DHS Pays CoreCivic $1.5 Billion for Two California ICE Detention Centers — Roughly Four Times Their Assessed Value

The Department of Homeland Security bought the Otay Mesa Detention Center in San Diego County and the California City Detention Facility in Kern County outright from CoreCivic in a sale that closed July 2, 2026, paying $739.2 million and $732.6 million respectively. A CalMatters examination published July 25 reported that county assessor records value the two properties at $164.9 million and $171.5 million, meaning the government paid roughly 4.5 and 4.3 times assessed value. ICE spokesman Jason Sweeney said California detention centers are “crucial to ICE’s detention network on the West Coast” and that the state’s sanctuary policies prevent reliance on local partners. CoreCivic said the prices came from the federal government’s required independent appraisal process and noted that California’s Proposition 13 limits assessed-value increases, so the two figures are not directly comparable.

Federal ownership matters beyond the price. Former ICE official Claire Trickler-McNulty said buying the sites likely shields them from California health inspections and from state zoning and environmental requirements — the same tools the state has used against ICE facilities, including a pending suit over a site near Gilroy. San Diego County Supervisor Paloma Aguirre tied the purchase to CoreCivic’s $500,000 donation to Trump’s inaugural committee; CoreCivic responded that it has given to inaugural events under both parties and that appraisals are conducted independently of political contributions.

CoreCivic expects roughly $1.1 billion in net proceeds, will continue operating both sites under ICE contracts, and has said talks about selling additional facilities to the government are underway but early.