Here's where ICE is spending big on warehouses to turn into detention centers

Since the beginning of the year, Immigration and Customs Enforcement (ICE) has invested hundreds of millions of dollars in the procurement of at least 11 large facilities across eight states. These acquisitions, which range from New Jersey to Utah, are part of the agency's extensive $38.3 billion initiative aimed at revamping its detention center network, as it intensifies its mass deportation efforts initiated under the previous administration. ICE intends to transform these vacant industrial warehouses, initially designed for distribution and logistics, into detention centers with the capacity to hold thousands of individuals. Business Insider has verified the purchases through public records and local deed searches. A recent analysis by the real estate data firm, CoStar, revealed that ICE paid a premium of 11% to 13% on these properties. Purchase prices varied, with a 261,000-square-foot warehouse in San Antonio fetching $35 million, while a larger 833,000-square-foot facility in Salt Lake City was sold for an impressive $145 million. Among the notable transactions, ICE acquired a warehouse in Social Circle, Georgia, for $129 million from PNK Group USA. This company, owned by Andrey Sharkov—a former Russian citizen who claims to have renounced his citizenship—purchased the land for $29.4 million in 2024, then constructed the warehouse before selling it to ICE in February. This deal has drawn scrutiny, prompting a congressional inquiry led by Senator Elizabeth Warren and Representative Jamie Raskin to investigate whether government contractors and real estate firms have unfairly profited from transactions with ICE. The sellers primarily consist of large real estate firms, including The Carlyle Group and Dalfen Industrial, which partners with Goldman Sachs. Most of the sellers acquired the land and constructed the warehouses within the last five years, with plans to either flip or lease them to logistics companies. For instance, in February, Blue Owl sold a facility in Tremont, Pennsylvania, to ICE for $119 million, despite having purchased it for $129.5 million just a few years prior. The Salt Lake City warehouse, capable of housing up to 10,000 people, is strategically located near the Salt Lake City International Airport and major distribution centers, including those for Amazon and Sephora. Funding for these acquisitions comes from federal tax dollars allocated through last summer's Big Beautiful Bill Act, supporting a daily detention capacity projected to accommodate “at least 100,000 aliens.” This shift towards direct purchasing marks a significant change for ICE, which has historically leased facilities from private prison companies. The agency's new approach aims to quickly increase bed capacity and streamline deportation operations. A document released by New Hampshire Governor Kelly Ayotte suggests that ICE believes refurbishing these “non-traditional” facilities will enable the rapid establishment of tailored detention centers. However, reports indicate that ICE's plans for these detention centers may face delays as the newly appointed Secretary of Homeland Security, Markwayne Mullins, reviews the policies set by his predecessor, Kristi Noem. ICE has previously outlined intentions to acquire a total of 24 properties, including 16 regional processing centers designed to house up to 1,500 people temporarily, and eight larger detention centers for longer-term stays. ICE's aggressive acquisition strategy has encountered public opposition in several communities, leading to some property owners reconsidering their sales to the agency. In Merrillville, Indiana, for example, a warehouse owner publicly denied having discussions with ICE regarding a sale. Furthermore, protests against ICE’s plans have erupted, including a recent incident in Salt Lake City where a protester was arrested for vandalism during a demonstration against the warehouse acquisitions.