politics
Department of Homeland Security Buys Two California Detention Centers for $1.5 Billion
The Department of Homeland Security acquired the California City Detention Facility and Otay Mesa Detention Center from CoreCivic. The transaction closed earlier this month using funds from a spending bill signed last summer. CoreCivic expects net proceeds of about $1.1 billion after taxes and expenses.
Jul 7, 3:28 PM·1m read3 sources
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Los Angeles TimesAudio version
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The Department of Homeland Security purchased the California City Detention Facility and the Otay Mesa Detention Center earlier this month for $1.5 billion. Both facilities had been operated by CoreCivic under contract with Immigration and Customs Enforcement. DHS used appropriations from a spending bill signed last summer to fund the purchase.
A DHS spokesperson said the acquisition allows ICE to expand detention space to support mass deportation operations. Fox News reported that the California City facility has a capacity of 2,560 beds and the Otay Mesa center has a capacity of 1,994 beds. CoreCivic reported expected net proceeds of about $1.1 billion after taxes and expenses.
Chief Executive Patrick Swindle stated the sale demonstrates the value of the company's real estate portfolio and provides balance sheet flexibility. The facilities will remain under federal ownership while CoreCivic continues to manage them under existing contracts. The California City contract expires in August 2027.
The Otay Mesa contract expires in December 2029 with a possible five-year extension. DHS noted that California policies limit cooperation from local partners, making direct federal ownership necessary to maintain detention capacity on the west coast. CoreCivic said it is in discussions with ICE about potentially selling additional facilities, though no further sales are confirmed.
