# Private immigrant detention center in Southern California sold to DHS as part of $1.5 billion deal

> Source: <https://www.mercurynews.com/2026/07/07/private-immigrant-detention-center-in-otay-mesa-sold-to-dhs-as-part-of-1-5-billion-deal/>
> Published: 2026-07-07 18:05:39+00:00

**Getting your**

[Trinity Audio](//trinityaudio.ai)player ready...The [Otay Mesa Detention Center](https://www.mercurynews.com/2026/05/11/lawmakers-conduct-unannounced-visit-to-otay-mesa-detention-center-but-cant-speak-with-detainees/) is now owned by the federal government following a $1.5 billion deal that included a second California immigration detention facility, the private prison operator [CoreCivic announced](https://ir.corecivic.com/news-releases/news-release-details/corecivic-sells-two-detention-facilities) Monday.

The U.S. Department of Homeland Security purchased the 1,994-bed Otay Mesa facility in San Diego for $739.2 million and the 2,560-bed California City Detention Facility in Kern County for $732.6 million. The sale was completed on Thursday, according to a news release from the Tennessee-based company.

“Asset transactions of this nature are not uncommon for government. We have previously completed facility sales to government partners, and operating government-owned facilities is a well-established model within our business,” said CoreCivic spokesperson Ryan Gustin.

In the midst of the Trump administration’s efforts to increase deportations, the Otay Mesa facility, which houses immigrant detainees, has come under scrutiny from immigration advocates and some elected officials — including the county of San Diego, which [filed a lawsuit](https://www.sandiegouniontribune.com/2026/03/10/san-diego-county-sues-dhs-to-conduct-full-health-inspection-of-immigration-detention-center/) to gain full access and conduct a public health inspection.

DHS did not respond to questions regarding the purchase on Monday.

Gustin said the company expects to continue managing both detention centers under their existing contracts with Immigration and Customs Enforcement “with full continuity of our existing operations, staffed by our current CoreCivic workforce.”

But the company said that the terms of management contracts “may be modified to reflect the change in ownership.” The management contract for the Otay Mesa Detention Center ends in December 2029.

“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. As has always been the case, ICE has the ability to terminate the management contracts for non-appropriation of funds or for convenience,” the company said.

CoreCivic also announced that it has been in discussions with ICE regarding the potential acquisition of more detention facilities.

A federal judge last month [ordered](https://www.sandiegouniontribune.com/2026/06/03/san-diego-judge-orders-dhs-to-allow-county-inspection-of-otay-mesa-immigrant-detention-center/) the Trump administration to allow county health officials to conduct a full public health inspection of the facility following a lawsuit filed by the county against DHS, ICE and CoreCivic.

County officials conducted an inspection that lasted nearly eight hours on June 12, according to a county spokesperson, and a report is expected at a later date.

“This is Trump’s mass detention agenda getting bigger, more permanent, and more expensive — with CoreCivic getting a billion-dollar payday while still running the cages,” said county Supervisor Terra Lawson-Remer in a statement regarding the sale. “DHS may own the building, but it does not own the law. San Diego County will keep fighting for oversight, transparency, and due process at Otay Mesa.”

Elected leaders and immigration advocates have [expressed concern](https://www.sandiegouniontribune.com/2026/02/20/health-inspectors-granted-limited-access-to-immigration-detention-center-but-lawmakers-turned-away/) following reports of poor conditions inside the facility, including overcrowding, untreated medical conditions, freezing temperatures and contaminated food. Both the DHS and CoreCivic have denied these claims.

Under state law, the California Attorney General’s Office is also responsible for reviewing the seven immigration facilities in California and publishing a report of its findings.

The [most recent report](https://oag.ca.gov/system/files/media/immigration-detention-2026.pdf), published in May, revealed a 21% increase in population at the facility, rising from 1,187 detainees at the time of the office’s visit in 2023 to 1,433 individuals by October 2025.

During the first 14 months of President Donald Trump’s second term, ICE detained about 10,500 individuals in San Diego and Imperial counties, [according to](https://www.sandiegouniontribune.com/2026/05/06/ice-reveals-new-data-to-congress-members-about-san-diego-immigration-enforcement-operations/) ICE data.
