The Otay Mesa Detention Center now belongs to the federal government following a major transaction.

CoreCivic revealed on Monday that it has transferred ownership of the Otay Mesa and California City detention facilities to the Department of Homeland Security in a deal valued at $1.5 billion combined.

The nearly 2,000-bed Otay Mesa site in southeastern San Diego continues to house detainees from Immigration and Customs Enforcement along with those from the U.S. Marshals Service.

CoreCivic received $739.2 million for the San Diego location and $732.6 million for the California City property yet anticipates ongoing management of both sites under existing ICE agreements amid the current administration push for large-scale removals.

Company spokesman Ryan Gustin stated that CoreCivic plans to maintain operations at the facilities with no disruption and with the same workforce in place. He noted that such ownership shifts are standard practice and that managing government-owned sites represents an established approach for the firm.

Democratic lawmakers and the San Diego County Board of Supervisors have pursued legal action against DHS to gain entry to the facility after repeated denials of inspection requests.

San Diego County Supervisor Terra Lawson-Remer who was among those blocked from access condemned the transaction as an expansion of detention capacity that remains under private operation despite the ownership change.

CoreCivic acquired the 37-acre Otay Mesa property for $10.3 million in 2010 and launched immigration detention operations there in 2015 while the California City site opened in 1998 and began serving immigration purposes last year.

CoreCivic chief executive Patrick Swindle expressed satisfaction with the sales describing the valuations as the result of required federal appraisal procedures.

Proceeds from the sales will allocate roughly half toward debt reduction with the balance directed to broader corporate needs.

A recent inewsource investigation detailed nearly 70 court cases citing health and medical care shortfalls at Otay Mesa including potentially dangerous gaps in diabetes treatment. Comparable concerns have surfaced at the California City location.

Former detainees reported declines in health missed medical procedures and insufficient attention as facility populations have grown sharply with Otay Mesa averaging more than double its prior numbers over five years.

Both ICE and CoreCivic declined interview requests but issued statements affirming that care meets federal standards and that detainee well-being remains a priority.

The county completed an inspection in June though findings remain unpublished. A state Department of Justice review from May highlighted worsening conditions and resource strains particularly around medical access.

CoreCivic holds ICE contracts for California City through August 2027 and for Otay Mesa through December 2029 with a possible five-year extension to 2034.

The company recorded $2.2 billion in revenue last year marking a 13 percent increase from the prior period.