CoreCivic has sold its 2,560-bed California City Detention Facility in California City, Calif., and its 1,994-bed Otay Mesa Detention Center in San Diego to the United States and its assigns, by and through the Department of Homeland Security for an aggregate gross sales price of $1.5 billion, including $732.6 million for the California City facility and $739.2 million for the Otay Mesa facility. These two purpose-built facilities were specifically designed to care for individuals in a secure environment. After federal and state income taxes of approximately $400,000 million and transaction expenses, CoreCivic anticipates its net proceeds from the asset sales to be approximately $1.1 billion.
The company expects to continue to manage both facilities under the existing management contracts with Immigration & Customs Enforcement (ICE) related to each facility, although the terms of the management contracts may be modified to reflect the change in ownership. However, the com
