The Department of Homeland Security has bought three immigration detention facilities in Adelanto, California, from private prison giant GEO Group for $950 million. A Form 8-K that GEO filed with the Securities and Exchange Commission on Monday shows the purchase agreement was signed and closed on October 2.
The deal covers the Adelanto complex: the 1,280-bed Adelanto West ICE Processing Center, the 660-bed Adelanto East ICE Processing Center, and the 704-bed Desert View Annex — 2,644 beds and about 501,767 square feet of building space in total. CBRE, the world's largest commercial real estate services firm, was the only broker on the sale.
After federal and state taxes and transaction costs, GEO expects about $705 million in net proceeds. The company said it will combine the money with operating cash flow to pay down debt, repurchase shares and cover general corporate needs. Its board simultaneously raised the share repurchase authorization by $750 million to $1.25 billion, effective through December 31, 2029. GEO chairman and CEO George Zoley said the company is focused on using its capital to "enhance long-term value for shareholders, including through share repurchases."
This is the fifth private detention site DHS has bought since July. Over the summer, GEO's rival CoreCivic of Tennessee sold two other California detention facilities to the federal government for $1.5 billion. Altogether, federal spending on detention facility purchases has reached about $3.2 billion, concentrated largely in California — a buying spree enabled by a large federal detention funding infusion last year.
The buildings now belong to the federal government, but GEO isn't leaving: it will continue providing support services at all three facilities under its existing contract with Immigration and Customs Enforcement. The contract's current term runs through December 19, 2029, with a five-year option that could extend it to December 2034. Ownership has changed hands while day-to-day operations and oversight remain with the contractor, raising questions about accountability and costs.
With DHS making facility purchases a routine move, the expansion of federal detention capacity shows no sign of slowing. For private operators like GEO, the model is shifting from landlord to service contractor: monetize the real estate, cut debt, and expand the buyback war chest along the way.