New USC-affiliated apartment floods, students relocated. Look at the damage
A luxury student apartment complex affiliated with the University of South Carolina just opened. It’s already having problems.
Gateway 737, a 650,000-square-foot facility on Gadsden Street across from neighboring Colonial Life Arena, bills itself as a “luxury” apartment building, boasting amenities like a two-story fitness center, a rooftop lounge and a resort-style pool. The cheapest apartments go for a monthly rent of $1,140 per resident, and caps around $1,690 per resident.
But social media posts on TikTok show some of the units in shambles, with inches of water covering entire apartment floors, soaking furniture and students navigating hallways with plastic bags tied over shoes.
The apartment complex, built with a $170 million budget though a partnership between the university’s foundation and Atlanta-based developer Holder Properties Inc., is brand new. After two years of construction concluded over the summer, it welcomed residents for the first time in July after quickly filling up for the 2025-26 academic year.
It is owned by the USC Foundation, and is independent of the university, though Gateway 737 pays for university services like police, fire safety and access cards. It is a shining jewel in the USC Foundation’s collection property holdings. At the apartment’s grand opening in July, officials boasted of the “unparalleled experience” it would offer students.
Jason Caskey, president of the USC Foundation, told the USC board on Oct. 24 that Gateway 737 had a 95% lease rate for fall 2026.
On Sunday afternoon, one of the sprinkler heads in a unit on the third floor was activated. Abby Hawkins, senior vice president for brand and communications for Holder Properties, said the unit flooded, as did others on the second and third floor.
The reason it was activated is still under investigation, Hawkins said, but the building is working to restore units.
“We’re taking it seriously,” Hawkins said. “In the meantime, we’re trying to make them as comfortable as possible.”
Some residents have been relocated to a hotel, while others have chosen to stay in their units. Hawkins could not provide a specific number of residents affected.
Holder Properties is hoping to have the building dried out by the end of the week, Hawkins said, but they are providing thoroughness over speed, as to avoid problems in the future.
Gateway 737 is a mixed-use development and features several retailers on its ground-floor, including Knowledge Perk Coffee Company, Chik-fil-A, Domino’s Pizza and a Roxanne’s Market.
Those businesses, Hawkins said, experienced minimal damage.
“We’re working through it with them, but really no major impacts to speak of,” Hawkins said.
Mike DeSumma, spokesman for the Columbia Fire Department, said crews have been to the property “a good deal” over the past few months. Columbia Fire has responded to the property at least eight times since Oct. 10, for fire alarms set off due to cooking hot water valves leaking, a broken hot water line and a broken sprinkler head.
“Our (department) heads are currently planning to meet with management of the property to discuss these issues and how to resolve them,” DeSumma told The State.
The USC Foundation has said Gateway 737 is at the “core” of the mission of the USC Foundation, which often buys and develops properties to benefit of the university and its students.
“We are proud to provide our students with an exceptional place to live, learn, and connect, and to create a lively new gateway to campus life and the city,” Caskey said in July.
This story was originally published October 29, 2025 at 8:00 AM.
