Based in part on the experience of a number of colleges and universities which have affiliated foundations performing real estate activities, and stemming from a report of the Urban Land Institute, the University of Virginia Real Estate Foundation (UREF) was incorporated in 1986 as a nonstock corporation pursuant to the Virginia Nonstock Corporation Act. The Articles of Incorporation were restated in 1994 to convert it to having a sole member, The University of Virginia Foundation.

The primary function and responsibility of the Foundation is acquiring, developing, and managing real property, or interests in real property and related assets, for the benefit of the University. To this end, prospective land acquisitions are undertaken by the Foundation to accommodate future academic, institutional and housing requirements and to promote the growth of the University's research and related activities. The Foundation also undertakes the acquisition and development of property adjacent to the University grounds to insure that development is in harmony and compatible with the University's academic setting and its stature as an historic and cultural landmark.

The Foundation acquires real estate in a variety of ways -- by purchase, by transfer from the University and other grantors affiliated with the University, and by gifts to it from outside donors. The Foundation initially was capitalized by a transfer of funds to it from the University's endowment. The Foundation's on-going sources of support derive from charging fees against the properties in its portfolio. The fees are industry based and include the following: asset management; property management; development; marketing and accounting fees.