ICE expands detention property purchases across U.S.

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ICE expands detention property purchases

Highlights

ICE is acquiring warehouses nationwide, paying premiums of 11% to 13%, including $145 million for a Salt Lake City site and $129 million for a Georgia facility.
The acquisitions, part of a $38.3 billion detention network overhaul targeting 24 properties, aim to accelerate new bed capacity and shift toward direct site ownership by end-2024.
Transactions have triggered political scrutiny and local opposition, notably in Salt Lake City where a site could detain 10,000 people, prompting policy reviews and potential project delays.

Warehouse acquisition strategy and pricing

The properties stretch from New Jersey to Utah, with sale prices ranging from $35 million for a 261,000-square-foot San Antonio warehouse to $145 million for an 833,000-square-foot site in Salt Lake City. A CoStar analysis cited in the report says ICE is paying premiums of 11% to 13% for the buildings. The agency has said the acquisitions are tied to a $38.3 billion detention network overhaul and are intended to accelerate deployment of new bed capacity.One of the largest transactions is a $129 million purchase of a warehouse in Social Circle, Georgia, from PNK Group USA. According to the report, PNK bought the land in 2024 for $29.4 million, developed the building the following year, and sold it to ICE in February. Other sellers include major real estate owners such as The Carlyle Group, Dalfen Industrial and Blue Owl.

Political scrutiny and operational changes

The report says a congressional group led by Senator Elizabeth Warren and Representative Jamie Raskin has sent questions this week to PNK owner Andrey Sharkov about the Georgia deal. Their inquiry is examining whether government contractors, real estate firms and property owners may have improperly profited from sales to ICE, according to a press release cited in the article. Court documents referenced in the report say Sharkov is a former Russian national who says he has renounced his citizenship.ICE has historically leased detention space from private prison companies, but it is now pursuing direct ownership to add beds more quickly and tailor sites to agency requirements. A document released by New Hampshire Governor Kelly Ayotte says ICE believes renovating non-traditional facilities will help it rapidly establish new detention centers. The agency previously said it plans to acquire 24 properties in total, including 16 regional processing centers and eight large-scale detention sites, with a goal of making them operational by the end of the year.

Community resistance and regional impact

Some of the projects are already drawing resistance in local communities where the warehouse conversions are planned. In Salt Lake City, ICE told city officials one warehouse could hold up to 10,000 people at a time, placing a major detention site near the airport and retail distribution hubs used by companies such as Amazon and Sephora. Public opposition has also led some owners in other markets to step back from potential sales.In Merrillville, Indiana, the owner of a warehouse reportedly linked to a possible ICE transaction issued a public letter saying it was not in talks with the government. At a recent protest outside the Salt Lake City property, police arrested a man on a property damage charge after officers found him inside throwing rocks at windows. The article also says recent news reports indicate the detention center plans may be paused while Homeland Security Secretary Markwayne Mullins reviews policies put in place by former Secretary Kristi Noem.

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