SAN DIEGO (KGTV) — CoreCivic announced Monday it has sold two California detention facilities, including the Otay Mesa Detention Center, to the U.S. Department of Homeland Security.
The sale of the 1,994-bed Otay Mesa Detention Center and the 2,560-bed California City Detention Facility in California City, California, was completed on Thursday and is estimated to bring a gross sale of $1.5 billion, said the company.
That includes $732.6 million for the California City Facility and $739.2 million for the Otay Mesa Facility.
"Both facilities were purpose-built, specifically designed to care for individuals in a secure environment. Asset transactions of this nature are not uncommon for government," said CoreCivic Senior Director, Public Affairs, Ryan Gustin. "We have previously completed facility sales to government partners, and operating government-owned facilities is a well-established model within our business."
CoreCivic expects to continue managing both facilities under existing contracts with ICE, and staffed by the current CoreCivic workforce, said the company.
"However, the Company can provide no assurance that it will continue to manage these facilities in the future, or that the terms of the existing management agreements will remain the same," said the press release.
The Otay Mesa Detention Center has been under the spotlight lately after San Diego County Supervisors were denied full access during a scheduled public health investigation, leading to a lawsuit against the Department of Homeland Security, ICE and CoreCivic
