CoreCivic has handed the deeds for two of its largest California immigration detention sites to the federal government, even as it stays on as the day-to-day operator of both. The Brentwood, Tennessee-based company confirmed on Monday, July 6, that it had closed a $1.5 billion sale of the Otay Mesa Detention Center in San Diego County and the California City Detention Facility in Kern County to the Department of Homeland Security, a transaction laid out in a company news release and confirmed in a filing with the Securities and Exchange Commission.
The SEC paperwork breaks the deal into two separate agreements, both signed and closed on July 2. DHS paid $739.2 million for the 1,994-bed Otay Mesa site and $732.6 million for the newly built, 2,560-bed California City facility. CoreCivic expects roughly $1.1 billion left over once an estimated $400 million in taxes and closing costs comes off the top.
