support its operation.
			
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