$1.5 billion, per DHS and a CoreCivic press release, closed the federal government's purchase of 4,554 California detention beds this month. The price spans two facilities: the 2,560-bed California City Detention Facility and the 1,994-bed Otay Mesa Detention Center in San Diego, the two largest immigrant detention centers in California. CoreCivic, the Tennessee-based seller, expects net proceeds of approximately $1.1 billion after income taxes and transaction expenses, leaving roughly $400 million absorbed by taxes and deal costs.
Facility profile and contract terms
| Facility | Beds | Contract expiry | Extension option |
|---|---|---|---|
| California City Detention Facility | 2,560 | August 2027 | None stated |
| Otay Mesa Detention Center (San Diego) | 1,994 | December 2029 | Five years |
At $1.5 billion for 4,554 beds, the implied per-bed cost is approximately $329,600. CoreCivic retains management of both sites under existing Immigration and Customs Enforcement contracts, though the terms may be adjusted to reflect the ownership change.
Funding source and California context
DHS said the purchase was financed through appropriations in Trump's "One Big Beautiful Bill" spending legislation, signed last summer. The agency said ICE cannot access local state and county detention partnerships in California because of the state's sanctuary policies and legislation that limits or makes private detention financially impractical. Eight ICE detention facilities currently operate in California, together holding nearly 9,000 people. Federal ownership, DHS said, removes the constraint those policies placed on detention capacity.
CoreCivic's position after the sale
CoreCivic chief executive Patrick Swindle said the transaction demonstrates the value of the company's underlying real estate portfolio and provides balance sheet flexibility for growth and shareholder returns. The company is in discussions with ICE about potentially selling additional facilities, though it cautioned those talks are at various stages and no assurances can be given on timing or outcome. Both the California City and Otay Mesa facilities have faced lawsuits from detainees alleging mistreatment; CoreCivic has denied those allegations. The Otay Mesa contract, the longer of the two, runs to December 2029 with a five-year extension option attached.