NewsMeter

DHS closes $1.5 billion purchase of two California detention centers from CoreCivic

7/8/2026

$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.

Keep reading

Read the full story

Open on NewsMeter