FAYETTEVILLE, N.C. — The 2002 CIAA Tournament is under way in Raleigh. The annual basketball tournament features a number of North Carolina colleges and universities.

One of the schools participating is

Fayetteville State University

. FSU has been identified as a high-growth institution, but with more students comes a bigger demand for housing.

A no vacancy sign is up for on-campus housing at FSU. Some students are living in hotels, while others are living nearby at the new University Place Apartments.

"We have all the students that stay on campus coming over here anyway, back and forth. So it's a close-knit community, so to speak," said student Jared Small.

The apartments are part of a unique public/private partnership. Realizing the need for student housing, the nonprofit FSU Foundation worked with a local developer to get apartments built for more than 160 students.

Phase two will open in the fall, making room for another 180 students.

Along with giving students a chance to live close to campus, leaders say the project also allows the school to provide scholarships.

"Our students pay rent, and as a result, the surplus generated from the revenue will go into the foundation to support the Chancellor's scholarship fund," said Dr. Denise Wyatt, vice chancellor for University Relations and Development.

The university was also excited to help revitalize Murchison Road. The city helped the foundation purchase rundown property for the project.

Student B.J. Brown said that quality housing like this will attract even more students.

"Most students who want to get away from home want to feel independent, and these apartments do just that," he said.

Students said that they like the space and privacy, which comes at a price. The cost is a little higher than it would cost to live in the crowded dorms.