ICE Scoops Up Warehouses Nationwide

Immigration and Customs Enforcement has become one of the more aggressive real estate players in the country.

Under the umbrella of the U.S. Department of Homeland Security, ICE is rolling out a $38.3 billion detention model that leans heavily on privately owned industrial space. The goal is to push detention capacity to roughly 92,600 beds, up more than 20,000 from current levels. That buildout has translated into nearly $700 million in warehouse acquisitions so far, with at least nine mega-deals closed and seven others scrapped.

For industrial owners, it has become a complicated call. On one side is a deep-pocketed federal buyer willing to move quickly. On the other is reputational risk that can spill into protests, political pressure and tenant backlash.

In Social Circle, Georgia, a subsidiary of Russia-founded PNK Group sold a newly built, 1 million-square-foot warehouse for $129 million. DHS plans to convert it into one of eight mega-centers capable of holding up to 10,000 detainees at a time. That would effectively double the town’s population. Residents have raised concerns about utilities and tax revenue, even though most voters in the area supported President Donald Trump.

In New Jersey, a Goldman Sachs-backed venture with Dallas-based Dalfen Industrial sold a 470,000-square-foot Roxbury warehouse to the federal government. The group said it was sold in lieu of potential eminent domain and will have no role in the future use. The site could add roughly 1,500 beds in a state that has already seen fierce political and legal battles over detention facilities.

In Pennsylvania, a fund managed by Blue Owl Capital sold a former Big Lots distribution center for about $120 million. ICE is eyeing a 7,500-bed mega facility there, one of the largest in the country. In Arizona, an entity tied to Rockefeller Group sold a 418,000-square-foot warehouse in Surprise for more than $70 million, with plans for 1,500 beds.

Texas has become a focal point in the buildout. ICE confirmed it acquired a warehouse in San Antonio and is reportedly circling others. In Hutchins, a 1 million-square-foot building owned by Majestic Realty Company was floated as a potential 9,500-bed hub before the developer publicly walked away, citing its broader economic strategy. Local officials warned that losing the property’s tax base and potentially doubling the city’s population would strain water and sewer systems.

Elsewhere, some deals have unraveled under public pressure. A warehouse in Ashland, Virginia, controlled by Canadian billionaire Jim Pattison was pulled after the intended use became clear. In Chester, New York, ICE is attempting to buy a warehouse owned by an affiliate of Carl Icahn, prompting bipartisan opposition and a petition with more than 10,000 signatures.

While some institutional owners are staying on the sidelines, private prison operators are leaning in.

CoreCivic doubled its revenue from ICE year over year to $245 million and increased the number of detainees in its care by 58 percent to more than 16,000. GEO Group has expanded to roughly 26,000 active beds and hired about 2,000 employees as ICE’s total population climbs to a record roughly 70,000 detainees. Both companies have told investors they expect to be part of the solution as the government pursues at least 100,000 beds nationally.

The warehouse strategy is only one piece of a broader physical expansion. ICE and DHS have lined up more than 150 office leases across nearly every state, often in conventional buildings near schools and hospitals. Internal records show the General Services Administration fast-tracking space under what staff dubbed an ICE surge. Since Trump returned to office in 2025, ICE has more than doubled to about 22,000 officers and agents, fueled by nearly $80 billion in funding.

The effects are not limited to big-box transactions. In Chicago, landlord Trinity Flood is fighting foreclosure on a South Shore apartment complex that was the site of a high-profile ICE raid last fall. Tenants said agents detained nearly everyone in the building. The property is now in receivership, and Flood is battling Wells Fargo in court over insurance costs and loan defaults tied to a $27 million CMBS loan.

The federal government has become a forceful, well-funded buyer of last resort for certain types of vacant industrial space. But every deal now carries weight. Community blowback, zoning fights, infrastructure constraints and human rights concerns are shaping outcomes just as much as price.

🎙️ To hear more about ICE’s expansion from TRD’s editorial team, be sure to check out the return of our podcast, Deconstruct, on Spotify or Apple Podcasts.

There was plenty of other real estate news this week. The government dropped two federal charges against the Alexander brothers, Josh Schuster changed his plea to guilty and Michael Shvo is in contract to sell Transamerica Pyramid.

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