CoreCivic Sells California City Detention Facility to Federal Government in $1.5 Billion Deal

CALIFORNIA CITY, Calif. — July 6, 2026 — CoreCivic, one of the nation’s largest private corrections and detention companies, announced it has completed the sale of two major California immigration detention facilities to the federal government for a combined $1.5 billion, including the California City Detention Facility in Kern County.

The transaction, finalized on July 2, 2026, transfers ownership of the 2,560-bed California City Detention Facility and the 1,994-bed Otay Mesa Detention Center in San Diego to the U.S. Department of Homeland Security (DHS).

The sale includes:

• California City Detention Facility: $732.6 million

• Otay Mesa Detention Center: $739.2 million

Together, the facilities sold for an aggregate $1.5 billion.

What Happens Next?

Although ownership has changed, CoreCivic expects to continue operating both detention facilities under existing management contracts with U.S. Immigration and Customs Enforcement (ICE). Company officials noted that those agreements could be modified because of the ownership transfer and that ICE retains the authority to terminate the contracts under certain conditions.

Current contract expiration dates include:

• California City Facility: August 2027

• Otay Mesa Facility: December 2029, with a five-year extension option

Company Plans for the Proceeds

After paying approximately $400 million in taxes and transaction-related expenses, CoreCivic expects to receive approximately $1.1 billion in net proceeds.

According to the company, the funds will primarily be used to:

• Pay down hundreds of millions of dollars in outstanding debt.

• Retire its remaining 4.75% Senior Notes due in 2027.

• Support future corporate growth opportunities.

• Potentially repurchase company stock, subject to financial covenant requirements.

• Explore acquisitions that expand healthcare, detention, and government support services.

CoreCivic also stated it intends to maintain financial flexibility to pursue additional acquisitions, similar to its recent purchase of Clinical Solutions Pharmacy earlier this year.

Additional Facility Sales Possible

The company confirmed it is currently in discussions with ICE regarding the possible sale of additional detention facilities. However, CoreCivic emphasized that there is no guarantee future transactions will occur.

CEO Statement

CoreCivic President and CEO Patrick Swindle said the transaction demonstrates the value of the company’s real estate portfolio while strengthening its long-term partnership with the federal government.

“The sale of these facilities at what we believe is a fair valuation provides the Company with significant balance sheet flexibility and positions us well to grow the Company’s businesses and return value to its shareholders, while remaining a dependable partner for government,” Swindle said.

Local Impact

The sale represents one of the largest federal real estate acquisitions involving immigration detention facilities in recent years. For residents of California City and the surrounding region, daily operations at the facility are expected to continue without immediate changes since CoreCivic anticipates remaining the facility’s operator under its management agreement with ICE.

However, the federal government will now own the facility, marking a significant shift in the ownership structure of one of the region’s largest detention centers.

Source: CoreCivic press release, July 6, 2026.