Private prison operator CoreCivic announced Monday it has sold two of its California detention facilities to the federal government, including the Otay Mesa Detention Center.
The sale was completed last Thursday for Otay Mesa and the California City Detention Facility for a total of $1.5 billion, according to an announcement issued to investors on Monday.
CoreCivic said it would continue to manage both facilities as part of its existing contracts with U.S. Immigration and Customs Enforcement.
CoreCivic president and CEO Patrick Swindle said in a statement, “We are pleased with the sales of these two mission-critical facilities for the company’s government partner, which demonstrates the value of the company’s underlying real estate portfolio, while reflecting our role as a long-term, flexible solutions provider to government.”
The Otay Mesa Detention Center has come under scrutiny regarding its conditions, particularly with a recent influx of detainees amid the Trump administration’s immigration enforcement efforts.
Earlier this year, the California Department of Justice issued a report that concluded overcrowding was a major issue at the facility that was impacting detainee access to prompt medical care and basic necessities.
San Diego County also sued the federal government and CoreCivic earlier this year after a coalition of lawmakers — including County Supervisors Terra Lawson-Remer and Paloma Aguirre — were blocked from inspecting the facility.
County officials say detainees have reported “freezing temperatures, untreated medical conditions, and food unfit for human consumption” at the facility, prompting requests for elected officials and public health personnel to inspect the prison.
Last month, a San Diego federal judge granted the lawmakers’ request and ordered the facility to permit a health inspection by county leaders.
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